118.60 (2) (a) 2m. For a pupil who resides in a school district, other than an eligible school district or a 1st class city school district, that begins participating in the program under this section in the 2016-17 school year or any school year thereafter, the pupil satisfies one or more of the following:
a. The pupil was enrolled in a public school in the school district in which the pupil resides during the previous school year.
b. The pupil was not enrolled in school in the previous school year.
c. The pupil attended a private school under this section in the previous school year.
d. The pupil is applying to kindergarten, first grade, or 9th grade in a private school participating in the program under this section.
55,3320
Section
3320. 118.60 (2) (a) 3. a. of the statutes is amended to read:
118.60 (2) (a) 3. a. Except as provided in subd. 3. b. and c. and sub. (2) par. (ag) 1., the private school notified the state superintendent of its intent to participate in the program under this section or in the program under s. 119.23, and paid the nonrefundable fee, set by the department as required under s. 119.23 (2) (a) 3., by February 1 January 10 of the previous school year. The notice shall specify the number of pupils participating in the program under this section and in the program under s. 119.23 for which the school has space.
55,3321
Section
3321. 118.60 (2) (a) 6. a. of the statutes is amended to read:
118.60 (2) (a) 6. a. Except as provided in subd. 6. c. and d., all of the private school's teachers have a teaching license issued by the department or a bachelor's degree or a degree or educational credential higher than a bachelor's degree, including a masters or doctorate, from an a nationally or regionally accredited institution of higher education.
55,3322
Section
3322. 118.60 (2) (a) 6. b. of the statutes is amended to read:
118.60 (2) (a) 6. b. All of the private school's administrators have at least a bachelor's degree from an
a nationally or regionally accredited institution of higher education or a teaching license or administrator's license issued by the department.
55,3323m
Section 3323m. 118.60 (2) (be) of the statutes is repealed and recreated to read:
118.60 (2) (be) 1. In this paragraph:
a. "Applicable percentage" means, for the 2015-16 and 2016-17 school years, 1 percent, and for each school year beginning with the 2017-18 school year and ending with the 2025-26 school year, the applicable percentage for the previous school year plus one percentage point.
b. "Membership" has the meaning given in s. 121.004 (5).
c. "Pupil participation limit" means a school district's membership in the previous school year multiplied by the applicable percentage for the current school year.
2. Beginning with the 2015-16 school year and ending with the 2025-26 school year, the total number of pupils residing in a school district, other than an eligible school district or a 1st class city school district, who may attend a private school under this section during a school year may not exceed the school district's pupil participation limit for that school year.
3. Beginning with the 2026-27 school year, there is no limit on the number of pupils who may attend private schools under this section.
55,3323p
Section 3323p. 118.60 (2) (bs) of the statutes is amended to read:
118.60 (2) (bs) In the 2013-14 and 2014-15 2015-16 and 2016-17 school years, a private school may accept pupils who reside in a school district, other than an eligible school district or a 1st class city school district, under this section only if the private school was has been continually operating as a private school on
since May 1, 2013.
55,3324
Section
3324. 118.60 (3) (a) (intro.) and 1. (intro.) of the statutes are consolidated, renumbered 118.60 (3) (a) (intro.) and amended to read:
118.60 (3) (a) (intro.) The pupil or the pupil's parent or guardian shall submit an application, on a form provided by the state superintendent, to the participating private school that the pupil wishes to attend. If more than one pupil from the same family applies to attend the same private school, the pupils may use a single application. Within 60 days after receiving the application, the private school shall notify each applicant, in writing, whether his or her application has been accepted. If the private school rejects an application, the notice shall include the reason. Subject to pars. (ag) and par. (ar), a private school may reject an applicant only if it has reached its maximum general capacity or seating capacity. Except as provided in pars. (ag) and par. (ar), the state superintendent shall ensure that the private school determines which pupils to accept on a random basis, except that: 1. The
the private school may give preference to the following in accepting applications to any of the following, in the order of preference listed:
55,3325
Section
3325. 118.60 (3) (a) 1. a. to c. and 2. of the statutes are repealed.
55,3326
Section
3326. 118.60 (3) (a) 1m., 2m., 3., 4. and 5. of the statutes are created to read:
118.60 (3) (a) 1m. Pupils who attended the private school under this section during the previous school year.
2m. Siblings of pupils described in subd. 1m.
3. Pupils who attended a different private school under this section or s. 119.23 during the previous school year.
4. Siblings of pupils described under subd. 3.
5. Siblings of those pupils who have been randomly accepted to attend the private school under this section and who did not attend a private school under this section or s. 119.23 during the previous school year.
55,3327
Section
3327. 118.60 (3) (ag) of the statutes is repealed.
