SB525: Bill Text

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 25 percent of 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, 2017.

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:

SB525,1 Section 1. 20.255 (2) (ac) of the statutes is amended to read:

SB525,3,4 20.255 (2) (ac) General equalization aids. The amounts in the schedule for the payment of educational aids under ss. 121.08, 121.09, 121.095, 121.105, and 121.137 and subch. VI of ch. 121, less the amount appropriated under par. (az).

SB525,2 Section 2. 20.255 (2) (az) of the statutes is created to read:

SB525,3,7 20.255 (2) (az) Special Needs Scholarship Program. A sum sufficient to pay the special needs scholarships under s. 115.7915.

SB525,3 Section 3. 20.255 (2) (cy) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

SB525,4,2 20.255 (2) (cy) Aid for transportation; open enrollment and, course options, and special needs scholarships. The amounts in the schedule to reimburse parents for the costs of transportation of pupils under ss. 115.7915, 118.51 (14) (b), and 118.52 (11) (b).

SB525,4 Section 4. 115.77 (1) of the statutes is amended to read:

SB525,4,7 115.77 (1) In sub. (1m) (a) to (d), except as provided in s. 118.51 (12) (a) and (b) 2., if a child with a disability is attending a public school in a nonresident school district under s. 115.7915, 118.51, or 121.84 (1) (a) or (4), "local educational agency" means the school district that the child is attending.

SB525,5 Section 5. 115.791 (4) of the statutes is amended to read:

SB525,4,14 115.791 (4) Subject to s. 115.77 (1m) (d) and (e), this section does not require a local educational agency to pay the cost of education, including special education and related services, of a child with a disability at a private school or facility, including a child with a disability attending a private school under s. 115.7915, if the local educational agency made a free appropriate public education available to the child and the child's parents elected to place the child in a private school or facility.

SB525,6 Section 6. 115.7915 of the statutes is created to read:

SB525,4,17 115.7915 Special Needs Scholarship Program. (1) Definition. In this section:

SB525,4,20 (a) "Eligible school" means a public school located in this state but outside the pupil's school district of residence; a charter school located in this state, including a virtual charter school; or a private school located in this state.

SB525,4,21 (b) "Services plan" has the meaning given in 34 CFR 300.37.

SB525,4,24 (1m) Scholarship requirements. Beginning in the 2014-15 school year, a child with a disability shall receive a scholarship under this section to attend an eligible school if all of the following apply:

SB525,5,3 (a) The child applied to attend a public school in one or more nonresident school districts under s. 118.51 for the same school year for which he or she is submitting an application under par. (f), and all of the following occurred:

SB525,5,7 1. The child was rejected by the school boards of all the nonresident school districts to which he or she applied under s. 118.51 (3) (a), (3m) (a), or (7); or was prohibited from attending public school in all the nonresident school districts to which he or she applied under s. 118.51 (3m) (d), (7), or (12) (b) 1.

SB525,5,9 2. If the child's parent appealed any school board decision under subd. 1., the department affirmed the decision.

SB525,5,14 (b) The school district in which the eligible public school is located, the eligible charter school, or the eligible private school notified the department of its intent to participate in the program under this section. The notice shall specify the number of pupils who may participate in the program under this section for whom the school has space.

SB525,5,22 (c) The eligible school, if a private school, is approved by the state superintendent under s. 118.165 (2) or is accredited by the Wisconsin North Central Association, Wisconsin Religious and Independent Schools Accreditation, the Independent Schools Association of the Central States, Wisconsin Evangelical Lutheran Synod School Accreditation, National Lutheran School Accreditation, the diocese or archdiocese within which the private school is located, or any other organization recognized by the National Council for Private School Accreditation, as of the August 1 preceding the school term for which the scholarship is awarded.

SB525,5,24 (d) An individualized education program or services plan has been completed for the child.

SB525,6,3 (e) The child attended a public school in this state for the entire school year immediately preceding the school year for which the child first receives a scholarship under this section.

SB525,6,9 (f) The child, or the child's parent on behalf of the child, has submitted an application to the eligible school, on a form prepared by the department, for a scholarship under this section to attend the eligible school. The application shall include the document developed by the department under sub. (2) (a). An application may be made, and a child may begin attending an eligible school under this section, at any time during the school year.

SB525,6,11 (g) The child has been accepted by the school district in which the eligible public school is located, the eligible charter school, or the eligible private school.

SB525,6,15 (1s) Acceptance of pupils. If an eligible school receives more applications under sub. (1m) (f) than the number of pupils specified in the notice under sub. (1m) (b), it shall select pupils on a random basis except that it may give preference to siblings of pupils who are already attending the eligible school.

SB525,6,21 (2) Department duties. (a) 1. The department shall develop a document for inclusion with an application under sub. (1m) (f), and revise it as necessary, comparing the rights of a child with a disability and of his or her parent under this subchapter, other than this section, and 20 USC 1400 to 1482, with the rights of a child with a disability and of his or her parent under this section and 20 USC 1400 to 1482.

