2017 Wisconsin Act 36

118.60 (2) (a) 2. e. The pupil attended a school in another state in the previous school year.

36,30 Section 30. 118.60 (2) (a) 2. f. of the statutes is created to read:

118.60 (2) (a) 2. f. The pupil was on a waiting list to attend a private school under this section or s. 119.23 during the previous school year.

36,31 Section 31. 118.60 (2) (a) 2m. of the statutes is repealed.

36,32 Section 32 . 118.60 (2) (a) 3g. of the statutes is renumbered 118.60 (7m) (a) 2. and amended to read:

118.60 (7m) (a) 2. By May 1 before the first term of participation in the program under this section, the private school submits to the department, on a form provided by the department, a A complete anticipated budget, on a form provided by the department, for the first fiscal period of participation in the program under this section and evidence of financial viability, as prescribed by the department by rule. The governing body private school shall include on the completed form in the budget the anticipated enrollments for all pupils enrolled in the private school and for pupils enrolled in the private school under this section; estimated revenues and costs; a schedule of anticipated beginning and ending net choice program assets; and a schedule of monthly cash flow requirements. The governing body private school shall include in the budget contingent funding sources the private school will use in the event that actual enrollments are less than expected.

36,33 Section 33 . 118.60 (2) (a) 8. of the statutes is amended to read:

118.60 (2) (a) 8. Notwithstanding s. 118.165 (1) (c), the private school annually provides at least 1,050 hours of direct pupil instruction in grades 1 to 6 and at least 1,137 hours of direct pupil instruction in grades 7 to 12. Hours provided under this subdivision include recess and time for pupils to transfer between classes but do not include the lunch periods. Annually, no more than 140 hours of work under s. 118.56 may be counted as hours of direct pupil instruction.

36,34 Section 34 . 118.60 (2) (ag) 2. a. of the statutes is amended to read:

118.60 (2) (ag) 2. a. By August 1 of the school year immediately preceding the school year in which the new private school intends to participate in the program under this section, submit to the department the information required under sub. (6m) (6p) (a) and (c) (b).

36,35 Section 35 . 118.60 (2) (ag) 3. of the statutes is repealed.

36,36 Section 36 . 118.60 (3) (a) (intro.) of the statutes is 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 No later than 60 days after receiving the application the end of the application period during which an application is received and subject to par. (ar), 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 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 par. (ar), the state superintendent shall ensure that the private school determines which pupils to accept on a random basis, except that the private school may give preference to the following in accepting applications, in the order of preference listed:

36,37 Section 37 . 118.60 (3) (a) 1m. of the statutes is amended to read:

118.60 (3) (a) 1m. Pupils who attended the private school under this section or s. 119.23 during the previous school year.

36,38 Section 38 . 118.60 (3) (ar) (intro.) of the statutes is created to read:

118.60 (3) (ar) (intro.) All of the following apply to applications to attend a private school under this section only if the limitation under sub. (2) (be) applies to the school year for which the application is made:

36,39 Section 39 . 118.60 (3) (ar) 1. of the statutes is amended to read:

118.60 (3) (ar) 1. In the 2015-16 school year and any school year thereafter, a 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.

36,40 Section 40 . 118.60 (3) (ar) 2. of the statutes is amended to read:

118.60 (3) (ar) 2. By May 1, 2016, and by the May 1 of any school year thereafter immediately following the application period under subd. 1., 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.

36,41 Section 41. 118.60 (3) (ar) 3. (intro.) and b. of the statutes are consolidated, renumbered 118.60 (3) (ar) 3. and amended to read:

118.60 (3) (ar) 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: 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.

36,42 Section 42. 118.60 (3) (ar) 3. a. and am. of the statutes are repealed.

36,43 Section 43 . 118.60 (3) (ar) 4. of the statutes is amended to read:

118.60 (3) (ar) 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. (2) (be), the department shall establish a waiting list in accordance with the preferences required under subd. 3. b.

36,44 Section 44 . 118.60 (3) (ar) 6. of the statutes is created to read:

118.60 (3) (ar) 6. In the 2017-18 school year and any school year thereafter, between the first weekday in August and the 3rd Friday in August, the department may transfer a pupil's application to attend a private school under this section in the current school year to a private school that accepted applications from pupils under subd. 1. for the current school year, if all of the following apply:

a. A participating private school accepted an application from the pupil for the current school year under subd. 1. and verified that the pupil is eligible to attend a private school under this section.

b. The pupil's residence changed between April 21 and the 3rd Friday in August and the pupil continues to reside in a school district other than an eligible school district or a 1st class city school district.

c. The participating private school to which the pupil's application is transferred under this subdivision has space available in the pupil's grade.

d. The total number of pupils residing in the pupil's resident school district attending a private school under this section during the current school year does not exceed the school district's pupil participation limit under sub. (2) (be).

