SECTION 2. PI 49.02 (3) is repealed.
SECTION 3. PI 49.02 (3m) is created to read:
PI 49.02 (3m) “Classroom records” means teacher-originated test scores, report cards, progress reports, and attendance records.
SECTION 4. 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 5. PI 49.02 (9s) and (12m) are created to read:
PI 49.02 (9s) “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. (12m) “Primarily special needs scholarship program expenses” mean eligible education expenses that are at least 50 percent related to special needs scholarship program pupils.
SECTION 6. PI 49.02 (15) and (18) are amended to read:
PI 49.02 (15) “Scholarship” means a payment under s. 115.7915 (4m) or (4p), Stats. (18) “Special needs scholarship program administrator” means the person who has the authority to processdo all of the following:
(a) Process pupil applications and submittransfer requests.
(b) File reports and forms required under this chapter and s. 115.7915, Stats. SECTION 7. 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 8. PI 49.03 (3) (intro.), (b) 1. and 3. are amended to read:
PI 49.03 (3) Notice of intent to participate. Annually by the first weekday in March 1, a school that intends to participate in the special needs scholarship program in the following school year shall submit to the departmentfile a notice of intent to participate with the department. The notice shall include all of the following:
(b) 1. The school shall include all special needs scholarship program pupils on the second Friday in January count report submittedfiled 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. 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 submitsfiles its notice of intent to participate towith the department. SECTION 9. 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 10. PI 49.03 (3) (d) is amended to read:
PI 49.03 (3) (d) The signature of the head of the governing board, or if designated by the head of the governing board, the special needs scholarship program administrator.
SECTION 11. PI 49.03 (4) is repealed and recreated to read:
PI 49.03 (4) Background checks. (a) In this subsection, “license” means a valid license issued by the department under ch. PI 34. (b) Except as provided under par. (e), a school shall conduct a criminal background check prior to employing any individual at the school and every 5 years after the date of the previous background check.
(c) The requirements under par. (b) or (e) shall be completed for all individuals defined as employees under s. 108.02 (12), Stats., who are directly or indirectly related to educational programming. For the purposes of this paragraph, an individual shall be determined to be directly or indirectly related to educational programming if any of the following apply: 1. Any compensation for the individual is included as an eligible education expense in a financial audit submitted under ss. 115.7915, 118.60, or 119.23, Stats. 2. The individual interacts with pupils.
3. The individual performs financial, administrative, or academic duties for the school.
(d) 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. (e) A school is not required to complete a background check on an individual under this subsection if the individual has a license. The school shall complete all of the following procedures for an individual with a license:
1. Obtain and retain a copy of the license.
2. Annually determine that the individual has a license in advance of the employee working for the school term.
SECTION 12. PI 49.03 (5) (a) (intro.) and (b) (intro.), (6) (intro.), (a) (intro.) and 4., (b) and (c), and (7) 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 submitfile one of the following documents towith the department for all locations of the school:
(b) If a school moves to a new location or adds a new location, the school shall submit to the departmentfile one of the following with the department before pupils attend the new location:
(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 tofile with 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:
4. A statementNotification that the school is accredited as ofat the date oftime the letternotice is filed.
(b) The letternotice shall be datedfiled no earlier than the beginning of the school year.
(c) The letternotice shall be signedcompleted by an authorized member of the accrediting agency.
(7) State superintendent approval. Annually by the first weekday in March 1 preceding the school year of participation, a school seeking approval as a private school by the state superintendent under s. 115.7915 (2) (c), Stats., shall submit tofile with the department a special needs scholarship program private school requirements form demonstrating the school meets all of the requirements under s. 118.165 (1), Stats.
SECTION 13. 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 filed 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 filed under sub. (5).
SECTION 14. 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, file a bond with the department payable to the state of Wisconsin equal to 25 percent of the initial expected payment.
(b) Annually by the first weekday in March prior to the school year, file financial information with 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:
