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Comparison with rules in adjacent states: N/A
Summary of factual data and analytical methodologies:
2015 Wisconsin Act 55, the 2015-17 biennial budget, created the special needs scholarship program. The Department promulgated administrative rules, CR 16-005, relating to the special needs scholarship program; and CR 16-066, relating to revisions to the special needs scholarship program; both of which are currently in effect. Since then, 2017 Wisconsin Act 36 and 2017 Wisconsin Act 59, the 2017-19 biennial budget, made several changes relating to the administration of this program. As a result of recent changes in statute and items identified since the rules were implemented, modifications to PI 49 are needed to better assist participating schools and the Department in the administration of the program. Without a rule change, statute and rule will not be consistent and the Department may be prevented from efficiently administering the program.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: N/A
Anticipated costs incurred by private sector: N/A
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
(608) 267-9127
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 adminrules@dpi.wi.gov. 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 (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.
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