AB1042: Bill Text

AB1042,62,5 118.83 (1) Definition. In this paragraph section, “eligible education expenses" means all direct and indirect costs associated with a participating private school's educational programming for pupils enrolled in grades kindergarten to 12 that are reasonable for the participating private school to achieve its educational purposes, as determined by the governing body of the participating private school in a written policy and tested by an independent auditor. “Eligible education expenses" include expenses related to management, insurance, transportation, extracurricular programming and activities, facility and equipment costs, development expenses, and programming that provides child care services before school, after school, or both before and after school. A cost is not an “eligible education expense" if an independent auditor determines, after testing, that the cost is not a cost associated with the participating private school's educational programming for pupils enrolled in grades kindergarten to 12 that is reasonable for the participating private school to achieve its educational purposes, as determined by the governing body of the participating private school in a written policy.

AB1042,155 Section 155 . 118.60 (7) (am) 2m. (intro.) and a. of the statutes are consolidated, renumbered 118.83 (2) (a) and amended to read:

AB1042,62,10 118.83 (2) (a) Each participating private school participating in the program under this section is subject to uniform financial accounting standards established by the department.

AB1042,62,19 (b) Annually by the last weekday in October 15 following a school year in which a private school participated in the choice program under this section, the private school shall submit to the department all of the following: a. An an independent financial audit of the private school conducted by an independent certified public accountant, accompanied by the auditor's statement that the report is free of material misstatements and fairly presents the private school's eligible education expenses, and beginning in the 2nd school year a private school participates in the program under this section, a copy of a management letter prepared by the auditor. All of the following apply to a financial audit submitted under this paragraph:

AB1042,62,23 1. If the private school annually received a total of at least $100,000 under this section the choice program and ss. s. 115.7915 and 119.23 in any school year, the audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets.

AB1042,63,3 2. If the private school has not annually received a total of at least $100,000 under this section the choice program and ss. s. 115.7915 and 119.23 in any school year, the audit shall be prepared as prescribed by the department by rule.

AB1042,63,6 3. The audit shall include a calculation of the private school's net eligible education expenses and a calculation of the balance of the private school's fund for future eligible education expenses.

AB1042,63,12 4. The auditor shall conduct his or her the audit, including determining sample sizes and evaluating financial viability, in accordance with the auditing standards established by the American Institute of Certified Public Accountants. The department may not require an auditor to comply with standards that exceed the scope of the standards established by the American Institute of Certified Public Accountants.

AB1042,63,20 5. If a private school participating in a program under this section is part of an organization and the private school and the organization share assets, liabilities, or eligible education expenses, the private school may submit an audit of the private school or of the organization of which it is a part. If a private school that is part of an organization with which it shares assets, liabilities, or eligible education expenses submits an audit of only the private school, the independent auditor shall use his or her professional judgment to allocate any shared assets, liabilities, and eligible education expenses between the organization and the private school.

AB1042,64,2 6. If a private school participating participated in the choice program under this section in the previous school year and also accepts pupils participated in the program under s. 115.7915 or 119.23 in the previous school year, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision subsection and ss. s. 115.7915 (6) (e) and 119.23 (7) (am) 2m., whichever are applicable. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 2m.

AB1042,156 Section 156 . 118.60 (7) (am) 2m. b. of the statutes is renumbered 118.83 (5) (a) and amended to read:

AB1042,64,8 118.83 (5) Fiscal and internal control practices. (a) Evidence A participating private school shall submit evidence to the department of sound fiscal and internal control practices, including evidence that the entity has the financial ability to continue operating, as prescribed by the department by rule.

AB1042,64,18 (b) A private school that participated in the choice program shall submit to the department reports completed by an independent auditor on the private school's compliance with fiscal and internal control requirements, as required by the department by rule. An independent auditor engaged to evaluate the participating private school's fiscal and internal control practices shall conduct his or her the evaluation, including determining sample sizes, in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent auditor engaged to evaluate the private school's fiscal and internal control practice shall also review any concerns raised in the private school's management letter submitted under subd. 2m. a.

AB1042,64,22 (c) The fact that a participating private school reports a negative reserve balance alone is not evidence that the participating private school does not have the financial ability to continue operating or that the participating private school does not follow sound fiscal and internal control practices.

AB1042,157 Section 157 . 118.60 (7) (am) 2m. c. of the statutes is repealed.

