AB383,81 10Section 81 . 119.23 (4v) of the statutes is created to read:
AB383,33,1411 119.23 (4v) (a) The department may consider a pupil enrolled in a private
12school participating in the program under this section who satisfies all of the
13following as a resident of the city who is enrolled in the private school under this
14section:
AB383,33,1715 1. The pupil was a resident of a school district, other than an eligible school
16district, as defined in s. 118.60 (1) (am), or a 1st class city school district, when the
17pupil applied to attend the private school under the program under s. 118.60.
AB383,33,2018 2. The pupil accepted a space at a private school participating in the program
19under s. 118.60 as a resident of a school district, other than an eligible school district,
20as defined in s. 118.60 (1) (am), or a 1st class city school district.
AB383,33,2121 3. The pupil resides in the city on the 3rd Friday in September.
AB383,33,2322 4. The private school at which the pupil accepted a space under s. 118.60 is
23participating in the program under this section.
AB383,34,224 (b) If the department considers a pupil as a resident of the city under par. (a),
25the department shall ensure that the pupil is not counted for purposes of determining

1whether a school district has exceeded its pupil participation limit under s. 118.60
2(2) (be).
AB383,82 3Section 82 . 119.23 (6m) (b) (intro.) of the statutes is amended to read:
AB383,34,54 119.23 (6m) (b) (intro.) Annually, by August 1st 1, provide to the department
5the material specified in par. (a) and all of the following information:
AB383,83 6Section 83 . 119.23 (6m) (b) 1. and 2. of the statutes are repealed.
AB383,84 7Section 84 . 119.23 (6m) (b) 4. of the statutes is repealed.
AB383,85 8Section 85 . 119.23 (6m) (bm) of the statutes is created to read:
AB383,34,109 119.23 (6m) (bm) Upon request of the department, provide a copy of any policy
10described in par. (a) and the academic standards adopted under sub. (7) (b) 2.
AB383,86 11Section 86 . 119.23 (6m) (c) of the statutes is amended to read:
AB383,34,1512 119.23 (6m) (c) Provide Upon an individual joining the private school's
13governing body, provide
to the department a signed statement from each the
14individual who is a member of the private school's governing body verifying that the
15individual is a member of the governing body.
AB383,87 16Section 87 . 119.23 (6p) of the statutes is created to read:
AB383,34,2017 119.23 (6p) In addition to the requirements under sub. (6m), a private school
18that is not a new private school and that did not participate in the program under
19this section or s. 118.60 in the previous school year shall submit to the department
20all of the following:
AB383,34,2321 (a) By January 10 of the school year immediately preceding the school year in
22which the private school intends to participate in the program under this section, all
23of the following:
AB383,34,2424 1. The information required under sub. (6m) (a).
AB383,35,3
12. A signed statement from each individual who is a member of the private
2school's governing body verifying that the individual is a member of the governing
3body.
AB383,35,64 (b) By August 1 of the school year in which the private school intends to
5participate in the program under this section, a copy of the academic standards
6adopted under sub. (7) (b) 2.
AB383,88 7Section 88 . 119.23 (7) (a) of the statutes is repealed.
AB383,89 8Section 89 . 119.23 (7) (am) 2m. a. of the statutes is amended to read:
AB383,36,159 119.23 (7) (am) 2m. a. An independent financial audit of the private school
10conducted by an independent certified public accountant, accompanied by the
11auditor's statement that the report is free of material misstatements and fairly
12presents the private school's eligible education expenses, and beginning in the 2nd
13school year a private school participates in the program under this section, a copy of
14the management letter prepared by the auditor. The If the private school annually
15received a total of at least $100,000 under this section and ss. 115.7915 and 118.60
16in any school year, the
audit shall be prepared in accordance with generally accepted
17accounting principles with allowable modifications for long-term fixed assets. If the
18private school has not annually received a total of at least $100,000 under this section
19and ss. 115.7915 and 118.60 in any school year, the audit shall be prepared as
20prescribed by the department by rule.
