Bill Text: MS HB451 | 2014 | Regular Session | Introduced

Mississippi House Bill 451 (Prior Session Legislation)

Introduced

Bill Title: Failing school districts; authorize SBE to place in administrative receivership for purpose of allowing successful districts to manage and operate.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2014-02-04 - Died In Committee [HB451 Detail]

Download: Mississippi-2014-HB451-Introduced.html

MISSISSIPPI LEGISLATURE

2014 Regular Session

To: Education

By: Representative Moore

House Bill 451

AN ACT TO ADMINISTRATIVE SCHOOL DISTRICT RECEIVERSHIP PROGRAM FOR THE PURPOSE OF TRANSFORMING CERTAIN FAILING SCHOOL DISTRICTS INTO QUALITY EDUCATIONAL INSTITUTIONS OF ACADEMIC PERFORMANCE AND ACHIEVEMENT; TO DEFINE THE TERM "DISTRICT OF RECEIVERSHIP"; TO PROVIDE FOR THE PLACEMENT OF "D" OR "F" RATED SCHOOL DISTRICTS CONSIDERED AS FAILING FOR TWO CONSECUTIVE YEARS INTO ADMINISTRATIVE RECEIVERSHIP STATUS TO ALLOW AN ADJACENT "A" RATED DISTRICT TO ASSUME ADMINISTRATIVE CONTROL UPON APPROVAL OF A PETITION BY THE STATE BOARD OF EDUCATION; TO PROVIDE THAT THE ADMINISTRATIVE SCHOOL DISTRICT RECEIVERSHIP PROGRAM SHALL BE UNDER THE ADMINISTRATION OF THE MISSISSIPPI RECOVERY SCHOOL DISTRICT; TO REQUIRE THE MISSISSIPPI RECOVERY SCHOOL DISTRICT TO PROVIDE WRITTEN NOTICE TO THE SCHOOL BOARD, SUPERINTENDENT AND EACH LICENSED AND NONLICENSED EMPLOYEE OF THE FAILING DISTRICT OF POTENTIAL PLACEMENT IN THE ADMINISTRATIVE RECEIVERSHIP FOR FAILURE TO IMPROVE ITS ACCREDITATION RATING FROM "D" OR "F" DESIGNATION AND THE CONCLUSION OF THE SECOND YEAR OF FAILING STATE; TO AUTHORIZE DISTRICTS OF RECEIVERSHIP TO ASSUME ADMINISTRATIVE CONTROL OF THE DAY TO DAY MANAGEMENT AND OPERATION OF THE FAILING SCHOOL DISTRICT; TO AUTHORIZE THE STATE BOARD OF EDUCATION TO GRANT A ONE-YEAR PROBATIONARY PERIOD IN TRANSFORMING A SCHOOL DISTRICT INTO ADMINISTRATIVE RECEIVERSHIP STATUS WHEN MERITED; TO REQUIRE THE EVALUATION OF ALL LICENSED AND NONLICENSED EMPLOYEES IN A FAILING DISTRICT THAT IS PLACED IN ADMINISTRATIVE RECEIVERSHIP STATUS WITHIN 90 DAYS OF BEING ACQUIRED BY A DISTRICT OF RECEIVERSHIP; TO REQUIRE THE STATE BOARD OF EDUCATION TO ADOPT RULES AND REGULATIONS RELATING TO ADMINISTRATIVE SCHOOL DISTRICT RECEIVERSHIP PROGRAM; TO TERMINATE THE SUPERINTENDENT AND ABOLISH THE BOARD OF TRUSTEES OF A FAILING SCHOOL DISTRICT PLACED IN ADMINISTRATIVE RECEIVERSHIP STATUS AND ACQUIRED BY A DISTRICT OF RECEIVERSHIP; TO REQUIRE THE STATE BOARD OF EDUCATION TO DEVELOP PROFESSIONAL DEVELOPMENT COURSES OF TRAINING SPECIFICALLY DESIGNED FOR PARTICIPATION BY ALL LICENSED PERSONNEL IN THE ACQUIRED DISTRICT; TO REQUIRE THE STATE BOARD OF EDUCATION TO PRESCRIBE THE CIRCUMSTANCES UNDER WHICH AN ACQUIRED DISTRICT SHALL CEASE TO BE UNDER THE ADMINISTRATIVE AUTHORITY OF A DISTRICT OF RECEIVERSHIP; TO PROVIDE THAT THE 2014-2015 SCHOOL YEAR SHALL BE THE FIRST YEAR THAT A DISTRICT'S CLASSIFICATION MAY BE CONSIDERED FOR PURPOSES OF DETERMINING PLACEMENT INTO ADMINISTRATIVE RECEIVERSHIP STATUS; TO PROVIDE FOR A SPECIAL SCHOOL BOARD ELECTION TO BE CALLED BY THE GOVERNOR FOR THE PURPOSE OF FILLING VACANCIES IN SCHOOL DISTRICTS UNDER ADMINISTRATIVE RECEIVERSHIP WHERE THERE ARE NO REMAINING SCHOOL BOARD MEMBERS AT THE TIME OF RELEASE OF THE DISTRICT FROM ADMINISTRATIVE RECEIVERSHIP STATUS; TO PROVIDE THAT ANY FAILING SCHOOL DISTRICT PLACED UNDER ADMINISTRATIVE RECEIVERSHIP SHALL REMAIN WHOLE AS A POLITICAL SUBDIVISION FOR PURPOSES OF ESTABLISHING DISTRICT IDENTITY AND RESIDENCY REQUIREMENTS OF STUDENTS ENROLLED THEREIN, BUT SHALL BECOME A SUBSIDIARY DIVISION OF THE DISTRICT OF RECEIVERSHIP FOR PURPOSES OF ESTABLISHING ACCREDITATION AND DETERMINING THE LOCAL AD VALOREM CONTRIBUTION; TO PROVIDE A TWO-YEAR WAIVER FROM ACCOUNTABILITY AND STATE ASSESSMENT REQUIREMENTS FOR THE NEW STUDENT POPULATION TO ESTABLISH THE "ADMINISTRATIVE SCHOOL DISTRICT RECEIVERSHIP PROGRAM FUND" AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE FOR THE APPROPRIATION AND DEPOSIT OF FUNDS INTO THE FUND FOR THE PURPOSE OF PROVIDING FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS SUBJECT TO ADMINISTRATIVE ACQUISITION OF A FAILING DISTRICT; TO LIMIT THE TOTAL AGGREGATE SUM APPROPRIATED TO THE FUND TO $1,000,000.00; TO LIMIT THE AGGREGATE AMOUNT THAT A DISTRICT OF RECEIVERSHIP MAY RECEIVE TO $200,000.00 PER FAILING DISTRICT ACQUIRED; TO AMEND SECTION 37-17-6, MISSISSIPPI CODE OF 1972, TO REQUIRE THE STATE BOARD OF EDUCATION OR THE COMMISSION ON SCHOOL ACCREDITATION TO RECOMMEND TO THE DEPUTY SUPERINTENDENT RESPONSIBLE FOR THE MISSISSIPPI RECOVERY SCHOOL THOSE DISTRICTS ELIGIBLE FOR PLACEMENT INTO ADMINISTRATIVE RECEIVERSHIP AND IDENTITY THOSE "A" DISTRICTS THAT WOULD SERVE AS DISTRICTS OF RECEIVERSHIP; TO REQUIRE THE STATE BOARD OF EDUCATION TO ESTABLISH A PROGRAM TO INCENTIVIZE "A" DISTRICTS TO SUBMIT PETITIONS OF RECEIVERSHIP TO ASSUME THE ADMINISTRATION CONTROL OVER THE DAY TO DAY MANAGEMENT AND OPERATIONS OF FAILING DISTRICTS; TO PROVIDE THAT SELECTED DISTRICTS OF RECEIVERSHIP SHALL RECEIVE ADDITIONAL FINANCIAL ASSISTANCE TO FACILITATE THE TRANSITION OF ADMINISTRATIVE CONTROL OF THE ACQUIRED FAILING SCHOOL DISTRICT; TO REQUIRE THE SUPERINTENDENT OF THE DISTRICT OF RECEIVERSHIP TO PRESENT A DETAILED AND STRUCTURED CORRECTIVE ACTION PLAN TO MOVE THE ACQUIRED DISTRICT OUT OF ADMINISTRATIVE RECEIVERSHIP STATUS TO THE LOCAL GOVERNING AUTHORITY OF THE MUNICIPALITY OR COUNTY WITHIN 45 DAYS AFTER ASSUMING THE ADMINISTRATION CONTROL OF THE ACQUIRED FAILING SCHOOL DISTRICT; TO AMEND SECTION 37-57-107, MISSISSIPPI CODE OF 1972, TO REQUIRE THE TAX COLLECTOR OF THE ACQUIRED FAILING SCHOOL DISTRICT TO TRANSFER DIRECTLY TO THE DISTRICT OF RECEIVERSHIP ITS PER PUPIL PRO RATA SHARE OF LOCAL AD VALOREM SCHOOL DISTRICT MAINTENANCE FUNDS; TO AMEND SECTION 37-17-13, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR A SPECIAL SCHOOL BOARD ELECTION TO BE CALLED BY THE GOVERNOR FOR THE PURPOSE OF FILLING VACANCIES IN SCHOOL DISTRICTS UNDER ADMINISTRATIVE RECEIVERSHIP WHERE THERE ARE NO REMAINING SCHOOL BOARD MEMBERS AT THE TIME OF RELEASE OF THE DISTRICT FROM ADMINISTRATIVE RECEIVERSHIP STATUS; TO AMEND SECTIONS 37-5-19 AND 37-7-207, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) This section applies only to those public school districts in the State of Mississippi which, during each of two (2) consecutive school years, are designated as "D" or "F" districts, as determined by the State Department of Education.

