ORDER OF THE
STATE SUPERINTENDENT OF PUBLIC INSTRUCTION
ADOPTING PERMANENT RULES
The scope statement for this rule, SS 055-17, was published in Register No. 738A2, on June 12, 2017, and approved by State Superintendent Tony Evers on June 22, 2017. Pursuant to Coyne v. Walker, the Department of Public Instruction is not required to obtain the Governor’s approval for the statement of scope for this rule. Coyne v. Walker, 368 Wis.2d 444. The State Superintendent of Public Instruction hereby issues an order to repeal PI 2.02 (5) (g) and (Note), 2.03 (4) (e) and (Note), 2.06, and 9.04 (2) (b); to consolidate, renumber and amend PI 9.04 (2) (intro.) and (a); to amend PI 2.05 (1) (b), 9.01, 9.02 (1), (5), (9), and (14), 14.03 (2) (a) 1. and 2. c., (c) 3., and (d) 6., and PI 14 Appendix; and to create PI 9.06 (1) (h) and 14.03 (1) (c); relating to Red Tape Review of rules governing school district boundary appeals, pupil nondiscrimination, and school finance.
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ANALYSIS BY THE DEPARTMENT OF PUBLIC INSTRUCTION
Explanation of agency authority:
• Chapter PI 2: Under s. 227.11 (2) (a) (intro.), Stats., “Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation.” As such, a rule is required to effectively establish procedures for school district boundary appeals under ch. 117, Stats. • Chapter PI 9: Section 118.13 (3) (a) 2., Stats., requires the state superintendent to promulgate rules necessary to implement pupil nondiscrimination under s. 118.13, Stats. • Chapter PI 14: Under s. 120.14 (4), Stats., the Department is required to establish by rule a standard school district audit contract and minimum standards for school district audits performed under s. 120.14, Stats. Related statute or rule: N/A
Plain language analysis:
As a result of the Assembly Education Committee’s Red Tape Review of administrative rules held on May 18, 2017, the Department proposes to make the following rule changes as requested by the committee:
• Chapter PI 2: The requested change is a technical change that removes past dates from rules governing school district boundary appeals under ch. PI 2 of the Wisconsin Administrative Code. • Chapter PI 9: The requested change adds information related to school technology in the school board’s evaluation of the status of nondiscrimination and equality of educational opportunity. Additionally, the requested change makes technical changes to 1) update the references to federal law under s. PI 9.04 (2); and 2) add religion to the list of characteristics for which a person may not be denied admission or participation in a public school. • Chapter PI 14: The requested change revises the rule provisions governing minimum standards for audits and school district audit contracts to conform the rule to changes in federal guidance, generally accepted accounting principles, and current practice. The requested change will also update the sample school district audit contract (contained in the Chapter PI 14 appendix), in accordance with these changes. Summary of, and comparison with, existing or proposed federal regulations: N/A
Comparison with rules in adjacent states:
• School District Boundary Appeals (Chapter PI 2): • Illinois: Illinois School Code 105 ILCS 5/Article 7 governs the types of appeals to regional boards of school trustees in determining school district boundary disputes.
• Iowa: Iowa Code 275.15 governs hearings by local education agency boards in determining school district boundary disputes.
• Michigan: Michigan Statutes Section 380.971 governs appeals by resident owners of land to the state board of education in determining school district boundary disputes. • Minnesota: Minnesota Statutes Section 123A.49 governs the types of appeals by any aggrieved person or school district to the relevant district court in determining school district boundary disputes.
• Pupil Nondiscrimination (Chapter PI 9): • Illinois: Illinois School Code 105 ILCS 5/22-19 governs the procedures for filing complaints with the State Board of Education concerning exclusion or segregation from school activities on account of the pupil’s color, race, nationality, sex, religion or religious affiliation, or that any employee of or applicant for employment with any school district has been questioned concerning the person’s color, race, nationality, sex, religion or religious affiliation or subjected to discrimination by reason thereof.
• Iowa: Iowa Code 216.9 provides that it is a discriminatory practice for any educational institution to discriminate on the basis of race, creed, color, sex, sexual orientation, gender identity, national origin, religion, or disability in any program or activity. Iowa Code 216.15 further provides the complaint and hearing procedures for any person claiming to be aggrieved by a discriminatory practice.
• Michigan: Section 2 of Article VIII of the Michigan State Constitution provides that every school district shall provide for the education of its pupils without discrimination as to religion, creed, race, color or national origin.
• Minnesota: Minnesota Statutes Section 121A.03-121A.0695 govern pupil discrimination and harassment and require school boards to adopt a written sexual, religious, and racial harassment and violence policy that conforms to statute.
• School Finance (Chapter PI 14): • Illinois: 23 Illinois Administrative Code Section 100.110 requires that annual audits be conducted in accordance with generally accepted governmental auditing standards, and each audit report shall state that the audit was performed in accordance with those standards. The scope of the annual audit shall depend on the class of school district subject to the rule. • Iowa: Iowa Administrative Code Section 11.6 requires that school districts are audited annually and are conducted in accordance with generally accepted accounting principles and the standards applicable to financial audits contained in Governmental Accounting Standards, as issued by the Comptroller General of the United States.
• Michigan: Michigan Statutes Section 141.427 provides that the state treasurer shall prescribe minimum auditing procedures for local units of government and standards that shall conform as nearly as practicable to generally accepted governmental auditing standards. • Minnesota: Minnesota Statutes Section 123B.77 Subd. 3 requires that the annual school district audit and financial statements included in the audit must be based on generally accepted governmental auditing standards, the federal Single Audit Act, and the Minnesota Legal Compliance Guide issued by the Office of the State Auditor.
Summary of factual data and analytical methodologies:
• Chapter PI 2: Chapter PI 2 describes the procedures for those wishing to appeal a boundary change due to school district reorganization as a result of consolidation, creation, or dissolution of school districts or the transfer of large territory. The rule, which has not been amended since 1990, contains references to requests for reviews by a school district boundary appeal board (or “SDBAB”) under s. 121.78 (1) (c), Stats., which is now obsolete. Additionally, ch. PI 2 provides that members of the SDBAB who were regular and alternate members on January 1, 1990, shall be appointed regular members to serve the remainder of their terms, and that by May 1, 1990, the State Superintendent shall appoint four new members, with two members appointed to terms which expire on May 1, 1990, and two members appointed to terms which expire on May 1, 1992. Finally, ch. PI 2 provides that the chapter applies to all petitions or resolutions for reorganization filed on or after January 1, 1990, which is the effective date of 1989 Wisconsin Act 114. The proposed technical change will eliminate requirements related to past dates which are no longer relevant to the implementation of the rule. Without a rule change, the Department will continue to administer the rule as it exists in ch. PI 2. • Chapter PI 9: 1985 Wisconsin Act 29 repealed and recreated s. 118.13, Stats., which prohibits discrimination in public schools on the basis of sex, race, religion, national origin, ancestry, creed, pregnancy, marital or parental status, sexual orientation or physical, mental, emotional or learning disability. Section 118.13 (2), Stats., requires school boards to develop policies and procedures to implement the statute including a complaint procedure. Section 118.13 (3), Stats., requires the state superintendent to decide appeals of local school board decisions, requires the state superintendent to promulgate rules, and authorizes the state superintendent to review school district compliance and to provide technical assistance to school districts. Chapter PI 9 specifies the 20 areas in which the school board must have policies and procedures to achieve nondiscrimination. Additionally, school boards must submit an annual report to the state superintendent and must evaluate the status of nondiscrimination and equality of educational opportunity at least once every five years. The Assembly Education Committee requested that information related to school technology be added to the rule as a part of the school board’s evaluation of the status of nondiscrimination and equality of educational opportunity. Federal code governing complaints and appeals to the state superintendent relating to pupil nondiscrimination has since been updated and the rule contains references to US code which no longer exist. Further, the statutes were updated with 1991 Wisconsin Act 131, which prohibited discrimination in public schools on the basis of religion. Because the rule had not been revised since these changes took place, the proposed changes will add religion to the list of pupil characteristics for which a person may not be denied admission or participation in a public school. This rule change would reflect how the Department is currently required to administer the rule due to the statutory language referenced above. • Chapter PI 14: Chapter PI 14 discusses school financial matters including determining the official pupil enrollment of each school, specifying how school districts can contract with each other for services, and the standards for auditing school district accounts. Recent federal guidance, generally accepted accounting principles, and regulations regarding minimum audit standards and standard contracts have changed in 2014 and the rule must be updated to reflect those recent changes. This rule change would align Department work to current requirements. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: N/A
Anticipated costs incurred by private sector: N/A
Effect on small business:
The proposed rules will have no significant economic impact on small businesses, as defined in s. 227.114 (1) (a), Stats. Agency contact person: (including email and telephone)
Carl Bryan
Budget and Policy Analyst
Wisconsin Department of Public Instruction
(608) 267-9127
Place where comments are to be submitted and deadline for submission:
Comments should be submitted to Carl Bryan, Department of Public Instruction, 125 S. Webster Street, P.O. Box 7841, Madison, WI 53707-7841 or at adminrules@dpi.wi.gov. The Department will publish a hearing notice in the Administrative Register that will provide information on the deadline for the submission of comments. __________________________________________________________________________________________________
SECTION 1. PI 2.02 (5) (g) and (Note) are repealed.
