SB 45 — An Act;

XX20 Higher Educational Aids Board.

XX21 Historical Society.

XX22 Housing and Economic Development Authority.

XX23 Insurance.

XX24 Investment Board.

XX25 Joint Committee on Finance.

XX26 Judicial Commission.

XX27 Justice.

XX28 Legislature.

XX29 Lieutenant Governor.

XX30 Local Government.

XX31 Military Affairs.

- 2026 Legislature - 3 - LRB-2186/1 ALL:all SENATE BILL 45 XX32 Natural Resources.

XX33 Public Defender Board.

XX34 Public Instruction.

XX35 Public Lands, Board of Commissioners of.

XX36 Public Service Commission.

XX37 Revenue.

XX38 Safety and Professional Services.

XX39 Secretary of State.

XX40 State Fair Park Board.

XX41 Supreme Court.

XX42 Technical College System.

XX43 Tourism.

XX44 Transportation.

XX45 Treasurer.

XX46 University of Wisconsin Hospitals and Clinics Authority;

Medical College of Wisconsin.

XX47 University of Wisconsin System.

XX48 Veterans Affairs.

XX49 Wisconsin Economic Development Corporation.

XX50 Workforce Development.

XX51 Other.

For example, for general nonstatutory provisions relating to the State Historical Society, seECTION 9121.

For any agency not assigned a two-digit identification number or any provision that does not relate to the functions of a particular agency, see number 51 (Other) within each type of provision.

Separate section numbers and headings appear for each type of provision and for each state agency, even if there are no provisions included in that section number and heading.

Following is a list of the most commonly used abbreviations appearing in the analysis:

BCPL Board of Commissioners of Public Lands DATCP Department of Agriculture, Trade and Consumer Protection DCF Department of Children and Families DFI Department of Financial Institutions DHS Department of Health Services DMA Department of Military Affairs DNR Department of Natural Resources DOA Department of Administration DOC Department of Corrections DOJ Department of Justice DOR Department of Revenue DOT Department of Transportation DPI Department of Public Instruction - 2026 Legislature - 4 - LRB-2186/1 ALL:all SENATE BILL 45 DSPS Department of Safety and Professional Services DVA Department of Veterans Affairs DWD Department of Workforce Development ETF Department of Employee Trust Funds GPR General purpose revenue HEAB Higher Educational Aids Board JCF Joint Committee on Finance OCI Office of the Commissioner of Insurance PSC Public Service Commission SPD State Public Defender SHS State Historical Society TCS Technical College System UW University of Wisconsin WEDC Wisconsin Economic Development Corporation WHEDA Wisconsin Housing and Economic Development Authority WHEFA Wisconsin Health and Educational Facilities Authority __________________________________________________________________ AGRICULTURE Grants for biodigester operator certification and regional planning This bill requires DATCP to provide grants to individuals seeking biodigester operator certification.

Biodigesters are used to break down organic material into gas, liquids, and solids.

The bill also requires DATCP to provide planning grants for establishing regional biodigesters in the state.

Dairy agriculture resilience investment now grant pilot program The bill requires DATCP to create a dairy agriculture resilience investment now grant pilot program, under which DATCP must provide grants to dairy producers with fewer than 1,000 head of milking cows to undertake projects designed to improve the dairy producers’ operational efficiency and resilience.

Transition to grass pilot program The bill creates a transition to grass pilot program in DATCP to provide support and grants to farmers who are implementing livestock grass-based managed grazing systems and farmers and agribusinesses in the grass-fed livestock business.

Under the bill, DATCP may award up to $40,000 to each grantee and must disperse 75 percent of the award in the first year following DATCP’s decision to grant the award and 12.5 percent of the award in each of the second and third years following DATCP’s decision to grant the award.

Farmland preservation implementation grants The bill authorizes DATCP to award grants to counties to implement a certified county farmland preservation plan.

- 2026 Legislature - 5 - LRB-2186/1 ALL:all SENATE BILL 45 Sandhill crane damage reimbursement program The bill requires DATCP to administer a program to provide reimbursements to eligible applicant farmers for the purchase of seed treatment that is registered for use on corn seed to discourage sandhill cranes from consuming the seed.

Under the program, applicants may be reimbursed for up to 50 percent of the actual cost of the purchase of seed treatment, not to exceed $6,250 per farm, per year.

Value-added agricultural practices The bill allows DATCP to provide education and technical assistance related to producing value-added agricultural products.

Under the bill, DATCP may provide education and assistance related to organic farming practices;

collaborate with organic producers, industry participants, and local organizations that coordinate organic farming;

and stimulate interest and investment in organic production.

The bill also allows DATCP to provide grants to organic producers, industry participants, and local organizations, which may be used to provide education and technical assistance related to organic farming, to help create organic farming plans, and to assist farmers in transitioning to organic farming.

The bill also authorizes DATCP to provide grants to entities to provide education and training to farmers about best practices related to grazing.

DATCP is also authorized under the bill to help farmers market value-added agricultural products.

Meat processing tuition and curriculum development grants The bill requires DATCP to provide grants to universities, colleges, and technical colleges to reimburse tuition costs of students enrolled in a meat processing program and for curriculum development of those meat processing programs.

Each tuition reimbursement covers up to 80 percent of the tuition cost for enrolling in a meat processing program, limited to a maximum reimbursement of $7,500.

Food security and Wisconsin products grant program The bill allows DATCP to provide grants to food banks, food pantries, and other nonprofit organizations to purchase Wisconsin food products.

Grants for food waste reduction pilot projects The bill requires DATCP to provide grants for food waste reduction pilot projects that have an objective of preventing food waste, redirecting surplus food to hunger relief organizations, and composting food waste.

Under the bill, DATCP must give preference to grant proposals that serve census tracts for which the median household income is below the statewide median household income and in which no grocery store is located.

Farm to fork grant program The bill creates a farm to fork program, similar to the existing farm to school program, to connect entities, other than school districts, that have cafeterias to nearby farms to provide locally produced foods in meals and snacks, to help the - 2026 Legislature - 6 - LRB-2186/1 ALL:all SENATE BILL 45 public develop healthy eating habits, to provide nutritional and agricultural education, and to improve farmers’ incomes and direct access to markets.

Under the bill, DATCP may provide grants to entities for these purposes.

Spending cap for the Wisconsin agricultural exports program Under current law, the Center for International Agribusiness Marketing, operated by DATCP, promotes the export of Wisconsin agricultural and agribusiness products in foreign markets.

Current law provides that the center may not expend more than $1,000,000 in any fiscal year.

The bill eliminates the $1,000,000-per-year spending cap for the center.

Changes to the agricultural conservation easement purchase program In the 2009-11 biennial budget act, the agricultural conservation easement purchase program was created for the purchase of agricultural conservation easements, from willing landowners, by DATCP in conjunction with political subdivisions and nonprofit conservation organizations.

An agricultural conservation easement (easement) is an interest in land that preserves the land for agricultural use while the ownership of the land itself remains with the landowner.

Under the program as it was created in the act, DATCP was required to solicit applications to the program at least once annually and was provided $12,000,000 in general fund supported borrowing for the purchase of the easements.

Since the program was first created, the requirement that DATCP solicit applications to the program at least once annually was repealed, DATCP’s authority for $12,000,000 in general fund supported borrowing for the purchase of the easements was repealed, and a new provision required DNR to provide to DATCP funds from the Warren Knowles-Gaylord Nelson stewardship program for the purchase of the easements.

The bill undoes those changes, reinstating DATCP’s requirement to solicit applications to the program at least once annually, providing DATCP authority for $15,000,000 in general fund supported borrowing for the purchase of easements, and removing the requirement that DNR provide DATCP funds from the Warren Knowles-Gaylord Nelson stewardship program for the purchase of the easements.

Commercial nitrogen optimization program Under current law, DATCP must award grants under a commercial nitrogen optimization pilot program to agricultural producers and to UW System institutions that implement a project that optimizes the application of commercial nitrogen for at least two growing seasons.

DATCP must award the grants from an annual segregated appropriation account that is funded by the environmental fund.

A grant to a farmer and the eligible UW System institution collaborating with the farmer may not exceed, in total, $50,000.