The audit shall include a calculation of the
21private school net eligible education expenses and a calculation of the balance of the
22private school's fund for future eligible education expenses. The auditor shall
23conduct his or her audit, including determining sample sizes and evaluating
24financial viability, in accordance with the auditing standards established by the
25American Institute of Certified Public Accountants. The department may not

1require an auditor to comply with standards that exceed the scope of the standards
2established by the American Institute of Certified Public Accountants. If a private
3school participating in a program under this section is part of an organization and
4the private school and the organization share assets, liabilities, or eligible education
5expenses, the private school may submit an audit of the private school or of the
6organization of which it is a part. If a private school that is part of an organization
7with which it shares assets, liabilities, or eligible education expenses submits an
8audit of only the private school, the independent auditor shall use his or her
9professional judgment to allocate any shared assets, liabilities, and eligible
10education expenses between the organization and the private school. If a private
11school participating in the program under this section also accepts pupils under s.
12115.7915 or 118.60, the private school may submit one comprehensive financial audit
13to satisfy the requirements of this subdivision and s. ss. 115.7915 (6) (e) and 118.60
14(7) (am) 2m., whichever are applicable. The private school shall include in the
15comprehensive financial audit the information specified under s. 118.60 (7) (am) 2m.
AB383,90 16Section 90. 119.23 (7) (an) 1. of the statutes is amended to read:
AB383,36,2417 119.23 (7) (an) 1. A private school participating in the program under this
18section shall maintain a cash and investment balance that is at least equal to its
19reserve balance. If a private school does not maintain a cash and investment balance
20that is at least equal to its reserve balance, the private school shall refund the reserve
21balance to the department.
If a private school ceases to participate in or is barred
22from the program under this section and s. 118.60 and the private school's reserve
23balance is positive, the private school shall refund the reserve balance to the
24department.
AB383,91 25Section 91. 119.23 (7) (ao) of the statutes is repealed.
AB383,92
1Section 92. 119.23 (7) (d) 2. of the statutes is repealed.
AB383,93 2Section 93. 119.23 (7) (em) 1. of the statutes is amended to read:
AB383,37,113 119.23 (7) (em) 1. Beginning in the 2013-14 school year, the The governing
4body of each private school participating in the program under this section shall,
5subject to subd. 2., annually, by January 15 August 1, provide the department with
6evidence demonstrating that the private school remains accredited for the current
7school year as required under par. (ad), except that in the 2017-18 school year the
8governing body shall submit the evidence by January 15, 2018
. The governing body
9shall include as evidence of accreditation a letter prepared by an accrediting entity
10that confirms that the private school is accredited by that entity as of the date of the
11letter.
AB383,94 12Section 94 . 119.23 (7) (h) of the statutes is created to read:
AB383,37,1713 119.23 (7) (h) Beginning in the 2018-19 school year, each private school
14participating in the program under this section shall conduct criminal background
15investigations of its employees and exclude from employment any person not
16permitted to hold a teaching license as the result of an offense and any person who
17might reasonably be believed to pose a threat to the safety of others.
AB383,95 18Section 95 . 119.23 (7m) of the statutes is created to read:
AB383,37,2119 119.23 (7m) (a) By May 1 before the first school term that a private school
20participates in the program under this section or s. 118.60, a private school shall
21submit to the department one of the following:
AB383,37,2522 1. A surety bond payable to the state in an amount equal to 25 percent of the
23total amount of payments the private school expects to receive under this section and
24s. 118.60 during the first school year the private school participates in the program
25under this section.
AB383,38,3
1(b) 1. If a private school submits a surety bond under par. (a) 1., the private
2school shall annually provide, by May 1, a surety bond payable to the state until the
3private school submits all of the following to the department:
AB383,38,64 a. If the private school is not part of an organization with which its shares
5assets, liabilities, or eligible education expenses, an audit under sub. (7) (am) 2m. a.
6that does not contain any indicators that the private school is not financially viable.
AB383,38,107 b. If the private school is a part of an organization with which it shares assets,
8liabilities, or eligible education expenses, an audit sub. (7) (am) 2m. a. of the
9organization that does not contain any indicators that the organization is not
10financially viable.
