2011 - 2012 LEGISLATURE
April 26, 2011 - Introduced by Representatives Litjens, Fields, Wynn, Knudson,
Nass, Pridemore, Thiesfeldt, Vos, Kleefisch, LeMahieu, Nygren, Strachota,
Bernier, Bies, Brooks, Endsley, Farrow, Honadel, Jacque, Knilans,
Kooyenga, Kramer, Krug, Kuglitsch, T. Larson, Mursau, Petryk, Rivard,
Severson, Spanbauer, Tiffany
and Ziegelbauer, cosponsored by Senators
Vukmir, Moulton, Galloway and Darling. Referred to Committee on
Education.
AB110,1,5 1An Act to amend 20.255 (2) (cy), 115.77 (1), 115.791 (4), 121.08 (4) (c), 121.08 (4)
2(d) and 121.54 (3); and to create 20.255 (2) (az), 115.7915, 121.05 (1) (a) 4. and
3121.08 (4) (am) of the statutes; relating to: creating the Special Needs
4Scholarship Program for disabled pupils, granting rule-making authority, and
5making an appropriation.
Analysis by the Legislative Reference Bureau
This bill establishes a Special Needs Scholarship Program. Under the program,
a child with a disability may receive a scholarship to attend a public school located
outside the pupil's school district of residence, or a private school, if all of the
following conditions are met:
1. The school has notified the Department of Public Instruction (DPI) of its
intent to participate in the program and the child has been accepted by the school.
2. If the school is a private school, it is approved as a private school by DPI or
is accredited.
3. An individualized education program (IEP) has been completed for the child.
4. The child attended a public school, or did not attend school in this state, in
the previous school year.
Upon receipt of an application for a scholarship, DPI must review the child's
IEP and determine the amount of the child's scholarship. The amount is the lesser
of the cost to the child's school district of residence, or the cost to the school district
or private school that the child wishes to attend, of providing regular instruction,

instructional and pupil support services, special education and related services, and
supplementary aids and services to the child. If the child is attending for less than
a full school term, DPI must prorate the amount of the scholarship.
DPI pays the scholarship directly to the school or school district that the child
will attend. The scholarship continues while the child attends a school eligible to
participate in the program until he or she graduates from high school or until the end
of the school term in which he or she turns 21, whichever comes first.
Under the bill, a pupil attending a private school, or a public school outside the
pupil's school district of residence, under the program is counted for state aid
purposes by the pupil's school district of residence. However, the state aid paid to
that school district is reduced by the total amount of scholarships paid by DPI for
pupils who reside in that school district.
Each private school participating in the program must comply with applicable
health and safety laws; hold a valid occupancy permit, if required by the
municipality; comply with federal law that prohibits discrimination against any
person on the basis of race, color, or national origin; and 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 any any person who
might reasonably be believed to pose a threat to the safety of others.
The private school must also annually submit to DPI a school financial report
prepared by a certified public accountant. If the private school expects to receive at
least $50,000 in scholarships during a school year, it must either file a surety bond
with DPI or provide DPI with information demonstrating that it has the ability to
pay an amount equal to the total amount of scholarships that it expects to receive.
The bill provides that if a child attends a private school under the program, his
or her school district of residence must provide transportation to and from the school
if the school is located at least two miles from the child's residence, the child resides
in the private school's attendance area, and the private school is situated within the
school district of residence or not more than five miles beyond the boundaries of the
school district.
If the child attends a public school under the program, the child's parent is
responsible for transporting the child to and from school unless transportation is
required in the child's IEP. If the latter applies, the school district that the child
attends is responsible for transporting the child. The bill allows a low-income pupil
to apply to DPI for reimbursement of transportation costs.
The bill authorizes DPI to bar a school from participating in the program if the
school intentionally and substantially misrepresents information required under
the bill, routinely fails to comply with financial standards, uses a pupil's scholarship
for any purpose other than educational purposes, or fails to refund any scholarship
overpayments to the state.
Finally, the bill directs the Legislative Audit Bureau to contract for a study of
the program. The results of the study must be reported to the legislature by January
9, 2015.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB110, s. 1 1Section 1. 20.255 (2) (az) of the statutes is created to read:
AB110,3,32 20.255 (2) (az) Special Needs Scholarship Program. A sum sufficient to pay the
3special needs scholarships under s. 115.7915.
AB110, s. 2 4Section 2. 20.255 (2) (cy) of the statutes is amended to read:
AB110,3,85 20.255 (2) (cy) Aid for transportation; open enrollment and special needs
6scholarships
. The amounts in the schedule to reimburse parents for the costs of
7transportation of open enrollment pupils under ss. 115.7915, 118.51 (14) (b), and
8118.52 (11) (b).
AB110, s. 3 9Section 3. 115.77 (1) of the statutes is amended to read:
AB110,3,1310 115.77 (1) In sub. (1m) (a) to (d), except as provided in s. 118.51 (12) (a) and (b)
112., if a child with a disability is attending a public school in a nonresident school
12district under s. 115.7915, 118.51, or 121.84 (1) (a) or (4), "local educational agency"
13means the school district that the child is attending.
AB110, s. 4 14Section 4. 115.791 (4) of the statutes is amended to read:
AB110,3,2015 115.791 (4) Subject to s. 115.77 (1m) (d) and (e), this section does not require
16a local educational agency to pay the cost of education, including special education
17and related services, of a child with a disability at a private school or facility,
18including a child with a disability attending a private school under s. 115.7915,
if the
19local educational agency made a free appropriate public education available to the
20child and the child's parents elected to place the child in a private school or facility.
AB110, s. 5 21Section 5. 115.7915 of the statutes is created to read:
AB110,4,3
1115.7915 Special Needs Scholarship Program. (1) Definition. In this
2section, "eligible school" means a public school located outside the pupil's school
3district of residence or a private school.
AB110,4,6 4(1m) Scholarship requirements. Beginning in the 2011-12 school year, a child
5with a disability shall receive a scholarship under this section to attend an eligible
6school if all of the following apply:
AB110,4,97 (a) The school district in which the eligible public school is located or the eligible
8private school notified the state superintendent of its intent to participate in the
9program under this section.
AB110,4,1610 (b) The school, if a private school, is approved by the state superintendent
11under s. 118.165 (2) or is accredited by the Wisconsin North Central Association, the
12Wisconsin Religious and Independent Schools Accreditation, the Independent
13Schools Association of the Central States, the Archdiocese of Milwaukee, or any
14other organization recognized by the National Council for Private School
15Accreditation as of the August 1 preceding the school term for which the scholarship
16is awarded.
AB110,4,1717 (c) An individualized education program has been completed for the child.
AB110,4,2018 (d) The child attended a public school, or did not attend school in this state, in
19the school year immediately preceding the school year for which the child first
20receives a scholarship under this section.
AB110,4,2521 (e) The child, or the child's parent on behalf of the child, has submitted an
22application to the department, on a form prepared by the department, for a
23scholarship under this section to attend the eligible school. An application may be
24made, and a child may begin attending an eligible school under this section, at any
25time during the school year.
AB110,5,2
1(f) The child has been accepted by the school district in which the eligible public
2school is located or the eligible private school.
AB110,5,4 3(2) Department duties. Upon receipt of an application under sub. (1m) (e), the
4department shall do all of the following:
AB110,5,85 (a) Notify the school board of the pupil's school district of residence that the
6pupil has requested a scholarship under this section. The school board shall, within
73 days of receiving the notice, provide the department with a copy of the pupil's
8individualized education program.
AB110,5,119 (b) Review the pupil's individualized education program provided under par.
10(a) and determine the amount of the pupil's scholarship. The amount shall be the
11lesser of the following:
AB110,5,1412 1. The cost to the pupil's school district of residence of providing to the pupil
13regular instruction, instructional and pupil support services, special education and
14related services, and supplementary aids and services.
AB110,5,1715 2. The cost to the school district in which the eligible public school is located
16or the eligible private school of providing the instruction and services specified in
17subd. 1.
AB110,5,1918 (bm) Prorate the amount determined under par. (b) for a pupil attending an
19eligible school for less than a full school term.
AB110,5,2120 (c) Notify the parent of the scholarship amount, as determined under par. (b)
21or (bm), accompanied by an explanation of how the amount was determined.
AB110,6,222 (d) On behalf of the pupil's parent, pay the scholarship to the school district or
23private school that the pupil attends from the appropriation under s. 20.255 (2) (az).
24The scholarship shall continue while the pupil attends an eligible school until the

1pupil graduates from high school or until the end of the school term in which the pupil
2attains the age of 21, whichever comes first.
AB110,6,5 3(3) School board duties. (a) Annually, each school board shall notify the
4parents of each child with a disability enrolled in the school district of the program
5under this section.
AB110,6,96 (b) Upon the request of a parent of a pupil receiving a scholarship, the pupil's
7resident school district shall administer the appropriate examinations under s.
8118.30 to the pupil at no cost if the school attended by the pupil does not administer
9them.