For purposes of this section, the term "district of receivership" means a school district having been designated as an "A" district, as determined by the State Department of Education, which is adjacent to one or multiple "D" or "F" districts, and which has been granted authority by the State Board of Education to assume administrative control of an adjacent "D" or "F" district upon the state board's approval of a petition submitted by the school board of the receiving district for the acquisition of administrative control. A district of receivership shall not assume administrative control of more than two (2) "D" or "F" districts during any period of administrative receivership.

(2) There is established the Administrative School District Receivership Program for the purpose of transforming certain failing school districts into quality educational institutions of academic performance and achievement. Under the program, the administrative control of a "D" or "F" school district, that would otherwise be eligible for placement in conservatorship status under the Mississippi Recovery School District after being considered as failing for two (2) consecutive years, may be assumed by an adjacent successful school district with a "A" rating upon a motion and majority vote of the board of the receiving district to submit a petition for approval by the State Board of Education to acquire administrative control over the "D" or "F" district, for such a period as deemed necessary by the State Department of Education or until the accreditation rating of the failing district improves to a "C" designation. The Administrative School District Receivership Program shall be under the administration of the Mississippi Recovery School District established under Section 37-17-6(12)(g).

(3) (a) Whenever a "D" or "F" district is classified by the State Department of Education as a failing district for two (2) or more consecutive years, the Mississippi Recovery School District, upon making a determination of which schools have failed to demonstrate improvement meeting the benchmark levels established by the State Board of Education in absolute student achievement standards and the rate of annual growth expectation standards, shall provide written notice to the school board and superintendent and each licensed and nonlicensed employee in the district that if the school receives a "D" or "F" designation for the succeeding school year, the district is subject to placement in the administrative receivership of an adjacent "A" district for administrative control of the day to day management and operation of the failing school district if approved by the State Board of Education. The notice shall be sent by the deputy superintendent responsible for the Mississippi Recovery School District as soon as practicable after the first year a district is classified as failing. However, if any "D" or "F" district demonstrates a level of improvement in absolute student achievement standards and the rate of annual growth expectation standards which causes a change in designation under the accreditation rating system to a higher rating, that district shall be granted an one-year probationary period of exemption from acquisition by a district of receivership, provided that the district improves its accreditation rating in the year immediately succeeding its exemption. If, during the probationary period, the exempt district fails to improve its accreditation rating as required by this subsection (3)(a), then the district shall subject to placement in the administrative receivership of an adjacent "A" district for administrative control of the day to day management and operation of the failing district.

(b) In addition to the notice required under paragraph (a) of this subsection (3), the Mississippi Recovery School District shall provide notice to the public in a newspaper of general circulation in the local county that if the school district is designated "D" or "F" for the succeeding school year, the district shall be subject to placement in the administrative receivership of an adjacent "A" district. The advertisement may not be placed in any portion of the newspaper where legal notices and classified advertisements appear. The advertisement shall appear in a newspaper that is published at least five (5) days a week, unless the only newspaper in the county is published less than five (5) days a week, in such case, the advertisement shall be published once a week for three (3) consecutive weeks. The newspaper selected must be one of general interest, readership and circulation in all areas of the community.

(4) If a district that has been classified by the State Department of Education as a "D" or "F" district for two (2) or more consecutive years is determined to be a failing district during the next succeeding school year, the Mississippi Recovery School District shall take such steps as may be necessary to facilitate the placement of the failing district in the administrative receivership of an adjacent "A" district for administrative control of the day to day management and operation of the failing district. However, the school board of the failing school district may appeal to the State Board of Education for an additional year before the school must be placed into administrative receivership. The State Board of Education, in its discretion, may grant a one-year delay if it determines circumstances merit giving the district an additional year to achieve academic improvement. If, during the additional year, the district is classified again as a failing district, the Mississippi Recovery School District shall proceed to place the district in the administrative receivership of an adjacent "A" district for administrative control of the day to day management and operation of the failing district.

(5) The State Board of Education shall adopt rules and regulations governing the administrative acquisition of chronically failing districts by districts of receivership. The State Board of Education shall adopt rules and regulations that ensure that all students who were enrolled in, in attendance at and residing in the attendance zone of the failing district before a district of receivership assumes all administrative responsibility of the failing district shall continue being eligible for and shall be deemed to be enrolled as a student of the acquired failing district. The rules and regulations must include, but not necessarily be limited to, the following provisions:

(a) The State Board of Education shall adopt rules and regulations governing the process by which a district of receivership is to evaluate the performance of all licensed and nonlicensed employees of the acquired failing district. The performance evaluation shall be conducted by the district of receivership within ninety (90) days after the approval of its petition by the State Board of Education to acquire the administrative duties and responsibilities of the failing district. For all licensed employees the said rules and regulations shall use qualitative and quantitative data, which shall include using the measures of student achievement, to assess the effectiveness of the educator. The school board of the district of receivership, upon the recommendation of the superintendent of the district of receivership, shall have the discretion to retain or terminate any employee that receives an unsatisfactory evaluation.

(b) The superintendent of the district of receivership, shall select and recommend for employment all licensed and nonlicensed personnel for the acquired district. The superintendent shall endeavor to select only the most qualified applicants for employment in the acquired district. Each teacher recommended for employment in the acquired district, whether in continued employment or new employment status, must be approved by the school board of the district of receivership before a contract for employment may be executed with the teacher.

(c) The State Board of Education shall develop professional development courses of training specifically designed for licensed personnel in the acquired district. All licensed employees of the acquired district shall be required to participate in the professional development courses.

(d) The State Board of Education shall prescribe the circumstances under which an acquired district shall cease to be under the administrative authority of a district of receivership subject to the requirements of this section and the rules and regulations of the State Board of Education relating to districts in administrative receivership.

(6) The 2014-2015 school year shall be the first year that a district's classification may be considered for purposes of this section, and a classification as a failing district in any year preceding the 2014-2015 school year may not be considered in determining if a particular district shall be subject to placement in the administrative receivership of an adjacent "A" district for administrative control of the day to day management and operation of the failing district.

