(a) Annually by June 1 prior to the school year, provide a bond payable to the state of Wisconsin equal to 25 % of the total amount of scholarships expected to be received by the school during the school year.
(b) Annually by March 1 prior to the school year, submit financial information to the department that demonstrates that the school has the ability to pay an amount equal to the total amount of scholarships expected to be received by the school during the school year, including all of the following:
1. A budget and cash flow report, on a form provided by the department, for the following school year that contains all of the following:
a. Anticipated enrollments for all pupils enrolled in the school.
b. Anticipated enrollments for special needs scholarship program pupils.
c. Estimated total revenues and costs.
e. A schedule of anticipated beginning and ending net assets.
2. A statement of whether the school has any past due amounts, interest, or penalties due to the U.S. internal revenue service, the Wisconsin department of workforce development, or the Wisconsin department of revenue. An amount must be disclosed even if it is in dispute. If a school has past due amounts, interest, or penalties due to a government entity, the school shall do all of the following:
a. Disclose to the department the outstanding amount owed.
b. Submit to the department statements or other correspondence from the government entity stating the amount the government entity claims is due, the amount in dispute, and nature of the amount due.
3. Submit to the department the most recent balance sheet and income statement for the legal entity of the school.
4. Submit to the department bank statements for all cash and investment accounts included in the balance sheet required under subd. 3.
5. Submit to the department any other information required by the department to determine the financial position of the school.
(2) Financial information review. The department shall review the financial information provided by a school under sub. (1) (b) and any other information available to the department to determine if the school meets the requirements under s. 115.7915 (6) (f) 2., Stats. In making a determination, the department shall remove the special needs scholarship program revenue from the school’s budget to determine if any of the following indicators exist: (a) The school has inadequate revenues and other financial resources to fund current operations in the budget submitted under sub. (1) (b). (
(b) The school has negative cash flows in any month in the budget submitted under sub. (1) (b).
(c) The school has a negative net asset balance in the financial audit or in the budget submitted under sub. (1) (b).
(d) The school has a negative net current obligation in its financial audit or in the budget submitted under sub. (1) (b). The net current obligation shall be calculated as the current assets less the current liabilities.
(e) The school has a net operating loss in the financial audit or in the budget submitted under sub. (1) (b).
(f) The audit opinion statement included in the financial audit contains a qualification as to the school's ability to continue as a going concern.
(g) The school failed to make payments to vendors as required by written agreement or, if there is no written agreement, within 90 days of invoice or payment request. The department shall consider this an indicator even if the school has entered into a payment plan with the vendor to pay the past due amount.
(h)The school has past due amounts with government agencies, including payment of employee withholdings. The department shall consider this an indicator even if the school has entered into a payment plan with the government agency to pay the past due amount.
(i) The school failed to pay its employees as required by ch. 109, Stats., or by written agreement with the employee. (3) Insufficient financial information.
(a) Except as provided under par. (b), the department shall determine that a school does not meet the requirements under s. 115.7915 (6) (f) 2., Stats., if any of the indicators under sub. (2) exist. (b) An amount in dispute identified under sub. (2) (g) shall not be considered an indicator under sub. (2) (g) if all of the following are true:
1. The school provided the department with written correspondence between the school and the vendor evidencing that the amount is in dispute.
2. The school has sufficient cash available to pay the amount in dispute.
3. The disputed amount is included in the budget as a current liability and paid in the first month of the budget.
(c) A school that does not meet the requirements under s. 115.7915 (6) (f) 2., Stats., shall provide a surety bond that meets the requirements under sub. (1) (a) by June 1 prior to the school year. (4) Bond call provisions. The department may call a bond submitted by a school under this section for any of the following reasons:
(b) The school failed to timely refund the department any amount certified due from the school under s. PI 49.07 (4). (c) The school failed to timely refund the department the reserve balance as prescribed under s. PI 49.09. (d) The school failed to timely refund the department any other money owed to the department for any other reason under this chapter or s. 115.7915, Stats. (5) Notwithstanding subs. (1) (a) and (3) (c), a school shall provide a surety bond that meets the requirements under sub. (1) (a) by August 1, 2016, if the school is required to provide a surety bond under this section for the school year ending June 30, 2017.
PI 49.05 Pupil application requirements.
(1) Explanation of rights & special education program profile. When an applicant applies to a school, the school shall provide the applicant with all of the following:
(a) An explanation of the rights of a child with a disability and his or her parent in a public school compared to the rights of a child with a disability and his or her parent at a private school participating in a special needs scholarship program on a document provided by the department under s. 115.7915 (4) (a) 1., Stats. (b) The profile of the school’s special education program required under s. PI 49.03 (3) (c). (2) Age requirement. In order to be eligible for the special needs scholarship program, a 4-year-old kindergarten pupil, 5-year-old kindergarten pupil, and a first grade pupil shall attain the ages specified in s. 118.14 (1), Stats. (3) Application receipt. An application shall be considered received under s. 115.7915 (3) (b), Stats., when an applicant has submitted all of the following to the school: (a) An application.