DATCP must attempt to provide grants under the program to farmers in different parts of the state and for projects in areas that have different soil types or geologic characteristics.

The bill removes the word “pilot” from the statutory language describing the program and funds the program from a new biennial segregated appropriation account that is funded by the environmental fund.

- 2026 Legislature - 7 - LRB-2186/1 ALL:all SENATE BILL 45 Truth-in-labeling requirements for milk, dairy, and wild rice Under the bill, no person may label a food product as, or sell or offer for sale a food product that is labeled as, any type of milk unless the food product is cow’s milk, hooved or camelid mammals’ milk, or a type of dairy milk that meets certain specifications under federal law.

In addition, no person may label a food product as, or sell or offer for sale a food product that is labeled as, a type of dairy product or a dairy ingredient unless the food product is a dairy product or dairy ingredient that is or is derived from cow’s milk, hooved or camelid mammal’s milk, or a dairy product that meets certain specifications under federal law.

Finally, the bill prohibits any person from labeling wild rice as “traditionally harvested” unless the wild rice is harvested using traditional wild rice harvesting methods of American Indian tribes or bands.

The bill requires DATCP to promulgate a rule defining traditional wild rice harvesting methods of American Indian tribes or bands.

Under the bill, DATCP must obtain the advice and recommendations of the Great Lakes Inter-Tribal Council, Inc., before promulgating a rule defining a traditional method of wild rice harvesting.

Appropriation limit for the producer-led watershed protection grant program DATCP administers the producer-led watershed protection grant program, which provides grants to groups of farmers in the same watershed to implement nonpoint source pollution abatement activities.

Under current law, DATCP may not allocate more than $1,000,000 per fiscal year for this program.

The bill increases that maximum amount to $1,250,000.

Agricultural enterprise area maximum acreage Under current law, DATCP may designate agricultural enterprise areas, with a combined area of not more than 2,000,000 acres, targeted for agricultural preservation and development.

The bill increases the maximum acreage for designated agricultural enterprise areas to 3,000,000.

Veterinary examining board appropriation uses Current law provides an appropriation to DATCP, from all moneys received by the veterinary examining board when issuing or renewing credentials, for the purpose of supporting the activities of the board.

The bill changes this appropriation so that it may also be used to provide dog license tags and forms;

perform other activities related to the regulation of dogs;

administer the rabies control program its media campaign;

and carry out activities relating to humane officers.

Humane officers are trained and certified officers appointed by political subdivisions to enforce certain regulations relating to animals.

Bonding for soil and water resource management The bill increases the general obligation bonding authority for the Soil and Water Resource Management Program by $10,000,000.

The program, which is - 2026 Legislature - 8 - LRB-2186/1 ALL:all SENATE BILL 45 administered by DATCP, awards grants to counties to help fund their land and water conservation activities.

COMMERCE AND ECONOMIC DEVELOPMENT BUSINESS ORGANIZATIONS AND FINANCIAL INSTITUTIONS Catastrophe savings accounts Under the bill, a person may establish an account at a financial institution and designate the account as a catastrophe savings account.

The account may be used to hold savings for expenses related to a catastrophic event, which is defined as a tornado, hurricane, or severe storm resulting in flooding, damaging hail, extreme wind, or extremely cold temperatures.

If the account owner maintains a property insurance policy covering catastrophic events, deposits in the account are limited, based on the amount of the policy deductible, to either $2,000 or the lesser of $15,000 or twice the amount of the policy deductible.

Deposits in a catastrophe savings account may be withdrawn only to pay the following relating to property damage caused by a catastrophic event:

1) repair costs or other losses to the extent the costs or losses are not covered by a property insurance policy or are self-insured losses, and 2) any portion of a policy’s deductible.

A person may not be an account owner of more than one catastrophe savings account.

For state income tax purposes, the owner may subtract from taxable income the amount of the deposits made to and any increase in the value of a catastrophe savings account.

DFI information on worker misclassification The bill requires DFI to provide informational materials and resources on worker misclassification to each person who files with DFI documents forming a business corporation, nonstock corporation, limited liability company, limited liability partnership, or limited partnership.

See Employment.

C OMMERCE Prohibiting discrimination in broadband The bill prohibits a broadband service provider from denying a group of potential residential customers access to its broadband service because of the group’s race or income.

Under the bill, DATCP has authority to enforce the prohibition and to promulgate related rules.

The bill also authorizes any person affected by a broadband service provider who violates the prohibition to bring a private action.

Broadband subscriber rights The bill establishes various requirements for broadband service providers, including the following:

1) broadband service providers must provide service satisfying minimum standards established by PSC, and subscribers may terminate contracts if the broadband service provider fails to satisfy those standards;

2) broadband service providers must disclose the factors that may cause the actual broadband speed experience of a subscriber to vary, and provide service as described in advertisements or representations made to subscribers;

3) broadband - 2026 Legislature - 9 - LRB-2186/1 ALL:all SENATE BILL 45 service providers must repair broadband service within 72 hours after a subscriber reports a broadband service interruption that is not the result of a major system- wide or large area emergency;

4) broadband service providers must give subscribers credit for interruptions of broadband service that last more than four hours in a day;

and 5) broadband service providers must give subscribers at least 30 days’ advance written notice before instituting a rate increase, at least seven days’ advance written notice of any scheduled routine maintenance that causes a service slowdown, interruption, or outage, at least 10 days’ advance written notice of a change in a factor that may cause the originally disclosed broadband speed experience to vary, and at least 10 days’ advance written notice of disconnecting service, unless the disconnection is requested by the subscriber.

Internet service provider registration The bill requires each Internet service provider in this state to register with PSC.

Severe thunderstorm price gouging Under current law, no manufacturer, producer, supplier, wholesaler, distributor, or retailer may sell or offer to sell consumer goods or services at unreasonably excessive prices if the governor by executive order has certified that the state or a part of the state is in a period of abnormal economic disruption due to an emergency.

An “emergency” in this context includes a destructive act of nature, a hostile action, terrorism, or a disruption of energy supplies that poses a risk to the public’s economic well-being, public health, or welfare.

A “consumer good or service” under the law means those goods or services that are used primarily for personal, family, or household purposes.

The bill prohibits residential building contractors, tree trimmers, and restoration and mitigation services providers that are operating within a geographic region impacted by, and repairing damage caused by, a severe thunderstorm from doing either of the following:

1) charging an unreasonably excessive price for labor in comparison to the market price charged for comparable services in the geographic region impacted by the weather event and 2) charging an insurance company a rate for a consumer good or service that exceeds what the residential building contractor, tree trimmer, or restoration and mitigation services provider would otherwise charge a member of the general public for the consumer good or service.

“Severe thunderstorm” is defined in the bill to mean a weather event in which any of the following occurs:

1) hail that is one inch or greater in diameter, 2) wind gusts in excess of 50 knots, or 3) a tornado.

The bill requires DATCP to promulgate rules to establish formulas or other standards to be used in determining whether a price for labor is unreasonably excessive.

Under the bill, DATCP or, after consulting with DATCP, DOJ may commence an action against a person that has violated the prohibition in the bill to recover a civil forfeiture of not more than $1,000 per violation, to temporarily or permanently restrain or enjoin the person from violating the prohibition in the bill, or both.

- 2026 Legislature - 10 - LRB-2186/1 ALL:all SENATE BILL 45 Sales by a municipality or county of wine in a public park The bill allows a municipality or county to sell wine in its public parks without an alcohol beverage license.

Under current law, with limited exceptions, no person may sell alcohol beverages to a consumer unless the seller possesses a license or permit authorizing the sale.

Under one exception, no license or permit is required for the sale, by officers or employees of a county or municipality, of fermented malt beverages (beer) in a public park operated by the county or municipality.

The bill applies this exception to wine along with beer.

E CONOMIC DEVELOPMENT Changes to the state main street program Under current law, WEDC is required to establish and administer a state main street program to coordinate state and local participation in programs offered by the national main street center to assist municipalities in planning, managing, and implementing programs for revitalization of commercial areas having historic significance.

Under current law, a recipient of assistance under the state main street program must be a city, village, or town.

Under the bill, eligible recipients include tribal governments, chambers of commerce, and nonprofit organizations.