36,45 Section 45. 118.60 (3) (c) of the statutes is amended to read:

118.60 (3) (c) If a participating private school rejects an applicant who resides in a school district, other than an eligible school district or a 1st class city school district, because the private school has too few available spaces, the applicant may transfer his or her application to a participating private school that has space available. An applicant who is rejected under this paragraph or an applicant who is on the waiting list under sub. (3) (ar) 4. may, subject to sub. (2) (be) and (bm), be admitted to a private school participating in the program under this section for the following school year, provided that the applicant continues to reside in a school district other than an eligible school district or a 1st class city school district. The department may not require, in that following school year, the private school to submit financial information regarding the applicant or to verify the eligibility of the applicant to participate in the program under this section on the basis of family income.

36,46 Section 46 . 118.60 (3m) (am) 1. h. of the statutes is created to read:

118.60 (3m) (am) 1. h. Room and board at the private school.

36,47 Section 47 . 118.60 (4) (a) of the statutes is amended to read:

118.60 (4) (a) Annually, on or before October 1 September 15, a private school participating in the program under this section shall file with the department a report stating its summer daily attendance for each day of summer school for the purpose of sub. (4m).

36,48 Section 48. 118.60 (4v) of the statutes is created to read:

118.60 (4v) (a) The department may consider a pupil enrolled in a private school participating in the program under this section who satisfies all of the following as a resident of an eligible school district who is enrolled in the private school under this section:

1. The pupil was a resident of a school district, other than an eligible school district or a 1st class city school district, when the pupil applied to participate in the program under this section.

2. The pupil accepted a space at a private school participating in the program under this section as a resident of a school district, other than an eligible school district or a 1st class city school district.

3. The pupil resides in an eligible school district on the 3rd Friday in September.

4. The private school the pupil is attending under this section accepts applications under this section from pupils who reside in an eligible school district.

(b) If the department considers a pupil as a resident of an eligible school district under par. (a), the department shall ensure that the pupil is not counted for purposes of determining whether a school district has exceeded its pupil participation limit under sub. (2) (be).

36,49 Section 49 . 118.60 (6m) (b) (intro.) of the statutes is amended to read:

118.60 (6m) (b) (intro.) Annually, by August 1st 1, provide to the department the material specified in par. (a) and all of the following information:

36,50 Section 50. 118.60 (6m) (b) 1. and 2. of the statutes are repealed.

36,51 Section 51 . 118.60 (6m) (b) 4. of the statutes is repealed.

36,52 Section 52 . 118.60 (6m) (bm) of the statutes is created to read:

118.60 (6m) (bm) Upon request of the department, provide a copy of any policy described in par. (a) and the academic standards adopted under sub. (7) (b) 2.

36,53 Section 53 . 118.60 (6m) (c) of the statutes is amended to read:

118.60 (6m) (c) Provide Upon an individual joining the private school's governing body, provide to the department a signed statement from each the individual who is a member of the private school's governing body verifying that the individual is a member of the governing body.

36,54 Section 54 . 118.60 (6p) of the statutes is created to read:

118.60 (6p) In addition to the requirements under sub. (6m), a private school that is not a new private school and that did not participate in the program under this section or s. 119.23 in the previous school year shall submit to the department all of the following:

(a) By January 10 of the school year immediately preceding the school year in which the private school intends to participate in the program under this section, all of the following:

1. The information required under sub. (6m) (a).

2. A signed statement from each individual who is a member of the private school's governing body verifying that the individual is a member of the governing body.

(b) By August 1 of the school year in which the private school intends to participate in the program under this section, a copy of the academic standards adopted under sub. (7) (b) 2.

36,55 Section 55 . 118.60 (7) (a) of the statutes is repealed.

36,56 Section 56 . 118.60 (7) (am) 2m. a. of the statutes is amended to read:

118.60 (7) (am) 2m. 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 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 If the private school annually received a total of at least $100,000 under this section and ss. 115.7915 and 119.23 in any school year, the audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets. If the private school has not annually received a total of at least $100,000 under this section and ss. 115.7915 and 119.23 in any school year, the audit shall be prepared as prescribed by the department by rule. 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. 115.7915 or 119.23, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision and s. ss. 115.7915 (6) (e) and 119.23 (7) (am) 2m., whichever are applicable. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 2m.