AB383,38,1411 c. Evidence of sound fiscal and internal control practices under sub. (7) (am)
122m. b. for the school year in the financial audit submitted under subd. 1. a. or b. and
13for the subsequent school year, neither of which indicates that the school is not
14financially viable.
AB383,38,1715 2. A private school shall provide a surety bond under this paragraph in an
16amount equal to 25 percent of the total amount of payments the private school
17expects to receive under this section and s. 118.60 during the following school year.
AB383,38,2218 (c) If a private school submits a complete anticipated budget under par. (a) 2.,
19the department shall determine whether the private school is financially viable by
20August 1. If the department determines that the private school is not financially
21viable, the private school is not eligible to participate in the program under this
22section or s. 118.60 in the current school year.
AB383,96 23Section 96 . 119.23 (10) (a) 1. of the statutes is amended to read:
AB383,39,3
1119.23 (10) (a) 1. Misrepresented Intentionally or negligently misrepresented
2any
information required under sub. (7) (d) this section or any rule promulgated
3under this section
.
AB383,97 4Section 97 . 119.23 (10) (a) 4. of the statutes is repealed.
AB383,98 5Section 98 . 119.23 (10) (a) 5. of the statutes is amended to read:
AB383,39,76 119.23 (10) (a) 5. Failed to provide the information required under sub. (6m)
7or (6p).
AB383,99 8Section 99 . 119.23 (10) (a) 6. of the statutes is amended to read:
AB383,39,109 119.23 (10) (a) 6. Failed to comply with the requirements under sub. (7) (b) or
10(c), or (h) or (7m).
AB383,100 11Section 100 . 119.23 (10) (am) 4. of the statutes is created to read:
AB383,39,1412 119.23 (10) (am) 4. The private school intentionally or negligently
13misrepresented any information required under this section or any rule promulgated
14under this section.
AB383,101 15Section 101. 121.90 (1) (f) (intro.) of the statutes is amended to read:
AB383,39,1916 121.90 (1) (f) (intro.) In the 2015-16 and 2016-17 school year and in each school
17year thereafte
r years, the “number of pupils enrolled" shall include a number equal
18to the sum of the pupils residing in the school district who attend any of the following
19on the 3rd Friday of September of each appropriate school year:
AB383,102 20Section 102. 121.90 (1) (g) of the statutes is created to read:
AB383,40,221 121.90 (1) (g) In the 2017-18 school year and in each school year thereafter, the
22“number of pupils enrolled" shall include the total number of pupils residing in the
23school district who on the 3rd Friday of September of each appropriate school year
24attend a charter school established under a contract with an entity under s. 118.40

1(2r) (b) 1. e. to h. or a charter school established under a contract with the director
2under s. 118.40 (2x).
AB383,103 3Section 103. 121.91 (4) (n) 1. of the statutes is amended to read:
AB383,40,64 121.91 (4) (n) 1. The limit otherwise applicable to a school district under sub.
5(2m) in any school year is increased by an amount equal to the amount determined
6for that school district under s. ss. 115.7915 (4m) (f) and 118.60 (4d) (b) 1.
AB383,104 7Section 104. Initial applicability.
AB383,40,108 (1) The treatment of sections 118.60 (3) (a) (intro.) and 1m. and (ar) (intro.), 1.,
92., and 3. (intro.), a., am., and b. and 119.23 (3) (a) (intro.) and 1. of the statutes first
10applies to applications for the 2018-19 school year.
AB383,40,1411 (2) The treatment of sections 118.60 (2) (a) 3g., (7) (d) 2., and (7m) and 119.23
12(2) (a) 3g., (7) (d) 2., and (7m) of the statutes first applies to a private school that first
13participates in a program under section 118.60 or 119.23 of the statutes in the
142018-19 school year.
AB383,40,1715 (3) The treatment of sections 115.7915 (6) (e), 118.60 (7) (am) 2m. a., and 119.23
16(7) (am) 2m. a. of the statutes first applies to financial audits for the 2017-18 school
17year.
AB383,105 18Section 105 . Effective date.
AB383,40,2019 (1) The treatment of section 20.255 (1) (j) (by Section 2) of the statutes takes
20effect on July 1, 2018.
AB383,40,2121 (End)
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