55,3328m
Section 3328m. 118.60 (3) (ar) of the statutes is repealed and recreated to read:
118.60 (3) (ar) 1. In the 2015-16 school year and any school year thereafter, a private school that has submitted a notice of intent to participate under sub. (2) (a) 3. a. may accept applications for the following school year between February 1 and April 20 from pupils who reside in a school district, other than an eligible school district or a 1st class city school district.
2. By May 1, 2016, and by May 1 of any school year thereafter, each private school that received applications under subd. 1. shall report to the department the number of pupils who have applied under subd. 1. to attend the private school under this section and the names of those applicants that have siblings who have also applied under subd. 1. to attend the private school under this section.
3. Annually, upon receipt of the information under subd. 2., the department shall, for each school district, determine the sum of all applicants for pupils residing in that school district under this paragraph. In determining the sum, the department shall count a pupil who has applied to attend more than one private school under the program only once. After determining the sum of all applicants for pupils residing in a school district, the department shall do one of the following:
a. For applications for the 2016-17 and 2017-18 school years, if the total number of applicants does not exceed the school district's pupil participation limit under sub. (2) (be), the department shall determine which applications each private school may accept on a random basis, except that the department shall give preference to the applications of pupils described in s. 118.60 (3) (a) 1m. to 5., in the order of preference listed in that paragraph.
am. For applications for the 2018-19 school year and each school year thereafter, if the total number of applicants does not exceed the school district's pupil participation limit under sub. (2) (be), the department shall immediately notify the private schools that all applicants reported under subd. 2. may be accepted into the private schools under the program for the next school year.
b. Annually, if the total number of applicants exceeds the school district's pupil participation limit under sub. (2) (be), the department shall determine which applications to accept on a random basis, except that the department shall give preference to the applications of pupils described in s. 118.60 (3) (a) 1m. to 5., in the order of preference listed in that paragraph.
4. For each school district in which private schools received applications under subd. 1. that exceeded the school district's pupil participation limit under sub. (be), the department shall establish a waiting list in accordance with the preferences required under subd. 3. b.
5. A private school that has accepted a pupil who resides in a school district, other than an eligible school district or a 1st class city school district, under this paragraph shall notify the department whenever the private school determines that a pupil will not attend the private school under this paragraph. If, upon receiving notice under this subdivision, the department determines that the number of pupils attending private schools under this section falls below a school district's pupil participation limit under sub. (2) (be), the department shall fill any available slot in that school district with a pupil selected from the school district's waiting established under subd. 4., if such a waiting list exists.
55,3330
Section
3330. 118.60 (3) (d) of the statutes is created to read:
118.60 (3) (d) By the 3rd Friday in September, a pupil or a pupil's parent or guardian shall notify, using a form provided by the department, the department that the pupil is currently participating in the program under this section. The form provided by the department under this paragraph shall require a pupil or a pupil's parent or guardian to indicate the school year during which the pupil first began participating in the program under this section.
55,3331
Section
3331. 118.60 (4) (a) of the statutes is amended to read:
118.60 (4) (a) Annually, on or before October
15 1, a private school participating in the program under this section shall file with the department a report stating its summer average daily membership equivalent and its summer choice average daily membership equivalent attendance for each day of summer school for the purpose of sub. (4m).
55,3333
Section
3333. 118.60 (4) (bg) 3. (intro.) and 118.60 (4) (bg) 3. b. of the statutes are consolidated, renumbered 118.60 (4) (bg) 3. and amended to read:
118.60 (4) (bg) 3. In the 2015-16 school year and in each school year thereafter, upon receipt from the pupil's parent or guardian of proof of the pupil's enrollment in the private school during a school term, except as provided in subd. 5., the state superintendent shall pay to the private school in which the pupil is enrolled on behalf of the pupil's parent or guardian, from the appropriation under s. 20.255 (2) (fr), the lesser of the following: b. Except as provided in subd. 5., an amount equal to the sum of the maximum amount per pupil the state superintendent paid a private school under this section in the previous school year for the grade in which the pupil is enrolled; the amount of the per pupil revenue adjustment under s. 121.91 (2m) for the current school year, if positive; and the change in the amount of statewide categorical aid per pupil between the previous school year and the current school year, as determined under s. 118.40 (2r) (e) 2p., if positive.
55,3334
Section
3334. 118.60 (4) (bg) 3. a. of the statutes is repealed.
55,3335
Section
3335. 118.60 (4) (bg) 5. (intro.) of the statutes is amended to read:
118.60 (4) (bg) 5. (intro.) If the pupil described in subd. 3. is enrolled in a private school that enrolls pupils under the program in any grade between kindergarten to 8 and also in any grade between 9 to 12, the state superintendent shall substitute for the amount described in subd. 3. b. the amount determined under subd. 4. a. to d., with the following modifications:
55,3340
Section
3340. 118.60 (4) (d) of the statutes is repealed.