AB1042,158 Section 158 . 118.60 (7) (am) 3. of the statutes is renumbered 118.83 (3) and amended to read:

AB1042,65,11 118.83 (3) Financial audit review. (a) By no later than February 15 the first weekday in March or 120 days after the date on which the audit under subd. 2m. a. sub. (2) is received by the department, whichever is later, the department shall notify a private school participating that participated in the choice program under this section in the previous school year whether or not additional information is required for the department to complete its review of the audit. Subject to subd. 3. b. par. (b), the department may request that an auditor provide additional information if the request is related to the department reviewing the audit. The department shall determine whether a the private school participating in the program under this section has provided the information and met the requirements required under subd. 2m. a. sub. (2) by the 3rd Friday in April 1 .

AB1042,65,17 (b) Before the 3rd Friday in April 1 , the department may contact the auditor who prepared the audit under subd. 2m. a. sub. (2) only regarding matters that may impact the private school's financial statement by an amount that is greater than 1 percent of the total amount the private school received under this section the choice program for the previous school year and any items or information the department determines are missing from the audit.

AB1042,65,21 (c) Notwithstanding subd. 3. a. and b. pars. (a) and (b), the department may communicate with an auditor as necessary for the purpose of assessing the financial viability of a participating private school participating in the program under this section.

AB1042,65,24 (d) An auditor who receives a written communication under this subdivision subsection shall respond to the department within 10 school days of receiving the written communication.

AB1042,159 Section 159. 118.60 (7) (an) of the statutes is renumbered 118.83 (4) and amended to read:

AB1042,66,9 118.83 (4) Reserve balance. (a) A participating private school participating in the program under this section shall maintain a cash and investment balance that is at least equal to its reserve balance. If a participating private school does not maintain a cash and investment balance that is at least equal to its reserve balance, the participating private school shall refund the reserve balance to the department. This subdivision does not apply to a school year that occurs during the public health emergency declared on March 12, 2020, by executive order 72.

AB1042,66,16 (b) If a participating private school participating in the program under this section has a reserve balance that is greater than 50 percent of the total amount the participating private school received under this section the choice program in the previous school year, the governing body of the participating private school shall approve a plan for how it will use the amount of the reserve balance that exceeds 50 percent of the total amount the participating private school received under this section the choice program in the previous school year.

AB1042,66,19 (c) If a private school ceases to participate in or is barred from the choice program under this section and s. 119.23 and the private school's reserve balance is positive, the private school shall refund the reserve balance to the department.

AB1042,160 Section 160 . 118.60 (7) (b) (intro.) and 2m. of the statutes are repealed.

AB1042,161 Section 161 . 118.60 (7) (b) 1. of the statutes is renumbered 118.80 (6) and amended to read:

AB1042,67,2 118.80 (6) Third grade reading test. Administer Each participating private school shall administer to any pupils attending the 3rd grade in the private school under this section the choice program a standardized reading test developed by the department.

AB1042,162 Section 162 . 118.60 (7) (b) 2. of the statutes is renumbered 118.79 (3) and amended to read:

AB1042,67,6 118.79 (3) Academic standards. Adopt Each participating private school shall adopt the pupil academic standards required under s. 118.30 (1g) (a) 4.

AB1042,163 Section 163 . 118.60 (7) (b) 3. of the statutes is renumbered 118.81 (3) (intro.) and amended to read:

AB1042,67,12 118.81 (3) Teacher's aide educational requirements. (intro.) Ensure A participating private school shall ensure that any teacher's aide employed by all of the participating private school has school's teacher's aides satisfy at least one of the following:

AB1042,67,13 (a) The individual graduated from high school , been granted.

AB1042,67,15 (b) The individual obtained a declaration of equivalency of high school graduation, been granted.

AB1042,67,17 (c) The individual obtained a high school diploma by the administrator of a home-based private educational program, or been issued .

AB1042,67,19 (d) The individual obtained a general educational development certificate of high school equivalency, or has.

AB1042,67,22 (e) The individual obtained a degree or educational credential higher than a high school diploma, declaration of equivalency of high school graduation, or general educational development certificate of high school equivalency.