(b) Residency documentation.
(c) Documentation that the pupil meets the requirements under s. 115.7915 (2), Stats., as required by the application. (4) Application eligibility determination. Within 21 days of receiving an application under sub. (3), a school shall do all of the following:
(a) Determine if the application is eligible by verifying all of the following:
1. The address on the pupil’s application is in the Wisconsin school district listed on the application using the state of Wisconsin’s Statewide Voter Registration System or any another source permitted by the department.
2. The residency document provided under sub. (3) (b) is one of the residency documents specified by the department that shows the pupil resides at the address on the application at the time of application. The residency document shall be dated no earlier than 3 months prior to the date the application is provided under sub. (3) (a). If a school receives a lease agreement as a residency document, the lease term shall include the date the application was provided under sub. (3) (a). The document shall contain the name of the parent on the application and match the address on the application.
3. The applicant has provided the documentation required under sub. (3) (c).
(b) Identify if the application is eligible in the online application system, or another manner permitted by the department.
(c) Notify an applicant in writing if one of the following occurs:
1. The application under sub. (3) is determined ineligible. The school shall state in its letter the reasons why the application is ineligible.
2. The application under sub. (3) is determined eligible but the school does not have space available for the student. The school shall state in the letter the pupil’s place on the school’s waiting list.
(5) Transfer requests.
(a) An applicant may transfer an application under this chapter to a different school participating in the special needs scholarship program if all of the following apply:
1. The pupil has an individualized education program or services plan that is currently in effect.
2. The pupil is not receiving a partial scholarship.
3. The pupil has been continuously enrolled in the special needs scholarship program.
(b) An applicant transferring an application under par. (a) shall submit a transfer request on a form provided by the department. The date the application is received under s. 115.7915 (3) (b), Stats., shall be the date the transfer request is received by the school. (c) Within 21 days of receiving a transfer request under par. (b), a school shall do all of the following:
1. Identify if the transfer request is eligible, using the online application system or another manner permitted by the department.
2. Notify an applicant in writing if one of the following occurs:
a. The transfer request under par. (b) is determined ineligible. The school shall state in its letter the reasons why the application is ineligible.
b. The transfer request under par. (b) is determined eligible but the school does not have space available for the student. The school shall state in the letter the pupil’s place on the school’s waiting list.
(d) If a pupil is determined eligible under par. (c) and the school has space available, the resident public school district shall provide all of the following in the same manner required under s. 115.7915 (4) (b), Stats.: 1. Verification to the department that the child has an individualized education program or services plan in place for the child.
2. A copy of the child’s individualized education program or services plan to the school that received the transfer request.
(6) Sibling preference.
(a) If a school receives an application under sub. (3) or a transfer request under sub. (5) from a sibling of a pupil who is already attending the school, the school may give the sibling preference over a pupil who has not yet been identified as eligible under sub. (4) (b) or (5) (c) 1.
(b) A school shall determine the eligibility of a sibling receiving preference under par. (a) before the date the school is required to determine the eligibility, under sub. (4) or (5), of any application or transfer request the sibling is given preference over.
(c) If the school is unable to determine if the sibling application or transfer request is eligible within the time period required under par. (b), the school must accept the applications in the order they were received in.
(7) individualized education program or services plan in effect.
(a) A pupil shall have an individualized education program or services plan in effect at the time an applicant submits an application under sub. (3) or a transfer request under sub. (5) .
(b) Within 7 days of a school receiving the individualized education program or services plan that is in effect from a resident school district or notification that a pupil does not have an individualized education program or services plan in effect, a school shall notify an applicant in writing if the application under sub. (3) or transfer request under sub. (5) was determined eligible or ineligible. If the application or transfer request is determined ineligible, the school shall state in its letter the reasons why the application is ineligible.
(8) Scholarship continuance. A scholarship awarded to a pupil under this chapter shall continue until any of the following occur:
(a) The pupil graduates from high school.
(b) The pupil attains the age of 21. A pupil who attains the age of 21 shall receive the scholarship until the end of the school term in which the pupil attains the age of 21.
(c) The pupil no longer resides in Wisconsin as of the third Friday in September.
(d) The pupil is enrolled, in or out of Wisconsin, in another private school, a home-based private educational program, a charter school under s. 118.40 (2r) or (2x), Stats., or a public school district. PI 49.06 School year enrollment.