(7) (a) If a district that is classified by the State Department of Education as a "D" or "F" district for two (2) or more consecutive years as determined by the performance classifications of the state accountability rating system, as defined and adopted by the State Board of Education, is placed under the administrative control of a district of receivership the superintendent of acquired failing district shall be terminated and local school board shall be abolished, and the administrative duties of each shall be assumed by the superintendent and school board of a district of receivership. When it has been determined by the State Board of Education and the deputy superintendent responsible for the Mississippi Recovery School District that a district under administrative receivership has made satisfactory academic performance and achievement for such a period as deemed necessary by the department or until the accreditation rating of the failing district improves to a "C" designation, the State Board of Education shall notify the appropriate governing authority or authorities of its action to release the district from administrative receivership status and the Governor shall call a special election to fill the vacancies in membership of the board of education created by the abolition of the former board. In those situations, the Governor shall set the date of the special election and the election shall be conducted by the county election commission. All newly elected members of the school board of trustees shall take office on the first Monday of January following the date of their election. In all elections, the trustee elected shall be a resident and qualified elector of the district entitled to the representation upon the board, and he shall be elected only by the qualified electors of that district.

(b) The new board of trustees of the local school district shall appoint the Superintendent of Schools for the school district in the manner provided in Section 37-9-25.

SECTION 2. (1) Any failing school district placed under the administrative control of a district of receivership, as authorized under Section 1 of this act, shall remain whole as a political subdivision for purposes of establishing district identity and residency requirement of students enrolled therein, but shall become a subsidiary division of the district of receivership for purposes of establishing accreditation and determining the local ad valorem contribution.

(2) The tax collector of the acquired failing school district shall pay directly to the district of receivership an amount for each student enrolled in the acquired failing school district equal to the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student resides. The pro rata ad valorem receipts and in-lieu receipts to be transferred to the district of receivership shall include all levies for the support of the acquired failing local school district under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy). In no event may the payment exceed the pro rata amount of the local ad valorem payment for the local contribution to the adequate education program under Section 37-57-1 for the school district in which the student resides. Payments made under this section by a tax collector to a district of receivership must be made before the expiration of three (3) business days after the funds would have been distributed to the acquired failing school district by the tax collector.

(3) For the initial two (2) years following an administrative receivership authorized by this section, the State Department of Education may grant a waiver of accountability and state assessment requirements to the district of receivership for the student population enrolled therein from the acquired failing school district when determining the new school district accreditation level on the performance and accountability rating model.

SECTION 3. (1) There is created in the State Treasury a special fund to be known as the "Administrative School District Receivership Program Fund." The fund shall consist of all monies appropriated by the Legislature as authorized under subsection (2) of this section and any other funds deposited therein under the provisions of this act. The principal of the fund shall remain inviolate and shall be invested as provided by law. Interest and income derived from investment of the principal of the fund may be expended by the State Board of Education, upon appropriation by the Legislature, only for the purpose of providing financial assistance to the districts of receivership, as authorized under Section 1 of this act. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

(2) Subject to appropriations by the Legislature, in order to increase participation by districts of receivership in the Administrative School District Receivership Program described under subsection (1) of this section, the State Board of Education shall provide financial assistance to approved districts of receivership in an amount to be established by the state board for each student in average daily attendance in the acquired failing school district. The State Board of Education shall allot to the fund such sums that in the aggregate do not exceed One Million Dollars ($1,000,000.00), which such school qualifying districts of receivership shall not exceed the receipt of funds in the aggregate of Two Hundred Thousand Dollars ($200,000.00) per administratively acquired district into receivership. The total amount allotted to the school districts that qualify for assistance shall be prorated among the various districts based upon each failing school district's average daily attendance. The district of receivership shall use the funds to facilitate the transition of the acquired school district under the administration of the district of receivership.

SECTION 4. Section 37-17-6, Mississippi Code of 1972, is amended as follows:

37-17-6. (1) The State Board of Education, acting through the Commission on School Accreditation, shall establish and implement a permanent performance-based accreditation system, and all noncharter public elementary and secondary schools shall be accredited under this system.

(2) No later than June 30, 1995, the State Board of Education, acting through the Commission on School Accreditation, shall require school districts to provide school classroom space that is air-conditioned as a minimum requirement for accreditation.

(3) (a) Beginning with the 1994-1995 school year, the State Board of Education, acting through the Commission on School Accreditation, shall require that school districts employ certified school librarians according to the following formula:

Number of Students Number of Certified

Per School Library School Librarians

0 - 499 Students 1/2 Full-time Equivalent

Certified Librarian

500 or More Students 1 Full-time Certified

Librarian

(b) The State Board of Education, however, may increase the number of positions beyond the above requirements.

(c) The assignment of certified school librarians to the particular schools shall be at the discretion of the local school district. No individual shall be employed as a certified school librarian without appropriate training and certification as a school librarian by the State Department of Education.

(d) School librarians in the district shall spend at least fifty percent (50%) of direct work time in a school library and shall devote no more than one-fourth (1/4) of the workday to administrative activities that are library related.

(e) Nothing in this subsection shall prohibit any school district from employing more certified school librarians than are provided for in this section.

(f) Any additional millage levied to fund school librarians required for accreditation under this subsection shall be included in the tax increase limitation set forth in Sections 37-57-105 and 37-57-107 and shall not be deemed a new program for purposes of the limitation.

(4) On or before December 31, 2002, the State Board of Education shall implement the performance-based accreditation system for school districts and for individual noncharter public schools which shall include the following:

(a) High expectations for students and high standards for all schools, with a focus on the basic curriculum;

(b) Strong accountability for results with appropriate local flexibility for local implementation;

(d) Individual schools shall be held accountable for student growth and performance;

(e) Set annual performance standards for each of the schools of the state and measure the performance of each school against itself through the standard that has been set for it;

(f) A determination of which schools exceed their standards and a plan for providing recognition and rewards to those schools;

(g) A determination of which schools are failing to meet their standards and a determination of the appropriate role of the State Board of Education and the State Department of Education in providing assistance and initiating possible intervention. A failing district is a district that fails to meet both the absolute student achievement standards and the rate of annual growth expectation standards as set by the State Board of Education for two (2) consecutive years. The State Board of Education shall establish the level of benchmarks by which absolute student achievement and growth expectations shall be assessed. In setting the benchmarks for school districts, the State Board of Education may also take into account such factors as graduation rates, dropout rates, completion rates, the extent to which the school or district employs qualified teachers in every classroom, and any other factors deemed appropriate by the State Board of Education. The State Board of Education, acting through the State Department of Education, shall apply a simple "A," "B," "C," "D" and "F" designation to the current school and school district statewide accountability performance classification labels beginning with the State Accountability Results for the 2011-2012 school year and following, and in the school, district and state report cards required under state and federal law. Under the new designations, a school or school district that has earned a "Star" rating shall be designated an "A" school or school district; a school or school district that has earned a "High-Performing" rating shall be designated a "B" school or school district; a school or school district that has earned a "Successful" rating shall be designated a "C" school or school district; a school or school district that has earned an "Academic Watch" rating shall be designated a "D" school or school district; a school or school district that has earned a "Low-Performing," "At-Risk of Failing" or "Failing" rating shall be designated an "F" school or school district. Effective with the implementation of any new curriculum and assessment standards, the State Board of Education, acting through the State Department of Education, is further authorized and directed to change the school and school district accreditation rating system to a simple "A," "B," "C," "D," and "F" designation based on a combination of student achievement scores and student growth as measured by the statewide testing programs developed by the State Board of Education pursuant to Chapter 16, Title 37, Mississippi Code of 1972. In any statute or regulation containing the former accreditation designations, the new designations shall be applicable;

(h) Development of a comprehensive student assessment system to implement these requirements; and

(i) The State Board of Education may, based on a written request that contains specific reasons for requesting a waiver from the school districts affected by Hurricane Katrina of 2005, hold harmless school districts from assignment of district and school level accountability ratings for the 2005-2006 school year. The State Board of Education upon finding an extreme hardship in the school district may grant the request. It is the intent of the Legislature that all school districts maintain the highest possible academic standards and instructional programs in all schools as required by law and the State Board of Education.

(5) (a) Effective with the 2013-2014 school year, the State Department of Education, acting through the Mississippi Commission on School Accreditation, shall revise and implement a single "A" through "F" school and school district accountability system complying with applicable federal and state requirements in order to reach the following educational goals:

(i) To mobilize resources and supplies to ensure that all students exit third grade reading on grade level by 2015;

(ii) To reduce the student dropout rate to thirteen percent (13%) by 2015; and

(iii) To have sixty percent (60%) of students scoring proficient and advanced on the assessments of the Common Core State Standards by 2016 with incremental increases of three percent (3%) each year thereafter.