AB1042,164 Section 164 . 118.60 (7) (b) 3m. of the statutes is renumbered 118.80 (3) and amended to read:

AB1042,68,13 118.80 (3) Governing body meetings. Annually, The governing body of a participating private school shall annually schedule at least 2 meetings at which members of the governing body of the participating private school will be present and at which pupils, and the parents or guardians of pupils, applying to attend the participating private school or attending the participating private school may meet and communicate with the members of the governing body. The private school shall, within Within 30 days after the start of the school term, the governing body of a participating private school shall notify the department in writing of the scheduled meeting dates and shall, at. At least 30 days before the each scheduled meeting date, the governing body of a participating private school shall notify in writing each pupil, or the parent or guardian of each minor pupil, applying to attend the participating private school or attending the participating private school of the meeting date, time, and place.

AB1042,165 Section 165. 118.60 (7) (b) 4. to 6. of the statutes are renumbered 118.80 (9) (a) to (c) and amended to read:

AB1042,68,19 118.80 (9) (a) Maintain A private school shall maintain progress records for each pupil attending the private school under this section the choice program while the pupil attends the private school and, except as provided under subd. 7. par. (d), for at least 5 years after the pupil ceases to attend the private school.

AB1042,68,22 (b) Upon A private school shall, upon request, provide a pupil or the parent or guardian of a minor pupil who is attending the private school under this section the choice program with a copy of the pupil's progress records.

AB1042,69,2 (c) Issue A participating private school shall issue a high school diploma or certificate to each pupil who attends the participating private school under this section the choice program and satisfactorily completes the course of instruction and any other requirements necessary for high school graduation.

AB1042,166 Section 166. 118.60 (7) (b) 7. a. and b. of the statutes are consolidated, renumbered 118.80 (9) (d) 1. and amended to read:

AB1042,69,24 118.80 (9) (d) 1. Except as provided in subd. 7. b., if the 2., if a private school ceases operating as a private school, the private school shall immediately transfer all of the progress records of each pupil who attended the private school under this section to the choice program to the school board of the school district within which the pupil resides. The private school shall send written notice to each pupil, or to the parent or guardian of a minor pupil, of the transfer of progress records under this subd. 7. a. b. If the private school is affiliated with an organization that will maintain the progress records of each pupil who attended the private school under this section the choice program for at least 5 years after the private school ceases operation as a private school, the private school may transfer a pupil's records to the organization if the pupil, or the parent or guardian of a minor pupil, consents in writing to the release of the progress records to the affiliated organization. The private school shall send to the department a copy of the consent form for each pupil who consents to the transfer of progress records under this subd. 7. b. subdivision. The written notice shall be signed by the pupil, or the parent or guardian of a minor pupil, and shall include the name, phone number, mailing address, and other relevant contact information of the organization that will maintain the progress records, and a declaration by the affiliated organization that the organization agrees to maintain the progress records for at least 5 years after the private school ceases operation as a private school.

AB1042,167 Section 167. 118.60 (7) (c) of the statutes is renumbered 118.79 (4) and amended to read:

AB1042,70,7 118.79 (4) Religious activity; pupil exemption. A participating private school may not require a pupil attending the participating private school under this section the choice program to participate in any religious activity if the pupil's parent or guardian submits to the pupil's teacher or the participating private school's principal a written request that the pupil be exempt from such activities.

AB1042,168 Section 168. 118.60 (7) (d) (intro.) and 3. of the statutes are repealed.

AB1042,169 Section 169. 118.60 (7) (d) 1. a. of the statutes is renumbered 118.75 (1) and amended to read:

AB1042,70,12 118.75 (1) Definition. In this subdivision section, “municipality" has the meaning given in s. 5.02 (11).

AB1042,170 Section 170. 118.60 (7) (d) 1. b. of the statutes is renumbered 118.75 (3) (a) and amended to read:

AB1042,70,17 118.75 (3) (a) A copy of the participating private school's current certificate of occupancy issued by the municipality within which the participating private school is located.

AB1042,70,23 (4) New location; certificate. If the participating private school moves to a new location, the participating private school shall submit a copy of the new certificate of occupancy issued by the municipality within which the participating private school is located to the department before the attendance of pupils at the new location and before the next succeeding date specified in s. 121.05 (1) (a) September count date or the January count date, whichever occurs next.

AB1042,71,4 (3) (b) If the municipality within which the participating private school is located does not issue certificates of occupancy, the private school may submit a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy or a letter or form from the municipality within which the participating private school is located that explains that the municipality does not issue certificates of occupancy.

AB1042,71,7 (5) Temporary certificate. A temporary certificate of occupancy does not meet the requirement requirements of this subdivision. This subdivision applies only to a private school located in an eligible school district section.