The bill eliminates the requirements that WEDC contract with the national main street center for services related to revitalizing commercial areas having historic significance and develop a plan describing the objectives of the state main street program and the methods by which WEDC will carry out certain responsibilities specified by law.

The bill also eliminates the requirements that, in developing criteria for use in selecting participants in the state main street program, WEDC include the following:

PageLocal 1,organizational lineand 10:financial commitment to employ a program manager for not less than five years.

delete X(kr)Y and substitute X(m)Y.

PageLocal 2,assistance linein 2:paying for the services of a design consultant.

delete the material beginning with XThe cityY and ending with Xproject.Y on line 4.

PageLocal 2,commitment lineto 6:assist in training persons to direct activities related to business areas in municipalities that do not participate in the state main street program.

deleteUnder Xcity,the village,bill, orin townselecting submittingparticipants in the grantstate applicationYmain street program, WEDC must evaluate and substituteconsider Xgrantthe applicantY.potential in the business area selected by the applicant to retain small businesses, attract new businesses, generate new economic activity and grow the local tax base, and create new employment opportunities.

The bill also retains the current law requirement that WEDC consider private and public sector interest in and commitment to revitalization of the business area selected by the applicant and potential private sector investment in the business area selected by the applicant.

Finally, the bill changes the definition of “business area” for the purposes of the state main street program from “a commercial area existing at the time services - 2026 Legislature - 11 - LRB-2186/1 ALL:all SENATE BILL 45 under the state main street program are requested and having historic significance” to “a downtown area or historic commercial district.” Workforce housing modifications to the business development tax credit The bill makes adjustments to the workforce housing investments award under the business development tax credit.

Under current law, a person may claim tax benefits of an amount equal to up to 15 percent of the person’s investment, comprised only of capital expenditures, in workforce housing for employees.

Under the bill, the investment in workforce housing for which a person may receive tax benefits may include contributions made to a third party for the building or rehabilitating of workforce housing, including contributions made to a local revolving loan fund program.

The bill also removes the requirement that the workforce housing for which a person may receive tax benefits for investing in be for employees.

Wage thresholds for business development and enterprise zone tax credits The bill raises the minimum wage thresholds for the business development and enterprise zone tax credits for businesses that enter into contracts with WEDC after December 31, 2025.

Under current law, WEDC may certify businesses that engage in qualifying activities, including full-time job creation and retention, to claim the credits.

One requirement for claiming either credit is that the business enter into a contract with WEDC.

In its contracts, WEDC uses a definition of “full- time employee” that means an individual who, among other things, is paid at least percent of the federal minimum wage.

The bill changes this minimum wage threshold to $34,220 for the business development tax credit and to $34,220 in a tier I county or municipality and $45,390 in a tier II county or municipality for the enterprise zone tax credit, with all these amounts adjusted annually for inflation.

Additionally, under current law, the enterprise zone tax credit is partially based on the wages paid to zone employees that are at least 150 percent of the federal minimum wage in a tier I county or municipality or $30,000 in a tier II county or municipality.

The bill changes these thresholds to $34,220 and $45,390, respectively, with both amounts adjusted annually for inflation.

The bill also modifies the maximum wage earnings limit for businesses that enter into contracts with WEDC after December 31, 2025.

Under current law, the maximum wage earnings that may be considered per employee for the enterprise zone tax credit is $100,000.

The bill increases this amount to $151,300, which is adjusted annually for inflation, and establishes the same dollar amount limit for the business development tax credit.

The bill also adjusts the definition of “full-time job” for the purposes of the business development and enterprise zone jobs tax credits by removing the current requirement that a worker work at least 2,080 hours per year, including paid leave and holidays, in order to be considered “full-time.” Enterprise zone designations Under current law, WEDC may designate any number of enterprise zones for purposes of certifying taxpayers to claim tax credits for certain activities carried - 2026 Legislature - 12 - LRB-2186/1 ALL:all SENATE BILL 45 out within an enterprise zone.

However, current law subjects WEDC’s designation of a new enterprise zone to the approval of JCF under passive review.

The bill provides that WEDC may designate no more than 30 enterprise zones and eliminates the requirement that WEDC seek approval for a new enterprise zone from JCF under passive review.

Adjustment to WEDC appropriation The bill adjusts the calculation used to determine the amount of WEDC’s GPR appropriation.

The bill does not raise the expenditure cap on that appropriation, which is $16,512,500 per fiscal year.

WEDC’s unassigned fund balance Current law requires that WEDC establish policies and procedures concerning its unassigned fund balance, which is defined as all moneys held by WEDC that WEDC is not obligated by law or by contract to expend for a particular purpose or that WEDC has not otherwise assigned to be expended for a particular purpose.

Under current law, those policies and procedures must include as a target that WEDC’s unassigned fund balance on June 30 of each fiscal year be an amount equal to or less than one-sixth of WEDC’s total administrative expenditures for that fiscal year.

The bill eliminates the requirement that WEDC’s policies and procedures include that target for WEDC’s unassigned fund balance.

Main street bounceback grants The bill increases by $50,000,000 the amount WEDC may expend from its GPR appropriation for general operations and economic development programs in fiscal year 2025-26 for the purpose of awarding grants of $10,000 each to small businesses and nonprofit organizations that open a new location or expand operations in a vacant commercial space.

A recipient of a grant under the bill may use grant moneys for commercial lease and mortgage payments, business operating expenses, and commercial building repair and tenant improvements.

Advanced manufacturing grants The bill increases by $5,000,000 the amount WEDC may expend from its GPR appropriation for general operations and economic development programs in fiscal year 2025-26 for the purpose of establishing a program to award matching grants to small and midsized manufacturing companies located in this state to invest in advanced manufacturing technologies.

No one company may receive more than $200,000 in grants under the bill, and no one grant under the bill may be for more than one-third of the amount invested in advanced manufacturing technologies by the company.

To receive a grant under the bill, a company must commit to not reduce its employment below the level when the grant is awarded.

If a company that receives a grant under the bill fails to meet this commitment within 10 years after receiving the grant, the company must repay the grant amount to WEDC.

WEDC may provide an exemption to the repayment requirement if it finds that the company has undergone a unique hardship.

Funding for the green innovation fund The bill increases by $50,000,000 the amount WEDC may expend from its - 2026 Legislature - 13 - LRB-2186/1 ALL:all SENATE BILL 45 GPR appropriation for general operations and economic development programs in fiscal year 2025-26 for the purpose of supporting the green innovation fund.

Funding for the Forward Agriculture program The bill increases by $15,000,000 the amount WEDC may expend from its GPR appropriation for general operations and economic development programs in fiscal year 2025-26 for the purpose of providing state matching funds related to federal funding in conjunction with WiSys’s Forward Agriculture program to promote sustainable agriculture.

Accelerate Wisconsin The bill increases by $10,000,000 the amount WEDC may expend from its GPR appropriation for general operations and economic development programs in fiscal year 2025-26 for the purpose of supporting a business accelerator program to be administered in cooperation with the UW System and aimed at developing research, including research from the UW System, into new startup businesses.

As part of the program, WEDC may award grants directly to businesses to assist in their growth and development and may award grants to or in support of business incubators.

Tribal enterprise accelerator program The bill increases by $5,000,000 the amount WEDC may expend from its GPR appropriation for general operations and economic development programs in fiscal year 2025–26 for the purpose of creating a tribal enterprise accelerator program to offer statewide technical assistance and grants for community development investment and capacity building to American Indian tribes or bands in this state to diversify their revenue strategies in industries other than the gaming and entertainment industries.

Thrive Rural Wisconsin funding accessibility The bill increases by $5,000,000 the amount WEDC may expend from its GPR appropriation for general operations and economic development programs in fiscal year 2025–26 for the purpose of supporting WEDC’s Thrive Rural Wisconsin program.

Under the bill, WEDC must provide funding to its established regional and tribal partners to develop and fund projects in nonmetropolitan municipalities with populations of less than 10,000 to provide for increased availability and accessibility of local project capital.

Financing projects for qualifying tax-exempt organizations Under current law, WHEFA may issue bonds to finance certain projects of health, educational, research, and other nonprofit institutions.