SB525,7,2 2. Receipt by an applicant of the document developed under subd. 1., acknowledged in a format prescribed by the department, constitutes notice that the applicant has been informed of his or her rights under this section and 20 USC 1400 to 1482. Subsequent acceptance of a scholarship under this section constitutes the applicant's informed acknowledgment of the rights specified in the document.

SB525,7,5 (b) The governing body of an eligible school that accepts a child under sub. (1m) (g) shall notify the department. Upon being notified, the department shall do all of the following:

SB525,7,10 1. Notify the school board of the pupil's school district of residence that the pupil has been awarded a scholarship under this section. The school board shall, within 3 days of receiving the notice, provide the department and the governing body of the eligible school that accepted the pupil with a copy of the pupil's individualized education program.

SB525,7,12 2. Determine the amount of the pupil's scholarship. The amount shall be the lesser of the following:

SB525,7,20 a. Divide the sum of the statewide gross property tax levy for schools in the previous year and the total amount of general school aid appropriated under s. 20.255 (2) (ac), (ar), and (bb) in the previous fiscal year by the total statewide membership, as defined in s. 121.004 (5), in the previous school year, and add to the quotient the result obtained by dividing the amount appropriated under s. 20.255 (2) (b) in the previous fiscal year by the total number of children with disabilities enrolled in public schools in the previous school year, as determined for federal aid purposes under 20 USC 1400 to 1482.

SB525,8,2 b. The cost to the school district in which the eligible public school is located, the eligible charter school, or the eligible private school of providing to the pupil regular instruction, instructional and pupil support services, special education and related services, and supplementary aids and services, other than costs under s. 115.88 (3) and (4); and the operating and debt service cost per pupil, as described in s. 118.60 (4) (d).

SB525,8,4 3. Prorate the amount determined under subd. 2. for a pupil attending an eligible school for less than a full school term.

SB525,8,6 4. Notify the parent of the scholarship amount, as determined under subd. 2. or 3., accompanied by an explanation of how the amount was determined.

SB525,8,14 5. On behalf of the pupil's parent, pay the scholarship to the school district, charter school, or private school that the pupil attends from the appropriation under s. 20.255 (2) (az), except that the department may not pay a scholarship to a private school unless the pupil's parent has acknowledged receiving the private school's profile under sub. (4) (g) in the manner provided by the department. Except as provided in par. (c), the scholarship continues while the pupil attends an eligible school until the pupil graduates from high school or until the end of the school term in which the pupil attains the age of 21, whichever comes first.

SB525,8,17 6. If the pupil is attending a private school under this section, pay the scholarship to the private school under subd. 5. according to the payment schedule specified in s. 119.23 (4) (c).

SB525,9,2 (c) If an individualized education program team, upon reevaluation of a child under sub. (3) (c), unanimously determines that the child is no longer a child with a disability, the child is ineligible to receive a special needs scholarship, as calculated under sub. (2) (b) 2., beginning in the school term following the determination. If the child continues to attend the private school, the department shall pay to the private school, on behalf of the pupil's parent, an amount equal to the appropriate amount paid per pupil to a private school participating in a parental choice program in the same school year under s. 118.60 or 119.23. The department shall make the payment from the appropriation under s. 20.255 (2) (az) according to the payment schedule specified in s. 119.23 (4) (c).

SB525,9,5 (3) School board duties. (a) Annually, each school board shall notify the parents of each child with a disability enrolled in the school district of the program under this section.

SB525,9,9 (b) Upon the request of a parent of a pupil receiving a scholarship, the pupil's resident school district shall administer the appropriate examinations under s. 118.30 to the pupil at no cost if the school attended by the pupil does not administer them.

SB525,9,12 (c) If a child attends a private school under this section, the school board of the child's school district of residence shall ensure that the child's individualized education program team reevaluates the child as provided in s. 115.782 (4).

SB525,9,15 (4) Private school duties. Each private school participating in the program under this section or receiving a payment under sub. (2) (c) shall do all of the following:

SB525,9,17 (a) Comply with all health and safety laws or codes that apply to private schools.

SB525,9,24 (b) Hold a valid certificate of occupancy, if required by the municipality in which the school is located. If the municipality in which the school is located does not issue certificates of occupancy, the private school shall obtain a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy or submit to the department a letter or form from the municipality in which the private school is located that explains that the municipality does not issue certificates of occupancy.

SB525,9,25 (c) Comply with 42 USC 2000d.

SB525,10,4 (d) 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.

SB525,10,11 (e) Annually submit to the department a school financial information report, prepared by a certified public accountant, that complies with uniform financial accounting standards established by the department by rule. The report shall be accompanied by an auditor's statement that the report is free of material misstatements and fairly represents pupil costs. The report shall be limited in scope to those records that are necessary for the department to make payments to the private school.

SB525,10,14 (f) If the private school expects to receive at least $50,000 in scholarships under this section during a school year, do one of the following before the beginning of the school year:

SB525,10,17 1. File with the department a surety bond payable to the state in an amount equal to 25 percent of the total amount of scholarships expected to be received by the private school during the school year under this section.

SB525,10,21 2. File with the department financial information demonstrating that the private school has the ability to pay an amount equal to the total amount of scholarships expected to be received by the private school during the school year under this section.

SB525,11,2 (g) Provide to each applicant under sub. (1m) (f) a profile of the private school's special education program, in a form prescribed by the department, that includes the methods of instruction that will be used by the school to provide special education and related services to the child and the qualifications of the teachers and other persons who will be providing special education and related services to the child.

SB525,11,7 (h) 1. Implement the child's most recent individualized education program or services plan, as modified by agreement between the private school and the child's parent, and related services agreed to by the private school and the child's parent that are not included in the child's individualized education program or services plan.

SB525,11,11 2. Provide a record of the implementation of the child's individualized education program or services plan under subd. 1., including an evaluation of the child's progress, to the school board of the school district in which the child resides in the form and manner prescribed by the department.

SB525,11,13 (i) Regularly report to the parent of a child attending the private school and receiving a scholarship under this section on the child's progress.

SB525,11,16 (5) Transportation. (a) Private school. Section 121.54 applies to the transportation of a pupil to and from the private school he or she is attending under this section.

SB525,11,18 (b) Public school. Section 118.51 (14) applies to the transportation of a pupil to and from the public school he or she is attending under this section.

SB525,11,22 (6) Penalties. (a) The department may bar a school district, charter school, or private school from participating in the program under this section if the department determines that the school district, charter school, or private school has done any of the following:

SB525,11,24 1. Intentionally and substantially misrepresented information required under sub. (4).

SB525,11,25 2. Routinely failed to comply with the standards under sub. (4) (e) or (f).

SB525,12,2 3. Used a pupil's scholarship for any purpose other than educational purposes or rebated, refunded, or shared a pupil's scholarship with a parent or pupil.

SB525,12,3 4. Failed to refund to the state, within 60 days, any scholarship overpayments.

SB525,12,9 (b) If the department bars a school district, charter school, or private school from participating in the program under this section, it shall notify all children eligible to participate in the program and their parents as quickly as possible. A pupil who is receiving a scholarship and attending a school district, charter school, or private school barred from the program may attend another participating school district, charter school, or private school under the scholarship.

SB525,12,12 (7) Study. (a) The legislative audit bureau shall contract for a study of the program under this section with one or more researchers who have experience evaluating school choice programs. The study shall evaluate all of the following:

SB525,12,14 1. The level of satisfaction with the program expressed by participating pupils and their parents.

SB525,12,17 2. The percentage of participating pupils who were victimized because of their special needs at their resident school district and the percentage of such pupils at their participating school.

SB525,12,20 3. The percentage of participating pupils who exhibited behavioral problems at their resident school district and the percentage of such pupils at their participating school.

SB525,12,22 4. The average class size at participating pupils' resident school districts and at their participating schools.

SB525,12,23 5. The fiscal impact of the program on the state and on resident school districts.

SB525,12,25 (b) The contract under par. (a) shall require the researchers who conduct the study to do all of the following:

SB525,13,2 1. Apply appropriate analytical and behavioral science methodologies to ensure public confidence in the study.

SB525,13,3 2. Protect the identity of participating schools and pupils.

SB525,13,6 (c) The contract under par. (a) shall require that the results of the study be reported to the appropriate standing committees of the legislature under s. 13.172 (3) by January 9, 2017.

SB525,13,8 (8) Rules. The department shall promulgate rules to implement and administer this section, including rules relating to all of the following:

SB525,13,10 (a) The eligibility and participation of eligible schools, including timelines that maximize pupil and school participation.

SB525,13,11 (b) The calculation and distribution of scholarships.

SB525,13,12 (c) The application and approval procedures for pupils and eligible schools.

SB525,7 Section 7. 118.305 (1) (h) of the statutes is amended to read:

SB525,13,15 118.305 (1) (h) "School" means a public school, including a charter school, and a private school participating in the program under s. 115.7915.

SB525,8 Section 8. 118.40 (2r) (e) 5. of the statutes is created to read:

SB525,13,19 118.40 (2r) (e) 5. A pupil attending a charter school under this subsection who is receiving a scholarship under s. 115.7915 shall not be counted as a pupil attending the charter school under subd. 2n. or 2p.

SB525,9 Section 9. 118.60 (4s) of the statutes is created to read:

SB525,13,24 118.60 (4s) Notwithstanding subs. (4), (4m), and (4r), a pupil attending a private school participating in the program under this section who is receiving a scholarship under s. 115.7915 shall not be counted as a pupil attending the private school under this section under sub. (4), (4m), or (4r).