(c) The requirements under par. (b) 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. 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 total of the following:
1. The full-time equivalent for pupils expected to participate in the special needs scholarship program multiplied by the per pupil payment amount determined under s. 115.7915 (4m), Stats. The full-time equivalent for the pupils in this subdivision shall be based on the number of scholarships identified as available in the school’s notice of intent to participate filed under s. PI 49.03 (3). 2. The expected summer school payment for pupils participating in the special needs scholarship program based on the expected number of special needs scholarship program pupils that will participate in summer school identified in the 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 calculated as the total of the following:
1. The full-time equivalent for pupils expected to participate in the special needs scholarship program multiplied by the per pupil payment amount determined under s. 115.7915 (4m), Stats. The full-time equivalent for the pupils in this subdivision shall be based on the number of scholarships identified as available in a revised school information update form filed under sub. (5). 2. The expected summer school payment for pupils participating in the special needs scholarship program based on the expected number of special needs scholarship program pupils that will participate in summer school identified in the school’s notice of intent to participate filed under s. PI 49.03 (3). 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:
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. File with 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. The most recent balance sheet and income statement for the legal entity of the school.
4. Bank statements for all cash and investment accounts included in the balance sheet required under subd. 3.
5. 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. SECTION 15. PI 49.04 (2) (intro.), (a), (b), (c), (d), (e), and (f), (3) (c) and (4) (intro.) are amended to read:
PI 49.04 (2) Financial information review. The department shall review the financial information providedfiled by a school under sub. (1)(1m) (b) and any other information available to the department to determine if the school meets the requirements under s. 115.7915 (6) (f) 2., Stats. In making a determination, the department shall remove the special needs scholarship program revenue from the school’s budget to determine if any of the following indicators exist: (a) The school has inadequate revenues and other financial resources to fund current operations in the budget submittedfiled under sub. (1)(1m) (b).
(b) The school has negative cash flows in any month in the budget submittedfiled under sub. (1)(1m) (b).
(c) The school has a negative net asset balance in the financial audit, or in a financial audit submitted under s. 118.60 or 119.23, Stats., or in the budget submittedfiled under sub. (1)(1m) (b). (d) The school has a negative net current obligation in itsthe financial audit, or in a financial audit submitted under s. 118.60 or 119.23, Stats., or in the budget submittedfiled under sub. (1)(1m) (b). The net current obligation shall be calculated as the current assets less the current liabilities. (e) The school has a net operating loss or negative change in net assets in the financial audit, or a financial audit submitted under s. 118.60 or 119.23, Stats., or in the budget submittedfiled under sub. (1)(1m) (b). (f) The audit opinion statement included in the financial audit, or a financial audit submitted under s. 118.60 or 119.23, Stats., contains a qualification as to the school's ability to continue as a going concern. (3) (c) A school that does not meet the requirements under s. 115.7915 (6) (f) 2., Stats., shall providefile a surety bond with the department that meets the requirements under sub. (1)(1m) (a) by the first weekday in June 1 prior to the school year. (4) Bond call provisions. The department may call a bond submittedfiled by a school under this section for any of the following reasons:
SECTION 16. PI 49.04 (5) is created to read:
PI 49.04 (5) revisions to number of available scholarships. (a) A school that filed a bond under sub. (1m) (a) that the department determined met the requirements under s. 115.7915 (6) (f) 1., Stats., may revise the number of scholarships available as follows: 1. The school shall file with the department a school information update form with the revised number of scholarships available. The school information update form shall include the expected summer school payment for pupils participating in the special needs scholarship program based on the expected number of special needs scholarship program pupils that will participate in summer school identified in the school’s notice of intent to participate filed under s. PI 49.03 (3). 2. A school may not accept more special needs scholarship program pupils than indicated on its notice of intent to participate under s. PI 49.03 (3) until the school information update form is filed with the department. 3. The school shall file with the department a revised bond if the expected payment increases and the difference between the initial expected payment and the revised expected payment based on the number of scholarships available under subd. 1 is at least $50,000. The revised bond shall be equal to 25 percent of the revised expected payment based on the number of scholarships available under subd. 1. This bond shall be filed with the department by the first weekday in November.
4. After the third Friday in September, a school may not increase the number of scholarships available under this paragraph if either of the following apply:
a. If a bond was not revised under subd. 3., the revised expected payment is at least $50,000 more than the initial expected payment.
b. If a bond was revised under subd. 3., the revised expected payment is at least $50,000 more than the amount calculated under subd. 3.
(b) A school that filed financial information under sub. (1m) (b) that the department determined met the requirements under s. 115.7915 (6) (f) 2., Stats, may revise the number of scholarships available as follows: 1. The school shall file with the department a school information update form with the revised number of scholarships available. The school information update form shall include the expected summer school payment for pupils participating in the special needs scholarship program based on the expected number of special needs scholarship program pupils that will participate in summer school identified in the school’s notice of intent to participate filed under s. PI 49.03 (3). 2. The school shall file a bond with the department if the expected payment increases and the difference between the initial expected payment and the revised expected payment based on the number of scholarships available under subd. 1 is at least $50,000. The bond shall be payable to the state of Wisconsin and be equal to 25 percent of the difference between the initial expected payment and the revised expected payment based on the number of scholarships under subd. 1. This bond shall be filed with the department by the last weekday in August.
3. A school may not accept more special needs scholarship program pupils than indicated on its notice of intent to participate under s. PI 49.03 (3) until the bond required under subd. 2. is filed with the department. 4. After the last weekday in August, a school may not increase the number of scholarships available under this paragraph if either of the following apply:
a. If a bond was not filed under subd. 2., the revised expected payment is at least $50,000 more than the initial expected payment.
b. If a bond was filed under subd. 2., the revised expected payment is at least $50,000 more than the amount calculated under subd. 2.
(c) A school that had an initial expected payment of less than $50,000 may revise the number of scholarships available as follows:
1. The school shall file with the department a school information update form with the revised number of scholarships available. The school information update form shall include the expected summer school payment for pupils participating in the special needs scholarship program based on the expected number of special needs scholarship program pupils that will participate in summer school identified in the school’s notice of intent to participate filed under s. PI 49.03 (3). 2. The school shall file with the department a bond if the expected payment increases and the revised expected payment based on the number of scholarships available under subd. 1 is at least $50,000. The bond shall be payable to the state of Wisconsin and be equal to 25 percent of the revised expected payment based on the number of scholarships available under subd. 1. This bond shall be filed with the department by the last weekday in August.
3. A school may not accept more special needs scholarship program pupils than indicated on its notice of intent to participate under s. PI 49.03 (3) until the bond required under subd. 2. is filed with the department. 4. After the last weekday in August, a school may not increase the total number of scholarships available under this paragraph if either of the following apply:
