Bill Text: MS HB1150 | 2011 | Regular Session | Introduced


Bill Title: Charter schools; establish and revise procedure for the creation of.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2011-02-01 - Died In Committee [HB1150 Detail]

Download: Mississippi-2011-HB1150-Introduced.html

MISSISSIPPI LEGISLATURE

2011 Regular Session

To: Education

By: Representatives Baker (74th), Weathersby

House Bill 1150

AN ACT TO CODIFY SECTIONS 37-28-1, 37-28-3, 37-28-5, 37-28-7, 37-28-9, 37-28-11, 37-28-13, 37-28-15, 37-28-17, 37-28-19 AND 37-28-21, MISSISSIPPI CODE OF 1972, TO PROVIDE AUTHORIZATION FOR NEW OPEN-ENROLLMENT PUBLIC CHARTER SCHOOLS IN THE STATE OF MISSISSIPPI, TO PROVIDE AUTHORIZATION FOR CONVERSION CHARTER SCHOOLS UNDER WHICH EXISTING PUBLIC SCHOOLS MEETING CERTAIN CRITERIA MAY CONVERT TO CHARTER SCHOOL STATUS, TO PROVIDE THAT SUCH OPEN-ENROLLMENT PUBLIC CHARTER SCHOOLS SHALL BE ORGANIZED AS NONPROFIT TAX-EXEMPT ORGANIZATIONS, TO PROVIDE THAT THE LOCAL SCHOOL BOARD MAY APPROVE PETITIONS FOR THE ESTABLISHMENT OF OPEN-ENROLLMENT PUBLIC CHARTER SCHOOLS OR PETITION MAY BE MADE DIRECTLY TO THE STATE BOARD OF EDUCATION, TO PROVIDE CRITERIA FOR ACADEMIC ACHIEVEMENTS AT THE PUBLIC CHARTER SCHOOLS, TO PROVIDE PREFERENCE FOR THE ESTABLISHMENT OF SUCH PUBLIC CHARTER SCHOOLS, TO PROVIDE THAT CERTAIN STATE FUNDS SHALL GO DIRECTLY TO THE NEWLY ESTABLISHED PUBLIC CHARTER SCHOOLS ON A PER-PUPIL EXPENDITURE BASIS, TO PROVIDE THAT SUCH PUBLIC CHARTER SCHOOLS MAY USE A WEIGHTED LOTTERY SYSTEM TO FILL ENROLLMENT SEATS, TO PROVIDE FOR THE GOVERNANCE OF SUCH PUBLIC CHARTER SCHOOLS AND TO PROVIDE THAT TEACHERS SHALL BE EMPLOYEES OF THE PUBLIC CHARTER SCHOOLS, TO PROVIDE THAT THE STATE BOARD OF EDUCATION SHALL ISSUE REGULATIONS, AND TO PROVIDE FOR REPORTING, TO PROVIDE FOR TRANSPORTATION OF STUDENTS ATTENDING PUBLIC CHARTER SCHOOLS, AND TO PROVIDE FOR PROBATION AND REVOCATION OF PUBLIC CHARTER SCHOOLS BY THE STATE SUPERINTENDENT OF EDUCATION; TO REPEAL SECTIONS 37-28-1 THROUGH 37-28-21, MISSISSIPPI CODE OF 1972, EFFECTIVE JULY 1, 2020; TO REPEAL SECTIONS 37-165-1 THROUGH 37-165-27, MISSISSIPPI CODE OF 1972, WHICH IS THE "CONVERSION CHARTER SCHOOL ACT OF 2010"; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  The following shall be codified as Section 37-28-1, Mississippi Code of 1972:

     37-28-1.  It is the intent of the Legislature that this chapter provide a means whereby local public schools or public charter schools may choose to substitute a binding academic or vocational, or both, performance-based contract approved by the State Board of Education, called a "charter," for rules, regulations, policies and procedures of the State Board of Education and the local school district and, except as otherwise provided, the provisions of Title 37, Mississippi Code of 1972, which are applicable to schools and school districts and their employees and students.

     SECTION 2.  The following shall be codified as Section 37-28-3, Mississippi Code of 1972:

     37-28-3.  For purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed in this section unless the context clearly indicates otherwise:

          (a)  "Charter" means an academic or vocational, or both, performance-based contract between a public charter school and its authorizer which exempts the school from rules, regulations, policies and procedures of the State Board of Education and the local school district and, except as otherwise provided, the provisions of Title 37, Mississippi Code of 1972, which are applicable to schools and school districts and their employees and students.

          (b)  "Conversion charter school" means a public school that has converted to operating under the terms of a charter granted by the State Board of Education and the local school board.

          (c)  "Public charter school" means a school that is operating under the terms of a charter granted by the State Board of Education, or an open-enrollment public charter school established after July 1, 2011.

          (d)  "Local school" means a public school in Mississippi which is under the management and control of the school board of the school district in which the school is located.

          (e)  "Petition" means a proposal to enter into an academic or vocational, or both, performance-based contract between the State Board of Education and a local school whereby the local school obtains charter school status.

          (f)  "Eligible entity" means a public institution of higher learning, a private nonsectarian institution of higher learning, a governmental entity, or an organization that is nonsectarian in its program, admission policies, employment practices, and operations and is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986.

          (g)  "Open-enrollment public charter school" means a public school that is operating under the terms of a charter granted by the authorizer and may draw its students from across public school district boundaries.

          (h)  "Authorizer" means an entity that reviews applications, decides whether to approve or reject applications, enters into contracts with applicants, oversees and monitors public charter schools, and decides whether to renew, not renew, or revoke contracts.  The State Board of Education, universities and local school boards are the only eligible authorizers.

     SECTION 3.  The following shall be codified as Section 37-28-5, Mississippi Code of 1972:

     37-28-5.  (1)  The provisions of this subsection (1) shall be applicable to any conversion charter school and the State Board of Education shall establish rules and regulations for the submission of petitions for charter school status and criteria and procedures for the operation of charter schools applicable to such conversion charter schools.  The board shall receive and review petitions for conversion charter school status from local public schools and may approve petitions and grant charter school status.  At least three (3) local public schools that are granted conversion charter school status shall, at the time the school submits its initial petition for charter school status:  (a) be rated as Under Academic Watch, Low-Performing, At Risk of Failing or Failing; (b) be in a school district rated as Under Academic Watch, Low-Performing, At Risk of Failing or Failing; or (c) be under conservatorship or under the Recovery School District operated by the State Department of Education.  In order to be approved, a petition for charter school status, in the opinion of the authorizer, must adequately include:

          (a)  A plan for improvement at the school level for improving student learning and for meeting state education goals;

          (b)  A set of academic or vocational, or both, performance-based objectives and student achievement-based objectives for the term of the charter and the means for measuring those objectives on no less than an annual basis; and

          (c)  A proposal to directly and substantially involve the parents of students enrolled in the school as well as the faculty, instructional staff and the broader community in the process of modifying the petition, if necessary for approval, and carrying out the terms of the charter.

     (2)  Any local school may submit a petition to the authorizer requesting conversion charter school status.  The petition must:

          (a)  Be approved by the school board of the school district in which the school is located (if it is not the original authorizer);

          (b)  Be agreed to by a majority of the parents of students enrolled in the school at a meeting called for the specific purpose of deciding whether or not to initiate the petition;

          (c)  Describe a plan for school improvement that addresses how the school proposes to work toward improving student learning and meeting state education goals;

          (d)  Outline proposed academic or vocational, or both, performance criteria that will be used during the initial period of the charter to measure progress of the school in improving student learning and in meeting state education goals:

              (i)  Academic performance criteria must include specific and measureable benchmarks of academic performance on state assessments.  Such benchmarks must require that after three (3) years of enrollment, the charter school students outperform to a statistically significant degree similar students in the local district in which the charter is located;

              (ii)  Academic performance criteria must also include a requirement that charter schools not miss adequate yearly progress for any two (2) consecutive years, as defined by the No Child Left Behind Act of 2001, or other future federal school accountability requirements;

          (e)  Describe how the faculty, instructional staff and parents of students enrolled in the school have been involved in developing the petition and will be involved in developing and implementing the improvement plan and identifying academic or vocational, or both, performance criteria;

          (f)  Describe how the concerns of faculty, instructional staff and parents of students enrolled in the school will be solicited and addressed in evaluating the effectiveness of the improvement plan;

          (g)  (i)  Describe the facility to be used for the conversion charter school and state the facility's current use and the facility's use for the immediately preceding three (3) years;

              (ii)  If the facility to be used for a conversion charter school is a public school district facility, the conversion charter school must operate in the facility in accordance with the terms established by the local school board of the public school district in an agreement governing the relationship between the conversion charter school and the public school district;

              (iii)  If the facility that will be used for the conversion charter school is owned by or leased from a sectarian organization, the terms of the facility agreement must be disclosed to the state board; and

              (iv)  Any public school facility that is offered for sale shall first be offered to any conversion charter school located in that school district;

          (h)  Include a detailed budget, a governance plan for the operation of the conversion charter school, and a clear business plan;

          (i)  Include a proposal to directly and substantially involve the parents of students to be enrolled in the conversion charter school, the certified employees, and the broader community in carrying out the terms of the conversion charter;

          (j)  Include an agreement to provide an annual academic achievement report to parents, the local school board of any school district from which the conversion charter school draws students, and the State Board of Education which indicates the progress made by the conversion charter school during the previous year in meeting its academic or vocational performance objectives.  The report shall include, but not be limited to, the following information:

              (i)  Student progress concerning academic achievement;

              (ii)  Student attendance;

              (iii)  Student grades and scores on assessment instruments;

              (iv)  Incidents involving student discipline;

              (v)  Socioeconomic data on students' families;

              (vi)  Parent satisfaction with the schools; and

              (vii)  Student satisfaction with the schools;

          (k)  Include an agreement to provide a yearly financial report to parents, the local school board of any school district from which the conversion charter school draws students, and the State Board of Education which discloses all public and private funds received by the conversion charter school, and how those funds were spent;

          (l)  Specify methods for admission, enrollment criteria, student recruitment and selection processes;

          (m)  As requested by the petitioning conversion charter school proponents, the authorizer shall review the petition for a conversion charter school and shall approve any petition that satisfactorily provides the information required;

          (n)  The authorizer may approve or deny an application based on criteria adopted by the state board, which shall include criteria relating to improving student performance and encouraging innovative programs;

          (o)  If the authorizer disapproves an application for a conversion charter school, the authorizer shall notify the petitioners in writing of the reasons for such disapproval within forty-five (45) days;

          (p)  The authorizer shall allow the petitioners for a conversion charter school to resubmit their petition if the original petition was found to be deficient by the original authorizer, after the petitioner has corrected any deficiencies found in the initial notice of disapproval;

          (q)  The Department of Education may provide technical assistance to the petitioners for a conversion charter school in the creation or modification of these petitions;

          (r)  All pupils attending a conversion charter school when application is made for conversion school status shall be deemed to be enrolled when the conversion charter is approved by the State Board of Education.  One (1) year after the initial conversion charter is approved, a conversion charter school shall enroll an eligible pupil who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level or building.  In this case, new pupils must be accepted by a lottery.  A conversion charter school may not limit admission to pupils on the basis of race, intellectual ability, measures of achievement or aptitude, or athletic ability.  A conversion charter school is subject to any desegregated court orders in effect in the school district in which the conversion charter school is located;

          (s)  A certified teacher employed by a public school district in the school year immediately preceding the effective date of a charter for a conversion charter school operated at a public school facility may not be transferred to or be employed by the conversion charter school over the certified teacher's objections;

          (t)  A conversion charter shall include a mechanism for declaring the charter null and void if, at any time, the school operating under conversion charter status fails to fulfill the terms of the charter; and

          (u)  Conversion charter schools shall be exempt from any rules, regulations, policies and procedures of the State Board of Education and the local school board and from the provisions of the Mississippi Code of 1972 relating to the elementary and secondary education of students.  However, conversion charter schools may not be exempted from the following statutes:

              (i)  Section 37-9-75, which relates to teacher strikes;

              (ii)  Section 37-11-20, which prohibits acts of intimidation intended to keep a student from attending school;

              (iii)  Section 37-11-21, which prohibits parental abuse of school staff;

              (iv)  Section 37-11-23, which prohibits the willful disruption of school and school meetings;

              (v)  Sections 37-11-29 and 37-11-31, which relate to reporting requirements regarding unlawful or violent acts on school property;

              (vi)  Section 37-19-53, which prohibits false reporting of student counts by school officials;

              (vii)  Applicable State Department of Health regulations; and

              (viii)  Applicable federal No Child Left Behind requirements.

     (4)  Initial conversion charters issued by the authorizer shall be for a term of three (3) years.  Thereafter, the authorizer may renew charters on a one-year or multiyear basis, not to exceed three (3) years, if the renewal is approved by a vote of a majority of the faculty, instructional staff and parents of students enrolled in the school who are present at a meeting called for the specific purpose of deciding whether or not to renew the charter.

     SECTION 4.  The following shall be codified as Section 37-28-7, Mississippi Code of 1972:

     37-28-7.  (1)  The provisions of this subsection (1) shall be applicable to open-enrollment public charter schools established after July 1, 2011.  No open-enrollment public charter school established after July 1, 2011, may enroll or accept students prior to August 1, 2012.

     (2)  A charter for an open-enrollment public charter school shall be in the form of a written contract between the authorizer and the school, satisfy the requirements of this chapter, and ensure that the information required under Section 37-28-7(2) is consistent with the information provided in the application and any modification which the State Board of Education may require.

          (a)  The State Board of Education shall adopt:

              (i)  An application form, a schedule and a procedure that must be used to apply for an open-enrollment public charter school; and

              (ii)  Criteria to use in evaluating a charter petition.

          (b)  As part of the application procedure, the authorizer may require a petition supporting a charter for an open-enrollment public charter school signed by interested parents or guardians of school-age children residing in the area in which an open-enrollment public charter school is proposed, or it may hold a public hearing to determine parental support for the school.

          (c)  Pursuant to the provisions of this chapter, an eligible entity may petition the authorizer to grant a charter for an open-enrollment public charter school to operate in a facility of a commercial or nonprofit entity or a public school district.

          (d)  The petition to the authorizer for an open-enrollment public charter school shall be made in accordance with a schedule approved by the state board.

          (e)  The petition shall:

               (i)  Describe the results of public hearings, if any, called by the petitioner for the purpose of assessing support of a petition for public charter school status:

                   1.  Notice of the public hearing shall be published once a week for three (3) consecutive weeks in a newspaper having general circulation in each school district from which the charter school is likely to draw students for the purpose of enrollment:

                        a.  The last publication of notice shall be no less than seven (7) days prior to the public meeting;

                        b.  The notice shall not be published in the classified or legal notice section of the newspaper;

                        c.  The notice shall be published in no less than ten (10) point size and shall be no less than two-by-four inches (2" X 4") or four-by-two inches (4" X 2");

                   2.  Within seven (7) calendar days following the first publication of notice required under paragraph (e)(i)1 of this section, letters announcing the public hearing shall be sent to the superintendents and school board members of each of the school districts from which the public charter school is likely to draw students for the purpose of enrollment and the superintendents and school board members of any district that is contiguous to the district in which the open-enrollment public charter school will be located;

                   3.  The letters to the school board members required in paragraph (e)(i)2 shall only be required for each school board member whose name and mailing address is provided by the superintendent of an affected school district upon the request of the petitioner;

              (ii)  Describe a plan for academic achievement that addresses how the open-enrollment public charter school will improve student learning and meet the state education goals;

              (iii)  Outline the proposed performance criteria that will be used during the initial five-year period of the open-enrollment public charter school operation to measure its progress in improving student learning and meeting or exceeding the state education goals:

                   1.  Academic performance criteria must include specific and measurable benchmarks of academic performance on state assessments.  Such benchmarks must require that after five (5) years of enrollment, the charter school students outperform to a statistically significant degree similar students in the local district in which the charter is located;

                   2.  Academic performance criteria must also include a requirement that charter schools not miss adequate yearly progress for any two (2) consecutive years, as defined by the No Child Left Behind Act of 2001, or other future federal school accountability requirements;

              (iv)  Open-enrollment public charter schools are exempt from rules, regulations, policies and procedures of the State Board of Education and the local school board and from the provisions of the Mississippi Code of 1972 relating to the elementary and secondary education of students, with the exception of the following statutes:

                   1.  Section 37-9-75, which relates to teacher strikes;

                   2.  Section 37-11-20, which prohibits acts of intimidation intended to keep a student from attending school;

                   3.  Section 37-11-21, which prohibits parental abuse of school staff;

                   4.  Section 37-11-23, which prohibits the willful disruption of school and school meetings;

                   5.  Sections 37-11-29 and 37-11-31, which relate to reporting requirements regarding unlawful or violent acts on school property;

                   6.  Section 37-19-53, which prohibits false reporting of student counts by school officials;

                   7.  Applicable State Department of Health regulations; and

                   8.  Applicable federal No Child Left Behind requirements;

              (v)  1.  Describe the facility to be used for the open-enrollment public charter school and state the facility's current use and the facility's use for the immediately preceding three (3) years;

                   2.  If the facility to be used for an open-enrollment public charter school is a public school district facility, the open-enrollment charter school must operate in the facility in accordance with the terms established by the school board of the public school district in an agreement governing the relationship between the open-enrollment public charter school and the public school district;

                   3.  If the facility that will be used for the public charter school is owned by or leased from a sectarian organization, the terms of the facility agreement must be disclosed to the state board; and

                   4.  Any public school facility that is offered for sale shall first be offered to any open-enrollment public charter school located in that school district;

              (vi)  Include a detailed budget, a governance plan for the operation of the open-enrollment public charter school, and a clear business plan;

              (vii)  Include a proposal to directly and substantially involve the parents of students to be enrolled in the open-enrollment public charter school, the certified employees, and the broader community in carrying out the terms of the open-enrollment charter;

              (viii)  Include an agreement to provide an annual academic achievement report to parents, the local school board of any school district from which the charter school draws students, and the State Board of Education which indicates the progress made by the open-enrollment public charter school during the previous year in meeting its academic or vocational performance objectives.  The report shall include, but not be limited to, the following information:

                   1.  Student progress concerning academic achievement;

                   2.  Student attendance;

                   3.  Student grades and scores on assessment instruments;

                   4.  Incidents involving student discipline;

                   5.  Socioeconomic data on students' families;

                   6.  Parent satisfaction with the schools; and

                   7.  Student satisfaction with the schools;

               (ix)  Include an agreement to provide a yearly financial report to parents, the local school board of any school district from which the public charter school draws students, and the State Board of Education which discloses all public and private funds received by the public charter school, and how those funds were spent;

              (x)  Specify methods for admission, enrollment criteria, student recruitment and selection processes.

          (f)  The petition may be reviewed and a nonbinding recommendation made to the State Board of Education by the local school board of the school district, if it is not the original authorizer, where the proposed open-enrollment public charter school will operate.

          (g)  As requested by the petitioning open-enrollment public charter school proponents, the authorizer shall review the petition for an open-enrollment public charter school and shall approve any petition that satisfactorily provides the information required under paragraph (e).

          (h)  The authorizer may approve or deny an application based on criteria adopted by the state board, which shall include criteria relating to improving student performance and encouraging innovative programs.

          (i)  The authorizer shall give preference in approving applicants that have demonstrated performance-based success in another comparable program or in a similarly designed public charter school in another state that will be located in any public school district:

              (i)  Where the percentage of students who qualify for free or reduced price lunches is above the average for the state; or

              (ii)  Where the percentage of students not reading at grade level is above the average for the state.

          (j)  If the authorizer disapproves an application for an open-enrollment public charter school, the authorizer shall notify the petitioners in writing of the reasons for such disapproval within forty-five (45) days.

          (k)  The state board shall allow the petitioners for an open-enrollment public charter school to resubmit their petition if the original petition was found to be deficient by the authorizer, after the petitioner has corrected any deficiencies found in the initial notice of disapproval.

          (l)  The Department of Education may provide technical assistance to the petitioners for an open-enrollment public charter school in the creation or modification of these petitions.

          (m)  An open-enrollment public charter school shall enroll an eligible pupil who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level or building.  In this case, the original class of pupils must be accepted by a lottery.  Following the initial class of pupils, additional pupils may only be added when capacity allows.  The additional pupils must also be accepted by lottery.  A public charter school may not limit admission to pupils on the basis of race, intellectual ability, measures of achievement or aptitude, or athletic ability.  A public charter school is subject to any desegregated court orders in effect in the school district in which the charter school is located.

          (n)  A certified teacher employed by a public school district in the school year immediately preceding the effective date of a charter for an open-enrollment public charter school operated at a public school facility may not be transferred to or be employed by the open-enrollment charter school over the certified teacher's objections.

          (o)  No private or parochial elementary or secondary school shall be eligible for open-enrollment public charter school status.

          (p)  After a three-year period operation, the public charter schools with a demonstrated record of success are eligible for fast-track authorization if they wish to operate their schools in other locations in the state.  The State Board of Education shall issue regulations to provide for this fast-track authorization, based upon its annual report provided under Section 32-28-19.

          (q)  A charter shall include a mechanism for declaring the charter null and void if, at any time, the school operating under public charter status fails to fulfill the terms of the charter.

          (r)  All public charter schools shall undergo a one-year planning period, with the State Board of Education defining the terms of such planning period, before any students can begin attending such school at the proposed public charter school.

     (3)  Initial open-enrollment public charters issued by the authorizer shall be on a pilot program basis for a term of five (5) years.  Thereafter, the authorizer may renew charters on a one-year or multiyear basis, not to exceed five (5) years.  In order for a charter to be granted, the operators must agree to commit to the full initial five-year period, or any subsequent renewal period, unless the State Department of Education or State Board of Education determine the charter should be revoked for the reasons stated under Section 37-28-15, Mississippi Code of 1972.

     SECTION 5.  The following shall be codified as Section 37-28-9, Mississippi Code of 1972:

     37-28-9.  The terms of each conversion and open-enrollment public charter school shall include a transportation plan for students that will be attending the charter school.  Charter schools shall comply with transportation regulations applicable to all other school districts under Section 37-41-3.  The transportation must be provided by the public charter school within the district in which the public charter school is located.  The state shall pay transportation aid to the public charter school according to Section 37-151-85.

     SECTION 6.  The following shall be codified as Section 37-28-11, Mississippi Code of 1972:

     37-28-11.  (1)  A conversion charter school shall receive state and local funds in the same manner as other public schools in the school district.  Conversion charter schools may also be funded by:  federal grants, grants, gifts or donations from any private sources; and state funds appropriated for the support of the charter school; and any other funds that may be received by the school district.  Schools applying for charter status and charter schools are encouraged to apply for federal funds appropriated specifically for the support of charter schools under the Omnibus Consolidated Appropriations Act, 1997 (Public Law No. 104-208 [H.R. 3610] (1996)).

     (2)  An open-enrollment public charter school shall receive per pupil, base student cost funding equal to the amount that a public school district would receive as calculated under Section 37-151-7(1)(b) and (c), Mississippi Code of 1972, including the adjustment for at-risk pupils as calculated under Section 37-151-7(d), Mississippi Code of 1972.  An open-enrollment public charter school shall also receive other state funding that a local school district is entitled to receive limited to special education, gifted and vocational or technical education programs under Section 37-151-7(1)(e), Mississippi Code of 1972, including transportation under Section 37-151-85 if the public school provides transportation under Section 32-28-14.  Open-enrollment public charter schools shall not be eligible to receive ad valorem taxes, and therefore shall not be required to provide a local contribution as calculated under Section 37-151-7(2), Mississippi Code of 1972.  The state shall pay the full per pupil, base student cost to the public charter school as determined by average daily attendance.  Public charter schools shall not be able to levy taxes or issue bonds secured by tax revenues.  Average daily attendance after the first year the open-enrollment is open shall be calculated in the same way as other public schools under Section 37-151-7, Mississippi Code of 1972.  Funding for the first year the open-enrollment public charter school is open shall be determined according to the following provisions:

          (a)  The funding estimate shall be based on the projected enrollment, including the projected number of pupils participating in the federal free lunch program, submitted by December 10 preceding the school year in which students are to attend;

          (b)  Funding for open-enrollment public charter schools shall be paid in twelve (12) installments each fiscal year as other public school districts;

          (c)  In January of the school year that the open-enrollment public charter school is in operation, funding allocations will be adjusted based on the average daily attendance for months two (2) and three (3) of the school year that the charter school is in operation and actual number of pupils participating in the federal free lunch program.  Average daily attendance for charter schools will be determined by multiplying enrollment for months two (2) and three (3) by the statewide average daily attendance percentage for months two (2) and three (3).  Monthly payments for the remaining portion of the twelve-month funding cycle will be prorated based on the adjusted funding allocation; and

          (d)  Funding allocations for the rest of the twelve-month funding cycle will be prorated based on the actual enrollment in months two (2) and three (3) of the school year.

     (3)  An open-enrollment public charter school may receive federal monies, federal grants, grants, gifts or donations.

     (4)  An open-enrollment public charter school may not use the monies that it receives from the state for any sectarian program or activity, or as collateral for debt.  No indebtedness of any kind incurred or created by the open-enrollment public charter school shall constitute as indebtedness of the state or its political subdivisions, and no indebtedness of the open-enrollment public charter school shall involve or be secured by the faith, credit or taxing power of the state or its political subdivisions.

     (5)  The State Board of Education may give charter schools special preference when allocating grant funds other than state funds for alternative school programs, classroom technology, school improvement programs, mentoring programs or other grant programs designed to improve local school performance.

     (6)  Nothing in this chapter prohibits charter schools from offering virtual services pursuant to state law and regulations defining virtual schools.

     SECTION 7.  The following shall be codified as Section 37-28-13, Mississippi Code of 1972:

     37-28-13.  (1)  Employees of a conversion charter school shall be considered employees of the conversion charter school.

     (2)  Employees of an open-enrollment public charter school shall be considered employees of the open-enrollment public charter school.

     (3)  If a certified teacher employed by a public school district in the school year immediately preceding the effective date of any charter school and the charter is later revoked, the certified teacher will receive a priority in hiring for the first available position for which the certified teacher is qualified in the public school district where the certified teacher was formerly employed.

     (4)  A school district, school district employee, or any other person who has control over personnel actions may not take unlawful reprisal against an employee of the school district because the employee is directly or indirectly involved in an application to establish a charter school.  The term "unlawful reprisal" shall include:

          (a)  Disciplinary or corrective action;

          (b)  Detail, transfer or reassignment;

          (c)  Suspension, demotion or dismissal;

          (d)  An unfavorable performance evaluation;

          (e)  A reduction in pay, benefits or awards;

          (f)  Elimination of the employee's position without a reduction in force by reason of lack of monies or work; and

          (g)  Other significant changes in duties or responsibilities which are inconsistent with the employee's salary or employment classification.

     SECTION 8.  The following shall be codified as Section 37-28-15, Mississippi Code of 1972:

     37-28-15.  (1)  The State Superintendent of Education may at any time place a charter school on probation if the governing council of the school has failed to:

          (a)  Demonstrate adequate student progress, especially in meeting the academic goals outlined in the school's charter;

          (b)  Comply with the terms of its charter or with applicable laws and regulations, specifically the enrollment criteria defined under Section 37-28-7, subsection (2)(g)(v), Mississippi Code of 1972;

          (c)  Maintain its nonsectarian status; and

          (d)  Demonstrate financial solvency or the ability to provide effective oversight in the operation of the charter school, including the prudent and legal management of public funds.

     (2)  If a charter school is placed on probation, the State Superintendent of Education shall provide written notice to the public charter school of the reasons for such action no later than ten (10) working days after the determination and shall require the charter school to file and implement a corrective action plan according to an implementation schedule approved by the State Department of Education.  Whenever a charter school is placed on probationary status, the governing council shall be required to notify the parents or guardians of students attending the school by letter of the probationary status and the reasons for such status.

     (3)  The authorizer may revoke or not renew the charter of a charter school if the governing council of the school has failed to:

          (a)  Comply with the terms of probation in subsections (1) and (2) of this section, including failure to file and implement a corrective action plan;

          (b)  Demonstrate satisfactory student progress in meeting the academic goals outlined in a school's charter after at least one (1) year of probation, or, at the end of the charter period, demonstrate achievement of the academic goals outlined in a school's charter;

          (c)  Comply with the terms of its charter or applicable laws and regulations, specifically enrollment criteria defined under Sections 37-28-9(2)(g)(vii) and 37-28-9(2)(m), Mississippi Code of 1972;

          (d)  Demonstrate financial solvency or the ability to provide effective oversight in the operation of the charter school, including the prudent and legal management of public funds.

     (4)  Unless an emergency exists, prior to revoking the charter, the State Board of Education shall provide the governing council of the charter school with a written notice of the reasons for revocation within ten (10) working days of the determination that revocation is necessary, including the identification of specific incidents of noncompliance with the law, regulation or charter or other matters warranting revocation of the charter.  The State Board of Education shall also hold a hearing within thirty-five (35) working days after written notice concerning the reasons for revocation is received in which all interested parties can present evidence refuting or defending the reasons revocation of the charter was deemed necessary.

     (5)  In the event an emergency exists in a charter school which jeopardizes the safety, security or educational interests of the children enrolled in such charter school and such emergency situation is believed to be related to a serious violation or violations of accreditation standards or state and federal law, the State Board of Education may immediately revoke the charter of the school, provided written notice concerning the reasons for the revocation is sent to the governing council not later than ten (10) working days after the date of revocation.

     (6)  All public funds received by a conversion or open-enrollment charter school are subject to audit by the State Auditor.  The administrative head of any charter school shall be civilly liable for all amounts of public funds which are illegally, unlawfully or wrongfully expended or paid out by virtue of or pursuant to a false report, list or record.  Any suit to recover such funds illegally, unlawfully or wrongfully expended or paid out may be brought in the name of the State of Mississippi by the Attorney General or by the proper district attorney, and in the event suit be brought against a person who is under bond, the sureties upon such bond shall likewise be liable for such amount illegally, unlawfully or wrongfully expended or paid out.

     SECTION 9.  The following shall be codified as Section 37-28-17, Mississippi Code of 1972:

     37-28-17.  Before January 1, 2014, and each year thereafter, the State Board of Education shall submit a report to the Legislature on the status of the charter school program.  This report minimally shall include: 

          (a)  A review and compilation of comprehensive reports and evaluations issued by local school boards concerning successes or failures of charter schools and formulated recommendations;

          (b)  A comparison of the academic performance of charter school students with the performance of ethnically and economically comparable groups of students in other public schools who are enrolled in academically comparable courses;

          (c)  The current and projected impact of charter schools on the delivery of services by the public schools;

          (d)  An assessment of the students' academic progress in the charter school as measured, where available, against the academic year immediately preceding the first year of the charter school's operation;

          (e)  The best practices resulting from charter school operations; and

          (f)  An evaluation of open-enrollment public charter schools shall include, but not be limited to, consideration of:

              (i)  Student progress concerning academic achievement;

              (ii)  Student attendance;

              (iii)  Student grades and scores on assessment instruments;

              (iv)  Incidents involving student discipline;

              (v)  Socioeconomic data on students' families;

              (vi)  Parent satisfaction with the schools; and

              (vii)  Student satisfaction with the schools.

     SECTION 10.  The following shall be codified as Section 37-28-19, Mississippi Code of 1972:

     37-28-19.  Conversion charter schools and new open-enrollment charter schools authorized and organized under the provisions of this chapter may apply for federal funding under the federal "Race to the Top" program.  It is the intent of the Legislature that pursuant to the conditions of federal funding under the Race to the Top program, public charter schools in Mississippi are authorized to operate innovative and autonomous public school programs that are high-performing and that state law shall not prohibit the number of high-performing charter schools in the state as measured by the percentage of total schools in the state that are allowed to organize as charter schools or to otherwise restrict student enrollment in these public charter schools.  It is further the intent of the Legislature that public charter schools receive equitable state and federal funding compared to traditional public schools, as required by the "Race to the Top" federal program, and that the state shall not impose any school facility-related requirements on public charter schools that are more restrictive than those applied to traditional public schools.

     SECTION 11.  The following shall be codified as Section 37-28-21, Mississippi Code of 1972:

     37-28-21.  Sections 37-28-1, 37-28-3, 37-28-5, 37-28-7, 37-28-9, 37-28-11, 37-28-13, 37-28-15, 37-28-17, 37-28-19 and 37-28-21, Mississippi Code of 1972, which authorize open-enrollment or conversion charter schools, shall stand repealed from and after July 1, 2020.

     SECTION 12.  Sections 37-165-1, 37-165-3, 37-165-5, 37-165-7, 37-165-9, 37-165-11, 37-165-13, 37-165-15, 37-165-17, 37-165-19, 37-165-21, 37-165-23, 37-165-25 and 37-165-27, Mississippi Code of 1972, which is the "Conversion Charter School Act of 2010," are hereby repealed.

     SECTION 13.  This act shall take effect and be in force from and after July 1, 2011.

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