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SECTION 1. PI 49 is created to read:
SPECIAL NEEDS SCHOLARSHIP PROGRAM
PI 49.01 Purpose. Any qualified pupil in grades kindergarten to 12 who meets the requirements under s. 115.7915, Stats., may attend any school participating in the special needs scholarship program under s. 115.7915, Stats. This chapter establishes eligibility and participation requirements for schools participating in the special needs scholarship program under s. 115.7915, Stats., the calculation and distribution of scholarships under s. 115.7915 (4m), Stats., and the application and approval procedures for pupils and eligible schools under s. 115.7915, Stats. PI 49.02 Definitions. In this chapter:
(1) “4-year-old kindergarten outreach activities” means the direct services that a school provides to 4-year-old kindergarten parents and primary caregivers that have an educational component that fulfills the requirements of s. 121.004 (7) (cm), Stats. (2) “Applicant” means a child’s parent who is acting on behalf of the child, or, for a child with a disability who has reached the age of 18 and has not been adjudicated incompetent, the child.
(3) “Classroom records” means teacher-originated test scores, report cards, progress reports, and attendance records.
(4) “Count date” means the third Friday in September and the second Friday in January except as provided under s. 121.05 (3m), Stats. PI 35.02(7)(5) "Department" means the Wisconsin department of public instruction. (6) “Eligible education expenses” means all direct and indirect costs associated with a private school’s educational programming for pupils enrolled in grades kindergarten to 12.
(7) “Financial audit” means the audit of a school required under s. 115.7915 (6) (e), Stats., including the audit opinion. (8) “Full scholarship pupil” means a pupil who was determined to meet the application requirements of s. 115.7915 (2), Stats., and this chapter, and is eligible for a payment under s. 115.7915 (4m) (a), Stats. PI 35.02(9m)(9) "Generally accepted auditing standards" means the auditing standards prescribed by the accounting examining board under s. Accy 1.202. (10) “Official attendance records” means a listing of all kindergarten through grade 12 pupils enrolled in the school by grade level.
(11) “Parent” has the meaning given in s. 115.76 (12), Stats. (12) “Partial scholarship pupil” means a pupil who was determined to meet the application requirements of s. 115.7915 (2), Stats., and this chapter, and is eligible for a payment under s. 115.7915 (4m) (e), Stats. PI 35.02(15m)(13) "Professional standards" means all of the following: PI 35.02(15m)(a)(a) Standards established by the accounting examining board under ch. 442, Stats. PI 35.02(15m)(b)(b) Standards issued by the comptroller general of the United States for engagements in which the use of generally accepted governmental auditing standards is required. (c) Standards issued by the American Institute of Certified Public Accountants.
(14) “Reserve” means the difference between the revenue received under s. 115.7915, Stats., and the amount of net eligible education expenses for special needs scholarship program pupils. (15) “Scholarship” means a payment under s. 115.7915 (4m), Stats. (18) "Special needs scholarship program administrator" means the person designated as such on the notice of intent to participate form under s. PI 49.03 (3). (19) "Special needs scholarship program" means the program established under s. 115.7915, Stats. PI 35.02(23)(20) "State superintendent" means the state superintendent of public instruction. (21) “Working papers” means the record of audit procedures performed by the auditor, the relevant audit evidence obtained by the auditor, and the conclusions reached by the auditor.
PI 49.03 School requirements.
(1) Private school. A school participating in the special needs scholarship program shall be a private school as defined in s. 115.001 (3r), Stats. (2) Special needs scholarship program administrator. The special needs scholarship program administrator shall be one of the following:
(a)
An owner of the school.(b)
An individual appointed as the school's special needs scholarship program administrator by the governing body of the organization operating the school. (3) Notice of intent to participate. Except as provided in sub. (7), a school that intends to participate in the special needs scholarship program in the following school year shall by March 1 submit to the department a notice of intent to participate. The notice shall include all of the following:
(a) The number of spaces the school has available for new pupils applying to the special needs scholarship program under s. PI 49.05 (3) or transferring to the school under s. PI 49.05 (5). (b) The number of full scholarship pupils and partial scholarship pupils that will continue to participate in the special needs scholarship program based on the following:
1. The school shall include all special needs scholarship program pupils on the second Friday in January count report submitted under s. PI 49.06 (5), unless the school has received written correspondence from the parent withdrawing the pupil from the special needs scholarship program. 2. The school shall include any other special needs scholarship pupils accepted at the school after the second Friday in January, unless the school has received written correspondence from the parent withdrawing the pupil from the special needs scholarship program.
