AB1042: Bill Text

AB1042,127 Section 127. 118.60 (3m) (c) of the statutes is renumbered 118.82 (3) and amended to read:

AB1042,,331 118.82 (3) Appeal; participating private school. A participating private school participating in the program under this section shall determine whether the participating private school may charge additional tuition to a pupil on the basis of the pupil’s family income as permitted allowed under par. (b) sub. (2). The participating private school shall establish a process for accepting an appeal to the governing body of the participating private school of the determination made under this paragraph subsection.

AB1042,128 Section 128. 118.60 (4) (a) of the statutes is renumbered 118.80 (8) and amended to read:

AB1042,,333 118.80 (8) Summer school attendance report. Annually, on or before the Monday after the 3rd Friday in September 15, a participating private school participating in the program under this section shall file with the department a report stating its summer daily attendance for each day of summer school for the purpose of sub. (4m) s. 118.84 (2).

AB1042,129 Section 129. 118.60 (4) (bg) 1., 2. and 4. of the statutes are repealed.

AB1042,130 Section 130. 118.60 (4) (bg) 3. of the statutes, as affected by 2023 Wisconsin Act 11, is renumbered 118.84 (1) (b) and amended to read:

AB1042,,336 118.84 (1) (b) In the 2015-16 2025-26 school year and in each school year thereafter, upon receipt from the pupil’s parent or guardian of proof of the pupil’s enrollment in the private school during a school term, except as provided in subd. 5., the state superintendent shall pay to the participating private school in which the pupil is enrolled on behalf of the pupil’s parent or guardian, from the appropriation under s. 20.255 (2) (fr), an amount equal to the sum of the maximum amount per pupil the state superintendent paid a participating private school under this section in the previous school year for the grade in which the pupil is enrolled; in the 2023-24 school year, if the pupil is enrolled in a grade from kindergarten to 8, 10 percent of the revenue ceiling, as defined in s. 121.905 (1), for that school year; the amount of the per pupil revenue adjustment under s. 121.91 (2m) for the current school year, if positive; 90 percent of the change in the revenue ceiling, as defined in s. 121.905 (1), between the previous school year and current school year, if positive, if the pupil is enrolled in a grade from kindergarten to 8, or if the pupil is enrolled in a grade from 9 to 12, the change in the revenue ceiling, as defined in s. 121.905 (1), between the previous school year and current school year, if positive; and the change in the amount of statewide categorical aid per pupil between the previous school year and the current school year, as determined under s. 118.40 (2r) (e) 2p., if positive; and in the 2023-24 school year, if the pupil is enrolled in a grade from 9 to 12, 26.8 percent of the revenue ceiling, as defined in s. 121.905 (1), for that school year.

AB1042,131 Section 131. 118.60 (4) (bg) 5. of the statutes, as affected by 2023 Wisconsin Act 11, is repealed.

AB1042,132 Section 132. 118.60 (4) (c) of the statutes is renumbered 118.84 (3) and amended to read:

AB1042,,339 118.84 (3) Payment installments. The state superintendent shall pay 25 percent of the total amount under this subsection sub. (1) in September, 25 percent in November, 25 percent in February, and 25 percent in May. Each installment may consist of a single check for all pupils attending the participating private school under this section the choice program. The state superintendent shall include the entire amount under sub. (4m) (2) in the November installment, but the payment shall be made in a separate check from the payment under this subsection sub. (1).

AB1042,133 Section 133. 118.60 (4d) (a) of the statutes is renumbered 118.84 (4) (a) (intro.) and amended to read:

AB1042,,341 118.84 (4) (a) (intro.) In this subsection, “incoming choice pupil” means a pupil who resides in a school district, other than a 1st class city school district, who begins satisfies all of the following criteria:

AB1042,,342 2. The pupil began participating in the program under this section in s. 118.60, 2023 stats., during the period beginning with the 2015-16 school year or any and ending with the 2025-26 school year thereafter, and who or begins participating in the choice program in the 2026-27 school year or any school year thereafter.

AB1042,,343 3. The pupil is enrolled in a participating private school under this section the choice program.