AB110,6,11 10(4) Private school duties. Each private school participating in the program
11under this section shall do all of the following:
AB110,6,1312 (a) Comply with all health and safety laws or codes that apply to private
13schools.
AB110,6,1514 (b) Hold a valid occupancy permit, if required by the municipality in which the
15school is located.
AB110,6,1616(c) Annually certify to the department that it complies with 42 USC 2000d.
AB110,6,2017 (d) Conduct criminal background investigations of its employees and exclude
18from employment any person not permitted to hold a teaching license as the result
19of an offense and any person who might reasonably be believed to pose a threat to the
20safety of others.
AB110,7,221 (e) Annually submit to the department a school financial information report,
22prepared by a certified public accountant, that complies with uniform financial
23accounting standards established by the department by rule. The report shall be
24accompanied by an auditor's statement that the report is free of material
25misstatements and fairly represents pupil costs. The report shall be limited in scope

1to those records that are necessary for the department to make payments to
2participating schools.
AB110,7,53 (f) If the participating school expects to receive at least $50,000 in scholarships
4under this section during a school year, do one of the following before the beginning
5of the school year:
AB110,7,86 1. File with the department a surety bond payable to the state in an amount
7equal to the total amount of scholarships expected to be received by the school during
8the school year under this section.
AB110,7,119 2. File with the department financial information demonstrating that the
10school has the ability to pay an amount equal to the total amount of scholarships
11expected to be received by the school during the school year under this section.
AB110,7,1312 (g) Regularly report to the parent of a pupil attending the school and receiving
13a scholarship under this section on the pupil's progress.
AB110,7,16 14(5) Transportation. (a) Private school. Section 121.54 applies to the
15transportation of a pupil to and from the private school he or she is attending under
16this section.
AB110,7,1817 (b) Public school. Section 118.51 (14) applies to the transportation of a pupil
18to and from the public school he or she is attending under this section.
AB110,7,21 19(6) Penalties. (a) The department may bar a school district or private school
20from participating in the program under this section if the department determines
21that the school district or private school has done any of the following:
AB110,7,2322 1. Intentionally and substantially misrepresented information required under
23sub. (4).
AB110,7,2424 2. Routinely failed to comply with the standards under sub. (4) (e) or (f).
AB110,8,2
13. Used a pupil's scholarship for any purpose other than educational purposes
2or rebated, refunded, or shared a pupil's scholarship with a parent or pupil.
AB110,8,43 4. Failed to refund to the state, in a timely manner, any scholarship
4overpayments.
AB110,8,105 (b) If the department bars a school district or private school from participating
6in the program under this section, it shall notify all pupils eligible to participate in
7the program and their parents as quickly as possible. A pupil who is receiving a
8scholarship and attending a school district or private school barred from the program
9may attend another participating school district or private school under the
10scholarship.
AB110,8,13 11(7) Study. (a) The legislative audit bureau shall contract for a study of the
12program under this section with one or more researchers who have experience
13evaluating school choice programs. The study shall evaluate all of the following:
AB110,8,1514 1. The level of satisfaction with the program expressed by participating pupils
15and their parents.
AB110,8,1816 2. The percentage of participating pupils who were victimized because of their
17special needs at their resident school district and the percentage of such pupils at
18their participating school.
AB110,8,2119 3. The percentage of participating pupils who exhibited behavioral problems
20at their resident school district and the percentage of such pupils at their
21participating school.
AB110,8,2322 4. The average class size at participating pupils' resident school districts and
23at their participating schools.
AB110,8,2424 5. The fiscal impact of the program on the state and on resident school districts.
AB110,9,2
1(b) The contract under par. (a) shall require the researchers who conduct the
2study to do all of the following:
AB110,9,43 1. Apply appropriate analytical and behavioral science methodologies to
4ensure public confidence in the study.
AB110,9,55 2. Protect the identity of participating schools and pupils.
AB110,9,86 (c) The contract under par. (a) shall require that the results of the study be
7reported to the appropriate standing committees of the legislature under s. 13.172
8(3) by January 9, 2015.
AB110,9,10 9(8) Rules. The department shall promulgate rules to implement and
10administer this section, including rules relating to all of the following:
AB110,9,1211 (a) The eligibility and participation of eligible schools, including timelines that
12maximize pupil and school participation.
AB110,9,1313 (b) The calculation and distribution of scholarships.
AB110,9,1414 (c) The application and approval procedures for pupils and eligible schools.
AB110, s. 6 15Section 6. 121.05 (1) (a) 4. of the statutes is created to read:
AB110,9,1716 121.05 (1) (a) 4. Pupils residing in the school district but attending a public
17school in another school district, or a private school, under s. 115.7915.
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