The bill requires that those health, educational, research, and other nonprofit institutions be located in this state, headquartered in this state, or serving a population in this state.

Financing working capital costs of certain nonprofit institutions Under current law, WHEFA may issue bonds to finance certain projects of health, educational, research, and other nonprofit institutions.

The bill authorizes WHEFA to issue bonds for the purpose of financing such institutions’ working capital costs.

- 2026 Legislature - 14 - LRB-2186/1 ALL:all SENATE BILL 45 L ANDLORD -TENANT Notification of building code violations Under current law, before entering into a lease with or accepting any earnest money or a security deposit from a prospective tenant, a landlord must disclose to the prospective tenant any building code or housing code violations of which the landlord has actual knowledge if the violation presents a significant threat to the prospective tenant’s health or safety.

The bill eliminates the condition that the landlord have actual knowledge of such a violation and that the threat to the prospective tenant’s health or safety be “significant”;

under the bill, the landlord must disclose to a prospective tenant a building code or housing code violation, regardless of whether the landlord has actual knowledge of the violation, if the violation presents a threat to the prospective tenant’s health or safety.

Local landlord-tenant ordinances, moratoria on evictions, and rental property inspection requirements The bill also makes changes to local landlord-tenant ordinances, local moratoria on evictions, and local rental property inspection requirements.

See Local Government.

T OURISM Tourism marketing funding from Indian gaming receipts Current law requires DOA to transfer portions of Indian gaming receipts to the Department of Tourism for certain tourism marketing expenses.

The bill eliminates that requirement.

The bill leaves in place an appropriation funding the same purposes from GPR and from the transportation fund.

American Indian tourism marketing The bill requires DOA to award an annual grant to the Great Lakes Inter- Tribal Council to provide funding for a program to promote tourism featuring American Indian heritage and culture.

As a condition of receiving the grant, the Great Lakes Inter-Tribal Council must include information on the tourism promotion program in its annual report to DOA.

The bill also transfers from the Department of Tourism to DOA a contract between the Great Lakes Inter-Tribal Council and the Department of Tourism that relates to the promotion of tourism featuring American Indian heritage and culture.

CORRECTIONAL SYSTEM A DULT CORRECTIONAL SYSTEM Earned compliance credit The bill creates an earned compliance credit for time spent on extended supervision or parole.

Under current law, a person’s extended supervision or parole may be revoked if he or she violates a condition or rule of the extended supervision or parole.

If extended supervision or parole is revoked, the person is returned to prison for an amount of time up to the length of the original sentence, less any time - 2026 Legislature - 15 - LRB-2186/1 ALL:all SENATE BILL 45 actually served in confinement and less any credit for good behavior.

Under current law, when extended supervision or parole is revoked, the time spent on extended supervision or parole is not credited as time served under the sentence.

Under the bill, an eligible inmate receives an earned compliance credit for time served on extended supervision or parole.

The earned compliance credit equals the amount of time served on extended supervision or parole without violating any condition or rule of extended supervision or parole.

Under the bill, a person is eligible to receive the earned compliance credit only if the person is not required to register as a sex offender and is serving a sentence for a crime that is not a specified violent crime or a specified crime against a child.

Under the bill, if a person’s extended supervision or parole is revoked, he or she may be incarcerated for up to the length of the original sentence, less any credit for time served in confinement, any credit for good behavior, and any earned compliance credit.

Earned release Under current law, an eligible inmate may earn early release to parole or extended supervision by successfully completing a substance abuse program.

An inmate is eligible for earned release only if the inmate is serving time for a crime that is not a violent crime and, for an inmate who is serving a bifurcated sentence, the sentencing court determines that the inmate is eligible.

Under current law, DOC operates a mother-young child care program in which females in DOC custody who are pregnant or have a child that is less than one year old may be placed in less restrictive custodial placements and participate in services aimed at creating a stable relationship between the mother and her child and preparing the mother to be able to live in a safe, lawful, and stable manner in the community.

The bill expands the earned release program to include two new options:

1) successful completion of the mother-young child care program, or 2) successful completion of a vocational readiness program, which includes educational, vocational, treatment, or other qualifying evidence-based training programs to reduce recidivism.

The bill also provides that DOC, not the sentencing court, determines eligibility for earned release for all inmates.

Creating the Office of the Ombudsperson for Corrections The bill creates the Office of the Ombudsperson for Corrections, attached to DOC.

The office is under the direction of an ombudsperson, who is appointed by the governor, is approved by a three-quarters vote of the senate, and may be removed only by the governor, for just cause.

Under the bill, the ombudsperson accepts complaints regarding facilities and abuse, unfair acts, and violations of rights of prisoners and juveniles from persons being held in state prisons and juvenile correctional facilities.

Under the bill, the ombudsperson has the power to investigate a variety of actions by DOC and make recommendations on the basis of the investigations.

If the ombudsperson determines to make a recommendation to a state prison or juvenile correctional facility, the superintendent of the state prison - 2026 Legislature - 16 - LRB-2186/1 ALL:all SENATE BILL 45 or juvenile correctional facility has 30 days to respond to the recommendations of the ombudsperson.

Also under the bill, the Office of the Ombudsperson for Corrections must annually publish a report of its findings, recommendations, and investigation results and distribute the report to the governor, the chief clerk of each house of the legislature, and the secretary of corrections.

Contracts for temporary housing for or detention of persons placed on probation or sentenced to imprisonment Under current law, DOC may contract with local units of government for temporary housing or detention in jails or houses of correction for persons placed on probation or sentenced to imprisonment in state prisons or to the intensive sanctions program.

Under such a contract, the rate may not exceed $60 per person per day.

The bill increases the rate that may be set under such a contract to up to $80 per person per day.

JUVENILE CORRECTIONAL SYSTEM Age of juvenile court jurisdiction Under current law, a person 17 years of age or older who is alleged to have violated a criminal law is subject to the procedures specified in the Criminal Procedure Code and, on conviction, is subject to sentencing under the Criminal Code, which may include a sentence of imprisonment in the Wisconsin state prisons.

Currently, subject to certain exceptions, a person under 17 years of age who is alleged to have violated a criminal law is subject to the procedures specified in the Juvenile Justice Code and, on being adjudicated delinquent, is subject to an array of dispositions under that code, including placement in a juvenile correctional facility.

The bill raises from 17 to 18 the age at which a person who is alleged to have violated a criminal law is subject to the procedures specified in the Criminal Procedure Code and, on conviction, to sentencing under the Criminal Code.

Similarly, under current law, a person 17 years of age or older who is alleged to have violated a civil law or municipal ordinance is subject to the jurisdiction and procedures of the circuit court or, if applicable, the municipal court, while a person under 17 years of age who is alleged to have violated a civil law or municipal ordinance, subject to certain exceptions, is subject to the jurisdiction and procedures of the court assigned to exercise jurisdiction under the Juvenile Justice Code.

The bill raises from 17 to 18 the age at which a person who is alleged to have violated a civil law or municipal ordinance is subject to the jurisdiction and procedures of the circuit court or, if applicable, the municipal court.

Seventeen-year-old juvenile justice aids The bill creates a sum sufficient appropriation under DCF for youth aids- related purposes but only to reimburse counties, beginning on January 1, 2026, for costs associated with juveniles who were alleged to have violated a state or federal criminal law or any civil law or municipal ordinance at age 17.

- 2026 Legislature - 17 - LRB-2186/1 ALL:all SENATE BILL 45 Juvenile justice reform review committee The bill creates a juvenile justice reform review committee in DCF with members appointed by the governor.

Under the bill, the committee is charged with studying and providing recommendations to DCF and DOC on how to do all of the following:

1.

Increase the minimum age of delinquency.

2.

Eliminate original adult court jurisdiction over juveniles.

3.

Modify the waiver procedure for adult court jurisdiction over juveniles and incorporate offenses currently subject to original adult court jurisdiction into the waiver procedure.

PageEliminate 5,the lineserious 10:juvenile offender program and create extended juvenile court jurisdiction with a blended juvenile and adult sentence structure for certain juvenile offenders.

delete lines 10 to 14 and substitute:

XSECTION 10b.