AB1042,134 Section 134. 118.60 (4d) (b) of the statutes is renumbered 118.84 (4) (b), and 118.84 (4) (b) 1. (intro.) and a. to d., as renumbered, are amended to read:

AB1042,,345 118.84 (4) (b) 1. (intro.) Beginning in the 2015-16 school year, subject Subject to s. 121.085 (1), the department shall decrease a school district’s state aid payment under s. 121.08 by an amount calculated as follows:

AB1042,,346 a. Identify the incoming choice pupils residing in the school district for whom a payment is made under sub. (4) (bg) (1) in that school year.

AB1042,,347 b. Sum the payments made under sub. (4) (bg) (1) for all of the pupils identified under subd. 1. a. for that school year.

AB1042,,348 c. Identify the incoming choice pupils residing in the school district for whom a payment is made under sub. (4m) (2) in that school year.

AB1042,,349 d. Sum the payments made under sub. (4m) (a) (2) for all of the pupils identified under subd. 1. c. for that school year.

AB1042,135 Section 135. 118.60 (4m) of the statutes is renumbered 118.84 (2), and 118.84 (2) (a) and (b) 1. and 2., as renumbered, are amended to read:

AB1042,,351 118.84 (2) (a) In addition to the payment under sub. (4) (1), the state superintendent shall, subject to par. (b), pay to each participating private school participating in the program under this section, on behalf of the parent or guardian of each pupil attending summer school in the participating private school under this section during a summer and in the manner described in sub. (4) (c) (3), an amount determined as follows:

AB1042,,352 1. Determine the maximum amount that could have been paid, at the end of the immediately preceding school term, per pupil under sub. (4) (bg) (1) for the grade in which the pupil is attending summer school under this section the choice program.

AB1042,,353 2. If the pupil attended summer school for at least 15 days of summer instruction at the participating private school during that summer, multiply the amount under subd. 1. by 0.05.

AB1042,,354 3. If the pupil attended summer school for less than 15 days of summer instruction at the participating private school during that summer, multiply the amount under subd. 1. by 0.05 by the quotient determined by dividing the number of days of summer instruction the pupil attended during that summer by 15.

AB1042,,355 (b) 1. The participating private school offers no fewer than 19 summer days of instruction during that summer.

AB1042,,356 2. Each summer day of instruction offered by the participating private school under subd. 1. is comprised of no fewer than 270 minutes of instruction.

AB1042,136 Section 136. 118.60 (4r) of the statutes is renumbered 118.84 (5), and 118.84 (5) (intro.) and (a), as renumbered, are amended to read:

AB1042,,358 118.84 (5) Participating private school closure. (intro.) If, after the 3rd Friday in September in any school year, a participating private school participating in the program under this section closes, for each installment under sub. (4) (c) (3) that was not paid to the participating private school in that school year, the state superintendent shall pay to the school board of the school district within which the pupil resides, from the appropriation under s. 20.255 (2) (fv), the amount determined, for each pupil who had been attending the participating private school under this section the choice program in that school year and who enrolls in the school district within which the pupil resides in that school year, as follows:

AB1042,,359 (a) Multiply the amount determined under sub. (4) (bg) (1) by 0.616.

AB1042,137 Section 137. 118.60 (4s) of the statutes is renumbered 118.84 (6) and amended to read:

AB1042,,361 118.84 (6) Special Needs Scholarship Program pupils. Notwithstanding subs. (4), (4d), (4m), and (4r) (1) to (5), a pupil attending a participating private school participating in the program under this section who is receiving a scholarship under s. 115.7915 shall may not be counted under this section as a pupil attending the participating private school under this section under sub. (4), (4d), (4m), or (4r) the choice program.

AB1042,138 Section 138. 118.60 (4v) of the statutes is repealed.

AB1042,139 Section 139. 118.60 (5) of the statutes is renumbered 118.87 (5) and amended to read:

AB1042,,364 118.87 (5) Annual notice; pupils. The state superintendent shall ensure Ensure that pupils and parents and guardians of pupils who reside in this state are informed annually of the private schools participating in the choice program under this section and in the program under s. 119.23.

AB1042,140 Section 140. 118.60 (6) of the statutes is renumbered 118.86 and amended to read:

AB1042,,366 118.86 School district; duties. The A school board of a school district shall provide transportation to pupils attending a participating private school under this section the choice program if required under s. 121.54 and may claim transportation aid under s. 121.58 for pupils so transported.

