3. An individualized education program (IEP) has been completed for the child.
4. In the previous school year, the child attended a public school, attended a
private school under a parental choice program (PCP), or did not attend school in this
state.
The bill directs DPI to develop a document, for inclusion with an application,
comparing the rights of a child with a disability and his or her parent under state and
federal handicapped education law with the rights of a child with a disability under
the program created by this bill and federal handicapped education law.

A school that accepts a child under the program must notify DPI. Upon receipt
of the notice, DPI must notify the school board of the pupil's school district of
residence and determine the amount of the child's scholarship. The amount is the
lesser of the cost to the school the child is attending under the scholarship of
providing regular instruction, instructional and pupil support services, special
education and related services, and supplementary aids and services to the child, or
an amount equal to the statewide cost per public school pupil plus the state aid per
child with a disability. 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 certificate of occupancy; comply with federal law
that prohibits discrimination against any person on the basis of race, color, or
national origin; 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; provide to each applicant a profile of the school's special
education program; and implement the child's most recent IEP.
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:
SB486, s. 1 1Section 1. 20.255 (2) (az) of the statutes is created to read:
SB486,3,32 20.255 (2) (az) Special Needs Scholarship Program. A sum sufficient to pay the
3special needs scholarships under s. 115.7915.
SB486, s. 2 4Section 2. 20.255 (2) (cy) of the statutes is amended to read:
SB486,3,85 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).
SB486, s. 3 9Section 3. 115.77 (1) of the statutes is amended to read:
SB486,3,1310 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.
SB486, s. 4 14Section 4. 115.791 (4) of the statutes is amended to read:
SB486,4,215 115.791 (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

1local educational agency made a free appropriate public education available to the
2child and the child's parents elected to place the child in a private school or facility.
SB486, s. 5 3Section 5. 115.7915 of the statutes is created to read:
SB486,4,5 4115.7915 Special Needs Scholarship Program. (1) Definition. In this
5section:
SB486,4,86 (a) "Eligible school" means a public school located in this state but outside the
7pupil's school district of residence, including a charter school, or a private school
8located in this state.
SB486,4,99 (b) "Services plan" has the meaning given in 34 CFR 300.37.
SB486,4,12 10(1m) Scholarship requirements. Beginning in the 2012-13 school year, a child
11with a disability shall receive a scholarship under this section to attend an eligible
12school if all of the following apply:
SB486,4,1713 (a) The school district in which the eligible public school is located, the eligible
14charter school, or the eligible private school notified the department of its intent to
15participate in the program under this section. The notice shall specify the number
16of pupils who may participate in the program under this section for whom the school
17has space.
SB486,4,2518 (b) The school, if a private school, is approved by the state superintendent
19under s. 118.165 (2) or is accredited by the Wisconsin North Central Association,
20Wisconsin Religious and Independent Schools Accreditation, the Independent
21Schools Association of the Central States, Wisconsin Evangelical Lutheran Synod
22School Accreditation, National Lutheran School Accreditation, the diocese or
23archdiocese within which the private school is located, or any other organization
24recognized by the National Council for Private School Accreditation as of the August
251 preceding the school term for which the scholarship is awarded.
SB486,5,2
1(c) An individualized education program or services plan has been completed
2for the child.
SB486,5,63 (d) The child attended a public school, attended a private school under s. 118.60
4or 119.23, or did not attend school in this state, for the entire school year immediately
5preceding the school year for which the child first receives a scholarship under this
6section.
SB486,5,127 (e) The child, or the child's parent on behalf of the child, has submitted an
8application to the eligible school, on a form prepared by the department, for a
9scholarship under this section to attend the eligible school. The application shall
10include the document developed by the department under sub. (2) (a). An application
11may be made, and a child may begin attending an eligible school under this section,
12at any time during the school year.
SB486,5,1413 (f) The child has been accepted by the school district in which the eligible public
14school is located, the eligible charter school, or the eligible private school.
SB486,5,18 15(1s) Acceptance of pupils. If an eligible school receives more applications
16under sub. (1m) (e) than the number of pupils specified in the notice under sub. (1m)
17(a), it shall select pupils on a random basis except that it may give preference to
18siblings of pupils who are already attending the eligible school.
SB486,5,24 19(2) Department duties. (a) 1. The department shall develop a document for
20inclusion with an application under sub. (1m) (e), and revise it as necessary,
21comparing the rights of a child with a disability and of his or her parent under this
22subchapter, other than this section, and 20 USC 1400 to 1482, with the rights of a
23child with a disability and of his or her parent under this section and 20 USC 1400
24to 1482.
SB486,6,5
12. Receipt by an applicant of the document developed under subd. 1.,
2acknowledged in a format prescribed by the department, constitutes notice that the
3applicant has been informed of his or her rights under this section and 20 USC 1400
4to 1482. Subsequent acceptance of a scholarship under this section constitutes the
5applicant's informed consent to the rights specified in the document.
SB486,6,86 (b) The governing body of an eligible school that accepts a child under sub. (1m)
7(f) shall notify the department. Upon being notified, the department shall do all of
8the following:
SB486,6,139 1. Notify the school board of the pupil's school district of residence that the pupil
10has been awarded a scholarship under this section. The school board shall, within
113 days of receiving the notice, provide the department and the governing body of the
12eligible school that accepted the pupil with a copy of the pupil's individualized
13education program.
SB486,6,1514 2. Determine the amount of the pupil's scholarship. The amount shall be the
15lesser of the following:
SB486,6,2216 a. Divide the sum of the statewide gross property tax levy for schools in the
17previous year and the total amount of general school aid appropriated under s.
1820.255 (2) (ae), (ar), and (bb) in the previous fiscal year by the total statewide
19membership, as defined in s. 121.004 (5), in the previous school year, and add to the
20quotient the result obtained by dividing the amount appropriated under s. 20.255 (2)
21(b) in the previous fiscal year by the total full-time equivalent number of children
22with disabilities enrolled in public schools in the previous school year.
SB486,7,223 b. The cost to the school district in which the eligible public school is located,
24the eligible charter school, or the eligible private school of providing to the pupil
25regular instruction, instructional and pupil support services, special education and