(b) The State Department of Education shall combine the state school and school district accountability system with the federal system in order to have a single system.

(c) The State Department of Education shall establish five (5) performance categories ("A," "B," "C," "D" and "F") for the accountability system based on the following criteria:

(i) Student Achievement: the percent of students proficient and advanced on the current state assessments;

(ii) Individual student growth: the percent of students making one (1) year's progress in one (1) year's time on the state assessment, with an emphasis on the progress of the lowest twenty-five percent (25%) of students in the school or district;

(iii) Four-year graduation rate: the percent of students graduating with a standard high school diploma in four (4) years, as defined by federal regulations;

(iv) Categories shall identify schools as Reward ("A" schools), Focus ("D" schools) and Priority ("F" schools). If at least five percent (5%) of schools in the state are not graded as "F" schools, the lowest five percent (5%) of school grade point designees will be identified as Priority schools. If at least ten percent (10%) of schools in the state are not graded as "D" schools, the lowest ten percent (10%) of school grade point designees will be identified as Focus schools;

(v) The State Department of Education shall discontinue the use of Star School, High-Performing, Successful, Academic Watch, Low-Performing, At-Risk of Failing and Failing school accountability designations;

(vi) The system shall include the federally compliant four-year graduation rate in school and school district accountability system calculations. Graduation rate will apply to high school and school district accountability ratings as a compensatory component. The system shall discontinue the use of the High School Completer Index (HSCI);

(vii) The school and school district accountability system shall incorporate a standards-based growth model, in order to support improvement of individual student learning;

(viii) The State Department of Education shall discontinue the use of the Quality Distribution Index (QDI);

(ix) The State Department of Education shall determine feeder patterns of schools that do not earn a school grade because the grades and subjects taught at the school do not have statewide standardized assessments needed to calculate a school grade. Upon determination of the feeder pattern, the department shall notify schools and school districts prior to the release of the school grades beginning in 2013. Feeder schools will be assigned the accountability designation of the school to which they provide students;

(x) Standards for student, school and school district performance will be increased when student proficiency is at a seventy-five percent (75%) and/or when sixty-five percent (65%) of the schools and/or school districts are earning a grade of "B" or higher, in order to raise the standard on performance after targets are met.

(6) Nothing in this section shall be deemed to require a nonpublic school that receives no local, state or federal funds for support to become accredited by the State Board of Education.

(7) The State Board of Education shall create an accreditation audit unit under the Commission on School Accreditation to determine whether schools are complying with accreditation standards.

(8) The State Board of Education shall be specifically authorized and empowered to withhold adequate education program fund allocations, whichever is applicable, to any public school district for failure to timely report student, school personnel and fiscal data necessary to meet state and/or federal requirements.

(9) Deleted.

(10) The State Board of Education shall establish, for those school districts failing to meet accreditation standards, a program of development to be complied with in order to receive state funds, except as otherwise provided in subsection (15) of this section when the Governor has declared a state of emergency in a school district or as otherwise provided in Section 206, Mississippi Constitution of 1890. The state board, in establishing these standards, shall provide for notice to schools and sufficient time and aid to enable schools to attempt to meet these standards, unless procedures under subsection (15) of this section have been invoked.

(11) Beginning July 1, 1998, the State Board of Education shall be charged with the implementation of the program of development in each applicable school district as follows:

(a) Develop an impairment report for each district failing to meet accreditation standards in conjunction with school district officials;

(b) Notify any applicable school district failing to meet accreditation standards that it is on probation until corrective actions are taken or until the deficiencies have been removed. The local school district shall develop a corrective action plan to improve its deficiencies. For district academic deficiencies, the corrective action plan for each such school district shall be based upon a complete analysis of the following: student test data, student grades, student attendance reports, student dropout data, existence and other relevant data. The corrective action plan shall describe the specific measures to be taken by the particular school district and school to improve: (i) instruction; (ii) curriculum; (iii) professional development; (iv) personnel and classroom organization; (v) student incentives for performance; (vi) process deficiencies; and (vii) reporting to the local school board, parents and the community. The corrective action plan shall describe the specific individuals responsible for implementing each component of the recommendation and how each will be evaluated. All corrective action plans shall be provided to the State Board of Education as may be required. The decision of the State Board of Education establishing the probationary period of time shall be final;

(c) Offer, during the probationary period, technical assistance to the school district in making corrective actions. Beginning July 1, 1998, subject to the availability of funds, the State Department of Education shall provide technical and/or financial assistance to all such school districts in order to implement each measure identified in that district's corrective action plan through professional development and on-site assistance. Each such school district shall apply for and utilize all available federal funding in order to support its corrective action plan in addition to state funds made available under this paragraph;

(d) Assign department personnel or contract, in its discretion, with the institutions of higher learning or other appropriate private entities with experience in the academic, finance and other operational functions of schools to assist school districts;

(e) Provide for publication of public notice at least one time during the probationary period, in a newspaper published within the jurisdiction of the school district failing to meet accreditation standards, or if no newspaper is published therein, then in a newspaper having a general circulation therein. The publication shall include the following: declaration of school system's status as being on probation; all details relating to the impairment report; and other information as the State Board of Education deems appropriate. Public notices issued under this section shall be subject to Section 13-3-31 and not contrary to other laws regarding newspaper publication.

(12) (a) If the recommendations for corrective action are not taken by the local school district or if the deficiencies are not removed by the end of the probationary period, the Commission on School Accreditation shall conduct a hearing to allow the affected school district to present evidence or other reasons why its accreditation should not be withdrawn. Additionally, if the local school district violates accreditation standards that have been determined by the policies and procedures of the State Board of Education to be a basis for withdrawal of school district's accreditation without a probationary period, the Commission on School Accreditation shall conduct a hearing to allow the affected school district to present evidence or other reasons why its accreditation should not be withdrawn. After its consideration of the results of the hearing, the Commission on School Accreditation shall be authorized, with the approval of the State Board of Education, to withdraw the accreditation of a public school district, and issue a request to the Governor that a state of emergency be declared in that district.

(b) If the State Board of Education and the Commission on School Accreditation determine that an extreme emergency situation exists in a school district that jeopardizes the safety, security or educational interests of the children enrolled in the schools in that district and that emergency situation is believed to be related to a serious violation or violations of accreditation standards or state or federal law, or when a school district meets the State Board of Education's definition of a failing school district for two (2) consecutive full school years, or if more than fifty percent (50%) of the schools within the school district are designated as Schools At-Risk in any one (1) year, the State Board of Education may request the Governor to declare a state of emergency in that school district. For purposes of this paragraph, the declarations of a state of emergency shall not be limited to those instances when a school district's impairments are related to a lack of financial resources, but also shall include serious failure to meet minimum academic standards, as evidenced by a continued pattern of poor student performance.

(c) Whenever the Governor declares a state of emergency in a school district in response to a request made under paragraph (a) or (b) of this subsection, the State Board of Education may take one or more of the following actions:

(i) Declare a state of emergency, under which some or all of state funds can be escrowed except as otherwise provided in Section 206, Constitution of 1890, until the board determines corrective actions are being taken or the deficiencies have been removed, or that the needs of students warrant the release of funds. The funds may be released from escrow for any program which the board determines to have been restored to standard even though the state of emergency may not as yet be terminated for the district as a whole;

(ii) Override any decision of the local school board or superintendent of education, or both, concerning the management and operation of the school district, or initiate and make decisions concerning the management and operation of the school district;

(iii) Assign an interim conservator, or in its discretion, contract with a private entity with experience in the academic, finance and other operational functions of schools and school districts, who will have those powers and duties prescribed in subsection (15) of this section;

(iv) Grant transfers to students who attend this school district so that they may attend other accredited schools or districts in a manner that is not in violation of state or federal law;

(v) For states of emergency declared under paragraph (a) only, if the accreditation deficiencies are related to the fact that the school district is too small, with too few resources, to meet the required standards and if another school district is willing to accept those students, abolish that district and assign that territory to another school district or districts. If the school district has proposed a voluntary consolidation with another school district or districts, then if the State Board of Education finds that it is in the best interest of the pupils of the district for the consolidation to proceed, the voluntary consolidation shall have priority over any such assignment of territory by the State Board of Education;

(vi) For states of emergency declared under paragraph (b) only, reduce local supplements paid to school district employees, including, but not limited to, instructional personnel, assistant teachers and extracurricular activities personnel, if the district's impairment is related to a lack of financial resources, but only to an extent that will result in the salaries being comparable to districts similarly situated, as determined by the State Board of Education;

(vii) For states of emergency declared under paragraph (b) only, the State Board of Education may take any action as prescribed in Section 37-17-13.

(d) At the time that satisfactory corrective action has been taken in a school district in which a state of emergency has been declared, the State Board of Education may request the Governor to declare that the state of emergency no longer exists in the district.

(e) The parent or legal guardian of a school-age child who is enrolled in a school district whose accreditation has been withdrawn by the Commission on School Accreditation and without approval of that school district may file a petition in writing to a school district accredited by the Commission on School Accreditation for a legal transfer. The school district accredited by the Commission on School Accreditation may grant the transfer according to the procedures of Section 37-15-31(1)(b). In the event the accreditation of the student's home district is restored after a transfer has been approved, the student may continue to attend the transferee school district. The per-pupil amount of the adequate education program allotment, including the collective "add-on program" costs for the student's home school district shall be transferred monthly to the school district accredited by the Commission on School Accreditation that has granted the transfer of the school-age child.

(f) Upon the declaration of a state of emergency for any school district in which the Governor has previously declared a state of emergency, the State Board of Education may either (i) establish a conservatorship or (ii) abolish the school district and administratively consolidate the school district with one or more existing school districts or (iii) reduce the size of the district and administratively consolidate parts of the district, as determined by the State Board of Education; provided, however, that no school district which is not under conservatorship shall be required to accept additional territory over the objection of the district.

(g) There is established a Mississippi Recovery School District within the State Department of Education under the supervision of a deputy superintendent appointed by the State Superintendent of Public Education, who is subject to the approval by the State Board of Education. The Mississippi Recovery School District shall provide leadership and oversight of all school districts that are subject to state conservatorship, as defined in Chapters 17 and 18, Title 37, Mississippi Code of 1972, and shall have all the authority granted under these two (2) chapters. The Mississippi Department of Education, with the approval of the State Board of Education, shall develop policies for the operation and management of the Mississippi Recovery School District. The deputy state superintendent is responsible for the Mississippi Recovery School District and shall be authorized to oversee the administration of the Mississippi Recovery School District, oversee conservators assigned by the State Board of Education to a local school district, hear appeals from school districts under conservatorship that would normally be filed by students, parents or employees and heard by a local school board, which hearings on appeal shall be conducted in a prompt and timely manner in the school district from which the appeal originated in order to ensure the ability of appellants, other parties and witnesses to appeal without undue burden of travel costs or loss of time from work, and perform other related duties as assigned by the State Superintendent of Public Education. The deputy state superintendent is responsible for the Mississippi Recovery School District and shall determine, based on rigorous professional qualifications set by the State Board of Education, the appropriate individuals to be engaged to be conservators and financial advisors, if applicable, of all school districts subject to state conservatorship. After State Board of Education approval, these individuals shall be deemed independent contractors.

(13) Upon the declaration of a state of emergency in a school district under subsection (12) of this section, the Commission on School Accreditation shall be responsible for public notice at least once a week for at least three (3) consecutive weeks in a newspaper published within the jurisdiction of the school district failing to meet accreditation standards, or if no newspaper is published therein, then in a newspaper having a general circulation therein. The size of the notice shall be no smaller than one-fourth (1/4) of a standard newspaper page and shall be printed in bold print. If a conservator has been appointed for the school district, the notice shall begin as follows: "By authority of Section 37-17-6, Mississippi Code of 1972, as amended, adopted by the Mississippi Legislature during the 1991 Regular Session, this school district (name of school district) is hereby placed under the jurisdiction of the State Department of Education acting through its appointed conservator (name of conservator)."

The notice also shall include, in the discretion of the State Board of Education, any or all details relating to the school district's emergency status, including the declaration of a state of emergency in the school district and a description of the district's impairment deficiencies, conditions of any conservatorship and corrective actions recommended and being taken. Public notices issued under this section shall be subject to Section 13-3-31 and not contrary to other laws regarding newspaper publication.

Upon termination of the state of emergency in a school district, the Commission on School Accreditation shall cause notice to be published in the school district in the same manner provided in this section, to include any or all details relating to the corrective action taken in the school district that resulted in the termination of the state of emergency.

(14) The State Board of Education or the Commission on School Accreditation shall have the authority to require school districts to produce the necessary reports, correspondence, financial statements, and any other documents and information necessary to fulfill the requirements of this section.

Nothing in this section shall be construed to grant any individual, corporation, board or conservator the authority to levy taxes except in accordance with presently existing statutory provisions.

(15) (a) Whenever the Governor declares a state of emergency in a school district in response to a request made under subsection (12) of this section, the State Board of Education, in its discretion, may assign an interim conservator to the school district, or in its discretion, may contract with an appropriate private entity with experience in the academic, finance and other operational functions of schools and school districts, who will be responsible for the administration, management and operation of the school district, including, but not limited to, the following activities:

(i) Approving or disapproving all financial obligations of the district, including, but not limited to, the employment, termination, nonrenewal and reassignment of all licensed and nonlicensed personnel, contractual agreements and purchase orders, and approving or disapproving all claim dockets and the issuance of checks; in approving or disapproving employment contracts of superintendents, assistant superintendents or principals, the interim conservator shall not be required to comply with the time limitations prescribed in Sections 37-9-15 and 37-9-105;

(ii) Supervising the day-to-day activities of the district's staff, including reassigning the duties and responsibilities of personnel in a manner which, in the determination of the conservator, will best suit the needs of the district;

(iii) Reviewing the district's total financial obligations and operations and making recommendations to the district for cost savings, including, but not limited to, reassigning the duties and responsibilities of staff;

(iv) Attending all meetings of the district's school board and administrative staff;

(v) Approving or disapproving all athletic, band and other extracurricular activities and any matters related to those activities;

(vi) Maintaining a detailed account of recommendations made to the district and actions taken in response to those recommendations;

(vii) Reporting periodically to the State Board of Education on the progress or lack of progress being made in the district to improve the district's impairments during the state of emergency; and

(viii) Appointing a parent advisory committee, comprised of parents of students in the school district that may make recommendations to the conservator concerning the administration, management and operation of the school district.

Except when, in the determination of the State Board of Education, the school district's impairment is related to a lack of financial resources, the cost of the salary of the conservator and any other actual and necessary costs related to the conservatorship paid by the State Department of Education shall be reimbursed by the local school district from funds other than adequate education program funds. The department shall submit an itemized statement to the superintendent of the local school district for reimbursement purposes, and any unpaid balance may be withheld from the district's adequate education program funds.

At the time that the Governor, in accordance with the request of the State Board of Education, declares that the state of emergency no longer exists in a school district, the powers and responsibilities of the interim conservator assigned to the district shall cease.

(b) In order to provide loans to school districts under a state of emergency or under conservatorship that have impairments related to a lack of financial resources, the School District Emergency Assistance Fund is created as a special fund in the State Treasury into which monies may be transferred or appropriated by the Legislature from any available public education funds. Funds in the School District Emergency Assistance Fund up to a maximum balance of Three Million Dollars ($3,000,000.00) annually shall not lapse but shall be available for expenditure in subsequent years subject to approval of the State Board of Education. Any amount in the fund in excess of Three Million Dollars ($3,000,000.00) at the end of the fiscal year shall lapse into the State General Fund or the Education Enhancement Fund, depending on the source of the fund.

The State Board of Education may loan monies from the School District Emergency Assistance Fund to a school district that is under a state of emergency or under conservatorship, in those amounts, as determined by the board, that are necessary to correct the district's impairments related to a lack of financial resources. The loans shall be evidenced by an agreement between the school district and the State Board of Education and shall be repayable in principal, without necessity of interest, to the School District Emergency Assistance Fund by the school district from any allowable funds that are available. The total amount loaned to the district shall be due and payable within five (5) years after the impairments related to a lack of financial resources are corrected. If a school district fails to make payments on the loan in accordance with the terms of the agreement between the district and the State Board of Education, the State Department of Education, in accordance with rules and regulations established by the State Board of Education, may withhold that district's adequate education program funds in an amount and manner that will effectuate repayment consistent with the terms of the agreement; the funds withheld by the department shall be deposited into the School District Emergency Assistance Fund.

The State Board of Education shall develop a protocol that will outline the performance standards and requisite time line deemed necessary for extreme emergency measures. If the State Board of Education determines that an extreme emergency exists, simultaneous with the powers exercised in this subsection, it shall take immediate action against all parties responsible for the affected school districts having been determined to be in an extreme emergency. The action shall include, but not be limited to, initiating civil actions to recover funds and criminal actions to account for criminal activity. Any funds recovered by the State Auditor or the State Board of Education from the surety bonds of school officials or from any civil action brought under this subsection shall be applied toward the repayment of any loan made to a school district hereunder.

(16) If a majority of the membership of the school board of any school district resigns from office, the State Board of Education shall be authorized to assign an interim conservator, who shall be responsible for the administration, management and operation of the school district until the time as new board members are selected or the Governor declares a state of emergency in that school district under subsection (12), whichever occurs first. In that case, the State Board of Education, acting through the interim conservator, shall have all powers which were held by the previously existing school board, and may take any action as prescribed in Section 37-17-13 and/or one or more of the actions authorized in this section.

(17) (a) If the Governor declares a state of emergency in a school district, the State Board of Education may take all such action pertaining to that school district as is authorized under subsection (12) or (15) of this section, including the appointment of an interim conservator. The State Board of Education shall also have the authority to issue a written request with documentation to the Governor asking that the office of the superintendent of the school district be subject to recall. If the Governor declares that the office of the superintendent of the school district is subject to recall, the local school board or the county election commission, as the case may be, shall take the following action:

(i) If the office of superintendent is an elected office, in those years in which there is no general election, the name shall be submitted by the State Board of Education to the county election commission, and the county election commission shall submit the question at a special election to the voters eligible to vote for the office of superintendent within the county, and the special election shall be held within sixty (60) days from notification by the State Board of Education. The ballot shall read substantially as follows:

"Shall County Superintendent of Education ________ (here the name of the superintendent shall be inserted) of the ____________ (here the title of the school district shall be inserted) be retained in office? Yes _______ No _______"

If a majority of those voting on the question votes against retaining the superintendent in office, a vacancy shall exist which shall be filled in the manner provided by law; otherwise, the superintendent shall remain in office for the term of that office, and at the expiration of the term shall be eligible for qualification and election to another term or terms.

(ii) If the office of superintendent is an appointive office, the name of the superintendent shall be submitted by the president of the local school board at the next regular meeting of the school board for retention in office or dismissal from office. If a majority of the school board voting on the question vote against retaining the superintendent in office, a vacancy shall exist which shall be filled as provided by law, otherwise the superintendent shall remain in office for the duration of his employment contract.

(b) The State Board of Education may issue a written request with documentation to the Governor asking that the membership of the school board of the school district shall be subject to recall. Whenever the Governor declares that the membership of the school board is subject to recall, the county election commission or the local governing authorities, as the case may be, shall take the following action:

(i) If the members of the local school board are elected to office, in those years in which the specific member's office is not up for election, the name of the school board member shall be submitted by the State Board of Education to the county election commission, and the county election commission at a special election shall submit the question to the voters eligible to vote for the particular member's office within the county or school district, as the case may be, and the special election shall be held within sixty (60) days from notification by the State Board of Education. The ballot shall read substantially as follows:

"Members of the ______________ (here the title of the school district shall be inserted) School Board who are not up for election this year are subject to recall because of the school district's failure to meet critical accountability standards as defined in the letter of notification to the Governor from the State Board of Education. Shall the member of the school board representing this area, ____________ (here the name of the school board member holding the office shall be inserted), be retained in office? Yes _______ No _______"

If a majority of those voting on the question vote against retaining the member of the school board in office, a vacancy in that board member's office shall exist, which shall be filled in the manner provided by law; otherwise, the school board member shall remain in office for the term of that office, and at the expiration of the term of office, the member shall be eligible for qualification and election to another term or terms of office. However, if a majority of the school board members are recalled in the special election, the Governor shall authorize the board of supervisors of the county in which the school district is situated to appoint members to fill the offices of the members recalled. The board of supervisors shall make those appointments in the manner provided by law for filling vacancies on the school board, and the appointed members shall serve until the office is filled at the next regular special election or general election.

(ii) If the local school board is an appointed school board, the name of all school board members shall be submitted as a collective board by the president of the municipal or county governing authority, as the case may be, at the next regular meeting of the governing authority for retention in office or dismissal from office. If a majority of the governing authority voting on the question vote against retaining the board in office, a vacancy shall exist in each school board member's office, which shall be filled as provided by law; otherwise, the members of the appointed school board shall remain in office for the duration of their term of appointment, and those members may be reappointed.

(iii) If the local school board is comprised of both elected and appointed members, the elected members shall be subject to recall in the manner provided in subparagraph (i) of this * * * ~~subsection~~ paragraph (b), and the appointed members shall be subject to recall in the manner provided in subparagraph (ii).

(18) Beginning with the school district audits conducted for the 1997-1998 fiscal year, the State Board of Education, acting through the Commission on School Accreditation, shall require each school district to comply with standards established by the State Department of Audit for the verification of fixed assets and the auditing of fixed assets records as a minimum requirement for accreditation.

(19) Before December 1, 1999, the State Board of Education shall recommend a program to the Education Committees of the House of Representatives and the Senate for identifying and rewarding public schools that improve or are high performing. The program shall be described by the board in a written report, which shall include criteria and a process through which improving schools and high-performing schools will be identified and rewarded.

The State Superintendent of Public Education and the State Board of Education also shall develop a comprehensive accountability plan to ensure that local school boards, superintendents, principals and teachers are held accountable for student achievement. A written report on the accountability plan shall be submitted to the Education Committees of both houses of the Legislature before December 1, 1999, with any necessary legislative recommendations.

(20) Before January 1, 2008, the State Board of Education shall evaluate and submit a recommendation to the Education Committees of the House of Representatives and the Senate on inclusion of graduation rate and dropout rate in the school level accountability system.

(21) If a local school district is determined as failing and placed into conservatorship for reasons authorized by the provisions of this section, the conservator appointed to the district shall, within forty-five (45) days after being appointed, present a detailed and structured corrective action plan to move the local school district out of conservatorship status to the local school board and local superintendent of education if they have not been removed by the conservator, or if the board and superintendent have been removed, to the local governing authority of the municipality or county in which the school district under conservatorship is located. A copy of the conservator's corrective action plan shall also be filed with the State Board of Education.

(22) (a) Beginning with the 2014-2015 school year, if a "D" or "F" school district fails to demonstrate improvement meeting the benchmark levels established by the State Board of Education in absolute student achievement standards and the rate of annual growth expectation standards for two (2) consecutive years, the State Board of Education or the Commission on School Accreditation shall recommend to the Deputy Superintendent for the Mississippi Recovery School those districts that are deemed eligible for placement into administrative receivership as authorized under Section 1 of this act. The state board and the commission shall also identity to the deputy superintendent those "A" school districts that would serve as districts of receivership. The state board shall establish a program to incentivize "A" districts to submit petitions of receivership to assume the administration control over the day to day management and operations of a failing district, which such incentive shall be awarded to those districts whose petitions are approved by the state board. The selected districts of receivership shall receive additional financial assistance as provided in Section 3 of this act.

(b) The superintendent of the district of receivership shall, within forty-five (45) days after assuming the administration, management and operation of the acquired failing school district, present a detailed and structured corrective action plan to move the acquired district out of administrative receivership status to the local governing authority of the municipality or county in which the acquired district under administrative receivership is located. A copy of the superintendent's corrective action plan shall also be filed with the State Board of Education.

SECTION 5. Section 37-57-107, Mississippi Code of 1972, is amended as follows:

37-57-107. (1) Beginning with the tax levy for the 1997 fiscal year and for each fiscal year thereafter, the aggregate receipts from taxes levied for school district purposes pursuant to Sections 37-57-105 and 37-57-1 shall not exceed the aggregate receipts from those sources during any one (1) of the immediately preceding three (3) fiscal years, as determined by the school board, plus an increase not to exceed seven percent (7%). For the purpose of this limitation, the term "aggregate receipts" when used in connection with the amount of funds generated in a preceding fiscal year shall not include excess receipts required by law to be deposited into a special account. However, the term "aggregate receipts" includes any receipts required by law to be paid to a charter school. The additional revenue from the ad valorem tax on any newly constructed properties or any existing properties added to the tax rolls or any properties previously exempt which were not assessed in the next preceding year may be excluded from the seven percent (7%) increase limitation set forth herein. Taxes levied for payment of principal of and interest on general obligation school bonds issued heretofore or hereafter shall be excluded from the seven percent (7%) increase limitation set forth herein. Any additional millage levied to fund any new program mandated by the Legislature shall be excluded from the limitation for the first year of the levy and included within such limitation in any year thereafter. For the purposes of this section, the term "new program" shall include, but shall not be limited to, (a) the Early Childhood Education Program required to commence with the 1986-1987 school year as provided by Section 37-21-7 and any additional millage levied and the revenue generated therefrom, which is excluded from the limitation for the first year of the levy, to support the mandated Early Childhood Education Program shall be specified on the minutes of the school board and of the governing body making such tax levy; (b) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first year of the levy, for the purpose of generating additional local contribution funds required for the adequate education program for the 2003 fiscal year and for each fiscal year thereafter under Section 37-151-7(2); and (c) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first year of the levy, for the purpose of support and maintenance of any agricultural high school which has been transferred to the control, operation and maintenance of the school board by the board of trustees of the community college district under provisions of Section 37-29-272.

(2) The seven percent (7%) increase limitation prescribed in this section may be increased an additional amount only when the school board has determined the need for additional revenues and has held an election on the question of raising the limitation prescribed in this section. The limitation may be increased only if three-fifths (3/5) of those voting in the election shall vote for the proposed increase. The resolution, notice and manner of holding the election shall be as prescribed by law for the holding of elections for the issuance of bonds by the respective school boards. Revenues collected for the fiscal year in excess of the seven percent (7%) increase limitation pursuant to an election shall be included in the tax base for the purpose of determining aggregate receipts for which the seven percent (7%) increase limitation applies for subsequent fiscal years.

(3) Except as otherwise provided for excess revenues generated pursuant to an election, if revenues collected as the result of the taxes levied for the fiscal year pursuant to this section and Section 37-57-1 exceed the increase limitation, then it shall be the mandatory duty of the school board of the school district to deposit such excess receipts over and above the increase limitation into a special account and credit it to the fund for which the levy was made. It will be the further duty of such board to hold said funds and invest the same as authorized by law. Such excess funds shall be calculated in the budgets for the school districts for the purpose for which such levies were made, for the succeeding fiscal year. Taxes imposed for the succeeding year shall be reduced by the amount of excess funds available. Under no circumstances shall such excess funds be expended during the fiscal year in which such excess funds are collected.

(4) For the purposes of determining ad valorem tax receipts for a preceding fiscal year under this section, the term "fiscal year" means the fiscal year beginning October 1 and ending September 30.

(5) Beginning with the 2013-2014 school year, each school district in which a charter school is located shall pay to the charter school an amount for each student enrolled in the charter school equal to the ad valorem taxes levied per pupil for the support of the school district in which the charter school is located. The pro rata ad valorem taxes to be transferred to the charter school must include all levies for the support of the school district under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy) but may not include any taxes levied for the retirement of school district bonded indebtedness or short-term notes or any taxes levied for the support of vocational-technical education programs. Payments made pursuant to this subsection by a school district to a charter school must be made before the expiration of three (3) business days after the funds are distributed to the school district.

(6) Beginning with the 2016-2017 school year, the tax collector of the acquired failing school district shall pay to the district of receivership an amount for each student enrolled in the acquired failing school district equal to the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student resides. The pro rata ad valorem receipts and in-lieu receipts to be transferred to the district of receivership shall include all levies for the support of the acquired failing local school district under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy). In no event may the payment exceed the pro rata amount of the local ad valorem payment for the local contribution to the adequate education program under Section 37-57-1 for the school district in which the student resides. Payments made under this section by a tax collector to a district of receivership must be made before the expiration of three (3) business days after the funds would have been distributed to the acquired failing school district by the tax collector.

SECTION 6. Section 37-17-13, Mississippi Code of 1972, is amended as follows:

37-17-13. (1) Whenever the Governor declares a state of emergency in a school district in response to a certification by the State Board of Education and the Commission on School Accreditation made under Section 37-17-6(11)(b), the State Board of Education, in addition to any actions taken under Section 37-17-6, may abolish the school district and assume control and administration of the schools formerly constituting the district, and appoint a conservator to carry out this purpose under the direction of the State Board of Education. In such case, the State Board of Education shall have all powers which were held by the previously existing school board, and the previously existing superintendent of schools or county superintendent of education, including, but not limited to, those enumerated in Section 37-7-301, and the authority to request tax levies from the appropriate governing authorities for the support of the schools and to receive and expend the tax funds as provided by Section 37-57-1 et seq. * * *, and Section 37-57-105 et seq.

(2) When a school district is abolished under this section, loans from the School District Emergency Assistance Fund may be made by the State Board of Education for the use and benefit of the schools formerly constituting the district in accordance with the procedures set forth in Section 37-17-6(14) for such loans to the district. The abolition of a school district under this section shall not impair or release the property of that school district from liability for the payment of the loan indebtedness, and it shall be the duty of the appropriate governing authorities to levy taxes on the property of the district so abolished from year to year according to the terms of the indebtedness until same shall be fully paid.

(3) After a school district is abolished under this section, at such time as the State Board of Education determines that the impairments have been substantially corrected, the State Board of Education shall reconstitute, reorganize or change or alter the boundaries of the previously existing district; however, no partition or assignment of territory formerly included in the abolished district to one or more other school districts may be made by the State Board of Education without the consent of the school board of the school district to which such territory is to be transferred, such consent to be spread upon its minutes. At that time, the State Board of Education, in appropriate cases, shall notify the appropriate governing authority or authorities of its action and request them to provide for the election or appointment of school board members in the manner provided by law. In the event the applicable statute provides that vacancies in an all-elected membership of the school board will be filled by appointment by the remaining members of the school board and no members of the school board remain in office, the Governor shall call a special election to fill the vacancies. In such situations, the Governor will set the date of the special election and said election will be conducted by the county election commission. The State Board of Education shall also request the governing authority or authorities to provide for the appointment of a superintendent or superintendents to govern the reconstituted, reorganized or changed district or districts, which such appointed position shall apply in all school districts including those school districts in which the position of superintendent was previously an elected office. A board member or superintendent in office at the time the Governor declares a state of emergency in a school district to be abolished shall not be eligible to serve in that office for the school district reconstituted, reorganized or changed after the Governor declares that an emergency no longer exists.

(4) (a) When a failing school district in placed in administrative receivership status in response to a certification by the State Board of Education and the Commission on School Accreditation made under Section 1 of this act, the State Board of Education, in addition to any actions taken under Section 1 of this act and Section 37-17-6, may terminate the employment of the local superintendent of schools and abolish the school board and allow a district of receivership to assume control and administration of the schools constituting the acquired failing school district, and to carry out this purpose under the direction of the deputy superintendent responsible for the Mississippi Recovery School District. In such case, the superintendent and school board of the district of receivership shall have all powers which were held by the previously existing school board, and the previously existing superintendent of schools or county superintendent of education.

(b) When it has been determined by the State Board of Education and the deputy superintendent responsible for the Mississippi Recovery School District that a district under administrative receivership has made satisfactory academic performance and achievement for such a period as deemed necessary by the department or until the accreditation rating of the failing district improves to a "C" designation, the State Board of Education shall notify the appropriate governing authority or authorities of its action to release the district from administrative receivership status and the Governor shall call a special election to fill the vacancies in membership of the board of education created by the abolition of the former board. In those situations, the Governor shall set the date of the special election and the election shall be conducted by the county election commission. All newly elected members of the school board of trustees shall take office on the first Monday of January following the date of their election. In all elections, the trustee elected shall be a resident and qualified elector of the district entitled to the representation upon the board, and he shall be elected only by the qualified electors of that district. A board member or superintendent in office at the time the school district is placed into administrative receivership status shall not be eligible to serve in that office for the school district upon release from administrative receivership.

SECTION 7. Section 37-5-19, Mississippi Code of 1972, is amended as follows:

37-5-19. Vacancies in the membership of the county board of education shall be filled by appointment, within sixty (60) days after the vacancy occurs, by the remaining members of the county board of education. Said appointee shall be selected from the qualified electors of the district in which the vacancy occurs, and shall serve until the first Monday of January next succeeding the next general election, at which general election a member shall be elected to fill the remainder of the unexpired term in the same manner and with the same qualifications applicable to the election of a member for the full term. In the event the school district is under conservatorship or administrative receivership and no members of the county board of education remain in office, the Governor shall call a special election to fill the vacancies and said election will be conducted by the county election commission.

In the event the vacancy occurs more than five (5) months prior to the next general election and the remaining members of the county board of education are unable to agree upon an individual to be appointed, any two (2) of the remaining members may certify such disagreement to the county election commission. Upon the receipt of such a certificate by the county election commission, or any member thereof, the commission shall hold a special election to fill the vacancy, which said election, notice thereof and ballot shall be controlled by the laws concerning special elections to fill vacancies in county or county district offices. The person elected at such a special election shall serve for the remainder of the unexpired term.

SECTION 8. Section 37-7-207, Mississippi Code of 1972, is amended as follows:

37-7-207. (1) All school districts reconstituted or created under the provisions of Article 1 of this chapter, and which lie wholly within one (1) county, but not including municipal separate and countywide districts, shall be governed by a board of five (5) trustees. The first board of trustees of such districts shall be appointed by the county board of education, and the original appointments shall be so made that one (1) trustee shall be appointed to serve until the first Saturday of March following such appointments, one (1) for one (1) year longer, one (1) for two (2) years longer, one (1) for three (3) years longer, and one (1) for four (4) years longer. After such original appointments, the trustees of such school districts shall be elected by the qualified electors of such school districts in the manner provided for in Sections 37-7-223 through 37-7-229, with each trustee to be elected for a term of five (5) years. The five (5) members of the board of trustees of such consolidated school district shall be elected from special trustee election districts by the qualified electors thereof, as herein provided. The board of trustees of any such consolidated school district shall apportion the consolidated school district into five (5) special trustee election districts. The board of trustees of such school district shall place upon its minutes the boundaries determined for the new five (5) trustee election districts. The board of trustees shall thereafter publish the same in a newspaper of general circulation within said school district for at least three (3) consecutive weeks; and after having given notice of publication and recording the same upon the minutes of the board of trustees, said new district lines shall thereafter be effective.

On the first Tuesday after the first Monday in November, in any year in which any consolidated school district shall elect to utilize the authority to create single member election districts, an election shall be held in each such district in this state for the purpose of electing the board of trustees of such district. At said election the member of the said board from District One shall be elected for a term of one (1) year, the member from District Two shall be elected for a term of two (2) years, the member from District Three shall be elected for a term of three (3) years, the member from District Four shall be elected for a term of four (4) years, and the member from District Five shall be elected for a term of five (5) years. Thereafter, members shall be elected at general elections as vacancies occur for terms of five (5) years each. Trustees elected from single member election districts as provided above shall otherwise be elected as provided for in Sections 37-7-223 through 37-7-229. All members of the said board of trustees shall take office on the first Monday of January following the date of their election. All vacancies which may occur during a term shall be filled by appointment of the consolidated school district trustees, but the person so appointed shall serve only until the next general election following such appointment, at which time a person shall be elected for the remainder of the unexpired term at the same time and in the same manner as a trustee is elected for the full term then expiring. The person so elected to the unexpired term shall take office immediately. Said appointee shall be selected from the qualified electors of the district in which the vacancy occurs. In the event the school district is under conservatorship or administrative receivership and no members of the board of trustees remain in office, the Governor shall call a special election to fill the vacancies and the said election will be conducted by the county election commission.

(2) All school districts reconstituted and created under the provisions of Article 1 of this chapter, which embrace territory in two (2) or more counties, but not including municipal separate school districts, shall be governed by a board of five (5) trustees. In making the original appointments, the several county boards of education shall appoint the trustee or trustees to which the territory in such county is entitled, and, by agreement between the county boards concerned, one (1) person shall be appointed to serve until the first Saturday of March following, one (1) for one (1) year longer, one (1) for two (2) years longer, one (1) for three (3) years longer and one (1) for four (4) years longer. Thereafter, such trustees shall be elected as is provided for in Sections 37-7-223 through 37-7-229, for a term of five (5) years. The five (5) members of the board of trustees of such line consolidated school district shall be elected from special trustee election districts by the qualified electors thereof, as herein provided. The existing board of trustees of such line consolidated school district shall apportion the line consolidated school district into five (5) special trustee election districts. The board of trustees shall place upon its minutes the boundaries determined for the new five (5) trustee election districts. The board of trustees shall thereafter publish the same in a newspaper of general circulation within said school district for at least three (3) consecutive weeks; and after having given notice of publication and recording the same upon the minutes of the board of trustees, said new district lines shall thereafter be effective. Provided, however, that in any line consolidated school district encompassing two (2) or more counties created pursuant to Laws, 1953, Extraordinary Session, Chapter 12, Section 8, in which, as a condition precedent to the creation of said district, each county belonging thereto was contractually guaranteed to always have at least one (1) representative on said board, in order that said condition precedent may be honored and guaranteed, in any year in which the board of trustees of such line consolidated school district does not have at least one (1) member from each county or part thereof forming such district, the board of trustees in such district shall be governed by a board of a sufficient number of trustees to fulfill this guarantee, five (5) of whom shall be elected from the five (5) special trustee election districts which shall be as nearly equal as possible and one (1) member trustee appointed at large from each county not having representation on the elected board. In such cases, the board of supervisors of each county shall make written agreement to guarantee the manner of appointment of at least one (1) representative from each county in the district, placing such written agreement on the minutes of each board of supervisors in each county.

On the first Tuesday after the first Monday in November, in any year in which any line consolidated school district shall elect to utilize the authority to create single member election districts, an election shall be held in each such district in this state for the purpose of electing the board of trustees of such district. At said election the member of the said board from District One shall be elected for a term of one (1) year, the member from District Two shall be elected for a term of two (2) years, the member from District Three shall be elected for a term of three (3) years, the member from District Four shall be elected for a term of four (4) years, and the member from District Five shall be elected for a term of five (5) years. Thereafter, members shall be elected at general elections as vacancies occur for terms of five (5) years each. Trustees elected from single member election districts as provided above shall otherwise be elected as provided for in Sections 37-7-223 through 37-7-229. All members of the said board of trustees shall take office on the first Monday of January following the date of their election. In all elections, the trustee elected shall be a resident and qualified elector of the district entitled to the representation upon the board, and he shall be elected only by the qualified electors of such district. All vacancies which may occur during a term of office shall be filled by appointment of the consolidated line school district trustees, but the person so appointed shall serve only until the next general election following such appointment, at which time a person shall be elected for the remainder of the unexpired term at the same time and in the same manner as the trustee is elected for the full term then expiring. The person so elected to the unexpired term shall take office immediately. In the event the school district is under conservatorship or administrative receivership and no members of the board of trustees remain in office, the Governor shall call a special election to fill the vacancies and the said election will be conducted by the county election commission.

SECTION 9. This act shall take effect and be in force from and after July 1, 2014.