AB1042,141 Section 141. 118.60 (6m) (intro.) and (a) (intro.) and (b) of the statutes are repealed.

AB1042,142 Section 142. 118.60 (6m) (a) 1. to 9. of the statutes are renumbered 118.78 (1) (a) to (i), and 118.78 (1) (g) and (i), as renumbered, are amended to read:

AB1042,,369 118.78 (1) (g) A copy of the suspension and expulsion policies and procedures, including procedures for appealing a suspension or and for appealing an expulsion, used by the private school. The private school shall include in its suspension and expulsion policies and procedures a requirement that a pupil’s parent receive written notice if the pupil is suspended or expelled.

AB1042,,370 (i) A copy of the policy governing visitors and visits to the private school, developed as required under sub. (7) (b) 2m.

AB1042,143 Section 143. 118.60 (6m) (bm) of the statutes is renumbered 118.78 (2) and amended to read:

AB1042,,372 118.78 (2) Disclosures to department. Upon request of the department, a participating private school shall provide a copy of any policy described in par. (a) sub. (1) and the academic standards adopted under sub. (7) (b) 2. s. 118.79 (3).

AB1042,144 Section 144. 118.60 (6m) (c) of the statutes is renumbered 118.78 (3) and amended to read:

AB1042,,374 118.78 (3) Annual notice; governing body. Upon an individual joining the private school’s governing body, Annually, a participating private school shall notify the department of any changes in the membership of its governing body and provide to the department a signed statement from the each individual who joined the governing body during the previous year verifying that the individual is a member of the governing body.

AB1042,145 Section 145. 118.60 (6m) (d) of the statutes is renumbered 118.78 (4) and amended to read:

AB1042,,376 118.78 (4) Disclosures to pupils. Upon request by any pupil, or the parent or guardian of any minor pupil, who is attending or who applies to attend the a participating private school, the participating private school shall provide the material specified in pars. (a) and (b) sub. (1).

AB1042,146 Section 146. 118.60 (6p) (intro.) and (a) (intro.) of the statutes are consolidated, renumbered 118.76 (6) (intro.) and amended to read:

AB1042,,378 118.76 (6) Disclosure information. (intro.) In addition to the requirements under sub. (6m), a A private school that is not a new private school and that did not participate in the choice program under this section or s. 119.23 in the previous school year shall submit to the department all of the following: (a) By, by 2 days before the 2nd Friday in January 10 of the school year immediately preceding the school year in which the private school intends to participate in the choice program under this section, all of the following:

AB1042,147 Section 147. 118.60 (6p) (a) 1. of the statutes is renumbered 118.76 (6) (a) and amended to read:

AB1042,,380 118.76 (6) (a) The information required under sub. (6m) (a) s. 118.78 (1).

AB1042,148 Section 148. 118.60 (6p) (a) 2. of the statutes is renumbered 118.76 (6) (c).

AB1042,149 Section 149. 118.60 (6p) (b) of the statutes is renumbered 118.76 (6) (b) and amended to read:

AB1042,,383 118.76 (6) (b) By August 1 of the school year in which the private school intends to participate in the program under this section, a A copy of the academic standards adopted under sub. (7) (b) 2. s. 118.79 (3).

AB1042,150 Section 150. 118.60 (7) (ad) 1. of the statutes is renumbered 118.74 (3) (a) (intro.) and amended to read:

AB1042,,385 118.74 (3) (a) (intro.) If a participating private school participating in the program under this section or s. 119.23 and that is accredited under sub. (2) (a) 7. to offer instruction in any elementary grade, but not any high school grade, seeks to offer instruction in any high school grade, the private school shall apply do all of the following:

AB1042,,386 1. Apply for and achieve accreditation to offer of the high school grades by an accrediting entity by the last weekday in December of the first school year in which the private school offers instruction in the additional grades in the manner established under sub. (2) (a) 7. c. a high school grade.

AB1042,151 Section 151. 118.60 (7) (ad) 2. of the statutes is renumbered 118.74 (3) (b) (intro.) and amended to read:

AB1042,,388 118.74 (3) (b) (intro.) If a participating private school participating in the program under this section or s. 119.23 and that is accredited under sub. (2) (a) 7. to offer instruction in any high school grade, but not any elementary grade, seeks to offer instruction in any elementary grade, the private school shall apply do all of the following:

AB1042,,389 1. Apply for and achieve accreditation to offer of the elementary grades by an accrediting entity by the last weekday in December of the first school year in which the private school offers instruction in the additional grades in the manner established under sub. (2) (a) 7. c. an elementary grade.

AB1042,152 Section 152. 118.60 (7) (ad) 3. of the statutes is renumbered 118.74 (4) (a) and amended to read:

AB1042,,391 118.74 (4) (a) The governing body of a participating private school participating in the program under this section and accredited as required under subds. 1. and 2. and sub. (2) (a) 7., except for a private school obtaining accreditation as allowed under sub. (2) or (3), shall ensure that the participating private school continuously maintains accreditation from an accrediting entity as long as the private school continues to participate in the choice program under this section.

AB1042,153 Section 153. 118.60 (7) (ag) of the statutes is renumbered 118.74 (5) and amended to read:

AB1042,,393 118.74 (5) Disqualified accrediting organization. If a participating private school learns that an accrediting organization with which the private school is maintaining accreditation, as required under par. (ad) this section, is a disqualified accrediting organization, the participating private school shall immediately notify the department in writing of this fact and shall obtain accreditation from an accrediting entity no later than 3 years from the date on which the participating private school learned that the accrediting organization is a disqualified accrediting organization.

AB1042,154 Section 154. 118.60 (7) (am) 1m. of the statutes is renumbered 118.83 (1) and amended to read:

AB1042,,395 118.83 (1) Definition. In this paragraph section, “eligible education expenses” means all direct and indirect costs associated with a participating private school’s educational programming for pupils enrolled in grades kindergarten to 12 that are reasonable for the participating private school to achieve its educational purposes, as determined by the governing body of the participating private school in a written policy and tested by an independent auditor. “Eligible education expenses” include expenses related to management, insurance, transportation, extracurricular programming and activities, facility and equipment costs, development expenses, and programming that provides child care services before school, after school, or both before and after school. A cost is not an “eligible education expense” if an independent auditor determines, after testing, that the cost is not a cost associated with the participating private school’s educational programming for pupils enrolled in grades kindergarten to 12 that is reasonable for the participating private school to achieve its educational purposes, as determined by the governing body of the participating private school in a written policy.

AB1042,155 Section 155. 118.60 (7) (am) 2m. (intro.) and a. of the statutes are consolidated, renumbered 118.83 (2) (a) and amended to read:

AB1042,,397 118.83 (2) (a) Each participating private school participating in the program under this section is subject to uniform financial accounting standards established by the department.

AB1042,,398 (b) Annually by the last weekday in October 15 following a school year in which a private school participated in the choice program under this section, the private school shall submit to the department all of the following: a. An an independent financial audit of the private school conducted by an independent certified public accountant, accompanied by the auditor’s statement that the report is free of material misstatements and fairly presents the private school’s eligible education expenses, and beginning in the 2nd school year a private school participates in the program under this section, a copy of a management letter prepared by the auditor. All of the following apply to a financial audit submitted under this paragraph:

AB1042,,399 1. If the private school annually received a total of at least $100,000 under this section the choice program and ss. s. 115.7915 and 119.23 in any school year, the audit shall be prepared in accordance with generally accepted accounting principles with allowable modifications for long-term fixed assets.

AB1042,,400 2. If the private school has not annually received a total of at least $100,000 under this section the choice program and ss. s. 115.7915 and 119.23 in any school year, the audit shall be prepared as prescribed by the department by rule.

AB1042,,401 3. The audit shall include a calculation of the private school’s net eligible education expenses and a calculation of the balance of the private school’s fund for future eligible education expenses.

AB1042,,402 4. The auditor shall conduct his or her the audit, including determining sample sizes and evaluating financial viability, in accordance with the auditing standards established by the American Institute of Certified Public Accountants. The department may not require an auditor to comply with standards that exceed the scope of the standards established by the American Institute of Certified Public Accountants.

AB1042,,403 5. If a private school participating in a program under this section is part of an organization and the private school and the organization share assets, liabilities, or eligible education expenses, the private school may submit an audit of the private school or of the organization of which it is a part. If a private school that is part of an organization with which it shares assets, liabilities, or eligible education expenses submits an audit of only the private school, the independent auditor shall use his or her professional judgment to allocate any shared assets, liabilities, and eligible education expenses between the organization and the private school.

AB1042,,404 6. If a private school participating participated in the choice program under this section in the previous school year and also accepts pupils participated in the program under s. 115.7915 or 119.23 in the previous school year, the private school may submit one comprehensive financial audit to satisfy the requirements of this subdivision subsection and ss. s. 115.7915 (6) (e) and 119.23 (7) (am) 2m., whichever are applicable. The private school shall include in the comprehensive financial audit the information specified under s. 119.23 (7) (am) 2m.

AB1042,156 Section 156. 118.60 (7) (am) 2m. b. of the statutes is renumbered 118.83 (5) (a) and amended to read:

AB1042,,406 118.83 (5) Fiscal and internal control practices. (a) Evidence A participating private school shall submit evidence to the department of sound fiscal and internal control practices, including evidence that the entity has the financial ability to continue operating, as prescribed by the department by rule.

AB1042,,407 (b) A private school that participated in the choice program shall submit to the department reports completed by an independent auditor on the private school’s compliance with fiscal and internal control requirements, as required by the department by rule. An independent auditor engaged to evaluate the participating private school’s fiscal and internal control practices shall conduct his or her the evaluation, including determining sample sizes, in accordance with attestation standards established by the American Institute of Certified Public Accountants. The independent auditor engaged to evaluate the private school’s fiscal and internal control practice shall also review any concerns raised in the private school’s management letter submitted under subd. 2m. a.

AB1042,,408 (c) The fact that a participating private school reports a negative reserve balance alone is not evidence that the participating private school does not have the financial ability to continue operating or that the participating private school does not follow sound fiscal and internal control practices.

AB1042,157 Section 157. 118.60 (7) (am) 2m. c. of the statutes is repealed.

AB1042,158 Section 158. 118.60 (7) (am) 3. of the statutes is renumbered 118.83 (3) and amended to read:

AB1042,,411 118.83 (3) Financial audit review. (a) By no later than February 15 the first weekday in March or 120 days after the date on which the audit under subd. 2m. a. sub. (2) is received by the department, whichever is later, the department shall notify a private school participating that participated in the choice program under this section in the previous school year whether or not additional information is required for the department to complete its review of the audit. Subject to subd. 3. b. par. (b), the department may request that an auditor provide additional information if the request is related to the department reviewing the audit. The department shall determine whether a the private school participating in the program under this section has provided the information and met the requirements required under subd. 2m. a. sub. (2) by the 3rd Friday in April 1 .

AB1042,,412 (b) Before the 3rd Friday in April 1 , the department may contact the auditor who prepared the audit under subd. 2m. a. sub. (2) only regarding matters that may impact the private school’s financial statement by an amount that is greater than 1 percent of the total amount the private school received under this section the choice program for the previous school year and any items or information the department determines are missing from the audit.

AB1042,,413 (c) Notwithstanding subd. 3. a. and b. pars. (a) and (b), the department may communicate with an auditor as necessary for the purpose of assessing the financial viability of a participating private school participating in the program under this section.

AB1042,,414 (d) An auditor who receives a written communication under this subdivision subsection shall respond to the department within 10 school days of receiving the written communication.

AB1042,159 Section 159. 118.60 (7) (an) of the statutes is renumbered 118.83 (4) and amended to read:

AB1042,,416 118.83 (4) Reserve balance. (a) A participating private school participating in the program under this section shall maintain a cash and investment balance that is at least equal to its reserve balance. If a participating private school does not maintain a cash and investment balance that is at least equal to its reserve balance, the participating private school shall refund the reserve balance to the department. This subdivision does not apply to a school year that occurs during the public health emergency declared on March 12, 2020, by executive order 72.

AB1042,,417 (b) If a participating private school participating in the program under this section has a reserve balance that is greater than 50 percent of the total amount the participating private school received under this section the choice program in the previous school year, the governing body of the participating private school shall approve a plan for how it will use the amount of the reserve balance that exceeds 50 percent of the total amount the participating private school received under this section the choice program in the previous school year.

AB1042,,418 (c) If a private school ceases to participate in or is barred from the choice program under this section and s. 119.23 and the private school’s reserve balance is positive, the private school shall refund the reserve balance to the department.