1related services, and supplementary aids and services, other than costs under s.
2115.88 (3) and (4).
SB486,7,43 3. Prorate the amount determined under subd. 2. for a pupil attending an
4eligible school for less than a full school term.
SB486,7,65 4. Notify the parent of the scholarship amount, as determined under subd. 2.
6or 3., accompanied by an explanation of how the amount was determined.
SB486,7,147 5. On behalf of the pupil's parent, pay the scholarship to the school district,
8charter school, or private school that the pupil attends from the appropriation under
9s. 20.255 (2) (az), except that the department may not pay a scholarship to a private
10school unless the pupil's parent has acknowledged receiving the private school's
11profile under sub. (4) (g) in the manner provided by the department. The scholarship
12continues while the pupil attends an eligible school until the pupil graduates from
13high school or until the end of the school term in which the pupil attains the age of
1421, whichever comes first.
SB486,7,17 15(3) School board duties. (a) Annually, each school board shall notify the
16parents of each child with a disability enrolled in the school district of the program
17under this section.
SB486,7,2118 (b) Upon the request of a parent of a pupil receiving a scholarship, the pupil's
19resident school district shall administer the appropriate examinations under s.
20118.30 to the pupil at no cost if the school attended by the pupil does not administer
21them.
SB486,7,23 22(4) Private school duties. Each private school participating in the program
23under this section shall do all of the following:
SB486,7,2524 (a) Comply with all health and safety laws or codes that apply to private
25schools.
SB486,8,4
1(b) Hold a valid certificate of occupancy, if required by the municipality in which
2the school is located or, if the municipality in which the school is located does not
3issue certificates of occupancy, obtain a certificate of occupancy issued by the local
4or regional governmental unit with authority to issue certificates of occupancy.
SB486,8,55(c) Comply with 42 USC 2000d.
SB486,8,96 (d) Conduct criminal background investigations of its employees and exclude
7from employment any person not permitted to hold a teaching license as the result
8of an offense and any person who might reasonably be believed to pose a threat to the
9safety of others.
SB486,8,1610 (e) Annually submit to the department a school financial information report,
11prepared by a certified public accountant, that complies with uniform financial
12accounting standards established by the department by rule. The report shall be
13accompanied by an auditor's statement that the report is free of material
14misstatements and fairly represents pupil costs. The report shall be limited in scope
15to those records that are necessary for the department to make payments to the
16private school.
SB486,8,1917 (f) If the private school expects to receive at least $50,000 in scholarships under
18this section during a school year, do one of the following before the beginning of the
19school year:
SB486,8,2220 1. File with the department a surety bond payable to the state in an amount
21equal to the total amount of scholarships expected to be received by the private school
22during the school year under this section.
SB486,9,223 2. File with the department financial information demonstrating that the
24private school has the ability to pay an amount equal to the total amount of

1scholarships expected to be received by the private school during the school year
2under this section.
SB486,9,73 (g) Provide to each applicant under sub. (1m) (e) a profile of the private school's
4special education program, in a form prescribed by the department, that includes the
5methods of instruction that will be used by the school to provide special education
6and related services to the child and the qualifications of the teachers and other
7persons who will be providing special education and related services to the child.
SB486,9,128 (h) 1. Implement the child's most recent individualized education program or
9services plan, as modified by agreement between the private school and the child's
10parent, and related services agreed to by the private school and the child's parent
11that are not included in the child's individualized education program or services
12plan.
SB486,9,1613 2. Provide a record of the implementation of the child's individualized
14education program or services plan under subd. 1., including an evaluation of the
15child's progress, to the school board of the school district in which the child resides
16in the form and manner prescribed by the department.
SB486,9,1817 (i) Regularly report to the parent of a pupil attending the private school and
18receiving a scholarship under this section on the pupil's progress.
SB486,9,21 19(5) Transportation. (a) Private school. Section 121.54 applies to the
20transportation of a pupil to and from the private school he or she is attending under
21this section.
SB486,9,2322 (b) Public school. Section 118.51 (14) applies to the transportation of a pupil
23to and from the public school he or she is attending under this section.
SB486,9,25 24(6) Penalties. (a) The department may bar a school district, charter school,
25or private school from participating in the program under this section if the

1department determines that the school district, charter school, or private school has
2done any of the following:
SB486,10,43 1. Intentionally and substantially misrepresented information required under
4sub. (4).
SB486,10,55 2. Routinely failed to comply with the standards under sub. (4) (e) or (f).
SB486,10,76 3. Used a pupil's scholarship for any purpose other than educational purposes
7or rebated, refunded, or shared a pupil's scholarship with a parent or pupil.
SB486,10,98 4. Failed to refund to the state, in a timely manner, any scholarship
9overpayments.
SB486,10,1510 (b) If the department bars a school district, charter school, or private school
11from participating in the program under this section, it shall notify all pupils eligible
12to participate in the program and their parents as quickly as possible. A pupil who
13is receiving a scholarship and attending a school district, charter school, or private
14school barred from the program may attend another participating school district,
15charter school, or private school under the scholarship.
SB486,10,18 16(7) Study. (a) The legislative audit bureau shall contract for a study of the
17program under this section with one or more researchers who have experience
18evaluating school choice programs. The study shall evaluate all of the following:
SB486,10,2019 1. The level of satisfaction with the program expressed by participating pupils
20and their parents.
SB486,10,2321 2. The percentage of participating pupils who were victimized because of their
22special needs at their resident school district and the percentage of such pupils at
23their participating school.
SB486,11,3
13. The percentage of participating pupils who exhibited behavioral problems
2at their resident school district and the percentage of such pupils at their
3participating school.
SB486,11,54 4. The average class size at participating pupils' resident school districts and
5at their participating schools.
SB486,11,66 5. The fiscal impact of the program on the state and on resident school districts.
SB486,11,87 (b) The contract under par. (a) shall require the researchers who conduct the
8study to do all of the following:
SB486,11,109 1. Apply appropriate analytical and behavioral science methodologies to
10ensure public confidence in the study.
SB486,11,1111 2. Protect the identity of participating schools and pupils.
SB486,11,1412 (c) The contract under par. (a) shall require that the results of the study be
13reported to the appropriate standing committees of the legislature under s. 13.172
14(3) by January 9, 2015.
SB486,11,16 15(8) Rules. The department shall promulgate rules to implement and
16administer this section, including rules relating to all of the following:
SB486,11,1817 (a) The eligibility and participation of eligible schools, including timelines that
18maximize pupil and school participation.
SB486,11,1919 (b) The calculation and distribution of scholarships.
SB486,11,2020 (c) The application and approval procedures for pupils and eligible schools.
SB486, s. 6 21Section 6. 118.60 (4s) of the statutes is created to read:
SB486,11,2522 118.60 (4s) Notwithstanding subs. (4), (4m), and (4r), a pupil attending a
23private school participating in the program under this section who is receiving a
24scholarship under s. 115.7915 shall not be counted as a pupil attending the private
25school under this section under sub. (4), (4m), or (4r).
SB486, s. 7
1Section 7. 119.23 (4s) of the statutes is created to read:
SB486,12,52 119.23 (4s) Notwithstanding subs. (4), (4m), and (4r), a pupil attending a
3private school participating in the program under this section who is receiving a
4scholarship under s. 115.7915 shall not be counted as a pupil attending the private
5school under this section under sub. (4), (4m), or (4r).
SB486, s. 8 6Section 8. 121.05 (1) (a) 4. of the statutes is created to read:
SB486,12,87 121.05 (1) (a) 4. Pupils residing in the school district but attending a public
8school in another school district, or a private school, under s. 115.7915.
SB486, s. 9 9Section 9. 121.08 (4) (am) of the statutes is created to read:
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