AB1042,171 Section 171. 118.60 (7) (dr) of the statutes is renumbered 118.80 (9) (e) and amended to read:

AB1042,71,15 118.80 (9) (e) A private school participating in the program under this section may elect to maintain an electronic copy of any application submitted on behalf of and any correspondence to or about a pupil attending the private school under this section the choice program instead of a paper copy of the application and correspondence. The private school shall maintain electronic copies of pupil applications and correspondence for a period of at least 5 years.

AB1042,172 Section 172 . 118.60 (7) (e) of the statutes is renumbered 118.80 (7) and amended to read:

AB1042,71,22 118.80 (7) Pupil assessments. Each participating private school participating in the program under this section shall administer the examinations required under s. 118.30 (1t) or examinations permitted under s. 118.301 (3) to pupils attending the participating private school under the choice program. The participating private school may administer additional standardized tests to such pupils.

AB1042,173 Section 173 . 118.60 (7) (em) 1. and 2. of the statutes are renumbered 118.74 (4) (b) and (c) and amended to read:

AB1042,72,8 118.74 (4) (b) The governing body of each Each participating private school participating in the program under this section shall, subject to subd. 2. par. (c), annually, by the first weekday in August 1 , provide the department with evidence demonstrating that the participating private school remains accredited for the current school year as required under par. (ad) (a). The governing body participating private school shall include as evidence of accreditation a notice prepared by an accrediting entity that confirms that the participating private school is accredited by that entity as of the date of the notice.

AB1042,72,10 (c) The governing body A participating private school shall immediately notify the department if its accreditation status changes.

AB1042,174 Section 174 . 118.60 (7) (g) of the statutes is renumbered 118.80 (5) and amended to read:

AB1042,72,23 118.80 (5) Air quality requirements. (a) By the first day of the 3rd month beginning after the month in which the department establishes the model management plan and practices for maintaining indoor environmental quality in public and private schools under s. 118.075 (3), or by weekday in October 1 of a private school's first school year of participation in the choice program under this section, whichever is later, the participating private school shall provide for the development of a plan for maintaining indoor environmental quality in the participating private school. Participating private schools may use the model management plan and practices for maintaining indoor environmental quality developed under s. 118.075 (3) when developing a plan required under this paragraph.

AB1042,73,5 (b) By the first day of the 12th month beginning after the month in which the department establishes the model management plan and practices for maintaining indoor environmental quality in public and private schools under s. 118.075 (3), or by the beginning of the 2nd school year of participation in the choice program under this section, whichever is later, the, a participating private school shall implement a plan for maintaining indoor environmental quality in the participating private school.

AB1042,73,8 (c) Each participating private school participating in the program under this section shall provide a copy of the plan implemented under subd. 2. par. (b) to any person upon request.

AB1042,175 Section 175 . 118.60 (7) (h) of the statutes is renumbered 118.81 (4) and amended to read:

AB1042,73,16 118.81 (4) Background checks. Beginning in the 2018-19 school year, each Each participating private school participating in the program under this section shall 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.

AB1042,176 Section 176 . 118.60 (7m) (a) (intro.), 1. and 2., (b) and (c) of the statutes are renumbered 118.76 (1) (intro.), (a) (intro.) and (b), (2) and (3), and 118.76 (1) (intro.), (a) (intro.) and (b), (2) (a) (intro.) and 2. and (b) and (3), as renumbered, are amended to read:

AB1042,73,24 118.76 (1) Surety bond or budget requirement. (intro.) By the first weekday in May 1 before the first school term that a private school participates in the choice program under this section or s. 119.23, a participating private school shall submit to the department one of the following:

AB1042,74,6 (a) (intro.) A surety bond payable to the state in an amount equal to 25 percent of the total amount of payments the participating private school expects to receive under this section and s. 119.23 under the choice program during the first school year the private school participates in the program under this section. choice program. If a new private school selects this option to satisfy this subsection, the new private school shall provide an updated surety bond if all of the following apply:

AB1042,74,17 (b) A complete anticipated budget, on a form provided by the department, for the first fiscal period of participation in the choice program under this section and evidence of financial viability, as prescribed by the department by rule. The participating private school shall include in the budget the anticipated enrollments for all pupils enrolled in the participating private school and for pupils enrolled in the participating private school under this section the choice program; estimated revenues and costs; a schedule of anticipated beginning and ending net choice program assets; and a schedule of monthly cash flow requirements. The participating private school shall include in the budget contingent funding sources the participating private school will use in the event that actual enrollments are less than expected.