16.088 (1) of the statutes is amended to read:

16.088 (1) Award grants to the Oneida Nation of Wisconsin to support the Healing to Wellness Court program at the Oneida Nation, in an amount up to - 2026 Legislature - 2 - LRBALL:all $259,100 annually and in an amount up to $60,000 annually to conduct an intergovernmental training program.Y.

PageProhibit 18:placement of a juvenile in a juvenile detention facility for a status offense and limit sanctions and short-term holds in a juvenile detention facility to cases where there is a public safety risk.

after the entry for 20.867 (3) (cx), insert:

X(3) (cy) Medical College of Wisconsin eye institute GPR 0 0Y.

PageSunset 58,long-term linepost-disposition 2:programs at juvenile detention facilities.

decrease the dollar amount for fiscal year 2025-26 by $26,500,000 and decrease the dollar amount for fiscal year 2026-27 by $26,500,000 to reduce funding for the allocations specified in s.

36.11 (13).

PageCreate 60,a linesentence 21:adjustment procedure for youthful offenders.

after that line insert:

X(b) Emergency medical services education GPR A -0- -0-Y.

PageConform 101,with linethe 8:U.S.

increaseConstitution the dollarstatutes amountthat formandate fiscalimposing yearsentences 2025-26of bylife $375,000imprisonment andwithout increaseparole theor dollarextended amountsupervision forto fiscalminors. year 2026-27 by $1,500,000 for the purpose for which the appropriation is made.

Under the bill, the committee terminates on September 15, 2026, and DCF and DOC must submit in their 2027–29 biennial budget requests a request to implement the committee’s recommendations.

Contract payments for placement of juveniles The bill creates a sum sufficient GPR appropriation for DOC to make payments under contracts for the placement of juveniles.

The bill limits the appropriation to $20,000,000 in each fiscal year and sunsets it on July 1, 2029.

Juveniles placed at Mendota Juvenile Treatment Center Under current law, DOC may transfer to the Mendota Juvenile Treatment Center (MJTC) juveniles who are under DOC’s supervision or juveniles who are placed in a Type 1 juvenile correctional facility regardless of whether those juveniles are under the supervision of DOC or a county department of social services or human services.

Current law requires DOC to reimburse DHS for the cost of providing services to these juveniles at MJTC at a per person daily cost specified by DHS.

The bill specifies that DOC is required to reimburse DHS only for the cost of services provided to juveniles who are under DOC’s supervision and are transferred to MJTC.

Daily rates for juvenile correctional services Under current law, DOC charges counties for the costs of certain juvenile correctional services DOC provides according to a per person daily cost assessment specified in the statutes (daily rate).

Counties use community youth and family aids (youth aids) funding allocated to them from various state and federal moneys to pay these costs.

Under current law, the daily rate for care of a juvenile who is in - 2026 Legislature - 18 - LRB-2186/1 ALL:all SENATE BILL 45 a Type 1 juvenile correctional facility or transferred from a juvenile correctional facility to an inpatient treatment facility is set at $1,268 until June 30, 2025.

The bill continues this daily rate until June 30, 2027.

Youth aids;

allocations Under current law, DCF is required to allocate to counties community youth and family aids (youth aids) funding.

Youth aids funding comes from various state and federal moneys and is used to pay for state-provided juvenile correctional services and local delinquency-related and juvenile justice services.

The bill updates the allocation of youth aids funding that is available to counties for the 2025-27 fiscal biennium.

The bill eliminates current law requirements that some of the youth aids funding be allocated for emergencies related to youth aids, for alcohol and other drug abuse treatment programs, and to reimburse counties that are purchasing community supervision services from DOC for juveniles.

The bill also eliminates the community intervention program (CIP), under which DCF may award funding to counties for early intervention services for first offenders.

The bill replaces these allocations and CIP with the youth justice system improvement program.

Under the bill, DCF may use youth aids funding for the youth justice system improvement program to support diversion, prevention, and early intervention programs, to address emergencies related to youth aids, and to fund other activities required of DCF under youth aids.

Youth aids;

administration Under current law, youth aids funding is allocated to counties on a calendar year basis.

Youth aids funds that are not spent in the calendar year can be carried forward three ways:

1) DCF may carry forward 5 percent of a county’s allocation for that county for use in the subsequent calendar year;

2) DCF may carry forward $500,000 or 10 percent of its unspent youth aids funds, whichever is larger, for use in the subsequent two calendar years;

and 3) DCF may carry forward any unspent emergency funds for use in the subsequent two calendar years.

The bill changes the way that unspent youth aids are carried forward.

Under the bill, DCF may still carry forward 5 percent of a county’s allocation for that county to use in the next calendar year.

However, instead of carrying forward $500,000 or 10 percent of its unspent youth aids funds, whichever is larger, for use in the next two calendar years, under the bill, DCF may transfer 10 percent of unspent youth aids funds to the appropriation for the youth justice system improvement program.

COURTS AND PROCEDURE SUPREME COURT AND CIRCUIT COURTS Office of the Marshals of the Supreme Court The bill creates the Office of the Marshals of the Supreme Court, to consist of one chief marshal of the supreme court, one deputy chief marshal of the supreme - 2026 Legislature - 19 - LRB-2186/1 ALL:all SENATE BILL 45 court, deputy marshals of the supreme court, and administrative personnel.

The bill provides that the Office of the Marshals of the Supreme Court is a law enforcement agency and that the marshals of the supreme court are law enforcement officers who are employed for the purpose of detecting and preventing crime and enforcing laws or ordinances and are authorized to make arrests for violations of the laws or ordinances.

The bill requires the marshals of the supreme court to meet the requirements established by the Law Enforcement Standards Board for officer certification, police pursuit, recruitment, and firearms training and to comply with any other statutory requirements applicable to a law enforcement agency.

The bill also provides that marshals of the Supreme Court are protective occupation participants in the Wisconsin Retirement System.

Current law specifically classifies police officers, firefighters, and various other individuals as protective occupation participants.

Under the WRS, the normal retirement age of a protective occupation participant is lower than that of other participants and the percentage multiplier used to calculate retirement annuities is higher for protective occupation participants than for other participants.

The bill further provides that the Office of the Marshals of the Supreme Court may provide police services to the state court system, with statewide jurisdiction;

provide protective services for the supreme court justices and their offices;

provide security assessments for the justices, judges, and facilities of the state court system;

and provide safety and security support services and advanced security planning services for circuit court proceedings.

The operation of the Office of the Marshals of the Supreme Court does not affect the operations or jurisdiction of sheriffs or local law enforcement agencies to perform courthouse security, handle active emergencies, perform criminal investigations, or perform any other law enforcement functions.

Circuit court payments Under current law, the director of state courts must make payments to counties for certain circuit court costs.

Under the bill, beginning on January 1, 2026, the director of state courts must make additional payments to circuit courts, including a payment that, beginning January 1, 2027, is available only to counties that operate an alternatives to prosecution and incarceration program.

Circuit court branches The bill adds two additional circuit court branches for Brown County on August 1, 2026.

SPECIAL PROSECUTORS AND THE STATE PUBLIC DEFENDER Compensation for special prosecutors Under current law, the SPD provides legal representation for indigent persons in criminal and delinquency cases.

The SPD assigns cases either to staff attorneys or to local private attorneys.

A private attorney assigned to a case by the SPD is paid an hourly amount that varies depending on the year in which the case was - 2026 Legislature - 20 - LRB-2186/1 ALL:all SENATE BILL 45 assigned.

For instance, a private attorney assigned a case between December 1, 1992, and July 29, 1995, was generally paid $50 per hour for time spent related to the case and $25 per hour for time spent in related travel.

The amount has increased periodically;

a private attorney assigned a case after July 1, 2023, is generally paid $100 per hour for time spent related to the case and $50 per hour for time spent in related travel.

Current law provides the same compensation to other attorneys as the compensation paid to a private attorney assigned to case by the SPD.

For example, if a judge appoints a special prosecutor to perform the duties of a district attorney, the special prosecutor compensation is the amount paid to a private attorney for a case assigned between December 1, 1992, and July 29, 1995.

The bill changes the compensation for the special prosecutor to be the amount paid to a private attorney assigned a case on the date the approval was made.

Private bar reimbursement rate for cases involving violent crimes Under current law, the SPD provides legal representation for indigent persons in criminal, delinquency, and certain related cases.

The SPD assigns cases either to staff attorneys or to local private attorneys.

Generally, a private attorney who is assigned a case by the SPD on or after July 1, 2023, is paid $100 per hour for time spent related to the case and $50 per hour for time spent in travel related to a case.

The bill increases the rate the private attorney is paid for cases to $125 per hour if the case is assigned on or after July 1, 2025, and involves a charge of a violent crime.

The bill does not change the rate for cases that do not involve a charge of a violent crime or for travel.

D ISTRICT ATTORNEYS Increase in deputy district attorney allocation The bill increases the number of deputy district attorneys that may be appointed in a prosecutorial unit with a population of 200,000 or more but less than 750,000 from three deputy district attorneys to four deputy district attorneys.

G ENERAL COURTS AND PROCEDURE Privacy protection for federal judicial officers The bill adds current and former district judges and magistrate judges for federal district courts in this state as well as current and former bankruptcy judges for federal bankruptcy courts in this state to the list of judicial officers to whom certain privacy protections apply.

Current law provides, upon written request, certain privacy protections for the personal information of judicial officers.

Among other protections, if a government agency receives a written request from a judicial officer, the government agency may not publicly post or display publicly available content that includes a judicial officer’s personal information.

That information is also exempt from inspection and copying under public records law unless the agency has received consent to make that information available to the public.

Under current law, upon written request, a data broker may not knowingly sell, license, trade, purchase, or otherwise make available for consideration the personal information of a judicial officer or a judicial officer’s immediate family.

Current law - 2026 Legislature - 21 - LRB-2186/1 ALL:all SENATE BILL 45 also provides that, if the judicial officer has made a written request, no person, business, or association may publicly post or display on the Internet publicly available content that includes the personal information of a judicial officer or the judicial officer’s immediate family.

The bill allows current and former federal district court judges, magistrate judges, and bankruptcy judges in this state to have these protections.

Sharing information regarding potential jurors Under current law, DOT annually transmits to the director of state courts a list of persons residing in the state that includes certain information about those persons.

Each year, the director of state courts uses that information to compile a master list of potential jurors for use by the state circuit courts.

The bill requires DOT to also send that list to the clerks of court for the federal district courts within this state.

Also under current law, the director of state courts may request and use the following information, in addition to the DOT information, to create the master list:

1) a list of registered voters from the Elections Commission;

2) a list of individuals who filed state income tax returns with DOR;

3) a list of child support payors and payees from DWD;

4) a list of recipients of unemployment compensation from DWD;

and 5) a list of state residents issued approvals or licenses from DNR.

The bill requires, rather than allows, the director of state courts to use that information.

The bill also modifies the requirements for those state agencies to transmit the lists they maintain to the director of state courts to be similar to DOT’s obligations.

For example, the bill requires each state agency to annually transmit the list the agency maintains to the director of state courts without the need for the director of state courts to request the information.

Qui tam actions for false claims The bill restores a private individual’s authority to bring a qui tam claim against a person who makes a false or fraudulent claim for medical assistance, which was eliminated in 2015 Wisconsin Act 55, and further expands qui tam actions to include any false or fraudulent claims to a state agency.

A qui tam claim is a claim initiated by a private individual on his or her own behalf and on behalf of the state against a person who makes a false claim relating to medical assistance or other moneys from a state agency.

The bill provides that a private individual may be awarded up to 30 percent of the amount of moneys recovered as a result of a qui tam claim, depending upon the extent of the individual’s contribution to the prosecution of the action.

The individual may also be entitled to reasonable expenses incurred in bringing the action, as well as attorney fees.

The bill includes additional changes not included in the prior law to incorporate provisions enacted in the federal Deficit Reduction Act of 2005 and conform state law to the federal False Claims Act, including expanding provisions to facilitate qui tam actions and modifying the bases for liability to parallel the liability provisions under the federal False Claims Act.

In addition to qui tam claims, DOJ has independent authority to bring a claim - 2026 Legislature - 22 - LRB-2186/1 ALL:all SENATE BILL 45 against a person for making a false claim for medical assistance.

The bill modifies provisions relating to DOJ’s authority to parallel the liability and penalty standards relating to qui tam claims and to parallel the forfeiture amounts provided under the federal False Claims Act.

CRIMES Expungement Under current law, a court may order a person’s criminal record expunged of a crime if all of the following apply:

1.

The maximum term of imprisonment for the crime is six years or less (Class H felony and below).

2.

The person committed the crime before the age of 25.

3.

The person had not been previously convicted of a felony.

4.

The crime was not a violent felony.

Current law specifies that the expungement order must be made only at sentencing and then the record is expunged when the person completes his or her sentence.

If the court does not order a criminal record expunged at sentencing, current law generally does not provide for another means to expunge the criminal record.

The bill makes several changes to the expungement process.

The bill removes the condition that the person committed the crime before the age of 25.

(The bill retains the conditions that the crime be no greater than a Class H felony, the person have no previous felony convictions, and the crime not be a violent felony.) The bill makes certain crimes ineligible for expungement, such as traffic crimes, the crime of violating a domestic abuse restraining order or injunction, criminal trespass, and criminal damage to a business.

The bill also allows the sentencing court to order that a person’s record not be eligible for expungement.

The bill continues to allow the court to order at sentencing that the record be expunged when the person completes his or her sentence.

The bill also provides that, if the court did not make an order at sentencing, the person may file a petition with the sentencing court after he or she completes his or her sentence.

Upon receipt of the petition, the court must review the petition and then may order the record expunged or may deny the petition.

If the court denies the petition, the person may not file another petition for two years.

The person must pay a $100 fee to the county for a second petition, and no person may file more than two petitions per crime.

The bill limits a person to one expungement.

The changes described in this paragraph apply retroactively to persons who were convicted of a crime before the bill takes effect.

The bill provides that, if a record is expunged of a crime, that crime is not considered a conviction for employment purposes and specifies that employment discrimination because of a conviction record includes requesting a person to supply information regarding a crime if the record has been expunged of the crime.

Finally, the bill provides that it is not employment discrimination because of - 2026 Legislature - 23 - LRB-2186/1 ALL:all SENATE BILL 45 conviction record for the Law Enforcement Standards Board to consider a conviction that has been expunged with respect to applying any standard or requirement for the certification, decertification, or required training of law enforcement officers, tribal law enforcement officers, jail officers, and juvenile detention officers.

Immunity for certain controlled substances offenses Current law grants immunity from prosecution for possessing a controlled substance to a person, called an aider, who summons or provides emergency medical assistance to another person because the aider believes the other person is suffering from an overdose or other adverse reaction to a controlled substance.

Under 2017 Wisconsin Act 33, an aider was also immune from having probation, parole, or extended supervision revoked for possessing a controlled substance under the same circumstances.

Act 33 also granted the aided person immunity from from having probation, parole, or extended supervision revoked for possessing a controlled substance when an aider seeks assistance for the aided person.

The immunity applied only if the aided person completes a treatment program as part of his or her probation, parole, or extended supervision.

Act 33 also provided that a prosecutor must offer an aided person who is subject to prosecution for possessing a controlled substance a deferred prosecution agreement if the aided person completes a treatment program.

The expanded immunities under 2017 Wisconsin Act 33 were temporary, and expired on August 1, 2020.

The bill permanently restores these expanded immunities from 2017 Wisconsin Act 33.

Alternatives to prosecution for disorderly conduct The bill requires a prosecutor to offer to certain disorderly conduct defendants a deferred prosecution agreement or an agreement in which the defendant stipulates to his or her guilt of a noncriminal ordinance violation.

Under the bill, a prosecutor must offer alternatives to prosecution to a person who has committed a disorderly conduct violation if it is the person’s first disorderly conduct violation, the person has not committed a similar violation previously, and the person has not committed a felony in the previous three years.

Under the bill, if the person is offered a deferred prosecution agreement, he or she must be required to pay restitution, if applicable.

EDUCATION PRIMARY AND SECONDARY EDUCATION :GENERAL AIDS AND REVENUE LIMITS Per pupil revenue limit adjustment Current law generally limits the total amount of revenue per pupil that a school district may receive from general school aids and property taxes in a school year to the amount of revenue allowed per pupil in the previous school year plus a per pupil adjustment, if any, as provided by law.

Current law provides a $325 per pupil adjustment each school year from 2023 to 2425.

Under the bill, beginning in - 2026 Legislature - 24 - LRB-2186/1 ALL:all SENATE BILL 45 the 2026–27 school year, the per pupil adjustment is the per pupil increase for the previous school year as adjusted for any increase in the consumer price index.

Low revenue ceiling;

per pupil amount and restrictions Current law provides a minimum per pupil revenue limit for school districts, known as the revenue ceiling.

Under current law, the per pupil revenue ceiling is $11,000.

The bill increases the per pupil revenue ceiling to $12,000 for the 2025–26 school year and to $12,400 for the 2026–27 school year and each subsequent school year.

Current law also provides that during the three school years following a school year in which an operating referendum fails in a school district, the school district’s revenue ceiling is the revenue ceiling that applied in the school year during which the referendum was held.

The bill eliminates the provision under which a school district’s revenue ceiling is the revenue ceiling from a previous school year because an operating referendum failed in the school district.

Revenue limits;

personal property tax repeal aid For purposes of school district revenue limits, current law defines “state aid” as general school aid, computer aid, and exempt personal property aid.

The bill adds personal property tax repeal aid to the definition of “state aid.” Special adjustment aid Under current law, a school district is guaranteed an amount of general equalization aid equal to at least 85 percent of the amount it received in the previous school year.

The bill increases the amount of general equalization aid that a school district is guaranteed to receive to an amount that is at least 90 percent of the amount it received in the previous school year.

Counting four-year-old kindergarten pupils The bill changes how a pupil enrolled in a four-year-old kindergarten is counted by a school district for purposes of state aid and revenue limits.

Under current law, a pupil enrolled in a four-year-old kindergarten program is counted as 0.5 pupil unless the program provides at least 87.5 additional hours of outreach activities, in which case the pupil is counted as 0.6 pupil.

Under the bill, if the four- year-old kindergarten program requires full-day attendance by pupils for five days a week, a pupil enrolled in the program is counted as one pupil.

P RIMARY AND SECONDARY EDUCATION :CATEGORICAL AIDS Per pupil aid Under current law, per pupil aid is a categorical aid paid to school districts.

Per pupil aid is funded from a sum sufficient appropriation and is not considered for purposes of revenue limits.

Under current law, the amount of per pupil aid paid to a school district is calculated using a three-year average of the number of pupils enrolled in the school district and a per pupil amount set by law.

In the 2024–25 school year, the per pupil amount is $742.

Under the bill, the per pupil amount is - 2026 Legislature - 25 - LRB-2186/1 ALL:all SENATE BILL 45 $800 in the 2025–26 school year and $850 in the 2026–27 school year and each year thereafter.

In addition, beginning in the 2025–26 school year, the bill requires DPI to pay a second amount of per pupil aid to school districts based on the number of economically disadvantaged pupils enrolled in a school district.

Under the bill, beginning in the 2025–26 school year, in addition to the base amount of per pupil aid, DPI must also pay a school district an additional amount equal to 20 percent of the standard per pupil amount for each economically disadvantaged pupil enrolled in the school district in the previous year.

Under the bill, an economically disadvantaged pupil is a pupil who satisfies either the income eligibility criteria for a free or reduced-price lunch under federal law or other measures of poverty, as determined by DPI.

Funding for special education and school age parents programs The bill changes the rate at which the state reimburses school boards, operators of independent charter schools, cooperative educational service agencies (CESAs), and county children with disabilities education boards (CCDEBs) for costs incurred to provide special education and related services to children with disabilities and for school age parents programs (eligible costs).

Under current law, the state reimburses the full cost of special education for children in hospitals and convalescent homes for orthopedically disabled children.

After those costs are paid, the state reimburses remaining eligible costs from the amount remaining in the appropriation account at a rate that distributes the full amount appropriated.

The bill changes the appropriation to a sum sufficient and provides that, beginning in the 2025–26 school year, after full payment of hospital and convalescent home costs, the remaining costs are reimbursed at 60 percent of eligible costs.

Currently, DPI provides 1) special education aid to school districts, independent charter schools, CESAs, and CCDEBs;

2) aid to school districts, CESAs, and CCDEBs for providing physical or mental health treatment services to private school and tribal school pupils;

and 3) aid for school age parents programs to school districts only.

High-cost special education aid The bill changes the rate at which the state reimburses school boards, operators of independent charter schools, CESAs, and CCDEBs for nonadministrative costs in excess of $30,000 incurred for providing special education and related costs to a child (aidable costs).

Under current law, DPI must reimburse 90 percent of aidable costs at a rate of 100 percent from a sum certain appropriation.

If the amount of the appropriation is insufficient to pay the full 90 percent of aidable costs, DPI must prorate payments among eligible applicants.

The bill changes the appropriation to a sum sufficient appropriation and provides that, beginning in the 2025-26 school year, DPI must reimburse 90 percent of aidable costs at a rate of 40 percent.

- 2026 Legislature - 26 - LRB-2186/1 ALL:all SENATE BILL 45 Sparsity aid Under current law, a school district is eligible for sparsity aid if the number of pupils per square mile in the school district is less than 10 and the school district’s membership in the previous school year did not exceed 1,000 pupils.

The amount of aid is $400 per pupil if the school district’s membership in the previous school year did not exceed 745 pupils and $100 per pupil if the school district’s membership in the previous school year was between 745 and 1,000 pupils.

Beginning in the 2025‑26 school year, the bill increases these payment amounts to $500 and $200, respectively.

Current law also provides a reduced payment, known as a stop gap payment, to a school district that was eligible to receive sparsity aid in the previous school year but is not eligible to receive sparsity aid in the current school year because it no longer satisfies the pupils-per-square-mile requirement.

The amount of the stop gap payment is 50 percent of the amount of sparsity aid the school district received in the previous school year.

Under the bill, beginning in the 2025–26 school year, a school district is eligible for a sparsity aid stop gap payment if the school district is ineligible for sparsity aid in the current school year because it no longer satisfies the pupils-per-square-mile requirement or the membership requirement.

Pupil transportation aid Under current law, a school district or an operator of a charter school that provides transportation to and from a school receives a state aid payment for transportation.

The amount of the aid payment depends on the number of pupils transported and the distance of each pupil’s residence from the school.

The bill increases aid payments for pupils who reside more than 12 miles from the school from $400 per pupil to $450 per pupil, beginning in the 2025–26 school year.

High cost transportation aid;

eligibility Under current law, a school district is eligible for high cost transportation aid if 1) the school district has a pupil population density of 50 or fewer pupils per square mile and 2) the school district’s per pupil transportation cost exceeds 140 percent of the statewide average per pupil transportation cost.

The bill lowers the second eligibility criterion to a per pupil transportation cost that exceeds 135 percent of the statewide average per pupil transportation cost.

Supplemental nutrition aid The bill creates supplemental nutrition aid, a categorical aid to reimburse educational agencies for school meals provided to pupils who satisfy the income criteria for a reduced-price lunch under the federal school lunch program and pupils who do not satisfy the income criteria for a free or reduced-price lunch under the federal school lunch program.

An educational agency is eligible for supplemental nutrition aid if the educational agency does not charge pupils for school meals for which the educational agency receives reimbursement from the federal government.

Under the bill, the amount of aid is equal to the sum of 1) the number of school meals provided in the previous school year to pupils who satisfy - 2026 Legislature - 27 - LRB-2186/1 ALL:all SENATE BILL 45 the income criteria for a reduced-price lunch multiplied by the difference between the free-meal reimbursement amount and the reduced-price-meal reimbursement amount and 2) the number of school meals provided in the previous year to pupils who do not satisfy the income criteria for a free or reduced-price lunch multiplied by the difference between the free-meal reimbursement amount and the reimbursement amount for a paid school meal.

Supplemental nutrition aid is first paid to educational agencies in the 2026–27 school year for school meals provided during the 2025–26 school year.

Under the bill, supplemental nutrition aid is funded by a sum sufficient appropriation, which ensures that educational agencies receive the full amount of aid to which they are entitled.

The bill defines a “school meal” as a school lunch or snack under the federal school lunch program and a breakfast under the federal school breakfast program and an “educational agency” as a school board, an operator of an independent charter school, the director of the Wisconsin Educational Services Program for the Deaf and Hard of Hearing, the director of the Wisconsin Center for the Blind and Visually Impaired, an operator of a residential care center for children and youth, a tribal school, or a private school.

School breakfast program The bill expands eligibility for reimbursement under the school breakfast program to include operators of independent charter schools, the director of the Wisconsin Educational Services Program for the Deaf and Hard of Hearing, the director of the Wisconsin Center for the Blind and Visually Impaired, and operators of residential care centers for children and youth.

The bill also prohibits DPI from making a reimbursement for a breakfast served at a school in the previous school year if that school ceased operations during the prior school year.

This prohibition does not apply to reimbursements to a school district.

School mental health and pupil wellness;

categorical aid The bill changes the types of expenditures that are eligible for reimbursement under the state categorical aid program related to pupil mental health.

Under current law, DPI must make payments to school districts, independent charter schools, and private schools participating in parental choice programs (local education agencies) that increased the amount they spent to employ, hire, or retain social workers.

Under current law, DPI first pays each eligible local education agency 50 percent of the amount by which the eligible local education agency increased its expenditures for social workers in the preceding school year over the amount it expended in the school year immediately preceding the preceding school year.

If, after making those payments, there is money remaining in the appropriation account for that aid program, DPI makes additional payments to eligible local education agencies.

The amount of those additional payments is determined based on the amount remaining in the appropriation account and the amount spent by eligible local education agencies to employ, hire, and retain social workers during the previous school year.

- 2026 Legislature - 28 - LRB-2186/1 ALL:all SENATE BILL 45 The bill expands eligibility for the payments under the aid program to include spending on school counselors, school social workers, school psychologists, and school nurses (pupil services professionals).

The bill also eliminates the two tier reimbursement structure of the aid program and eliminates the requirement that a local education agency is eligible for the aid only if the local education agency increased its spending.

Under the bill, any local education agency that made expenditures to employ, hire, or retain pupil services professionals during the previous school year is eligible for reimbursement under the aid program.

Aid for comprehensive school mental health services Under current law, DPI awards grants to school districts and independent charter schools for the purpose of collaborating with community mental health agencies to provide mental health services to pupils.

The bill replaces the current grant program with new categorical aid for comprehensive school mental health services to school districts and independent charter schools.

Under the bill, beginning in the 2025–26 school year, DPI must annually reimburse a school board or the operator of an independent charter school for costs incurred for mental health services during in-school or out-of-school time, up to the greater of $100,000 or $100 per pupil who was enrolled in the school district or independent charter school in the previous school year.

If the amount appropriated for this purpose is insufficient, DPI must prorate the reimbursements.

Peer-to-peer suicide prevention grants Under current law, DPI administers a competitive grant program to award grants to public, private, and tribal high schools for the purpose of supporting peer- to-peer suicide prevention programs.

Under current law, the maximum annual peer-to-peer suicide prevention grant amount is $1,000.

The bill increases the maximum annual peer-to-peer suicide prevention grant amount to $6,000.

Mental health training programs Under current law, DPI must establish a mental health training program under which it provides training to school district and independent charter school staff on three specific evidence-based strategies related to addressing mental health issues in schools.

The three specific evidence-based strategies are 1) the Screening, Brief Intervention, and Referral to Treatment program, 2) Trauma Sensitive Schools, and 3) Youth Mental Health First Aid.

The bill expands the mental health training program to include training on any evidence-based strategy related to addressing mental health issues and suicide prevention in schools and converts the list of evidence-based strategies under current law to a nonexclusive list of strategies.

Additionally, the bill requires that DPI provide the training to out-of-school-time program employees.

Aid for English language acquisition The bill creates a new categorical aid for school districts and independent charter schools to offset the costs of educating limited-English proficient (LEP) pupils.

- 2026 Legislature - 29 - LRB-2186/1 ALL:all SENATE BILL 45 Under current law, a school board is required to provide a bilingual-bicultural education program to LEP pupils who attend a school in the school district if the school meets any of the following thresholds:

1.

Within a language group, 10 or more LEP pupils are enrolled in kindergarten to grade 3.

2.

Within a language group, 20 or more LEP pupils are enrolled in grades 4 to 8.

3.

Within a language group, 20 or more LEP pupils are enrolled in grades 9 to 12.

All school boards are required to educate all LEP pupils, but only school boards that are required to provide bilingual-bicultural education programs are eligible under current law for categorical aid targeted toward educating LEP pupils.

Under current law, in each school year, DPI distributes $250,000 among eligible school districts whose enrollments in the previous school year were at least 15 percent LEP pupils, and DPI distributes the amount remaining in the appropriation account to eligible school districts on the basis of the school districts’ expenditures on the required bilingual-bicultural education programs during the prior school year.

Under the bill, beginning in the 2025–26 school year, DPI must annually pay each school district and each operator of an independent charter school an amount equal to $500 times the number of LEP pupils enrolled in the school district or attending the charter school in the previous school year.

This new categorical aid is in addition to aid already paid under current law and is not conditioned on whether the school board or independent charter school is required to provide a bilingual- bicultural education program.

Early literacy summer reading programs Current law requires DPI to establish a model policy for promoting third grade pupils to the fourth grade that includes various components, including a requirement to provide an intensive summer reading program to pupils who are promoted to the fourth grade, had a personal reading plan in the third grade, and did not complete the plan before being promoted to fourth grade.

Current law specifies that the model policy must require that the intensive summer reading program be provided until a pupil scores at grade level in reading on a summative assessment.

Current law also requires school boards, operators of independent charter schools, and private schools participating in a parental choice program to, by July 1, 2025, adopt a written policy for promoting third grade pupils to the fourth grade that includes the intensive summer reading program required to be in DPI’s model policy.

Beginning in the 2026–27 school year, the bill requires DPI to reimburse school boards and independent charter schools for providing intensive summer reading programs, as required under third grade promotion policies.

Financial literacy curriculum grants The bill requires DPI to award grants to school boards and independent - 2026 Legislature - 30 - LRB-2186/1 ALL:all SENATE BILL 45 charter schools for the purpose of developing, implementing, or improving financial literacy curricula.

The bill further requires DPI to prioritize grants that support innovative financial literacy curricula.

Current law requires school boards to adopt academic standards for financial literacy and incorporate financial literacy instruction into the curriculum in grades kindergarten to 12.

Computer science education grants The bill requires DPI to annually award grants to school districts for the purpose of expanding computer science educational opportunities in all grade levels in the school district.

Aid for career and technical education The bill creates a categorical aid for school districts and independent charter schools for the purpose of increasing high school career and technical education pathways in public high schools.

The bill defines a “high school career and technical education pathway” as a series of career and technical education opportunities that prepare a pupil for a postsecondary option in a specific career area.

Under the bill, DPI must pay each school district and independent charter school a proportional amount of the amount appropriated for this purpose.

The proportional amount is based on the number of pupils in the high school grades in that school district or independent charter school in the previous school year divided by the total number of pupils in the high school grades in all school districts and independent charter schools in the previous school year.

Water bottle filling station grants The bill requires DPI to award grants to school districts and independent charter schools to modify water fountains to include water bottle filling stations that provide filtered drinking water.

Tribal language revitalization grants Under current law, school boards, cooperative educational service agencies, and head start agencies are eligible for grants to support innovative, effective instruction in one or more American Indian languages.

The bill expands eligibility for these grants to include independent charter schools.

Grants to replace race-based nicknames, logos, mascots, or team names associated with American Indians The bill authorizes DPI to award a grant to a school board that terminates the use of a race-based nickname, logo, mascot, or team name that is associated with a federally recognized American Indian tribe or American Indians, in general.

Under the bill, a school board is eligible for a grant regardless of whether or not the school board decides to terminate the use of a race-based nickname, logo, mascot, or team name voluntarily, in response to an objection to its use, or in compliance with an order issued by the Division of Hearings and Appeals.