36,57 Section 57. 118.60 (7) (an) 1. of the statutes is amended to read:

118.60 (7) (an) 1. A private school participating in the program under this section shall maintain a cash and investment balance that is at least equal to its reserve balance. If a private school does not maintain a cash and investment balance that is at least equal to its reserve balance, the private school shall refund the reserve balance to the department. If a private school ceases to participate in or is barred from the program under this section and s. 119.23 and the private school's reserve balance is positive, the private school shall refund the reserve balance to the department.

36,58 Section 58. 118.60 (7) (ao) of the statutes is repealed.

36,59 Section 59 . 118.60 (7) (d) (intro.) of the statutes is amended to read:

118.60 (7) (d) (intro.) By September 1 before the first school term of participation in the program that begins in the 2013-14 school year, by August 1 before the first school term of participation in the program that begins in the 2014-15 school year or any school year thereafter, or by May 1 if the private school begins participating in the program during summer school, each private school participating in the program under this section shall submit to the department all of the following:

36,60 Section 60 . 118.60 (7) (d) 2. of the statutes is repealed.

36,61 Section 61. 118.60 (7) (em) 1. of the statutes is amended to read:

118.60 (7) (em) 1. Beginning in the 2013-14 school year, the The governing body of each private school participating in the program under this section shall, subject to subd. 2., annually, by January 15 August 1, provide the department with evidence demonstrating that the private school remains accredited for the current school year as required under par. (ad), except that in the 2017-18 school year the governing body shall submit the evidence by January 15, 2018. The governing body shall include as evidence of accreditation a letter prepared by an accrediting entity that confirms that the private school is accredited by that entity as of the date of the letter.

36,62 Section 62 . 118.60 (7) (h) of the statutes is created to read:

118.60 (7) (h) Beginning in the 2018-19 school year, each private school participating in the program under this section shall conduct criminal background investigations of its employees and exclude from employment any person not permitted to hold a teaching license as the result of an offense and any person who might reasonably be believed to pose a threat to the safety of others.

36,63 Section 63 . 118.60 (7m) of the statutes is created to read:

118.60 (7m) (a) By May 1 before the first school term that a private school participates in the program under this section or s. 119.23, a private school shall submit to the department one of the following:

1. A surety bond payable to the state in an amount equal to 25 percent of the total amount of payments the private school expects to receive under this section and s. 119.23 during the first school year the private school participates in the program under this section.

(b) 1. If a private school submits a surety bond under par. (a) 1., the private school shall annually provide, by May 1, a surety bond payable to the state until the private school submits all of the following to the department:

a. A financial audit prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets that does not contain any indicators that the private school is not financially viable.

b. Evidence of sound fiscal and internal control practices under sub. (7) (am) 2m. b. for the school year in the financial audit submitted under subd. 1. a. and for the subsequent school year, neither of which indicates that the private school is not financially viable.

2. A private school shall provide a surety bond under this paragraph in an amount equal to 25 percent of the total amount of payments the private school expects to receive under this section and s. 119.23 during the following school year.

(c) If a private school submits a complete anticipated budget under par. (a) 2., the department shall determine whether the private school is financially viable by August 1. If the department determines that the private school is not financially viable, the private school is not eligible to participate in the program under this section or s. 119.23 in the current school year.

36,64 Section 64 . 118.60 (10) (a) 1. of the statutes is amended to read:

118.60 (10) (a) 1. Misrepresented Intentionally or negligently misrepresented any information required under sub. (7) (d) this section or any rule promulgated under this section.

36,65 Section 65 . 118.60 (10) (a) 4. of the statutes is repealed.

36,66 Section 66 . 118.60 (10) (a) 5. of the statutes is amended to read:

118.60 (10) (a) 5. Failed to provide the information required under sub. (6m) or (6p).

36,67 Section 67 . 118.60 (10) (a) 6. of the statutes is amended to read:

118.60 (10) (a) 6. Failed to comply with the requirements under sub. (7) (b) or, (c) , or (h) or (7m).

36,68 Section 68 . 118.60 (10) (am) 4. of the statutes is created to read:

118.60 (10) (am) 4. The private school intentionally or negligently misrepresented any information required under this section or any rule promulgated under this section.