AB1042,74,21 (2) (a) (intro.) If a participating private school submits a surety bond under par. (a) 1. sub. (1) (a), the participating private school shall annually provide, by the first weekday in May 1 , a surety bond payable to the state until the participating private school submits all of the following to the department:

AB1042,74,25 2. Evidence of sound fiscal and internal control practices under sub. (7) (am) 2m. b. s. 118.83 (5) for the school year in the financial audit submitted under subd. 1. a. and for the subsequent school year, neither of which indicates that does not contain evidence that the participating private school is not financially viable.

AB1042,75,4 (b) A participating private school shall provide a surety bond under this paragraph subsection in an amount equal to 25 percent of the total amount of payments the private school expects to receive under this section and s. 119.23 the choice program during the following school year.

AB1042,75,10 (3) Budget review; financial viability. If a private school submits a complete anticipated budget under par. (a) 2. sub. (1) (b), the department shall determine whether the private school is financially viable by the first weekday in August 1. If the department determines that the private school is not financially viable, the private school is not eligible to participate in the choice program under this section or s. 119.23 in the current school year.

AB1042,177 Section 177 . 118.60 (9) of the statutes is renumbered 118.74 (6) and amended to read:

AB1042,75,16 118.74 (6) Failure to meet private school requirements; notification. If any an accrediting or preaccrediting entity determines during the accrediting or preaccrediting process that a participating private school does not meet all of the requirements under s. 118.165 (1), it shall report that failure to the department.

AB1042,178 Section 178 . 118.60 (9m) of the statutes is renumbered 118.80 (4) (intro.) and amended to read:

AB1042,76,3 118.80 (4) Accountability report; posting. (intro.) Beginning in September 2016, and annually thereafter, the governing body of a private school participating in the program under this section that maintains an Internet site for the private school shall, if the private school is included in the most recent accountability report published under s. 115.385, Annually, within 30 days after the department publishes the accountability report, under s. 115.385, a participating private school shall prominently link on the home page of that Internet site to the pages in that the participating private school's most recent accountability report concerning the private school. on the home page of the participating private school's website if all of the following apply:

AB1042,179 Section 179 . 118.60 (10) (a) (intro.), 1., 2., 3., 5., 6., 7. and 8. of the statutes are renumbered 118.85 (1) (intro.), (a), (b), (c), (d), (e), (f) and (g) and amended to read:

AB1042,76,9 118.85 (1) Barred; current school year. (intro.) The state superintendent may issue an order barring a private school from participating in the choice program under this section in the current school year if the state superintendent determines that the private school has done any of the following:

AB1042,76,12 (a) Intentionally or negligently misrepresented any information required under this section subchapter or any rule promulgated under this section subchapter.

AB1042,76,15 (b) Failed to provide the notice or pay the fee required under sub. (2) (a) 3. s. 118.73 (1), or provide the information required under sub. (7) (am) or (d) s. 118.75 or 118.83, by the date or within the period specified.

AB1042,76,17 (c) Failed to refund to the state any overpayment made under sub. (4) or (4m) the choice program by the date specified by department rule.

AB1042,76,18 (d) Failed to provide the information required under sub. (6m) or (6p) s. 118.78.

AB1042,76,20 (e) Failed to comply with the requirements under sub. (7) (b), (c), or (h) or (7m) s. 118.76, 118.79 (3) or (4), 118.80 (3), (6), or (9) (d), or 118.81 (3) or (4).

AB1042,76,21 (f) Violated sub. (7) (b) 4., 5., or 6. s. 118.80 (9) (a), (b), or (c).

AB1042,77,2 (g) Before the end of a 7-year period beginning on the date of an order issued by the state superintendent under this subsection section, s. 118.60, 2023 stats., or s. 119.23, 2023 stats., retained a disqualified person, for compensation or as a volunteer, as an owner, officer, director, trustee, administrator, person designated by the administrator to assist in processing pupil applications, or person responsible for administrative, financial, or pupil health and safety matters.

AB1042,180 Section 180 . 118.60 (10) (am) of the statutes is renumbered 118.85 (2), and 118.85 (2) (intro.), (a), (c) and (d), as renumbered, are amended to read: