Chapter 118

118.40(2x)(f)1. 1. Beginning in the 2016-17 school year, 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:

118.40(2x)(f)1.a. a. Determine the number of pupils residing in the school district for whom a payment is made under par. (e) 1. in that school year.

118.40(2x)(f)1.b. b. Multiply the number of pupils under subd. 1. a. by the per pupil amount calculated under par. (e) 1. for that school year.

118.40(2x)(f)1.c. c. Identify the pupils residing in the school district for whom a payment is made under par. (em) 1. in that school year.

118.40(2x)(f)1.d. d. Sum the payments made under par. (em) 1. for all of the pupils identified under subd. 1. c. that school year.

118.40(2x)(f)1.e. e. Sum the amounts determined under subd. 1. b. and d.

118.40(2x)(f)2. 2. If a school district’s state aid payment under s. 121.08 is insufficient to cover the reduction under subd. 1., as determined under s. 121.085 (2), the department shall decrease other state aid payments made by the department to the school district by the remaining amount.

118.40(2x)(f)3. 3. The department shall ensure that the decrease under subd. 1. does not affect the amount determined to be received by a school district as state aid under s. 121.08 for any other purpose.

118.40(3) (3) Contract.

118.40(3)(a) (a) If the school board grants the petition under sub. (2), the school board shall contract with the person named in the petition under sub. (1m) (b) 1. to operate the school as a charter school under this section. The contract shall include all of the provisions specified in the petition and may include other provisions agreed to by the parties.

118.40(3)(b) (b) A contract under par. (a) or under sub. (2m), (2r), or (2x) may be for any term not exceeding 5 school years and may be renewed for one or more terms not exceeding 5 school years. The contract shall specify the amount to be paid to the charter school during each school year of the contract.

118.40(3)(c) (c)

118.40(3)(c)1. 1. A school board may not enter into a contract for the establishment of a charter school located outside the school district, except as follows:

118.40(3)(c)1.a. a. If 2 or more school boards enter into an agreement under s. 66.0301 to establish a charter school, the charter school shall be located within one of the school districts.

118.40(3)(c)1.b. b. If one or more school boards enter into an agreement with the board of control of a cooperative educational service agency to establish a charter school, the charter school shall be located within the boundaries of the cooperative educational service agency.

118.40(3)(c)1.c. c. If a school board enters into an agreement with a federally recognized American Indian tribe or band in this state to establish a charter school, the charter school shall be located within the school district or within the boundaries of the tribe’s or band’s reservation.

118.40(3)(c)1m. 1m. Subdivision 1. does not apply to the establishment of a virtual charter school.

118.40(3)(c)2. 2. A school board may not enter into a contract that would result in the conversion of a private, sectarian school to a charter school.

118.40(3)(f) (f)

118.40(3)(f)1. 1. A contract with a school board, an entity under sub. (2r) (b) 1. a. to h., or the director under sub. (2x) may provide for the establishment of more than one charter school, and, except as provided in subd. 2., a charter school governing board may enter into more than one contract with a school board, an entity under sub. (2r) (b), or the director under sub. (2x).

118.40(3)(f)2. 2. The governing board of the charter school established under a contract with the director under sub. (2x) (cm) may not enter into more than one contract with the director.

118.40(3)(g) (g)

118.40(3)(g)1. 1. Except as provided in subds. 2., 3., and 4. and sub. (4) (ar) 1., a contract with a school board, an entity under sub. (2r) (b), or the director under sub. (2x) shall require that if the capacity of the charter school is insufficient to accept all pupils who apply, the charter school shall accept pupils at random.

118.40(3)(g)2. 2.

118.40(3)(g)2.a. a. A charter school shall give preference in enrollment to pupils who were enrolled in the charter school in the previous school year.

118.40(3)(g)2.b. b. A charter school other than the charter school established under a contract with the director under sub. (2x) (cm) shall give preference to siblings of pupils who are enrolled in the charter school.

118.40(3)(g)3. 3. A charter school may give preference in enrollment to the children of the charter school’s founders, governing board members, and full-time employees, but the total number of such children given preference may constitute no more than 10 percent of the charter school’s total enrollment.

118.40(3)(g)4. 4. A charter school established under a contract with a union high school district under sub. (2) or (2m) may give preference in enrollment to pupils who were enrolled during the previous school year in a charter school operating under a cooperative agreement with the charter school established under a contract with a union high school district.

118.40(3)(h) (h) A school board, an entity under sub. (2r), or the director under sub. (2x) may contract for the establishment of a charter school that enrolls only one sex or that provides one or more courses that enroll only one sex if the school board, entity under sub. (2r), or the director under sub. (2x) makes available to the opposite sex, under the same policies and criteria of admission, schools or courses that are comparable to each such school or course.

118.40(3m) (3m) Authorizing entity duties. A school board, an entity under sub. (2r) (b), and the director under sub. (2x) shall do all of the following:

118.40(3m)(a) (a) Solicit and evaluate charter school applications.

118.40(3m)(b) (b) When contracting for the establishment of a charter school under this section, consider the principles and standards for quality charter schools established by the National Association of Charter School Authorizers.

118.40(3m)(c) (c) Give preference in awarding contracts for the operation of charter schools other than the charter school established under a contract with the director under sub. (2x) (cm) to those charter schools that serve children at risk, as defined in s. 118.153 (1) (a).

118.40(3m)(d) (d) Approve only high-quality charter school applications that meet identified educational needs and promote a diversity of educational choices.

118.40(3m)(e) (e) In accordance with the terms of each charter school contract, monitor the performance and compliance with this section of each charter school with which it contracts.

118.40(3m)(f) (f) Annually, submit to the state superintendent and to the legislature under s. 13.172 (2) a report that includes all of the following:

118.40(3m)(f)1. 1. An identification of each charter school operating under contract with it, each charter school that operated under a contract with it but had its contract nonrenewed or revoked or that closed, and each charter school under contract with it that has not yet begun to operate.

118.40(3m)(f)2. 2. The academic and financial performance of each charter school operated under contract with it.

118.40(3m)(f)3. 3. The operating costs the school board, entity under sub. (2r) (b), or director under sub. (2x) incurred under pars. (a) to (e), detailed in an audited financial statement prepared in accordance with generally accepted accounting principles.

118.40(3m)(f)4. 4. The services the school board, entity under sub. (2r) (b), or director under sub. (2x) provided to the charter schools under contract with it and an itemized accounting of the cost of the services.

118.40(3o) (3o) Report of the director to the department of health services. The director shall, following the 3rd school year of the operation of the charter school established under sub. (2x) (cm), report, in writing, to the department of health services on the operation and effectiveness of the charter school. The director shall include in the report an evaluation of the effectiveness of the charter school on long-term student recovery outcomes.

118.40(4) (4) Charter school governing board; duties, powers, and restrictions.

118.40(4)(ag) (ag) Governing board. Each charter school shall be governed by a governing board that is a party to the contract with the authorizing entity. No more than a minority of the governing board’s members may be employees of the charter school or employees or officers of the school district in which the charter school is located.

118.40(4)(ar) (ar) Duties. A charter school governing board shall do all of the following:

118.40(4)(ar)1. 1. If the charter school replaces a public school in whole or in part, give preference in admission to any pupil who resides within the attendance area or former attendance area of that public school.

118.40(4)(ar)2. 2. Be nonsectarian in its programs, admissions policies, employment practices and all other operations.

118.40(4)(b) (b) Restrictions. A charter school governing board may not do any of the following:

118.40(4)(b)1. 1. Charge tuition, except as otherwise provided in s. 121.83 (4).

118.40(4)(b)2. 2. Except as provided in sub. (3) (h), discriminate in admission or deny participation in any program or activity on the basis of a person’s sex, race, religion, national origin, ancestry, pregnancy, marital or parental status, sexual orientation or physical, mental, emotional or learning disability.

118.40(4)(d) (d) Powers. Subject to the terms of its contract, a charter school governing board has all the powers necessary to carry out the terms of its contract, including all of the following:

118.40(4)(d)1. 1. To receive and disburse funds for school purposes.

118.40(4)(d)2. 2. To secure appropriate insurance.

118.40(4)(d)3. 3. To enter into contracts, including contracts with a University of Wisconsin institution or college campus, technical college district board, or private college or university, for technical or financial assistance, academic support, curriculum review, or other services.

118.40(4)(d)4. 4. To incur debt in reasonable anticipation of the receipt of funds.

118.40(4)(d)5. 5. To pledge, assign, or encumber its assets to be used as collateral for loans or extensions of credit.

118.40(4)(d)6. 6. To solicit and accept gifts or grants for school purposes.

118.40(4)(d)7. 7. To acquire real property for its use.

118.40(4)(d)8. 8. To sue and be sued in its own name.

118.40(5) (5) Charter revocation. A charter may be revoked by the school board, the entity under sub. (2r) (b), or the director under sub. (2x) that contracted with the charter school if the school board or, if applicable, the entity under sub. (2r) (b) or the director under sub. (2x) finds that any of the following occurred:

118.40(5)(a) (a) The charter school violated its contract with the school board, the entity under sub. (2r) (b), or the director under sub. (2x).

118.40(5)(b) (b) The pupils enrolled in the charter school failed to make sufficient progress toward attaining the educational goals under s. 118.01.

118.40(5)(c) (c) The charter school failed to comply with generally accepted accounting standards of fiscal management.

118.40(5)(d) (d) The charter school violated this section.

118.40(6) (6) Program voluntary. No pupil may be required to attend a charter school without his or her approval, if the pupil is an adult, or the approval of his or her parents or legal guardian, if the pupil is a minor.

118.40(7) (7) Legal status; applicability of school laws.

118.40(7)(a) (a) Except as provided in par. (am), the school board of the school district in which a charter school is located shall determine whether or not the charter school is an instrumentality of the school district. If the school board determines that the charter school is an instrumentality of the school district, the school board shall employ all personnel for the charter school. If the school board determines that the charter school is not an instrumentality of the school district, the school board may not employ any personnel for the charter school.

118.40(7)(am) (am)

118.40(7)(am)1. 1. Except as provided in subds. 2. and 3., if a charter school is established under sub. (2m) and located in the school district operating under ch. 119, the school board of that school district shall determine whether or not the charter school is an instrumentality of the school district. If the school board determines that a charter school is an instrumentality of the school district, the school board shall employ all personnel for the charter school. If the school board determines that a charter school is not an instrumentality of the school district, the school board may not employ any personnel for the charter school.

118.40(7)(am)2. 2. A charter school established under sub. (2r) or (2x) or a private school located in the school district operating under ch. 119 that is converted to a charter school is not an instrumentality of any school district and no school board may employ any personnel for the charter school. If the chancellor of an institution in the University of Wisconsin System other than the University of Wisconsin Milwaukee contracts for the establishment of a charter school under sub. (2r), the board of regents of the University of Wisconsin System may employ instructional staff for the charter school. If a technical college district board other than the Milwaukee area technical college district board contracts for the establishment of a charter school under sub. (2r), the technical college may employ instructional staff for the charter school.

118.40(7)(am)3. 3. Notwithstanding subd. 2., if the city of Milwaukee contracts with an individual or group operating for profit to operate a school as a charter school, the charter school is an instrumentality of the school district operating under ch. 119 and the board of the school district operating under ch. 119 shall employ all personnel for the charter school.

118.40(7)(am)4. 4. If a school board enters into an agreement with a federally recognized American Indian tribe or band in this state to establish a charter school under sub. (3) (c) 1. c., that school board shall determine whether the charter school is an instrumentality of the school district regardless of the location of the charter school.

118.40(7)(ar) (ar) Nothing in this section affects the rights of personnel of a charter school that is an instrumentality of a school district to engage in collective bargaining pursuant to subch. IV of ch. 111.

118.40(7)(b) (b) Except as otherwise explicitly provided, chs. 115 to 121 do not apply to charter schools.

118.40(8) (8) Virtual charter schools.

118.40(8)(a) (a) Location. For the purposes of sub. (7) (a), (am), and (ar), a virtual charter school is considered to be located in the following school district:

118.40(8)(a)1. 1. If a school board contracts with a person to establish the virtual charter school, in the school district governed by that school board.

118.40(8)(a)2. 2. If 2 or more school boards enter into an agreement under s. 66.0301 to establish the virtual charter school, or if one or more school boards enter into an agreement with the board of control of a cooperative educational service agency to establish the virtual charter school, in the school district specified in the agreement.

118.40(8)(b) (b) Licensure.

118.40(8)(b)1. 1. The governing body of a virtual charter school shall assign an appropriately licensed teacher for each online course offered by the virtual charter school. In this subsection, an individual who holds a license or permit to teach a subject and level in the state from which the online course is provided is appropriately licensed to teach the subject and level in this state.

118.40(8)(b)1g. 1g. The governing body of a virtual charter school may not permit a person holding both a license to teach exclusively in a charter school and a license to teach in other public schools to teach, in the virtual charter school, a subject or at a level that is not authorized by the latter license.

118.40(8)(b)1r. 1r. The governing body of a virtual charter school may not permit a person holding only a permit to teach exclusively in a charter school to teach in a virtual charter school.

118.40(8)(b)2. 2. If a pupil attends a virtual charter school, any person providing educational services to the pupil in the pupil’s home, other than instructional staff of the virtual charter school, is not required to hold a license or permit to teach issued by the department.

118.40(8)(b)3. 3. The department may not require a person licensed as provided under subd. 1. to complete professional development not required of any other individual required to be licensed under s. 118.19.

118.40(8)(c) (c) Staff duties. In a virtual charter school, an instructional staff member is responsible for all of the following for each pupil the instructional staff member teaches:

118.40(8)(c)1. 1. Improving learning by planned instruction.

118.40(8)(c)2. 2. Diagnosing learning needs.

118.40(8)(c)3. 3. Prescribing content delivery through class activities.

118.40(8)(c)4. 4. Assessing learning.

118.40(8)(c)5. 5. Reporting outcomes to administrators and parents and guardians.