EmR1815 Rule Text

Effect on small business:

The proposed rules will have no significant economic impact on small businesses, as defined in s. 227.114 (1) (a), Stats.

Agency contact person: (including email and telephone)

Carl Bryan

Budget and Policy Analyst

Wisconsin Department of Public Instruction

[e-mail]

[phone]

Place where comments are to be submitted and deadline for submission:

Comments should be submitted to Carl Bryan, Department of Public Instruction, 125 S. Webster Street, P.O. Box 7841, Madison, WI 53707-7841 or at [e-mail]. The Department will publish a hearing notice in the Administrative Register which will provide information on the deadline for the submission of comments.

SECTION 1. PI 49.01 is amended to read:

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) and (4p), Stats., and the application and approval procedures for pupils and eligible schools under s. 115.7915, Stats.

SECTION 2. PI 49.02 (3) is repealed.

SECTION 3. PI 49.02 (5m) and (7) are amended to read:

PI 49.02 (5m) “Designee" means an individual who is designated to assist in processing pupil applications and transfer requests by the special needs scholarship program administrator on a form provided by the department.

(7) “Financial audit” means the modified financial audit of a schoolor standard financial audit, and includes the audit opinion and supplemental schedule, required under s. 115.7915 (6) (e), Stats., including the audit opinionPI 49.09.

  SECTION 4. PI 49.02 (9p) is created to read:

PI 49.02 (9p) “Modified financial audit” means the audit required under s. 115.7915 (6) (e), Stats., for a school that received less than $100,000 under ss. 115.7915, 118.60, and 119.23, Stats., in any school year.

  SECTION 5. PI 49.02 (15) is amended to read:

PI 49.02 (15) “Scholarship” means a payment under s. 115.7915 (4m) or (4p), Stats.

  SECTION 6. PI 49.02 (19m) is created to read:

PI 49.02 (19m) “Standard financial audit” means the audit required under s. 115.7915 (6) (e), Stats., for a school that annually received a total of at least $100,000 under ss. 115.7915, 118.60, and 119.23, Stats., in any school year.

SECTION 7. PI 49.03 (3) (bm) is created to read:

PI 49.03 (3) (bm) The expected number of special needs scholarship program pupils that will participate in summer school under s. PI 49.16.

  SECTION 8. PI 49.03 (4) is repealed and recreated to read:

PI 49.03 (4) Background checks. (a) A school shall conduct a criminal background check prior to employing any individual at the school and every 5 years thereafter.

(b) A school shall conduct a criminal background check for all individuals defined as employees under s. 108.02 (12), Stats., who are directly or indirectly related to educational programming provided under s. 115.7915, Stats., and this chapter.

(c) A school may not employ any of the following individuals:

1. Individuals who have engaged in immoral conduct as defined under s. 115.31 (1) (c), Stats.

2. Individuals who are not eligible for a teaching license under s. 118.19 (4), Stats.

  SECTION 9. PI 49.03 (5) (a) (intro.) and (6) are amended to read:

PI 49.03 (5) (a) By the first weekday in May 1 prior to the first year a school participates in the special needs scholarship program, the school shall submit one of the following documents to the department for all locations of the school:

(6) Accreditation requirements. A school participating in the special needs scholarship program shall be accredited by an accrediting agency under s. 115.7915 (2) (c), Stats., for all of the grades the school makes available to special needs scholarship program pupils. Annually by August 1, a school participating in the special needs scholarship program shall provide to the department a letternotice 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 letternotice. The letternotice shall meet all of the following requirements:

(a) The letternotice 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 by the agency.

4. A statementNotification that the school is accredited as ofat the date oftime the letternotice is submitted.

(b) The letternotice shall be datedsubmitted no earlier than the beginning of the school year.

(c) The letternotice shall be signedcompleted by an authorized member of the accrediting agency.

SECTION 10. PI 49.04 (1) is repealed and recreated to read:

PI 49.04 (1) Definitions. In this section:

(a) “Initial expected payment” means a school’s expected scholarship payment amount based on the number of scholarships available and the expected special needs scholarship program summer school payment in a school’s notice of intent to participate submitted under s. PI 49.03 (3).

(b) “Revised expected payment” means a school’s expected scholarship payment amount based on the number of scholarships available and the expected special needs scholarship program summer school payment in a revised school information update form submitted under sub. (5).

  SECTION 11. PI 49.04 (1m) is created to read:

PI 49.04 (1m) Financial requirements. If a school’s initial expected payment is at least $50,000, the school shall do one of the following:

(a) Annually by the first weekday in June prior to the school year, provide a bond payable to the state of Wisconsin equal to 25 percent of the initial expected payment.

(b) 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 initial expected payment, 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.

d. Estimated amounts required under s. PI 49.09 (3) (a) and (b).

e. A schedule of anticipated beginning and ending net assets.

f. Anticipated beginning and ending reserve balance.

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.

5. Submit to the department any other information required by the department to determine the financial position of the school.

Note: The budget and cash flow report may be obtained at no charge from the Wisconsin department of public instruction’s webpage at http://dpi.wi.gov/sms/special-needs-scholarship.