3. The school may only identify a pupil as a partial scholarship pupil if the pupil’s individualized education program team has determined that the pupil is no longer a child with a disability as specified under s. 115.7915 (4m) (e) 1., Stats., prior to the date the school submits its notice of intent to participate to the department. (c) The school’s special education program profile required under s. 115.7915 (6) (g), Stats. (d) The signature of the head of the governing board.
(4) Background checks. A school shall conduct a criminal background check prior to employing any individual at the school and every 5 years thereafter. A school shall conduct the criminal background check for all employees, including contracted individuals. A school may not employ any of the following individuals:
(a) Individuals who have engaged in immoral conduct as defined under s. 115.31 (1) (c), Stats. (b) Individuals who are not eligible for a teaching license under s. 118.19 (4), Stats. (5) Certificate of occupancy.
(a) By May 1 prior to the first year a school participates in the special needs scholarship program, the school shall submit one of the following to the department for all locations of the school:
1. A certificate of occupancy issued by the municipality within which the school is located.
2. If the municipality within which the building is located does not issue certificates of occupancy, a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy.
3. A letter or form from the municipality within which the building is located that explains that the municipality does not issue certificates of occupancy.
(b) If a school moves to a new location or adds a new location, the school shall submit to the department one of the following before pupils attend the new location:
1. A certificate of occupancy issued by the municipality within which the building is located.
2. If the municipality within which the building is located does not issue certificates of occupancy, a certificate of occupancy issued by the local or regional governmental unit with authority to issue certificates of occupancy.
3. A letter or form from the municipality within which the building is located that explains that the municipality does not issue certificates of occupancy.
(c) A temporary certificate of occupancy does not meet the requirements of this subsection.
(d) Notwithstanding par. (a), a school that first participates in the special needs scholarship program in the school year ending June 30, 2017, shall meet the requirements under par. (a) for the school year ending June 30, 2017, by August 1, 2016.
(6) Accreditation requirements. Annually by August 1, a school participating in the special needs scholarship program shall provide to the department a letter from the school’s accrediting agency under s. 115.7915 (2) (c), Stats., stating that the school is accredited as of the date of the letter. The letter shall meet all of the following requirements: (a) The letter shall include the following information:
1. The school’s name.
2. The school’s address for each location included in the accreditation.
3. The grades accredited.
4. A statement that the school is accredited as of the date of the letter.
(b) The letter shall be dated no earlier than the beginning of the school year.
(c) The letter shall be signed by an authorized member of the accrediting agency.
(7) A school shall meet the requirements under sub. (3) for the school year ending June 30, 2017, by June 1, 2016.
PI 49.04 Financial information and surety bond.
(1) Financial requirements. The department shall calculate the amount of scholarships expected to be received by each school based on the number of pupils included in a school’s notice of intent to participate submitted under s. PI 49.03 (3). If a school expects to receive at least $50,000 in scholarships in the following school year, the school shall do one of the following: (a) Annually by June 1 prior to the school year, provide a bond payable to the state of Wisconsin equal to 25 % of the total amount of scholarships expected to be received by the school during the school year.
(b) Except as provided in par. (c), annually by March 1 prior to the school year, submit financial information to the department that demonstrates that the school has the ability to pay an amount equal to the total amount of scholarships expected to be received by the school during the school year, including all of the following:
1. A budget and cash flow report, on a form provided by the department, for the following school year that contains all of the following:
a. Anticipated enrollments for all pupils enrolled in the school.
b. Anticipated enrollments for special needs scholarship program pupils.
c. Estimated total revenues and costs.
e. A schedule of anticipated beginning and ending net assets.
2. A statement of whether the school has any past due amounts, interest, or penalties due to the U.S. internal revenue service, the Wisconsin department of workforce development, or the Wisconsin department of revenue. An amount must be disclosed even if it is in dispute. If a school has past due amounts, interest, or penalties due to a government entity, the school shall do all of the following:
a. Disclose to the department the outstanding amount owed.
b. Submit to the department statements or other correspondence from the government entity stating the amount the government entity claims is due, the amount in dispute, and nature of the amount due.
3. Submit to the department the most recent balance sheet and income statement for the legal entity of the school.
4. Submit to the department bank statements for all cash and investment accounts included in the balance sheet required under subd. 3.
