For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB1040,1 Section 1 . 115.7915 (2) (intro.) of the statutes is amended to read:

AB1040,2,5 115.7915 (2) Scholarship requirements. (intro.) Beginning in the 2016-17 school year, the department shall, subject to sub. (11), provide to a child with a disability a scholarship under sub. (4m) (a) to attend an eligible school if all of the following apply:

AB1040,2 Section 2. 115.7915 (11) of the statutes is created to read:

AB1040,3,8 115.7915 (11) Sunset. Beginning in the 2022-23 school year, the department may not provide a scholarship under this section to a child with a disability to attend a private school unless the child attended a private school under a scholarship under this section in the 2021-22 school year. If the child does not attend a private school under a scholarship under this section in any school year after the 2021-22 school year, the department may not provide a scholarship under this section to the child for any school year after that school year.

AB1040,3 Section 3 . 118.60 (2) (a) (intro.) of the statutes is amended to read:

AB1040,3,15 118.60 (2) (a) (intro.) Subject to pars. (ag) and, (ar), and (bh), any pupil in grades kindergarten to 12 who resides within in an eligible school district may attend any private school under this section and, subject to pars. (ag), (ar), (be), (bh), (bm), and (bs), any pupil in grades kindergarten to 12 who resides in a school district, other than an eligible school district or a 1st class city school district, may attend any private school under this section if all of the following apply:

AB1040,4 Section 4 . 118.60 (2) (a) 2. g. of the statutes is amended to read:

AB1040,3,19 118.60 (2) (a) 2. g. If the pupil resides in a school district, other than an eligible school district or a 1st class city school district, the pupil was on a waiting list under sub. (3) (am) 4. or (ar) 4. in any previous school year.

AB1040,5 Section 5 . 118.60 (2) (be) 3. of the statutes is amended to read:

AB1040,3,23 118.60 (2) (be) 3. Beginning with the 2026-27 school year, there is no limit on the number of pupils who may attend private schools the limits under this section paragraph do not apply.

AB1040,6 Section 6 . 118.60 (2) (bh) of the statutes is created to read:

AB1040,3,25 118.60 (2) (bh) 1. In this paragraph, “program cap” means any of the following:

AB1040,4,3 a. For an eligible school district, the total number of pupils residing in the eligible school district who attended a private school under this section in the 2021-22 school year.

AB1040,4,6 b. For all school districts, other than an eligible school district or a 1st class city school district, the total number of pupils residing in those school districts who attended a private school under this section in the 2021-22 school year.

AB1040,4,9 2. a. Beginning with the 2022-23 school year, the total number of pupils residing in an eligible school district who may attend a private school under this section during a school year may not exceed the program cap under subd. 1. a.

AB1040,4,13 b. Beginning with the 2022-23 school year, the total number of pupils residing in school districts, other than an eligible school district or a 1st class city school district, who may attend a private school under this section during a school year may not exceed the program cap under subd. 1. b.

AB1040,7 Section 7 . 118.60 (3) (a) (intro.) of the statutes is amended to read:

AB1040,5,3 118.60 (3) (a) (intro.) The pupil or the pupil's parent or guardian shall submit an application, on a form provided by the state superintendent, to the participating private school that the pupil wishes to attend. If more than one pupil from the same family applies to attend the same private school, the pupils may use a single application. No later than 60 days after the end of the application period during which an application is received and subject to par. pars. (am) and (ar), the private school shall notify each applicant, in writing, whether his or her application has been accepted. If the private school rejects an application, the notice shall include the reason. Subject to par. pars. (am) and (ar), a private school may reject an applicant only if it the private school has reached its maximum general capacity or seating capacity. Except as provided in par. pars. (am) and (ar), the state superintendent shall ensure that the private school determines which pupils to accept on a random basis, except that the private school may give preference to the following in accepting applications, in the order of preference listed:

AB1040,8 Section 8 . 118.60 (3) (am) of the statutes is created to read:

AB1040,5,6 118.60 (3) (am) All of the following apply to applications to attend a private school under this section submitted by pupils who reside in an eligible school district:

AB1040,5,13 1. A private school that has submitted a notice of intent to participate under sub. (2) (a) 3. a. may accept applications for a school year during application periods determined by the department from pupils who reside in an eligible school district. For each school year, the department shall establish one or more application periods under this subdivision, the first of which begins no earlier than February 1 of the school year before the applicable school year, and the last of which ends no later than September 14 of the applicable school year.

AB1040,5,20 2. Each private school that received applications under subd. 1. shall report to the department the number of pupils who applied under subd. 1. to attend the private school under this section and the names of those applicants who have siblings who also applied under subd. 1. to attend the private school under this section. The private school shall submit the report no later than 10 days after each application period described under subd. 1. during which the private school received applications.

AB1040,6,6 3. After the end of each application period described under subd. 1., upon receipt of the information under subd. 2., the department shall determine the sum of all applicants for pupils residing in an eligible school district. In determining the sum, the department shall count a pupil who has applied to attend more than one private school under the program only once. If, after the end of an application period described under subd. 1., the sum of all applicants for pupils residing in an eligible school district exceeds the program cap under sub. (2) (bh) 2. a., the department shall determine which applications submitted during the application period to accept on a random basis, except that the department shall give preference to the applications of pupils described in par. (a) 1m. to 5., in the order of preference listed in that paragraph.

AB1040,6,9 4. If the sum under subd. 3. exceeds the program cap under sub. (2) (bh) 2. a., the department shall establish a waiting list in accordance with the preferences required under subd. 3.

AB1040,6,17 5. A private school that has accepted a pupil who resides in an eligible school district under this paragraph shall notify the department whenever the private school determines that a pupil will not attend the private school under this paragraph. If, upon receiving notice under this subdivision, the department determines that the number of pupils attending private schools under this section falls below the program cap under sub. (2) (bh) 2. a., the department shall fill any available slot with a pupil selected from the waiting list established under subd. 4., if such a waiting list exists.

AB1040,9 Section 9 . 118.60 (3) (ar) (intro.) of the statutes is amended to read: