Bill Text: MS HB888 | 2012 | Regular Session | Comm Sub

Mississippi House Bill 888 (Prior Session Legislation)

Bill Title: MS Public Charter School Act of 2012; enact to establish new process for creating.

Sponsorship: Bipartisan Bill

Status: (Failed) 2012-03-15 - Died On Calendar [HB888 Detail]

Download: Mississippi-2012-HB888-Comm_Sub.html

MISSISSIPPI LEGISLATURE

2012 Regular Session

To: Education

By: Representatives Moore, Espy

House Bill 888

(COMMITTEE SUBSTITUTE)

AN ACT ENTITLED THE "MISSISSIPPI PUBLIC CHARTER SCHOOLS ACT OF 2012"; TO DECLARE THE LEGISLATIVE PURPOSE OF THE PUBLIC CHARTER SCHOOLS ACT; TO PROHIBIT CONVERSION OF PRIVATE OR PAROCHIAL SCHOOL TO PUBLIC CHARTER SCHOOLS; TO PROVIDE DEFINITIONS; TO PROVIDE OPEN ENROLLMENT AND LOTTERY REQUIREMENTS FOR PUBLIC CHARTER SCHOOLS; TO PROVIDE PREFERENCES FOR STUDENT ENROLLMENT IN THE CASE OF A CONVERSION CHARTER SCHOOL AND FOR SCHOOLS SERVING SPECIAL POPULATIONS; TO REQUIRE ALL SCHOOLS IN THE STATE TO ACCEPT TRANSFER CREDITS FROM PUBLIC CHARTER SCHOOLS; TO DEFINE THE ELIGIBLE AUTHORIZER FOR PUBLIC CHARTER SCHOOLS; TO ESTABLISH THE MISSISSIPPI PUBLIC CHARTER SCHOOLS AUTHORIZER BOARD AND PRESCRIBE ITS MEMBERSHIP; TO PROVIDE FOR AN EXECUTIVE DIRECTOR OF THE MISSISSIPPI PUBLIC CHARTER SCHOOLS AUTHORIZER BOARD; TO PRESCRIBE AUTHORIZER POWERS AND DUTIES; TO PROVIDE STANDARDS FOR AUTHORIZING PUBLIC CHARTER SCHOOLS WHICH SHALL BE POLICIES EQUAL TO NATIONALLY ESTABLISHED BEST PRACTICES; TO PROVIDE FOR AUTHORIZER FUNDING AND CONFLICT OF INTEREST; TO AUTHORIZE SERVICES TO BE PURCHASED FROM THE AUTHORIZER; TO PRESCRIBE THE APPLICATION PROCESS FOR ALL TYPES OF CHARTER SCHOOLS AND A DECISION-MAKING PROCESS; TO ESTABLISH AN INITIAL CHARTER TERM; TO PROVIDE GUIDELINES FOR EXECUTING CHARTER CONTRACTS; TO PROVIDE ACHIEVEMENT AND OPERATIONAL STANDARDS FOR CHARTER SCHOOL OVERSIGHT AND CORRECTIVE ACTIONS; TO PROVIDE FOR RENEWALS AND REVOCATIONS OF CHARTER SCHOOL CONTRACTS; TO PROVIDE PROCEDURES FOR CHARTER SCHOOL CLOSURE AND DISSOLUTION; TO PRESCRIBE THE LEGAL STATUS OF CHARTER SCHOOLS; TO EMPOWER CHARTER SCHOOLS WITH FINANCIAL AUTHORITY TO IMPLEMENT ITS CONTRACT AND TO PROHIBIT DISCRIMINATION AND THE CHARGING OF TUITION; TO PRESCRIBE THE QUALIFICATIONS OF EMPLOYEES OF CHARTER SCHOOLS AND REQUIRE CRIMINAL BACKGROUND CHECKS FOR SUCH EMPLOYEES; TO AUTHORIZE EQUAL TRANSPORTATION FUNDING UNDER THE ADEQUATE EDUCATION PROGRAM FOR PUBLIC CHARTER SCHOOLS; TO AUTHORIZE LOCAL FUNDING FOR PUBLIC CHARTER SCHOOLS; TO AUTHORIZE CHARTER SCHOOLS TO ACCEPT GIFTS, DONATIONS AND GRANTS; TO AUTHORIZE CHARTER SCHOOLS EQUAL ACCESS TO EXISTING STATE FACILITIES PROGRAMS FOR PUBLIC SCHOOLS; TO AUTHORIZE CHARTER SCHOOLS THE RIGHT OF FIRST REFUSAL TO VACANT SCHOOL FACILITIES AND PROPERTY AND THE USE OF DONATED SPACE UNDER PREEXISTING ZONING REGULATIONS; TO AMEND SECTION 37-3-2, MISSISSIPPI CODE OF 1972, TO EXEMPT TEACHERS, INSTRUCTIONAL STAFF AND ADMINISTRATORS OF PUBLIC CHARTER SCHOOLS FROM THE LICENSURE REQUIREMENTS OF TRADITIONAL PUBLIC SCHOOL TEACHERS AND ADMINISTRATORS; TO AMEND SECTION 37-9-17, MISSISSIPPI CODE OF 1972, TO REQUIRE EMPLOYEES AND ADMINISTRATORS OF PUBLIC CHARTER SCHOOLS TO SUBMIT TO CRIMINAL BACKGROUND CHECKS AND FINGERPRINTING; TO AMEND SECTION 37-9-103, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE EDUCATION EMPLOYMENT PROCEDURES LAW SHALL NOT APPLY TO TEACHERS OR ADMINISTRATORS AT PUBLIC CHARTER SCHOOLS; TO REPEAL SECTIONS 37-165-1 THROUGH 37-165-25, MISSISSIPPI CODE OF 1972, WHICH ARE THE "CONVERSION CHARTER SCHOOL ACT OF 2010"; TO AMEND SECTION 37-165-27, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; TO BRING FORWARD SECTIONS 37-151-7 AND 37-57-107, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENTS; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the

"Mississippi Public Charter Schools Act of 2012."

SECTION 2. (1) The Legislature finds and declares that the purposes of the state's public charter schools as a whole are:

(a) To improve student learning by creating high-quality schools with high standards for student performance;

(b) To close achievement gaps between high-performing and low-performing groups of public school students;

(c) To increase high-quality educational opportunities within the public education system for all students, especially those at risk of academic failure;

(d) To create new professional opportunities for teachers, school administrators and other school personnel that allow them to have a direct voice in the operation of their schools;

(e) To encourage the use of different, high-quality models of teaching, governing, scheduling or other aspects of schooling that meet a variety of student needs;

(f) To allow public schools freedom and flexibility in exchange for exceptional levels of result driven accountability;

(g) To provide students, parents, community members and local entities with expanded opportunities for involvement in the public education system; and

(h) To encourage the replication of successful public charter schools.

(2) All public charter schools in the state established under this act are public schools and are part of the state's public education system.

(3) No provision of this act shall be interpreted to allow the conversion of private schools into public charter schools.

(4) Public charter schools and conversion charter schools shall be established only in those local school districts that have an accountability rating of successful, under academic watch, low performing, at risk of failing or failing as determined by the accountability standards adopted by the State Board of Education. The provisions of this act shall not apply to any local school district having an accountability rating as a high performing or star district.

SECTION 3. For purposes of this act, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Applicant" means any person or group that develops and submits an application for a public charter school to an authorizer.

(b) "Application" means a proposal from an applicant to an authorizer to enter into a charter contract whereby the proposed school obtains public charter school status.

(c) "At-risk student" means a student who has an economic or academic disadvantage that requires special services and assistance to succeed in educational programs. The term includes, but is not necessarily limited to, students who are members of economically disadvantaged families, students who are identified as having special educational needs, students who are limited in English proficiency, students who are at risk of dropping out of high school and students who do not meet minimum standards of academic proficiency.

(d) "Authorizer" means an entity authorized under this act to review applications, decide whether to approve or reject applications, enter into charter contracts with applicants, oversee public charter schools and decide whether to renew, not renew or revoke charter contracts.

(e) "Charter contract" means a fixed-term, renewable contract between a public charter school and an authorizer that outlines the roles, powers, responsibilities and performance expectations for each party to the contract.

(f) "Conversion public charter school" means a charter school that existed as a noncharter public school before becoming a public charter school which was designated as either successful, under academic watch, low performing, at risk of failing or failing.

(g) "Education service provider" means a charter management organization, school design provider or any other partner entity with which a public charter school intends to contract for educational design, implementation or comprehensive management.

(h) "Governing board" means the independent board of a public charter school that is party to the charter contract with the authorizer and whose members have been elected or selected pursuant to the school's application.

(i) "Local school board" means a school board exercising management and control of a local school district pursuant to the State Constitution and state statutes.

(j) "Local school district" means a public agency that establishes and supervises one or more public schools within its geographical limits pursuant to the State Constitution and state statutes.

(k) "Noncharter public school" means a public school that is under the direct management, governance and control of a local school board or the state.

(l) "Parent" means a parent, guardian or other person or entity having legal custody of a child.

(m) "Public charter school" means a public school that:

(i) Has autonomy over decisions including, but not limited to, matters concerning finance, personnel, scheduling, curriculum and instruction;

(ii) Is governed by an independent governing board;

(iii) Is established and operating under the terms of a charter contract between the school's board and its authorizer;

(iv) Is a school to which parents choose to send their children;

(v) Is a school that admits students on the basis of a lottery if more students apply for admission than can be accommodated;

(vi) Provides a program of education that includes any single grade or multiple grades from kindergarten through Grade 12;

(vii) Operates in pursuit of a specific set of educational objectives as defined in its charter contract; and

(viii) Operates under the oversight of its authorizer in accordance with its charter contract.

(n) "Start-up public charter school" means a public charter school that did not exist as a noncharter public school prior to becoming a public charter school.

(o) "Student" means any child who is eligible for attendance in public schools in the state.

(p) "Virtual public school" means a public school that offers educational services predominantly through an online program. A virtual school may contract with any eligible authorizer for purposes of providing online academic instruction to students attending a public charter or conversion charter school.

SECTION 4. (1) A public charter school shall be open to any

student residing in the state.

(2) A school district shall not require any student enrolled in the school district to attend a public charter school.

(3) A public charter school shall not limit admission based on ethnicity, national origin, religion, gender, income level, disabling condition, proficiency in the English language or academic or athletic ability, except as provided in Section 5(4).

(4) A public charter school may limit admission to students within a given age group or grade level and may be organized around a special emphasis, theme or concept as stated in the school's application.

(5) (a) The at-risk composition of the charter school enrollment shall reflect that of students in similar grades for school-aged children for the school district in which the charter school is located, to be defined for the purposes of this chapter as differing by no more than twenty-five percent (25%) from that population.

(b) In the event that the at-risk composition of an applicant's or charter school's enrollment differs from the enrollment of students in similar grades for the school district in which the charter school is located by more than twenty-five percent (25%), despite its best efforts, the authorizer from which the applicant is seeking sponsorship shall consider the applicant's or the charter school's recruitment efforts and at-risk composition of the applicant pool in determining whether the applicant or charter school is operating in a nondiscriminatory manner. A finding by the authorizer that the applicant is not operating in a discriminatory manner justifies approval of the charter without regard to the at-risk percentage requirement if the application is acceptable in all other aspects. A finding by the authorizer that the applicant or charter school is operating in a discriminatory manner justifies the denial of a charter school application or the revocation of a charter, as may be applicable.

(6) A public charter school shall enroll all students who wish to attend the school, unless the number of students exceeds the capacity of a program, class, grade level or building.

(7) If capacity is insufficient to enroll all students who wish to attend the school, the public charter school shall select students through a lottery.

SECTION 5. (1) Any noncharter public school converting partially or entirely to a public charter school shall adopt and maintain a policy giving enrollment preference to students who reside within the former attendance area of that public school. If the charter school has excess capacity after enrolling students residing within the former attendance area of the school, students outside of the former attendance area of the school shall be eligible for enrollment. If the number of these additional students exceeds the capacity of a program, class, grade level or building, the students will be entered into a lottery.

(2) A public charter school shall give enrollment preference to students enrolled in the public charter school the previous school year and to siblings of students already enrolled in the public charter school. An enrollment preference for returning students excludes those students from entering into a lottery.

(3) A public charter school may give enrollment preference to children of a public charter school's founders, governing board members and full-time employees, so long as they constitute no more than ten percent (10%) of the school's total student population.

(4) This section does not preclude the formation of a public charter school whose mission is focused on serving students with disabilities, students of the same gender, students who pose such severe disciplinary problems that they warrant a specific educational program or students who are at risk of academic failure. If capacity is insufficient to enroll all students who wish to attend such school, the public charter school shall select students through a lottery.

SECTION 6. If a student who was previously enrolled in a public charter school enrolls in another public school in this state, the student's new school shall accept credits earned by the student in courses or instructional programs at the public charter school in a uniform and consistent manner and according to the same criteria that are used to accept academic credits from other public schools.

SECTION 7. A school district shall provide or publicize to parents and the general public information about public charter schools as an enrollment option within the district to the same extent and through the same means that the district provides and publicizes information about noncharter public schools in the district.

SECTION 8. (1) The State Board of Education, hereinafter state board, may authorize conversion public charter schools in any school district in the state.

(2) The Mississippi Public Charter School Board created under Section 9 of this act may authorize start-up public charter schools in any school district in the state.

(3) A local school board may authorize public charter schools within the boundaries of the school district overseen by the local school board.

SECTION 9. (1) There is established, the Mississippi Public Charter School Board which is an independent state agency with statewide chartering jurisdiction as described in Section 8(2).

(2) The mission of the Mississippi Public Charter School Board shall be to authorize high-quality public charter schools throughout the state, particularly schools designed to expand opportunities for at-risk students, consistent with the purposes of this act.

(3) The Mississippi Public Charter School Board shall consist of five (5) members. Three (3) members shall be appointed by the Governor, one (1) member shall be appointed by the Lieutenant Governor and one (1) member shall be appointed by the Speaker of the House. In making the appointments, the Governor, Lieutenant Governor and Speaker of the House shall ensure statewide geographic and racial diversity among Mississippi Public Charter School Board members.

(4) Members appointed to the Mississippi Public Charter School Board shall collectively possess strong experience and expertise in public and nonprofit governance, private sector business management, finance, K-12 school leadership, assessment and curriculum and instruction and public education law. All members of the Mississippi Public Charter School Board shall have demonstrated understanding of and commitment to charter schooling as a strategy for strengthening public education and expanding school choice.

(5) To establish staggered terms of office, the initial term of office for the two (2) members of the board appointed by the Governor shall be four (4) years and thereafter shall be three (3) years. The initial term of office for the two (2) members of the board appointed by the Lieutenant Governor and the Speaker of the House shall be three (3) years and thereafter shall be three (3) years. The initial term of office for the at large member appointed by the Governor shall be two (2) years and thereafter shall be three (3) years. No member shall serve more than seven (7) consecutive years. The initial appointments shall be made no later than September 1, 2012.

(6) A member of the Mississippi Public Charter School Board may be removed for any cause that renders the member incapable or unfit to discharge the duties of the office, which such removal procedure shall be stipulated in the bylaws adopted by the board for its governance. Whenever a vacancy on the Mississippi Public Charter School Board exists, the original appointing authority shall appoint a member for the remaining portion of the term.

(7) The Mississippi Public Charter School Board is authorized to receive and expend gifts, grants, appropriations and donations of any kind from any public or private entity to carry out the purposes of this act, subject to the terms and conditions under which they are given, provided that all such terms and conditions are permissible under law.

(8) The Mississippi Public Charter School Board shall operate with dedicated resources and staff qualified to execute the day-to-day responsibilities of public charter school authorizing in accordance with this act.

SECTION 10. (1) There is established an Office of Charter Schools within the State Department of Education. The office shall be vested with implementing the state board's decisions that relate to conversion charter schools.

(2) The mission of the Office of Charter Schools shall be to support the state board in executing the powers and duties detailed in Section 11.

(3) The office is authorized to receive and expend gifts, grants, appropriations and donations of any kind from any public or private entity to carry out the purposes of this act, subject to the terms and conditions under which they are given, provided that all such terms and conditions are permissible under law.

SECTION 11. (1) Authorizers are responsible for executing, in accordance with this act, the following essential powers and duties:

(i) Soliciting and evaluating charter applications;

(ii) Approving quality charter applications that meet identified educational needs and promote a diversity of educational choices;

(iii) Declining to approve weak or inadequate charter applications;

(iv) Negotiating and executing sound charter contracts;

(v) Monitoring, in accordance with charter contract terms, the performance and legal compliance of public charter schools;

(vi) Minimizing the administrative burdens and costs faced by public charter schools; and

(vii) Determining whether each charter contract merits renewal, nonrenewal or revocation.

(2) An authorizing entity may delegate its duties to offices, employees and contractors.

(3) Regulation by authorizers shall be limited to these powers and duties and consistent with the purpose and intent of this act.

(4) An authorizing entity, members of the board of an authorizer in their official capacity and employees of an authorizer in their official capacity are immune from civil and criminal liability with respect to all activities related to a public charter school they authorize.

SECTION 12. (1) (a) All authorizers shall be required to develop and maintain chartering policies and practices consistent with nationally recognized principles and standards for quality charter authorizing in all major areas of authorizing responsibility including:

(i) Organizational capacity and infrastructure;

(ii) Soliciting and evaluating charter applications;

(iii) Performance contracting;

(iv) Ongoing public charter school oversight and evaluation; and

(v) Charter renewal decision-making.

(b) Authorizers shall carry out all their duties under this act in a manner consistent with such nationally recognized principles and standards and with the purpose and intent of this act. Evidence of material or persistent failure to do so shall constitute grounds for losing charter authorizing powers.

(2) Every authorizer shall be required to submit to the Joint Committee on Performance Evaluation and Expenditure Review an annual report summarizing:

(a) The authorizer's strategic vision for chartering and progress toward achieving that vision;

(b) The academic and financial performance of all operating public charter schools overseen by the authorizer, according to the performance expectations for public charter schools set forth in this act;

(c) The status of the authorizer's public charter school portfolio, identifying all public charter schools in each of the following categories:

(i) Approved, but not yet open;

(ii) Operating;

(iii) Renewed;

(iv) Revoked;

(v) Not renewed;

(vi) Voluntarily closed; or

(vii) Never opened;

(d) The authorizing functions provided by the authorizer to the public charter schools under its purview, including the authorizer's operating costs and expenses detailed in annual audited financial statements that conform with Generally Accepted Accounting Principles; and

(e) The services purchased from the authorizer by the public charter schools under its purview, including an itemized accounting of the actual costs of these services, as required in Section 15.

SECTION 13. (1) To cover costs for overseeing public charter schools in accordance with this act, an authorizer shall receive three percent (3%) of annual per-pupil allocations received by each public charter school it authorizes. These funds must be used exclusively to cover the costs for an authorizer to oversee its public charter schools.

(2) An authorizer may expend its resources, seek grant funds and establish partnerships to support its public charter school authorizing activities.

SECTION 14. (1) No employee, trustee, agent or representative of an authorizer may simultaneously serve as an employee, trustee, agent, representative, vendor or contractor of a public charter school authorized by that entity.

(2) No governmental or other entity, other than those expressly granted chartering authority as set forth in this act, may assume any charter authorizing function or duty in any form, unless expressly allowed by law.

SECTION 15. (1) With the exception of oversight services as required by Section 13(1), no public charter school shall be required to purchase services from its authorizer as a condition of charter approval or of executing a charter contract, nor may any such condition be implied.

(2) A public charter school may, at its discretion, choose to purchase services from its authorizer. In such event, the public charter school and authorizer shall execute an annual service contract, separate from the charter contract, stating the parties' mutual agreement concerning any services to be provided by the authorizer and any service fees to be charged to the public charter school. An authorizer may not charge more than market rates for services provided to a public charter school.

SECTION 16. (1) To solicit, encourage and guide the development of quality public charter school applications, every authorizer operating under this act shall issue and broadly publicize a request for proposals by September 1, except in the authorizer's first year of operation in which the authorizer shall issue and broadly publicize a request for proposals by November 1. The content and dissemination of the request for proposals shall be consistent with the purposes and requirements of this act.

(2) The authorizer shall annually establish and disseminate a timeline for charter approval or denial decisions.

(3) Each authorizer's request for proposals shall include a clear statement of any preferences the authorizer wishes to grant to applications that help at-risk students.

(4) The request for proposals shall include or otherwise direct applicants to the performance framework that the authorizer has developed for public charter school oversight and evaluation in accordance with Section 21(1) of this act.

(5) The request for proposals shall include the criteria that will guide the authorizer's decision to approve or deny a charter application.

(6) The request for proposals shall state clear, appropriately detailed criteria as well as guidelines concerning the format and content essential for applicants to demonstrate the capacities necessary to establish and operate a successful public charter school.

(7) The request for proposals shall require charter applications to provide or describe thoroughly and each charter application shall provide or describe thoroughly, all of the following essential elements of the proposed school plan:

(a) An executive summary;

(b) The mission and vision of the proposed public charter school, including identification of the targeted student population and the community the school hopes to serve;

(d) The grades to be served each year for the full term of the charter contract;

(e) Minimum, planned and maximum enrollment per grade per year for the term of the charter contract;

(f) Evidence of need and parental support for the proposed public charter school;

(g) Background information on the proposed founding governing board members and, if identified, the proposed school leadership and management team;

(h) The school's proposed calendar and sample daily schedule;

(i) A description of the academic program aligned with state standards;

(j) A description of the school's instructional design, including the type of learning environment, such as classroom-based or independent study, class size and structure, curriculum overview and teaching methods;

(k) The school's plan for using internal and external assessments to measure and report student progress on the performance framework developed by the authorizer in accordance with Section 21(1) of this act;

(l) The school's plans for identifying and successfully serving students with disabilities, students who are English language learners, students who are academically behind and gifted students, including, but not limited to, compliance with applicable laws and regulations;

(m) A description of cocurricular or extracurricular programs and how they will be funded and delivered;

(n) Plans and timelines for student recruitment and enrollment, including lottery policies and procedures that ensure that every student has an equal opportunity to be considered in the lottery and that are equitable, randomized, transparent and impartial to ensure students are admitted to charter schools without regard to disability, income level, race, religion or national origin;

(o) The school's student discipline policies, including those for special education students;

(p) An organization chart that clearly presents the school's organizational structure, including lines of authority and reporting between the governing board, staff, any related bodies (such as advisory bodies or parent and teacher councils) and any external organizations that will play a role in managing the school;

(q) A clear description of the roles and responsibilities for the governing board, the school's leadership and management team and any other entities shown in the organization chart;

(r) A staffing chart for the school's first year and a staffing plan for the term of the charter;

(s) Plans for recruiting and developing school leadership and staff;

(t) The school's leadership and teacher employment policies, including performance evaluation plans;

(u) Proposed governing bylaws;

(v) Explanations of any partnerships or contractual relationships central to the school's operations or mission;

(w) The school's plans for providing transportation, food service and all other significant operational or ancillary services;

(x) Opportunities and expectations for parent involvement;

(y) A detailed school start-up plan, identifying tasks, timelines and responsible individuals;

(z) Description of the school's financial plan and policies, including financial controls and audit requirements;

(aa) A description of the insurance coverage the school will obtain;

(bb) Start-up and five-year budgets with clearly stated assumptions;

(cc) Start-up and first-year cash-flow projections with clearly stated assumptions;

(dd) Evidence of anticipated fund raising contributions, if claimed in the application; and,

(ee) A sound facilities plan, including backup or contingency plans if appropriate.

(8) In the case of an application to establish a public charter school by converting an existing noncharter public school to public charter school status, the request for proposals shall additionally require the applicants to demonstrate support for the proposed public charter school conversion by providing one (1) of the following:

(a) A petition signed by a majority of teachers in the existing noncharter public school;

(b) A petition signed by a majority of parents of students in the existing noncharter public school;

(d) In the case of schools in districts under state conservatorship, the State Board of Education.

(9) In the case of a proposal to establish a public charter school or convert an existing noncharter public school to public charter school status, the request for proposals shall additionally require the applicants to describe the proposed school's system of providing course credits through virtual classes with an entity with whom the charter school has contracted to provide such services and how the school will:

(a) Monitor and verify student participation in course selections, credit accrual and course completion;

(b) Monitor and verify student progress and performance in each course through regular assessments and submissions of coursework;

(d) Provide instruction to those students enrolled in a public charter or conversion charter for whom an IEP or 504 Plan has been developed who have a specific learning impairment or physical impairment that impedes the traditional learning process for such students.

(10) In the case of a proposed public charter school that intends to contract with an education service provider for substantial educational services, management services or both types of services, the request for proposals shall additionally require the applicants to:

(a) Provide evidence of the education service provider's ability to serve student populations similar to the targeted population, including demonstrated academic achievement as well as successful management of nonacademic school functions if applicable;

(b) Provide a term sheet setting forth the proposed duration of the service contract;

(c) Provide a description of the roles and responsibilities of the governing board, the school staff and the service provider;

(d) Provide the scope of services and resources to be provided by the service provider;

(e) Provide performance evaluation measures and timelines; compensation structure, including clear identification of all fees to be paid to the service provider;

(f) Provide methods of contract oversight and enforcement and investment disclosure;

(g) Provide conditions for renewal and termination of the contract; and

(h) Disclose and explain any existing or potential conflicts of interest between the school governing board and proposed service provider or any affiliated business entities.

(11) The request for proposals shall additionally require background information on the proposed founding governing board members and management team and, if identified, the proposed school leadership. The background information shall include annual student achievement data, disaggregated by subgroup, for every school under the current or prior management of any board member(s) and leadership team members and evidence of a record of sustained, significant academic success, including significant gains in student achievement in an underperforming school or evidence that the applicant has consistently improved levels of proficiency as measured on relevant state achievement tests.

(12) The request for proposals shall require each charter school applicant to provide evidence that they sent a copy of their application to the local school board in the district in which the charter school is proposed.

SECTION 17. (1) In reviewing and evaluating charter applications, authorizers shall employ procedures, practices and criteria consistent with nationally recognized principles and standards for quality charter authorizing. The application review process shall include thorough evaluation of each written charter application, an in-person interview with the applicant group and an opportunity in a public forum for local residents to learn about and provide input on each application.

(2) In deciding whether to approve charter applications, authorizers shall:

(a) Grant charters only to applicants that have provided evidence of competence in each element of the authorizer's published approval criteria and that have provided clear evidence that the management or leadership team of the proposed charter school has demonstrated significant academic success, including sustained, significant gains in student achievement in an underperforming school, or that it has consistently improved levels of proficiency as measured on relevant state achievement tests;

(b) Base decisions on documented evidence collected through the application review process;

(c) Follow charter-granting policies and practices that are transparent, based on merit and avoid conflicts of interest or any appearance thereof.

(3) No later than one hundred twenty (120) days after the filing of a charter application, the authorizer shall decide to approve or deny the charter application. The authorizer shall adopt by resolution all charter approval or denial decisions in an open meeting of the authorizer's governing board.

(4) An approval decision may include, if appropriate, reasonable conditions that the charter applicant must meet before a charter contract may be executed pursuant to Section 20(5) of this act.

(5) For any charter denial, the authorizer shall clearly state, for public record, its reasons for denial. A denied applicant may subsequently reapply to that or another authorizer.

(6) Within ten (10) days of taking action to approve or deny a charter application, the authorizer shall provide a report to the charter applicant. The report shall include a copy of the authorizer's resolution setting forth the action taken and reasons for the decision and assurances as to compliance with all of the procedural requirements and application elements set forth in Sections 16 through 20 of this act.

SECTION 18. The purposes of the charter application are to present the proposed public charter school's academic and operational vision and plans, demonstrate the applicant's capacities to execute the proposed vision and plans and provide the authorizer a clear basis for assessing the applicant's plans and capacities. An approved charter application shall not serve as the school's charter contract.

SECTION 19. An initial charter shall be granted for a term of five (5) operating years. The charter term shall commence on the public charter school's first day of operation. An approved public charter school may delay its opening for one (1) school year in order to plan and prepare for the school's opening. If the school requires an opening delay of more than one (1) school year, the school must request an extension from its authorizer. The authorizer may grant or deny the extension depending on the particular school's circumstances.

SECTION 20. (1) At the same time that a charter application is approved, the authorizer and the governing board of the approved public charter school shall execute a charter contract that clearly sets forth the academic and operational performance expectations and measures by which the public charter school will be judged and the administrative relationship between the authorizer and public charter school, including each party's rights and duties. The performance expectations and measures set forth in the charter contract shall include, but need not be limited to, applicable federal and state accountability requirements. The performance provisions may be refined or amended by mutual agreement after the public charter school is operating and has collected baseline achievement data for its enrolled students.

(2) The charter contract for a public charter school or conversion charter school shall include description and agreement regarding the methods by which the school will contract with a virtual school for purposes of providing virtual classes to students enrolled that:

(a) Monitor and verify student participation in course selections, credit accrual and course completion;

(b) Monitor and verify student progress and performance in each course through regular assessments and submissions of coursework;

(d) Provide instruction to those students enrolled in a public charter or conversion charter school for whom an IEP or 504 Plan has been developed who have a specific learning impairment or physical impairment that impedes the traditional learning process for such students.

(3) The charter contract shall be signed by the president of the authorizer's governing board and the president of the public charter school's governing body.

(4) No public charter school may commence operations without a charter contract executed in accordance with this provision and approved in an open meeting of the authorizer's governing board.

(5) Authorizers may establish reasonable preopening requirements or conditions to monitor the start-up progress of newly approved public charter schools and ensure that they are prepared to open smoothly on the date agreed and to ensure that each school meets all building, health, safety, insurance and other legal requirements for school opening.

SECTION 21. (1) (a) The performance provisions within the charter contract shall be based on a performance framework that clearly sets forth the academic and operational performance indicators, measures and metrics that will guide the authorizer's evaluations of each public charter school. The performance framework shall include indicators, measures and metrics for, at a minimum:

(i) Student academic proficiency;

(ii) Student academic growth;

(iii) Achievement gaps in both proficiency and growth between major student subgroups;

(iv) Attendance;

(v) Recurrent enrollment from year to year;

(vi) In-school and out-of-school suspension rates and expulsion rates;

(vii) Postsecondary readiness, including the percentage of graduates submitting applications to postsecondary institutions, high school completion, postsecondary admission and postsecondary enrollment or employment;

(viii) Financial performance and sustainability; and

(ix) Board performance and stewardship, including compliance with all applicable laws, regulations and terms of the charter contract.

(b) Annual performance targets shall be set by each public charter school in conjunction with its authorizer and shall be designed to help each school meet applicable federal, state and authorizer expectations.

(c) The performance framework shall allow the inclusion of additional rigorous, valid and reliable indicators proposed by a public charter school to augment external evaluations of its performance, provided that the authorizer approves the quality and rigor of such school-proposed indicators and they are consistent with the purposes of this act.

(d) The performance framework shall require the disaggregation of all student performance data by major student subgroups to the same extent as required of noncharter public schools.

(e) For each public charter school it oversees, the authorizer shall be responsible for collecting, analyzing and reporting all data from state assessments in accordance with the performance framework. Multiple schools overseen by a single governing board shall be required to report their performance as separate, individual schools and each school shall be held independently accountable for its performance.

(2) (a) An authorizer shall annually monitor the performance and legal compliance of the public charter schools it oversees, including collecting and analyzing data to support evaluation according to the charter contract. Every authorizer shall have the authority to conduct or require oversight activities that enable the authorizer to fulfill its responsibilities under this act, including conducting appropriate inquiries and investigations, so long as those activities are consistent with the intent of this act, adhere to the terms of the charter contract and do not unduly inhibit the autonomy granted to public charter schools.

(b) Each authorizer shall annually publish and provide, as part of its annual report to the Legislature, a performance report for each public charter school it oversees, in accordance with the performance framework set forth in the charter contract and Section 20(5) of this act. This report shall be made available to the public at the same time as it is submitted to the Legislature. The authorizer may require each public charter school it oversees to submit an annual report to assist the authorizer in gathering complete information about each school, consistent with the performance framework.

(c) In the event that a public charter school's performance or legal compliance appears unsatisfactory, the authorizer shall promptly notify the public charter school of the perceived problem and provide reasonable opportunity for the school to remedy the problem, unless the problem warrants revocation in which case the revocation timeframes will apply.

(d) Every authorizer shall have the authority to take appropriate corrective actions or exercise sanctions short of revocation in response to apparent deficiencies in public charter school performance or legal compliance. Such actions or sanctions may include, if warranted, requiring a school to develop and execute a corrective action plan within a specified timeframe.

SECTION 22. (1) A charter may be renewed for successive five-year terms of duration. An authorizer may grant renewal with specific conditions for necessary improvements to a public charter school, including lessening the renewal term based on the performance, demonstrated capacities and particular circumstances of each public charter school.

(2) No later than September 30, the authorizer shall issue a public charter school performance report and charter renewal application guidance to any public charter school whose charter will expire the following year. The performance report shall summarize the public charter school's performance record to date, based on the data required by this act and the charter contract and shall provide notice of any weaknesses or concerns perceived by the authorizer concerning the public charter school that may jeopardize its position in seeking renewal if not timely rectified. The public charter school shall have ninety (90) days to respond to the performance report and submit any corrections or clarifications for the report.

(3) The renewal application guidance shall, at a minimum, provide an opportunity for the public charter school to:

(a) Present additional evidence, beyond the data contained in the performance report, supporting its case for charter renewal;

(b) Describe improvements undertaken or planned for the school; and

(4) The renewal application guidance shall include or refer explicitly to the criteria that will guide the authorizer's renewal decisions, which shall be based on the performance framework set forth in the charter contract and consistent with this act.

(5) No later than February 1, the governing board of a public charter school seeking renewal shall submit a renewal application to the charter authorizer pursuant to the renewal application guidance issued by the authorizer. The authorizer shall rule by resolution on the renewal application no later than ninety (90) days after the filing of the renewal application.

(6) In making charter renewal decisions, every authorizer shall:

(a) Ground its decisions in evidence of the school's performance over the term of the charter contract in accordance with the performance framework set forth in the charter contract;

(b) Ensure that data used in making renewal decisions are available to the school and the public; and

(7) A charter contract may be revoked at any time or not renewed if the authorizer determines that the public charter school did any of the following or otherwise failed to comply with the provisions of this act:

(a) Commits a material and substantial violation of any of the terms, conditions, standards or procedures required under this act or the charter contract;

(b) Fails to meet or make sufficient progress toward the performance expectations set forth in the charter contract;

(d) Substantially violates any material provision of law from which the public charter school was not exempted.

(8) An authorizer must develop revocation and nonrenewal processes that:

(a) Provide the charter holders with a timely notification of the prospect of revocation or nonrenewal and of the reasons for such possible closure;

(b) Allow the charter holders a reasonable amount of time in which to prepare a response;

(c) Provide the charter holders with an opportunity to submit documents and give testimony challenging the rationale for closure and in support of the continuation of the school at an orderly proceeding held for that purpose;

(d) Allow the charter holders access to representation by counsel and to call witnesses on their behalf;

(e) Permit the recording of such proceedings; and

(f) After a reasonable period for deliberation, require a final determination be made and conveyed in writing to the charter holders.

(9) If an authorizer revokes or does not renew a charter, the authorizer shall clearly state, in a resolution of its governing board, the reasons for the revocation or nonrenewal.

(10) Within ten (10) calendar days of taking action to renew, not renew or revoke a charter, the authorizer shall provide a copy of a report to the public charter school. The report shall include a copy of the authorizer governing board's resolution setting forth the action taken and reasons for the decision and assurances as to compliance with all of the requirements set forth in this act.

SECTION 23. (1) Before any public charter school closure decision, an authorizer shall have developed a public charter school closure protocol to ensure timely notification to parents, orderly transition of students and student records to new schools and proper disposition of school funds, property and assets in accordance with the requirements of this act. The protocol shall specify tasks, timelines and responsible parties, including delineating the respective duties of the school and the authorizer. In the event of a public charter school closure for any reason, the authorizer shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students and parents, as guided by the closure protocol.

(2) If a charter school closes, all unspent government funds, unspent earnings from those funds and assets purchased with government funds will revert back to the original source of these funds. Unspent funds from nongovernmental sources, unspent earnings from those funds, assets purchased with those funds and debts of the school, unless otherwise provided for in the charter or debt instrument, shall revert to the nonprofit entity created to operate the school and may be disposed of according to applicable laws for nonprofit corporations.

SECTION 24. On or before September 30 of each year beginning in the first year after the state will have had a public charter school operating for a full school year, the Joint Committee on Performance Evaluation and Expenditure Review shall issue to the Governor, the Legislature, the Public Charter School Board, the State Board of Education and the public at large, an annual report on the state's public charter schools, drawing from the annual reports submitted by every authorizer to the Joint Committee on Performance Evaluation and Expenditure Review, as well as any additional relevant data compiled by the Office of Charter Schools, for the school year ending in the preceding calendar year. The annual report shall include a comparison of the performance of public charter school students with the performance of academically, racially and economically comparable groups of students in noncharter public schools. In addition, the annual report shall include the Joint Committee on Performance Evaluation and Expenditure Review's assessment of the successes, challenges and areas for improvement in meeting the purposes of this act, including the Joint Committee on Performance Evaluation and Expenditure Review's assessment of the sufficiency of funding for public charter schools, the efficiency and efficacy of authorizer funding and any suggested changes in state law or policy necessary to strengthen the state's public charter schools. The report shall also assess whether the creation of public charter schools is sufficient to meet demand, as calculated according to admissions data and the number of students denied enrollment as based on lottery results.

SECTION 25. (1) (a) A public charter school shall be a nonprofit education organization.

(b) A public charter school shall be subject to all federal laws and authorities enumerated herein or arranged by charter contract with the school's authorizer, where such contracting is consistent with applicable laws, rules and regulations.

(c) Except as provided in this act, a public charter school shall not be subject to the state's education statutes or any state or local rule, regulation, policy or procedure relating to noncharter public schools within an applicable local school district regardless of whether such rule, regulation, policy or procedure is established by the local school board, the State Board of Education or the State Department of Education.

(d) A charter contract may consist of one or more schools, to the extent approved by the authorizer and consistent with applicable law. Each public charter school that is part of a charter contract shall be separate and distinct from any others.

(e) A single governing board may hold one or more charter contracts. Each public charter school that is part of a charter contract shall be separate and distinct from any others.

(2) (a) Except for public charter schools authorized by local school boards, the public charter school functions for all purposes as a local educational agency. Local educational agency status does not preclude a public charter school from developing links to local school districts for services, resources and programs, by mutual agreement or by formal contract.

(b) To the extent permitted by federal, state or local laws, the public charter school is responsible for meeting the requirements of local educational agencies under applicable federal, state and local laws, including those relating to special education, receipt of funds and compliance with funding requirements.

(c) To the extent permitted by federal, state or local laws, the public charter school has primary responsibility for special education at the school, including identification and provision of service and is responsible for meeting the needs of enrolled students with disabilities.

(3) Public charter schools are not exempt from the following statutes:

(a) Section 37-7-301.1, which relates to collective bargaining agreements;

(b) Section 37-9-49, which relates to withholding of union dues;

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

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

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

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

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

SECTION 26. (1) A public charter school shall have all the powers necessary for carrying out the terms of its charter contract including the following powers:

(a) To receive and disburse funds for school purposes;

(b) To secure appropriate insurance and to enter into contracts and leases, free from prevailing wage laws;

(c) To contract with an education service provider for the management and operation of the public charter school so long as the school's governing board retains oversight authority over the school;

(d) To incur debt in reasonable anticipation of the receipt of public or private funds;

(e) To pledge, assign or encumber its assets to be used as collateral for loans or extensions of credit;

(f) To solicit and accept any gifts or grants for school purposes subject to applicable laws and the terms of its charter contract;

(g) To acquire real property for use as its facility or facilities, from public or private sources; and

(h) To sue and be sued in its own name.

(2) A public charter school shall not discriminate against any person on the basis of race, creed, color, sex, disability or national origin or any other category that would be unlawful if done by a noncharter public school.

(3) No public charter school may engage in any sectarian practices in its educational program, admissions or employment policies or operations.

(4) A public charter school shall not discriminate against any student on the basis of national origin, minority status or limited proficiency in English. Consistent with federal civil rights laws, public charter schools shall provide limited English proficient students with appropriate services designed to teach them English and the general curriculum.

(5) A public charter school shall not charge tuition and shall abide by Section 37-7-335 in the establishment and waiver of fees.

(6) The terms of each public charter school contract 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.

(7) The powers, obligations and responsibilities set forth in the charter contract cannot be delegated or assigned by either party, except as identified in the charter contract.

SECTION 27. (1) Public charter schools shall be subject to the same civil rights, health and safety requirements applicable to other public schools in the state, except as otherwise specifically provided in this act.

(2) Public charter schools shall be subject to the student assessment and accountability requirements applicable to other public schools in the state, but nothing herein shall preclude a public charter school from establishing additional student assessment measures that go beyond state requirements if the school's authorizer approves such measures.

(3) Public charter school governing boards shall be subject to and comply with state open meetings and freedom of information laws.

SECTION 28. (1) Public charter schools shall comply with applicable federal laws, rules and regulations regarding the qualification of teachers and other instructional staff. Teachers in a public charter school may be exempt from state teacher certification requirements under Section 37-3-2. Administrators of public charter schools may be exempt from state administrator certification requirements under Section 37-3-2.

(2) Employees in public charter schools are eligible for participation in retirement and other benefits programs of the state, to the extent allowable by law, if the public charter school chooses to participate.

(3) Teachers and other school personnel, as well as governing board trustees, shall be subject to criminal history record checks and fingerprinting requirements applicable to other public schools as required under Section 37-9-17.

SECTION 29. (1) A public charter school shall be eligible for state-sponsored or district-sponsored interscholastic leagues, competitions, awards, scholarships and recognition programs for students, educators, administrators and schools to the same extent as noncharter public schools.

(2) A public charter school student is eligible to participate in extracurricular activities not offered by the student's school at:

(a) The school within whose attendance boundaries the student's custodial parent or legal guardian resides; or

(b) The noncharter public school from which the student withdrew for the purpose of attending a public charter school.

(3) A public charter school student is eligible for extracurricular activities at a noncharter public school consistent with eligibility standards as applied to full-time students of the noncharter public school.

(4) A school district or noncharter public school may not impose additional requirements on a public charter school student to participate in extracurricular activities that are not imposed on full-time students of the noncharter public school.

(5) When selection to participate in an extracurricular activity at a noncharter public school is made on a competitive basis, a public charter school student is eligible to try out for and participate in the activity as provided in this section.

(6) The Mississippi High School Activities Association shall make rules establishing fees for public charter school students' participation in extracurricular activities at noncharter public schools. The rules shall provide that:

(a) Public charter school students pay the same fees as other students to participate in extracurricular activities;

(b) Public charter school students are eligible for fee waivers similar to other students;

(c) For each public charter school student who participates in an extracurricular activity at a noncharter public school, the public charter school shall pay a share of the noncharter public school's costs for the extracurricular activity; and

(d) A public charter school's share of the costs of having one or more students participate in an extracurricular activity at noncharter public schools shall reflect state and local tax revenues expended, except capital facilities expenditures, for such extracurricular activities in a noncharter public school divided by total student enrollment of the noncharter public school.

SECTION 30. (1) (a) Each public charter school shall annually certify to the State Department of Education its student enrollment, average daily attendance and student participation in the national school lunch program, special education, vocational education, gifted education, alternative school program and federal programs, in the same manner as school districts.

(b) Each public charter school shall annually certify to the tax collector in the county in which the charter school is located the number of enrolled public charter school students residing in each school district in the county. In the event a student enrolled in a public charter school resides in an adjoining county, the public charter school shall certify this enrollment to the tax collector of the county where the student resides.

(2) By October 15 of each year, the State Department of Education shall send each tax collector of any county in which is located a public charter school the current amount of ad valorem millage for operations in dollars per pupil which is levied for the support of each school district located in every county in the state based upon the certified budget request in dollars for the first month of enrollment. The ad valorem millage for operations in dollars to be reported shall 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), plus an estimated amount each district anticipates to receive for in lieu payments, and shall 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.

(3) (a) The State Department of Education shall make payments to public charter schools for each student in average daily attendance at the public charter school equal to the state share of the adequate education program payments for each student in average daily attendance at the public school district in which the public charter school is located. In calculating the local contribution for purposes of determining the state share of the adequate education program payments, the department shall deduct the pro rata local contribution of the school district in which the student resides, to be determined as provided in Section 37-151-7(2)(a).

(b) The tax collector in the county in which the public charter school is located shall pay directly to the public charter school an amount for each student enrolled in the public charter school equal to the ad valorem taxes levied and in lieu payments per pupil for the support of the school district in which the student resides, and the tax collector shall withhold an equal amount from the local school district in which the public charter school student resides. The pro rata ad valorem taxes and in lieu payments to be transferred to the public charter school shall 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) and shall 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. In the event a student attending the public charter school resides in an adjoining county, it shall be the responsibility of the tax collector of the county of the student's residence to make local ad valorem payments under this section to the public charter school, but in no event shall such 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 pursuant to this section by the tax collector to the charter schools shall be made at the same time and manner as funds are distributed to the school districts in the county on a per pupil basis. It shall be the duty of the tax collector to verify that payments of local school district ad valorem and in lieu receipts made to public charter schools and withheld from local school districts are based on the number of students actually attending the public charter school. If the tax collector collects ad valorem receipts for multiple school districts, the tax collecting entity will ensure that the deductions from each local school district's ad valorem and in lieu receipts that are diverted to the charter school are based on the number of students attending the charter school that reside in each local school district.

(4) Payments made under the authority of this section by the State Department of Education shall be made in twelve (12) substantially equal installments each year at the same time and in the same manner as adequate education program payments are made to public school districts. Amounts payable under this section shall be determined by the State Department of Education. Amounts payable to a public charter school in its first year of operation shall be based on the projections of initial-year enrollment and federal school level funding set forth in the charter contracts. Such projections shall be reconciled with the average daily attendance at the end of the school's first year of operation, and any necessary adjustments shall be made to payments during the school's second year of operation.

(5) (a) The state shall direct the proportionate share of monies generated under federal and state categorical aid programs, including special education, vocational, gifted and alternative school programs, to public charter schools serving students eligible for such aid. The state shall ensure that public charter schools with rapidly expanding enrollments are treated equitably in the calculation and disbursement of all federal and state categorical aid program dollars. Each public charter school that serves students who may be eligible to receive services provided through such programs shall comply with all reporting requirements to receive the aid.

(b) A public charter school shall pay to a local school district any federal or state aid attributable to a student with a disability attending a public charter school in proportion to the level of services for such student that the local school district provides directly or indirectly.

(c) At either party's request, a public charter school and a local school district may negotiate and include in the charter contract alternate arrangements for the provision of and payment for special education services, including, but not necessarily limited to, a reasonable reserve not to exceed five percent (5%) of the local school district's total budget for providing special education services. The reserve shall only be used by the local school district to offset excess costs of providing services to students with disabilities enrolled in one (1) of the public charter schools that has paid into it.

(6) At no time during a public charter school's operation shall more than two percent (2%) of the students residing in the attendance area of the district in which the public charter school is located and who are enrolled therein be permitted to receive instruction through a virtual public school. Unless the school district of residence otherwise agrees, funds for students shall only be transferred to the receiving charter school under the provisions of this section for a maximum of two percent (2%) of the students residing in the attendance area of the district based on the March 31 per-pupil expenditure for average daily attendance established in the preceding school year.

SECTION 31. (1) A public charter school shall adhere to generally accepted accounting principles.

(2) A public charter school shall annually engage an external auditor to do an independent audit of the school's finances. A public charter school shall send a copy of each audit report and accompanying management letter to its authorizer by July 30.

SECTION 32. (1) The State Department of Education shall disburse state transportation funding to a public charter school on the same basis and in the same manner as it is paid to school districts.

(2) A public charter school may enter into a contract with a school district or private provider to provide transportation to the school's students.

SECTION 33. Nothing in this act shall be construed to prohibit any person or organization from providing funding or other assistance to the establishment or operation of a public charter school. The governing board of a public charter school is authorized to accept gifts, donations and grants of any kind made to the public charter school and to expend or use such gifts, donations and grants in accordance with the conditions prescribed by the donor. However, that no gift, donation or grant may be accepted if subject to a condition that is contrary to any provision of law or term of the charter contract.

SECTION 34. (1) Public charter schools shall have equal access to all of the existing state facilities programs for traditional public schools in a state.

(2) A public charter school shall have a right of first refusal to purchase or lease at or below fair market value a closed public school facility or property or unused portions of a public school facility or property located in a school district from which it draws its students if the school district decides to sell or lease the public school facility or property.

(3) A public charter school may negotiate and contract at or below fair market value with a school district, the governing body of a state college or university or public community college or any other public or for-profit or nonprofit private entity for the use of facility for a school building.

(4) Library, community service, museum, performing arts, theatre, cinema, church, community college, college and university facilities may provide space to public charter schools within their facilities under their preexisting zoning and land use designations.

SECTION 35. Any charter school that is operating under the terms of a charter granted under the authority of Sections 37-28-1 through 37-28-21 may continue to operate under the terms of that charter for the duration of its term, notwithstanding the repeal of Sections 37-28-1 through 37-28-21 by operation of law on July 1, 2009. Upon the expiration of the charter, the charter school's sponsor may seek to renew the school's charter by modifying the charter so that the school fully complies with the requirements for being awarded, maintaining and renewing charter status under Sections 1 through 34 of this act.

SECTION 36. The provisions of Sections 1 through 36 of this act shall stand repealed on July 1, 2020.

SECTION 37. Section 37-3-2, Mississippi Code of 1972, is amended as follows:

37-3-2. (1) There is established within the State Department of Education the Commission on Teacher and Administrator Education, Certification and Licensure and Development. It shall be the purpose and duty of the commission to make recommendations to the State Board of Education regarding standards for the certification and licensure and continuing professional development of those who teach or perform tasks of an educational nature in the public schools of Mississippi.

(2) The commission shall be composed of fifteen (15) qualified members. The membership of the commission shall be composed of the following members to be appointed, three (3) from each congressional district: four (4) classroom teachers; three (3) school administrators; one (1) representative of schools of education of institutions of higher learning located within the state to be recommended by the Board of Trustees of State Institutions of Higher Learning; one (1) representative from the schools of education of independent institutions of higher learning to be recommended by the Board of the Mississippi Association of Independent Colleges; one (1) representative from public community and junior colleges located within the state to be recommended by the State Board for Community and Junior Colleges; one (1) local school board member; and four (4) laypersons. All appointments shall be made by the State Board of Education after consultation with the State Superintendent of Public Education. The first appointments by the State Board of Education shall be made as follows: five (5) members shall be appointed for a term of one (1) year; five (5) members shall be appointed for a term of two (2) years; and five (5) members shall be appointed for a term of three (3) years. Thereafter, all members shall be appointed for a term of four (4) years.

(3) The State Board of Education when making appointments shall designate a chairman. The commission shall meet at least once every two (2) months or more often if needed. Members of the commission shall be compensated at a rate of per diem as authorized by Section 25-3-69 and be reimbursed for actual and necessary expenses as authorized by Section 25-3-41.

(4) An appropriate staff member of the State Department of Education shall be designated and assigned by the State Superintendent of Public Education to serve as executive secretary and coordinator for the commission. No less than two (2) other appropriate staff members of the State Department of Education shall be designated and assigned by the State Superintendent of Public Education to serve on the staff of the commission.

(5) It shall be the duty of the commission to:

(a) Set standards and criteria, subject to the approval of the State Board of Education, for all educator preparation programs in the state;

(b) Recommend to the State Board of Education each year approval or disapproval of each educator preparation program in the state;

(c) Establish, subject to the approval of the State Board of Education, standards for initial teacher certification and licensure in all fields;

(d) Establish, subject to the approval of the State Board of Education, standards for the renewal of teacher licenses in all fields;

(e) Review and evaluate objective measures of teacher performance, such as test scores, which may form part of the licensure process, and to make recommendations for their use;

(f) Review all existing requirements for certification and licensure;

(g) Consult with groups whose work may be affected by the commission's decisions;

(h) Prepare reports from time to time on current practices and issues in the general area of teacher education and certification and licensure;

(i) Hold hearings concerning standards for teachers' and administrators' education and certification and licensure with approval of the State Board of Education;

(j) Hire expert consultants with approval of the State Board of Education;

(k) Set up ad hoc committees to advise on specific areas; and

(l) Perform such other functions as may fall within their general charge and which may be delegated to them by the State Board of Education.

(6) (a) Standard License - Approved Program Route. An educator entering the school system of Mississippi for the first time and meeting all requirements as established by the State Board of Education shall be granted a standard five-year license. Persons who possess two (2) years of classroom experience as an assistant teacher or who have taught for one (1) year in an accredited public or private school shall be allowed to fulfill student teaching requirements under the supervision of a qualified participating teacher approved by an accredited college of education. The local school district in which the assistant teacher is employed shall compensate such assistant teachers at the required salary level during the period of time such individual is completing student teaching requirements. Applicants for a standard license shall submit to the department:

(i) An application on a department form;

(ii) An official transcript of completion of a teacher education program approved by the department or a nationally accredited program, subject to the following: Licensure to teach in Mississippi prekindergarten through kindergarten classrooms shall require completion of a teacher education program or a bachelor of science degree with child development emphasis from a program accredited by the American Association of Family and Consumer Sciences (AAFCS) or by the National Association for Education of Young Children (NAEYC) or by the National Council for Accreditation of Teacher Education (NCATE). Licensure to teach in Mississippi kindergarten, for those applicants who have completed a teacher education program, and in Grade 1 through Grade 4 shall require the completion of an interdisciplinary program of studies. Licenses for Grades 4 through 8 shall require the completion of an interdisciplinary program of studies with two (2) or more areas of concentration. Licensure to teach in Mississippi Grades 7 through 12 shall require a major in an academic field other than education, or a combination of disciplines other than education. Students preparing to teach a subject shall complete a major in the respective subject discipline. All applicants for standard licensure shall demonstrate that such person's college preparation in those fields was in accordance with the standards set forth by the National Council for Accreditation of Teacher Education (NCATE) or the National Association of State Directors of Teacher Education and Certification (NASDTEC) or, for those applicants who have a bachelor of science degree with child development emphasis, the American Association of Family and Consumer Sciences (AAFCS);

(iii) A copy of test scores evidencing satisfactory completion of nationally administered examinations of achievement, such as the Educational Testing Service's teacher testing examinations; and

(iv) Any other document required by the State Board of Education.

(b) Standard License - Nontraditional Teaching Route. Beginning January 1, 2004, an individual who has a passing score on the Praxis I Basic Skills and Praxis II Specialty Area Test in the requested area of endorsement may apply for the Teach Mississippi Institute (TMI) program to teach students in Grades 7 through 12 if the individual meets the requirements of this paragraph (b). The State Board of Education shall adopt rules requiring that teacher preparation institutions which provide the Teach Mississippi Institute (TMI) program for the preparation of nontraditional teachers shall meet the standards and comply with the provisions of this paragraph.

(i) The Teach Mississippi Institute (TMI) shall include an intensive eight-week, nine-semester-hour summer program or a curriculum of study in which the student matriculates in the fall or spring semester, which shall include, but not be limited to, instruction in education, effective teaching strategies, classroom management, state curriculum requirements, planning and instruction, instructional methods and pedagogy, using test results to improve instruction, and a one (1) semester three-hour supervised internship to be completed while the teacher is employed as a full-time teacher intern in a local school district. The TMI shall be implemented on a pilot program basis, with courses to be offered at up to four (4) locations in the state, with one (1) TMI site to be located in each of the three (3) Mississippi Supreme Court districts.

(ii) The school sponsoring the teacher intern shall enter into a written agreement with the institution providing the Teach Mississippi Institute (TMI) program, under terms and conditions as agreed upon by the contracting parties, providing that the school district shall provide teacher interns seeking a nontraditional provisional teaching license with a one-year classroom teaching experience. The teacher intern shall successfully complete the one (1) semester three-hour intensive internship in the school district during the semester immediately following successful completion of the TMI and prior to the end of the one-year classroom teaching experience.

(iii) Upon completion of the nine-semester-hour TMI or the fall or spring semester option, the individual shall submit his transcript to the commission for provisional licensure of the intern teacher, and the intern teacher shall be issued a provisional teaching license by the commission, which will allow the individual to legally serve as a teacher while the person completes a nontraditional teacher preparation internship program.

(iv) During the semester of internship in the school district, the teacher preparation institution shall monitor the performance of the intern teacher. The school district that employs the provisional teacher shall supervise the provisional teacher during the teacher's intern year of employment under a nontraditional provisional license, and shall, in consultation with the teacher intern's mentor at the school district of employment, submit to the commission a comprehensive evaluation of the teacher's performance sixty (60) days prior to the expiration of the nontraditional provisional license. If the comprehensive evaluation establishes that the provisional teacher intern's performance fails to meet the standards of the approved nontraditional teacher preparation internship program, the individual shall not be approved for a standard license.

(v) An individual issued a provisional teaching license under this nontraditional route shall successfully complete, at a minimum, a one-year beginning teacher mentoring and induction program administered by the employing school district with the assistance of the State Department of Education.

(vi) Upon successful completion of the TMI and the internship provisional license period, applicants for a Standard License - Nontraditional Route shall submit to the commission a transcript of successful completion of the twelve (12) semester hours required in the internship program, and the employing school district shall submit to the commission a recommendation for standard licensure of the intern. If the school district recommends licensure, the applicant shall be issued a Standard License - Nontraditional Route which shall be valid for a five-year period and be renewable.

(vii) At the discretion of the teacher preparation institution, the individual shall be allowed to credit the twelve (12) semester hours earned in the nontraditional teacher internship program toward the graduate hours required for a Master of Arts in Teacher (MAT) Degree.

(viii) The local school district in which the nontraditional teacher intern or provisional licensee is employed shall compensate such teacher interns at Step 1 of the required salary level during the period of time such individual is completing teacher internship requirements and shall compensate such Standard License - Nontraditional Route teachers at Step 3 of the required salary level when they complete license requirements.

Implementation of the TMI program provided for under this paragraph (b) shall be contingent upon the availability of funds appropriated specifically for such purpose by the Legislature. Such implementation of the TMI program may not be deemed to prohibit the State Board of Education from developing and implementing additional alternative route teacher licensure programs, as deemed appropriate by the board. The emergency certification program in effect prior to July 1, 2002, shall remain in effect.

A Standard License - Approved Program Route shall be issued for a five-year period, and may be renewed. Recognizing teaching as a profession, a hiring preference shall be granted to persons holding a Standard License - Approved Program Route or Standard License - Nontraditional Teaching Route over persons holding any other license.

(c) Special License - Expert Citizen. In order to allow a school district to offer specialized or technical courses, the State Department of Education, in accordance with rules and regulations established by the State Board of Education, may grant a one-year expert citizen-teacher license to local business or other professional personnel to teach in a public school or nonpublic school accredited or approved by the state. Such person may begin teaching upon his employment by the local school board and licensure by the Mississippi Department of Education. The board shall adopt rules and regulations to administer the expert citizen-teacher license. A Special License - Expert Citizen may be renewed in accordance with the established rules and regulations of the State Department of Education.

(d) Special License - Nonrenewable. The State Board of Education is authorized to establish rules and regulations to allow those educators not meeting requirements in subsection (6)(a), (b) or (c) to be licensed for a period of not more than three (3) years, except by special approval of the State Board of Education.

(e) Nonlicensed Teaching Personnel. A nonlicensed person may teach for a maximum of three (3) periods per teaching day in a public school or a nonpublic school accredited/approved by the state. Such person shall submit to the department a transcript or record of his education and experience which substantiates his preparation for the subject to be taught and shall meet other qualifications specified by the commission and approved by the State Board of Education. In no case shall any local school board hire nonlicensed personnel as authorized under this paragraph in excess of five percent (5%) of the total number of licensed personnel in any single school.

(f) Special License - Transitional Bilingual Education. Beginning July 1, 2003, the commission shall grant special licenses to teachers of transitional bilingual education who possess such qualifications as are prescribed in this section. Teachers of transitional bilingual education shall be compensated by local school boards at not less than one (1) step on the regular salary schedule applicable to permanent teachers licensed under this section. The commission shall grant special licenses to teachers of transitional bilingual education who present the commission with satisfactory evidence that they (i) possess a speaking and reading ability in a language, other than English, in which bilingual education is offered and communicative skills in English; (ii) are in good health and sound moral character; (iii) possess a bachelor's degree or an associate's degree in teacher education from an accredited institution of higher education; (iv) meet such requirements as to courses of study, semester hours therein, experience and training as may be required by the commission; and (v) are legally present in the United States and possess legal authorization for employment. A teacher of transitional bilingual education serving under a special license shall be under an exemption from standard licensure if he achieves the requisite qualifications therefor. Two (2) years of service by a teacher of transitional bilingual education under such an exemption shall be credited to the teacher in acquiring a Standard Educator License. Nothing in this paragraph shall be deemed to prohibit a local school board from employing a teacher licensed in an appropriate field as approved by the State Department of Education to teach in a program in transitional bilingual education.

(g) In the event any school district meets the highest accreditation standards as defined by the State Board of Education in the accountability system, the State Board of Education, in its discretion, may exempt such school district from any restrictions in paragraph (e) relating to the employment of nonlicensed teaching personnel.

(h) Highly Qualified Teachers. Beginning July 1, 2006, any teacher from any state meeting the federal definition of highly qualified, as described in the No Child Left Behind Act, must be granted a standard five-year license by the State Department of Education.

(7) Administrator License. The State Board of Education is authorized to establish rules and regulations and to administer the licensure process of the school administrators in the State of Mississippi. There will be four (4) categories of administrator licensure with exceptions only through special approval of the State Board of Education.

(a) Administrator License - Nonpracticing. Those educators holding administrative endorsement but having no administrative experience or not serving in an administrative position on January 15, 1997.

(b) Administrator License - Entry Level. Those educators holding administrative endorsement and having met the department's qualifications to be eligible for employment in a Mississippi school district. Administrator License - Entry Level shall be issued for a five-year period and shall be nonrenewable.

(c) Standard Administrator License - Career Level. An administrator who has met all the requirements of the department for standard administrator licensure.

(d) Administrator License - Nontraditional Route. The board may establish a nontraditional route for licensing administrative personnel. Such nontraditional route for administrative licensure shall be available for persons holding, but not limited to, a master of business administration degree, a master of public administration degree, a master of public planning and policy degree or a doctor of jurisprudence degree from an accredited college or university, with five (5) years of administrative or supervisory experience. Successful completion of the requirements of alternate route licensure for administrators shall qualify the person for a standard administrator license.

Individuals seeking school administrator licensure under paragraph (b), (c) or (d) shall successfully complete a training program and an assessment process prescribed by the State Board of Education. All applicants for school administrator licensure shall meet all requirements prescribed by the department under paragraph (b), (c) or (d), and the cost of the assessment process required shall be paid by the applicant.

(8) Reciprocity. (a) The department shall grant a standard license to any individual who possesses a valid standard license from another state and meets minimum Mississippi license requirements or equivalent requirements as determined by the State Board of Education.

(b) The department shall grant a nonrenewable special license to any individual who possesses a credential which is less than a standard license or certification from another state. Such special license shall be valid for the current school year plus one (1) additional school year to expire on June 30 of the second year, not to exceed a total period of twenty-four (24) months, during which time the applicant shall be required to complete the requirements for a standard license in Mississippi.

(9) Renewal and Reinstatement of Licenses. The State Board of Education is authorized to establish rules and regulations for the renewal and reinstatement of educator and administrator licenses. Effective May 15, 1997, the valid standard license held by an educator shall be extended five (5) years beyond the expiration date of the license in order to afford the educator adequate time to fulfill new renewal requirements established pursuant to this subsection. An educator completing a master of education, educational specialist or doctor of education degree in May 1997 for the purpose of upgrading the educator's license to a higher class shall be given this extension of five (5) years plus five (5) additional years for completion of a higher degree.

(10) All controversies involving the issuance, revocation, suspension or any change whatsoever in the licensure of an educator required to hold a license shall be initially heard in a hearing de novo, by the commission or by a subcommittee established by the commission and composed of commission members for the purpose of holding hearings. Any complaint seeking the denial of issuance, revocation or suspension of a license shall be by sworn affidavit filed with the Commission of Teacher and Administrator Education, Certification and Licensure and Development. The decision thereon by the commission or its subcommittee shall be final, unless the aggrieved party shall appeal to the State Board of Education, within ten (10) days, of the decision of the committee or its subcommittee. An appeal to the State Board of Education shall be on the record previously made before the commission or its subcommittee unless otherwise provided by rules and regulations adopted by the board. The State Board of Education in its authority may reverse, or remand with instructions, the decision of the committee or its subcommittee. The decision of the State Board of Education shall be final.

(11) The State Board of Education, acting through the commission, may deny an application for any teacher or administrator license for one or more of the following:

(a) Lack of qualifications which are prescribed by law or regulations adopted by the State Board of Education;

(b) The applicant has a physical, emotional or mental disability that renders the applicant unfit to perform the duties authorized by the license, as certified by a licensed psychologist or psychiatrist;

(c) The applicant is actively addicted to or actively dependent on alcohol or other habit-forming drugs or is a habitual user of narcotics, barbiturates, amphetamines, hallucinogens or other drugs having similar effect, at the time of application for a license;

(d) Revocation or suspension of an applicant's certificate or license by another state;

(e) Fraud or deceit committed by the applicant in securing or attempting to secure such certification and license;

(f) Failing or refusing to furnish reasonable evidence of identification;

(g) The applicant has been convicted, has pled guilty or entered a plea of nolo contendere to a felony, as defined by federal or state law; or

(h) The applicant has been convicted, has pled guilty or entered a plea of nolo contendere to a sex offense as defined by federal or state law.

(12) The State Board of Education, acting on the recommendation of the commission, may revoke or suspend any teacher or administrator license for specified periods of time for one or more of the following:

(a) Breach of contract or abandonment of employment may result in the suspension of the license for one (1) school year as provided in Section 37-9-57;

(b) Obtaining a license by fraudulent means shall result in immediate suspension and continued suspension for one (1) year after correction is made;

(c) Suspension or revocation of a certificate or license by another state shall result in immediate suspension or revocation and shall continue until records in the prior state have been cleared;

(d) The license holder has been convicted, has pled guilty or entered a plea of nolo contendere to a felony, as defined by federal or state law;

(e) The license holder has been convicted, has pled guilty or entered a plea of nolo contendere to a sex offense, as defined by federal or state law;

(f) The license holder knowingly and willfully committing any of the acts affecting validity of mandatory uniform test results as provided in Section 37-16-4(1);

(g) The license holder has engaged in unethical conduct relating to an educator/student relationship as identified by the State Board of Education in its rules;

(h) The license holder has fondled a student as described in Section 97-5-23, or had any type of sexual involvement with a student as described in Section 97-3-95; or

(i) The license holder has failed to report sexual involvement of a school employee with a student as required by Section 97-5-24.

(13) (a) Dismissal or suspension of a licensed employee by a local school board pursuant to Section 37-9-59 may result in the suspension or revocation of a license for a length of time which shall be determined by the commission and based upon the severity of the offense.

(b) Any offense committed or attempted in any other state shall result in the same penalty as if committed or attempted in this state.

(c) A person may voluntarily surrender a license. The surrender of such license may result in the commission recommending any of the above penalties without the necessity of a hearing. However, any such license which has voluntarily been surrendered by a licensed employee may only be reinstated by a majority vote of all members of the commission present at the meeting called for such purpose.

(14) A person whose license has been suspended on any grounds except criminal grounds may petition for reinstatement of the license after one (1) year from the date of suspension, or after one-half (1/2) of the suspended time has lapsed, whichever is greater. A license suspended or revoked on the criminal grounds may be reinstated upon petition to the commission filed after expiration of the sentence and parole or probationary period imposed upon conviction. A revoked, suspended or surrendered license may be reinstated upon satisfactory showing of evidence of rehabilitation. The commission shall require all who petition for reinstatement to furnish evidence satisfactory to the commission of good character, good mental, emotional and physical health and such other evidence as the commission may deem necessary to establish the petitioner's rehabilitation and fitness to perform the duties authorized by the license.

(15) Reporting procedures and hearing procedures for dealing with infractions under this section shall be promulgated by the commission, subject to the approval of the State Board of Education. The revocation or suspension of a license shall be effected at the time indicated on the notice of suspension or revocation. The commission shall immediately notify the superintendent of the school district or school board where the teacher or administrator is employed of any disciplinary action and also notify the teacher or administrator of such revocation or suspension and shall maintain records of action taken. The State Board of Education may reverse or remand with instructions any decision of the commission regarding a petition for reinstatement of a license, and any such decision of the State Board of Education shall be final.

(16) An appeal from the action of the State Board of Education in denying an application, revoking or suspending a license or otherwise disciplining any person under the provisions of this section shall be filed in the Chancery Court of the First Judicial District of Hinds County on the record made, including a verbatim transcript of the testimony at the hearing. The appeal shall be filed within thirty (30) days after notification of the action of the board is mailed or served and the proceedings in chancery court shall be conducted as other matters coming before the court. The appeal shall be perfected upon filing notice of the appeal and by the prepayment of all costs, including the cost of preparation of the record of the proceedings by the State Board of Education, and the filing of a bond in the sum of Two Hundred Dollars ($200.00) conditioned that if the action of the board be affirmed by the chancery court, the applicant or license holder shall pay the costs of the appeal and the action of the chancery court.

(17) All such programs, rules, regulations, standards and criteria recommended or authorized by the commission shall become effective upon approval by the State Board of Education as designated by appropriate orders entered upon the minutes thereof.

(18) The granting of a license shall not be deemed a property right nor a guarantee of employment in any public school district. A license is a privilege indicating minimal eligibility for teaching in the public schools of Mississippi. This section shall in no way alter or abridge the authority of local school districts to require greater qualifications or standards of performance as a prerequisite of initial or continued employment in such districts.

(19) In addition to the reasons specified in subsections (12) and (13) of this section, the board shall be authorized to suspend the license of any licensee for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a license for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a license suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a license suspended for that purpose, shall be governed by Section 93-11-157 or 93-11-163, as the case may be. Actions taken by the board in suspending a license when required by Section 93-11-157 or 93-11-163 are not actions from which an appeal may be taken under this section. Any appeal of a license suspension that is required by Section 93-11-157 or 93-11-163 shall be taken in accordance with the appeal procedure specified in Section 93-11-157 or 93-11-163, as the case may be, rather than the procedure specified in this section. If there is any conflict between any provision of Section 93-11-157 or 93-11-163 and any provision of this chapter, the provisions of Section 93-11-157 or 93-11-163, as the case may be, shall control.

(20) The provisions of this section shall not apply to any teacher, instructional staff or administrator of a public charter school established under the terms and provisions of Sections 1 through 36 of this act, except the Charter School Board shall deny employment to any teacher or administrator as a result of subsection (11)(b) through (h). In addition, the Charter School Board shall provide for the suspension of any teacher, administrator or employee as result of subsection (12)(d) through (i).

SECTION 38. Section 37-9-17, Mississippi Code of 1972, is amended as follows:

37-9-17. (1) On or before April 1 of each year, the principal of each school shall recommend to the superintendent of the local school district the licensed employees or noninstructional employees to be employed for the school involved except those licensed employees or noninstructional employees who have been previously employed and who have a contract valid for the ensuing scholastic year. If such recommendations meet with the approval of the superintendent, the superintendent shall recommend the employment of such licensed employees or noninstructional employees to the local school board, and, unless good reason to the contrary exists, the board shall elect the employees so recommended. If, for any reason, the local school board shall decline to elect any employee so recommended, additional recommendations for the places to be filled shall be made by the principal to the superintendent and then by the superintendent to the local school board as provided above. The school board of any local school district shall be authorized to designate a personnel supervisor or another principal employed by the school district to recommend to the superintendent licensed employees or noninstructional employees; however, this authorization shall be restricted to no more than two (2) positions for each employment period for each school in the local school district. Any noninstructional employee employed upon the recommendation of a personnel supervisor or another principal employed by the local school district must have been employed by the local school district at the time the superintendent was elected or appointed to office; a noninstructional employee employed under this authorization may not be paid compensation in excess of the statewide average compensation for such noninstructional position with comparable experience, as established by the State Department of Education. The school board of any local school district shall be authorized to designate a personnel supervisor or another principal employed by the school district to accept the recommendations of principals or their designees for licensed employees or noninstructional employees and to transmit approved recommendations to the local school board; however, this authorization shall be restricted to no more than two (2) positions for each employment period for each school in the local school district.

When the licensed employees have been elected as provided in the preceding paragraph, the superintendent of the district shall enter into a contract with such persons in the manner provided in this chapter.

If, at the commencement of the scholastic year, any licensed employee shall present to the superintendent a license of a higher grade than that specified in such individual's contract, such individual may, if funds are available from adequate education program funds of the district, or from district funds, be paid from such funds the amount to which such higher grade license would have entitled the individual, had the license been held at the time the contract was executed.

(2) Superintendents/directors of schools under the purview of the State Board of Education, the superintendent of the local school district and any private firm under contract with the local public school district to provide substitute teachers to teach during the absence of a regularly employed schoolteacher shall require, through the appropriate governmental authority, that current criminal records background checks and current child abuse registry checks are obtained, and that such criminal record information and registry checks are on file for any new hires applying for employment as a licensed or nonlicensed employee at a school and not previously employed in such school under the purview of the State Board of Education or at such local school district prior to July 1, 2000. In order to determine the applicant's suitability for employment, the applicant shall be fingerprinted. If no disqualifying record is identified at the state level, the fingerprints shall be forwarded by the Department of Public Safety to the Federal Bureau of Investigation for a national criminal history record check. The fee for such fingerprinting and criminal history record check shall be paid by the applicant, not to exceed Fifty Dollars ($50.00); however, the State Board of Education, the school board of the local school district or a private firm under contract with a local school district to provide substitute teachers to teach during the temporary absence of the regularly employed schoolteacher, in its discretion, may elect to pay the fee for the fingerprinting and criminal history record check on behalf of any applicant. Under no circumstances shall a member of the State Board of Education, superintendent/director of schools under the purview of the State Board of Education, local school district superintendent, local school board member or any individual other than the subject of the criminal history record checks disseminate information received through any such checks except insofar as required to fulfill the purposes of this section. Any nonpublic school which is accredited or approved by the State Board of Education may avail itself of the procedures provided for herein and shall be responsible for the same fee charged in the case of local public schools of this state. The determination whether the applicant has a disqualifying crime, as set forth in subsection (3) of this section, shall be made by the appropriate governmental authority, and the appropriate governmental authority shall notify the private firm whether a disqualifying crime exists.

(3) If such fingerprinting or criminal record checks disclose a felony conviction, guilty plea or plea of nolo contendere to a felony of possession or sale of drugs, murder, manslaughter, armed robbery, rape, sexual battery, sex offense listed in Section 45-33-23(g), child abuse, arson, grand larceny, burglary, gratification of lust or aggravated assault which has not been reversed on appeal or for which a pardon has not been granted, the new hire shall not be eligible to be employed at such school. Any employment contract for a new hire executed by the superintendent of the local school district or any employment of a new hire by a superintendent/director of a new school under the purview of the State Board of Education or by a private firm shall be voidable if the new hire receives a disqualifying criminal record check. However, the State Board of Education or the school board may, in its discretion, allow any applicant aggrieved by the employment decision under this section to appear before the respective board, or before a hearing officer designated for such purpose, to show mitigating circumstances which may exist and allow the new hire to be employed at the school. The State Board of Education or local school board may grant waivers for such mitigating circumstances, which shall include, but not be limited to: (a) age at which the crime was committed; (b) circumstances surrounding the crime; (c) length of time since the conviction and criminal history since the conviction; (d) work history; (e) current employment and character references; (f) other evidence demonstrating the ability of the person to perform the employment responsibilities competently and that the person does not pose a threat to the health or safety of the children at the school.

(4) Any teacher, instructional staff or administrator of a public charter school established under the terms and provisions of Sections 1 through 36 of this act shall adhere to the criminal background check and fingerprinting requirements under subsection (2) of this section.

(5) No local school district, local school district employee, member of the State Board of Education or employee of a school under the purview of the State Board of Education shall be held liable in any employment discrimination suit in which an allegation of discrimination is made regarding an employment decision authorized under this Section 37-9-17.

SECTION 39. Section 37-9-103, Mississippi Code of 1972, is amended as follows:

37-9-103. (1) As used in Sections 37-9-101 through 37-9-113, the word "employee" shall include:

(a) Any teacher, principal, superintendent or other professional personnel employed by the local school district for a continuous period of two (2) years with that district and required to have a valid license issued by the State Department of Education as a prerequisite of employment; or

(b) Any teacher, principal, superintendent or other professional personnel who has completed a continuous period of two (2) years of employment in a Mississippi public school district and one (1) full year of employment with the school district of current employment, and who is required to have a valid license issued by the State Department of Education as a prerequisite of employment.

(2) (a) The Education Employment Procedures Law shall not apply to any category of employee as defined in this section employed in any school district after the Governor declares a state of emergency under the provisions of Section 37-17-6(11). The Education Employment Procedures Law shall not be applicable in any school district for the full period of time that those conditions, as defined in Section 37-17-6(11), exist.

(b) The Education Employment Procedures Law shall not apply to any category of employee as defined in this section employed in any school that is a new start school, as provided for under Section 37-167-1.

(c) The Education Employment Procedures Law shall not apply to any category of teacher, administrator or employee of a public charter school established under the terms and provisions of Sections 1 through 36 of this act.

(3) For purposes of Sections 37-9-101 through 37-9-113, the term "days" means calendar days.

SECTION 40. 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 and 37-165-25, Mississippi Code of 1972, which are the Conversion Charter School Act of 2010, are repealed.

SECTION 41. Section 37-165-27, Mississippi Code of 1972, is amended as follows:

37-165-27. Sections 37-167-1, 37-9-3, 37-9-103 and

* * * 37-165-27 shall stand repealed on July 1, 2016.

SECTION 42. Section 37-151-7, Mississippi Code of 1972, is brought forward as follows:

37-151-7. The annual allocation to each school district for the operation of the adequate education program shall be determined as follows:

(1) Computation of the basic amount to be included for current operation in the adequate education program. The following procedure shall be followed in determining the annual allocation to each school district:

(a) Determination of average daily attendance. Effective with fiscal year 2011, the State Department of Education shall determine the percentage change from the prior year of each year of each school district's average of months two (2) and three (3) average daily attendance (ADA) for the three (3) immediately preceding school years of the year for which funds are being appropriated. For any school district that experiences a positive growth in the average of months two (2) and three (3) ADA each year of the three (3) years, the average percentage growth over the three-year period shall be multiplied times the school district's average of months two (2) and three (3) ADA for the year immediately preceding the year for which MAEP funds are being appropriated. The resulting amount shall be added to the school district's average of months two (2) and three (3) ADA for the year immediately preceding the year for which MAEP funds are being appropriated to arrive at the ADA to be used in determining a school district's MAEP allocation. Otherwise, months two (2) and three (3) ADA for the year immediately preceding the year for which MAEP funds are being appropriated will be used in determining a school district's MAEP allocation. In any fiscal year prior to 2010 in which the MAEP formula is not fully funded, for those districts that do not demonstrate a three-year positive growth in months two (2) and three (3) ADA, months 1-9 ADA of the second preceding year for which funds are being appropriated or months two (2) and three (3) ADA of the preceding year for which funds are being appropriated, whichever is greater, shall be used to calculate the district's MAEP allocation. The district's average daily attendance shall be computed and currently maintained in accordance with regulations promulgated by the State Board of Education.

(b) Determination of base student cost. Effective with fiscal year 2011 and every fourth fiscal year thereafter, the State Board of Education, on or before August 1, with adjusted estimate no later than January 2, shall submit to the Legislative Budget Office and the Governor a proposed base student cost adequate to provide the following cost components of educating a pupil in a successful school district: (i) Instructional Cost; (ii) Administrative Cost; (iii) Operation and Maintenance of Plant; and (iv) Ancillary Support Cost. For purposes of these calculations, the Department of Education shall utilize financial data from the second preceding year of the year for which funds are being appropriated.

For the instructional cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of a number of teachers per one thousand (1,000) students that is between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average of teachers per one thousand (1,000) students. The instructional cost component shall be calculated by dividing the latest available months 1-9 ADA into the instructional expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:

Fund 1120 Functions 1110-1199 Objects 100-999, Functions

1210, 1220, 2150-2159 Objects 210 and 215;

Fund 1130 All Functions, Object Code 210 and 215;

Fund 2001 Functions 1110-1199 Objects 100-999;

Fund 2070 Functions 1110-1199 Objects 100-999;

Fund 2420 Functions 1110-1199 Objects 100-999;

Fund 2711 All Functions, Object Code 210 and 215.

Prior to the calculation of the instructional cost component, there shall be subtracted from the above expenditures any revenue received for Chickasaw Cession payments, Master Teacher Certification payments and the district's portion of state revenue received from the MAEP at-risk allocation.

For the administrative cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of an administrative staff to nonadministrative staff between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average administrative staff to nonadministrative staff. The administrative cost component shall be calculated by dividing the latest available months 1-9 ADA of the selected districts into the administrative expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:

Fund 1120 Functions 2300-2599, Functions 2800-2899,

Objects 100-999;

Fund 2711 Functions 2300-2599, Functions 2800-2899,

Objects 100-999.

For the plant and maintenance cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of plant and maintenance expenditures per one hundred thousand (100,000) square feet of building space and a ratio of maintenance workers per one hundred thousand (100,000) square feet of building space that are both between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average. The plant and maintenance cost component shall be calculated by dividing the latest available months 1-9 ADA of the selected districts into the plant and maintenance expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:

Fund 1120 Functions 2600-2699, Objects 100-699

and Objects 800-999;

Fund 2711 Functions 2600-2699, Objects 100-699

and Objects 800-999;

Fund 2430 Functions 2600-2699, Objects 100-699

and Objects 800-999.

For the ancillary support cost component, the Department of Education shall select districts that have been identified as instructionally successful and have a ratio of a number of librarians, media specialists, guidance counselors and psychologists per one thousand (1,000) students that is between one (1) standard deviation above the mean and two (2) standard deviations below the mean of the statewide average of librarians, media specialists, guidance counselors and psychologists per one thousand (1,000) students. The ancillary cost component shall be calculated by dividing the latest available months 1-9 ADA into the ancillary expenditures instructional expenditures of these selected districts. For the purpose of this calculation, the Department of Education shall use the following funds, functions and objects:

Fund 1120 Functions 2110-2129, Objects 100-999;

Fund 1120 Functions 2140-2149, Objects 100-999;

Fund 1120 Functions 2220-2229, Objects 100-999;

Fund 2001 Functions 2100-2129, Objects 100-999;

Fund 2001 Functions 2140-2149, Objects 100-999;

Fund 2001 Functions 2220-2229, Objects 100-999.

The total base cost for each year shall be the sum of the instructional cost component, administrative cost component, plant and maintenance cost component and ancillary support cost component, and any estimated adjustments for additional state requirements as determined by the State Board of Education. Provided, however, that the base student cost in fiscal year 1998 shall be Two Thousand Six Hundred Sixty-four Dollars ($2,664.00).

For each of the fiscal years between the recalculation of the base student cost under the provisions of this paragraph (b), the base student cost shall be increased by an amount equal to forty percent (40%) of the base student cost for the previous fiscal year, multiplied by the latest annual rate of inflation for the State of Mississippi as determined by the State Economist, plus any adjustments for additional state requirements such as, but not limited to, teacher pay raises and health insurance premium increases.

(c) Determination of the basic adequate education program cost. The basic amount for current operation to be included in the Mississippi Adequate Education Program for each school district shall be computed as follows:

Multiply the average daily attendance of the district by the base student cost as established by the Legislature, which yields the total base program cost for each school district.

(d) Adjustment to the base student cost for at-risk pupils. The amount to be included for at-risk pupil programs for each school district shall be computed as follows: Multiply the base student cost for the appropriate fiscal year as determined under paragraph (b) by five percent (5%), and multiply that product by the number of pupils participating in the federal free school lunch program in such school district, which yields the total adjustment for at-risk pupil programs for such school district.

(e) Add-on program cost. The amount to be allocated to school districts in addition to the adequate education program cost for add-on programs for each school district shall be computed as follows:

(i) Transportation cost shall be the amount allocated to such school district for the operational support of the district transportation system from state funds.

(ii) Vocational or technical education program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.

(iii) Special education program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.

(iv) Gifted education program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.

(v) Alternative school program cost shall be the amount allocated to such school district from state funds for the operational support of such programs.

(vi) Extended school year programs shall be the amount allocated to school districts for those programs authorized by law which extend beyond the normal school year.

(vii) University-based programs shall be the amount allocated to school districts for those university-based programs for handicapped children as defined and provided for in Section 37-23-131 et seq., Mississippi Code of 1972.

(viii) Bus driver training programs shall be the amount provided for those driver training programs as provided for in Section 37-41-1, Mississippi Code of 1972.

The sum of the items listed above (i) transportation, (ii) vocational or technical education, (iii) special education, (iv) gifted education, (v) alternative school, (vi) extended school year, (vii) university-based, and (viii) bus driver training shall yield the add-on cost for each school district.

(f) Total projected adequate education program cost. The total Mississippi Adequate Education Program cost shall be the sum of the total basic adequate education program cost (paragraph (c)), and the adjustment to the base student cost for at-risk pupils (paragraph (d)) for each school district. In any year in which the MAEP is not fully funded, the Legislature shall direct the Department of Education in the K-12 appropriation bill as to how to allocate MAEP funds to school districts for that year.

(g) The State Auditor shall annually verify the State Board of Education's estimated calculations for the Mississippi Adequate Education Program that are submitted each year to the Legislative Budget Office on August 1 and the final calculation that is submitted on January 2.

(2) Computation of the required local revenue in support of the adequate education program. The amount that each district shall provide toward the cost of the adequate education program shall be calculated as follows:

(a) The State Department of Education shall certify to each school district that twenty-eight (28) mills, less the estimated amount of the yield of the School Ad Valorem Tax Reduction Fund grants as determined by the State Department of Education, is the millage rate required to provide the district required local effort for that year, or twenty-seven percent (27%) of the basic adequate education program cost for such school district as determined under paragraph (c), whichever is a lesser amount. In the case of an agricultural high school, the millage requirement shall be set at a level which generates an equitable amount per pupil to be determined by the State Board of Education.

(b) The State Department of Education shall determine (i) the total assessed valuation of nonexempt property for school purposes in each school district; (ii) assessed value of exempt property owned by homeowners aged sixty-five (65) or older or disabled as defined in Section 27-33-67(2), Mississippi Code of 1972; (iii) the school district's tax loss from exemptions provided to applicants under the age of sixty-five (65) and not disabled as defined in Section 27-33-67(1), Mississippi Code of 1972; and (iv) the school district's homestead reimbursement revenues.

(c) The amount of the total adequate education program funding which shall be contributed by each school district shall be the sum of the ad valorem receipts generated by the millage required under this subsection plus the following local revenue sources for the appropriate fiscal year which are or may be available for current expenditure by the school district:

One hundred percent (100%) of Grand Gulf income as prescribed in Section 27-35-309.

One hundred percent (100%) of any fees in lieu of taxes as prescribed in Section 27-31-104.

(3) Computation of the required state effort in support of the adequate education program.

(a) The required state effort in support of the adequate education program shall be determined by subtracting the sum of the required local tax effort as set forth in subsection (2)(a) of this section and the other local revenue sources as set forth in subsection (2)(c) of this section in an amount not to exceed twenty-seven percent (27%) of the total projected adequate education program cost as set forth in subsection (1)(f) of this section from the total projected adequate education program cost as set forth in subsection (1)(f) of this section.

(b) Provided, however, that in fiscal year 1998 and in the fiscal year in which the adequate education program is fully funded by the Legislature, any increase in the said state contribution to any district calculated under this section shall be not less than eight percent (8%) in excess of the amount received by said district from state funds for the fiscal year immediately preceding. For purposes of this paragraph (b), state funds shall include minimum program funds less the add-on programs, State Uniform Millage Assistance Grant Funds, Education Enhancement Funds appropriated for Uniform Millage Assistance Grants and state textbook allocations, and State General Funds allocated for textbooks.

(c) If the school board of any school district shall determine that it is not economically feasible or practicable to operate any school within the district for the full one hundred eighty (180) days required for a school term of a scholastic year as required in Section 37-13-63, Mississippi Code of 1972, due to an enemy attack, a man-made, technological or natural disaster in which the Governor has declared a disaster emergency under the laws of this state or the President of the United States has declared an emergency or major disaster to exist in this state, said school board may notify the State Department of Education of such disaster and submit a plan for altering the school term. If the State Board of Education finds such disaster to be the cause of the school not operating for the contemplated school term and that such school was in a school district covered by the Governor's or President's disaster declaration, it may permit said school board to operate the schools in its district for less than one hundred eighty (180) days and, in such case, the State Department of Education shall not reduce the state contributions to the adequate education program allotment for such district, because of the failure to operate said schools for one hundred eighty (180) days.

(4) The Interim School District Capital Expenditure Fund is hereby established in the State Treasury which shall be used to distribute any funds specifically appropriated by the Legislature to such fund to school districts entitled to increased allocations of state funds under the adequate education program funding formula prescribed in Sections 37-151-3 through 37-151-7, Mississippi Code of 1972, until such time as the said adequate education program is fully funded by the Legislature. The following percentages of the total state cost of increased allocations of funds under the adequate education program funding formula shall be appropriated by the Legislature into the Interim School District Capital Expenditure Fund to be distributed to all school districts under the formula: Nine and two-tenths percent (9.2%) shall be appropriated in fiscal year 1998, twenty percent (20%) shall be appropriated in fiscal year 1999, forty percent (40%) shall be appropriated in fiscal year 2000, sixty percent (60%) shall be appropriated in fiscal year 2001, eighty percent (80%) shall be appropriated in fiscal year 2002, and one hundred percent (100%) shall be appropriated in fiscal year 2003 into the State Adequate Education Program Fund. Until July 1, 2002, such money shall be used by school districts for the following purposes:

(a) Purchasing, erecting, repairing, equipping, remodeling and enlarging school buildings and related facilities, including gymnasiums, auditoriums, lunchrooms, vocational training buildings, libraries, school barns and garages for transportation vehicles, school athletic fields and necessary facilities connected therewith, and purchasing land therefor. Any such capital improvement project by a school district shall be approved by the State Board of Education, and based on an approved long-range plan. The State Board of Education shall promulgate minimum requirements for the approval of school district capital expenditure plans.

(b) Providing necessary water, light, heating, air conditioning, and sewerage facilities for school buildings, and purchasing land therefor.

(c) Paying debt service on existing capital improvement debt of the district or refinancing outstanding debt of a district if such refinancing will result in an interest cost savings to the district.

(d) From and after October 1, 1997, through June 30, 1998, pursuant to a school district capital expenditure plan approved by the State Department of Education, a school district may pledge such funds until July 1, 2002, plus funds provided for in paragraph (e) of this subsection (4) that are not otherwise permanently pledged under such paragraph (e) to pay all or a portion of the debt service on debt issued by the school district under Sections 37-59-1 through 37-59-45, 37-59-101 through 37-59-115, 37-7-351 through 37-7-359, 37-41-89 through 37-41-99, 37-7-301, 37-7-302 and 37-41-81, Mississippi Code of 1972, or debt issued by boards of supervisors for agricultural high schools pursuant to Section 37-27-65, Mississippi Code of 1972, or lease-purchase contracts entered into pursuant to Section 31-7-13, Mississippi Code of 1972, or to retire or refinance outstanding debt of a district, if such pledge is accomplished pursuant to a written contract or resolution approved and spread upon the minutes of an official meeting of the district's school board or board of supervisors. It is the intent of this provision to allow school districts to irrevocably pledge their Interim School District Capital Expenditure Fund allotments as a constant stream of revenue to secure a debt issued under the foregoing code sections. To allow school districts to make such an irrevocable pledge, the state shall take all action necessary to ensure that the amount of a district's Interim School District Capital Expenditure Fund allotments shall not be reduced below the amount certified by the department or the district's total allotment under the Interim Capital Expenditure Fund if fully funded, so long as such debt remains outstanding.

(e) [Repealed]

(f) [Repealed]

(g) The State Board of Education may authorize the school district to expend not more than twenty percent (20%) of its annual allotment of such funds or Twenty Thousand Dollars ($20,000.00), whichever is greater, for technology needs of the school district, including computers, software, telecommunications, cable television, interactive video, film, low-power television, satellite communications, microwave communications, technology-based equipment installation and maintenance, and the training of staff in the use of such technology-based instruction. Any such technology expenditure shall be reflected in the local district technology plan approved by the State Board of Education under Section 37-151-17, Mississippi Code of 1972.

(h) To the extent a school district has not utilized twenty percent (20%) of its annual allotment for technology purposes under paragraph (g), a school district may expend not more than twenty percent (20%) of its annual allotment or Twenty Thousand Dollars ($20,000.00), whichever is greater, for instructional purposes. The State Board of Education may authorize a school district to expend more than said twenty percent (20%) of its annual allotment for instructional purposes if it determines that such expenditures are needed for accreditation purposes.

(i) The State Department of Education or the State Board of Education may require that any project commenced under this section with an estimated project cost of not less than Five Million Dollars ($5,000,000.00) shall be done only pursuant to program management of the process with respect to design and construction. Any individuals, partnerships, companies or other entities acting as a program manager on behalf of a local school district and performing program management services for projects covered under this subsection shall be approved by the State Department of Education.

Any interest accruing on any unexpended balance in the Interim School District Capital Expenditure Fund shall be invested by the State Treasurer and placed to the credit of each school district participating in such fund in its proportionate share.

The provisions of this subsection (4) shall be cumulative and supplemental to any existing funding programs or other authority conferred upon school districts or school boards.

SECTION 43. Section 37-57-107, Mississippi Code of 1972, is brought forward as follows:

37-57-107. 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. 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.

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.

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.

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.

SECTION 44. If any provision of this law or its application is held invalid, the invalidity does not affect other provisions or applications of this law which can be given effect without the invalid provision or application and to this end the provisions of this law are severable.

SECTION 45. This act shall take effect and be in force from and after July 1, 2012.

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