55,3340g
Section 3340g. 118.60 (4d) of the statutes is created to read:
118.60 (4d) (a) In this subsection, "incoming choice pupil" means a pupil who resides in a school district, other than a 1st class city school district, who begins participating in the program under this section in the 2015-16 school year or any school year thereafter, and who is enrolled in a private school under this section.
(b) 1. Beginning in the 2015-16 school year, subject to s. 121.085 (1), the department shall decrease a school district's state aid payment under s. 121.08 by an amount calculated as follows:
a. Identify the incoming choice pupils residing in the school district for whom a payment is made under sub. (4) (bg) in that school year.
b. Sum the payments made under sub. (4) (bg) for all of the pupils identified under subd. 1. a. for that school year.
c. Identify the incoming choice pupils residing in the school district for whom a payment is made under sub. (4m) in that school year.
d. Sum the payments made under sub. (4m) (a) for all of the pupils identified under subd. 1. c. for that school year.
e. Sum the amounts calculated under subd. 1. b. and d.
2. If a school district's state aid payment under s. 121.08 is insufficient to cover the reduction under subd. 1., as determined under s. 121.085 (2), the department shall decrease other state aid payments made by the department to the school district by the remaining amount.
3. The department shall ensure that the aid adjustment under subd. 1. does not affect the amount determined to be received by a school district as state aid under s. 121.08 for any other purpose.
55,3351g
Section 3351g. 118.60 (4s) of the statutes is created to read:
118.60 (4s) Notwithstanding subs. (4), (4d), (4m), and (4r), a pupil attending a private school participating in the program under this section who is receiving a scholarship under s. 115.7915 shall not be counted as a pupil attending the private school under this section under sub. (4), (4d), (4m), or (4r).
55,3352
Section
3352. 118.60 (6m) (b) 1. of the statutes is amended to read:
118.60 (6m) (b) 1. The number of pupils attending the private school under this section in the previous school year who began participating in the program under this section in the 2015-16 school year or any school year thereafter and the number of pupils attending the private school under this section in the previous school year who began participating in the program under this section before the 2015-16 school year.
55,3353
Section
3353. 118.60 (6m) (b) 3. (intro.) and d. of the statutes are consolidated, renumbered 118.60 (6m) (b) 3. and amended to read:
118.60
(6m) (b) 3. For each of the previous 5 school years in which the private school has participated in the program under this section,
all of the following information: d. To to the extent permitted under
20 USC 1232g and
43 CFR part 99, pupil scores on all standardized tests administered under
sub. (7) (e) s. 118.30 (1t).
55,3354
Section
3354. 118.60 (6m) (b) 3. a. to c. of the statutes are repealed.
55,3355c
Section 3355c. 118.60 (7) (am) of the statutes is renumbered 118.60 (7) (am) 2m. and amended to read:
118.60 (7) (am) 2m. Each private school participating in the program under this section is subject to uniform financial accounting standards established by the department. Annually by September 1 October 15 following a school year in which a private school participated in the program under this section, the private school shall submit to the department all of the following:
a. An independent financial audit of the private school conducted by an independent certified public accountant, accompanied by the auditor's statement that the report is free of material misstatements and fairly presents pupil costs under sub. (4) (bg). The audit under this subdivision shall be limited in scope to those records that are necessary for the department to make payments under subs. (4) and (4m) the private school's eligible education expenses, and beginning in the 2nd school year a private school participates in the program under this section, a copy of a management letter prepared by the auditor. The audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets
acquired before 2014 . The audit shall include a calculation of the private school's net eligible education expenses and a calculation of the balance of the private school's fund for future eligible education expenses. The auditor shall conduct his or her audit, including determining sample sizes and evaluating financial viability, in accordance with the auditing standards established by the American Institute of Certified Public Accountants. The department may not require an auditor to comply with standards that exceed the scope of the standards established by the American Institute of Certified Public Accountants. If a private school participating in a program under this section is part of an organization and the private school and the organization share assets, liabilities, or eligible education expenses, the private school may submit an audit of the private school or of the organization of which it is a part. If a private school that is part of an organization with which it shares assets, liabilities, or eligible education expenses submits an audit of only the private school, the independent auditor shall use his or her professional judgment to allocate any shared assets, liabilities, and eligible education expenses between the organization and the private school. If a private school participating in the program under this section also accepts pupils under s. 119.23, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision and s. 119.23 (7) (am) 1 2m. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 1 2m.
b. Evidence of sound fiscal and internal control practices, as prescribed by the department by rule. An independent auditor engaged to evaluate the private school's fiscal and internal control practices shall conduct his or her evaluation, including determining sample sizes, in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent auditor engaged to evaluate the private school's fiscal and internal control practice shall also review any concerns raised in the private school's management letter submitted under subd. 2m. a. The fact that a private school reports a negative reserve balance alone is not evidence that the private school does not have the financial ability to continue operating or that the private school does not follow sound fiscal and internal control practices.
55,3355e
Section 3355e. 118.60 (7) (am) 1m. of the statutes is created to read:
118.60 (7) (am) 1m. In this paragraph, "eligible education expenses" means all direct and indirect costs associated with a private school's educational programming for pupils enrolled in grades kindergarten to 12 that are reasonable for the private school to achieve its educational purposes, as determined by the governing body of the private school and reviewed by an independent auditor. "Eligible education expenses" include expenses related to management, insurance, transportation, extracurricular programming and activities, facility and equipment costs, development expenses, and programming that provides child care services before school, after school, or both before and after school.
55,3355g
Section 3355g. 118.60 (7) (am) 2m. c. of the statutes is created to read:
118.60 (7) (am) 2m. c. If an independent auditor engaged to evaluate the private school's fiscal and internal control practice determines that the governing body of the private school has not taken reasonable actions to remedy any concerns raised in the management letter submitted under subd. 2m. a. in the previous school year, a report prepared by the independent auditor that includes the auditor's findings related to the governing body's actions to remedy any concerns raised in the management letter for the previous school year.
55,3355m
Section 3355m. 118.60 (7) (an) of the statutes is created to read:
118.60 (7) (an) If a private school participating in the program under this section has a cash or investment reserve balance that is greater than 50 percent of the total amount the private school received under this section in the previous school year, the governing body of the private school shall approve a plan for how it will use the amount of the cash or investment reserve that exceeds 50 percent of the total amount the private school received under this section in the previous school year.
55,3355r
Section 3355r. 118.60 (7) (b) 3. of the statutes is amended to read:
118.60 (7) (b) 3. Ensure that any teacher's aide employed by the private school has graduated from high school, been granted a declaration of equivalency of high school graduation, been granted a high school diploma by the administrator of a home-based private educational program, or been issued a general educational development certificate of high school equivalency, or has obtained a degree or educational credential higher than a high school diploma, declaration of equivalency of high school graduation, or general educational development certificate of high school equivalency.
55,3355s
Section 3355s. 118.60 (7) (d) 1. b. of the statutes is amended to read:
118.60 (7) (d) 1. b. A copy of the school's current certificate of occupancy issued by the municipality within which the school is located. If the private school moves to a new location, the private school shall submit a copy of the new certificate of occupancy issued by the municipality within which the school is located to the department before the attendance of pupils at the new location and before the next succeeding date specified in s. 121.05 (1) (a). If the municipality within which the private school is located does not issue certificates of occupancy, the private school may submit a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy or a letter or form from the municipality within which the private school is located that explains that the municipality does not issue certificates of occupancy. A temporary certificate of occupancy does not meet the requirement of this subdivision. This subdivision applies only to a private school located in an eligible school district.
55,3355t
Section 3355t. 118.60 (7) (dr) of the statutes is created to read:
118.60 (7) (dr) A private school participating in the program under this section may elect to maintain an electronic copy of any application submitted on behalf of and any correspondence to or about a pupil attending the private school under this section instead of a paper copy of the application and correspondence. The private school shall maintain electronic copies of pupil applications and correspondence for a period of at least 5 years.
55,3356
Section
3356. 118.60 (7) (e) of the statutes is amended to read:
118.60 (7) (e) Each private school participating in the program under this section shall administer the examinations required under s. 118.30 (1t) or examinations permitted under s. 118.301 (3) to pupils attending the school under the program. The private school may administer additional standardized tests to such pupils.
55,3357
Section
3357. 118.60 (8) of the statutes is repealed.
55,3358
Section
3358. 118.60 (10) (a) 3. of the statutes is amended to read:
118.60 (10) (a) 3. Failed to refund to the state any overpayment made under s. 118.60 (4) (b), 2011 stats., or s. 118.60 (4) (bg), 2011 stats., or under sub. (4) (bg) or (4m) by the date specified by department rule.
55,3358am
Section 3358am. 118.60 (11) (bm) of the statutes is created to read:
118.60 (11) (bm) No later than 90 days after receiving a financial audit under sub (7) (am), certify the financial audit. During the 90-day period between receipt and certification, the department's contact with the auditor shall be limited to a single written communication. The department's single written communication to the auditor may include only matters that individually impact the private school's financial statement by an amount that is greater than 1 percent of the total amount the private school received under this section for the previous school year. An auditor who receives a written communication under this paragraph shall respond to the department within 15 days of receiving the written communication.
