MISSISSIPPI LEGISLATURE

2004 Regular Session

To: Education; Appropriations

By: Representative Frierson

House Bill 1027

AN ACT TO BRING FORWARD SECTIONS 37-151-1, 37-151-5, 37-151-7, 37-151-9, 37-151-10, 37-151-11, 37-151-13, 37-151-15, 37-151-17, 37-151-19, 37-151-21, 37-151-23, 37-151-25, 37-151-27, 37-151-29, 37-151-31, 37-151-33, 37-151-35, 37-151-37, 37-151-39, 37-151-41, 37-151-43, 37-151-45, 37-151-47, 37-151-49, 37-151-51, 37-151-53, 37-151-55, 37-151-57, 37-151-59, 37-151-61, 37-151-77, 37-151-79, 37-151-81, 37-151-83, 37-151-85, 37-151-87, 37-151-89, 37-151-91, 37-151-93, 37-151-95, 37-151-97, 37-151-99, 37-151-101, 37-151-103, 37-151-105 AND 37-151-107, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE MISSISSIPPI ADEQUATE EDUCATION PROGRAM, FOR THE PURPOSES OF AMENDMENT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 37-151-1, Mississippi Code of 1972, is brought forward as follows:

     37-151-1.  This chapter shall be known and may be cited as the "Mississippi Accountability and Adequate Education Program Act of 1997."

     SECTION 2.  Section 37-151-5, Mississippi Code of 1972, is brought forward as follows:

     37-151-5.  As used in Sections 37-151-3, 37-151-5 and 37-151-7:

          (a)  "Adequate program" or "adequate education program" or "Mississippi Adequate Education Program (M.A.E.P.)" shall mean the program to establish adequate current operation funding levels necessary for the programs of such school district to meet at least Level III of the accreditation system as established by the State Board of Education, acting through the Mississippi Commission on School Accreditation, regardless of the school district's geographic location.

          (b)  "Educational programs or elements of programs not included in the adequate education program calculations, but which may be included in appropriations and transfers to school districts" shall mean:

              (i)  "Capital outlay" shall mean those funds used for the constructing, improving, equipping, renovating or major repairing of school buildings or other school facilities, or the cost of acquisition of land whereon to construct or establish such school facilities.

              (ii)  "Pilot programs" shall mean programs of a pilot or experimental nature usually designed for special purposes and for a specified period of time other than those included in the adequate education program.

              (iii)  "Adult education" shall mean public education dealing primarily with students above eighteen (18) years of age not enrolled as full-time public school students and not classified as students of technical schools, colleges or universities of the state.

               (iv)  "Food service programs" shall mean those programs dealing directly with the nutritional welfare of the student, such as the school lunch and school breakfast programs.

          (c)  "Base student" shall mean that student classification that represents the most economically educated pupil in a school system meeting Level III accreditation, as determined by the State Board of Education.

          (d)  "Base student cost" shall mean the funding level necessary for providing an adequate education program for one (1) base student, subject to any minimum amounts prescribed in Section 37-151-7(1).

          (e)  "Add-on program costs" shall mean those items which are included in the adequate education program appropriations and are outside of the program calculations:

              (i)  "Transportation" shall mean transportation to and from public schools for the students of Mississippi's public schools provided for under law and funded from state funds.

              (ii)  "Vocational or technical education program" shall mean a secondary vocational or technical program approved by the State Department of Education and provided for from state funds.

              (iii)  "Special education program" shall mean a program for exceptional children as defined and authorized by Sections 37-23-1 through 37-23-9, and approved by the State Department of Education and provided from state funds.

              (iv)  "Gifted education program" shall mean those programs for the instruction of intellectually or academically gifted children as defined and provided for in Section 37-23-175 et seq.

              (v)  "Alternative school program" shall mean those programs for certain compulsory-school-age students as defined and provided for in Sections 37-13-92 and 37-19-22.

              (vi)  "Extended school year programs" shall mean those programs authorized by law which extend beyond the normal school year.

              (vii)  "University-based programs" shall mean those university-based programs for handicapped children as defined and provided for in Section 37-23-131 et seq.

              (viii)  "Bus driver training" programs shall mean those driver training programs as provided for in Section 37-41-1.

          (f)  "Teacher" shall include any employee of a local school who is required by law to obtain a teacher's license from the State Board of Education and who is assigned to an instructional area of work as defined by the State Department of Education.

          (g)  "Principal" shall mean the head of an attendance center or division thereof.

          (h)  "Superintendent" shall mean the head of a school district.

          (i)  "School district" shall mean any type of school district in the State of Mississippi, and shall include agricultural high schools.

          (j)  "Minimum school term" shall mean a term of at least one hundred eighty (180) days of school in which both teachers and pupils are in regular attendance for scheduled classroom instruction for not less than sixty percent (60%) of the normal school day.  It is the intent of the Legislature that any tax levies generated to produce additional local funds required by any school district to operate school terms in excess of one hundred seventy-five (175) days shall not be construed to constitute a new program for the purposes of exemption from the limitation on tax revenues as allowed under Sections 27-39-321 and 37-57-107 for new programs mandated by the Legislature.

          (k)  The term "transportation density" shall mean the number of transported children in average daily attendance per square mile of area served in a school district, as determined by the State Department of Education.

          (l)  The term "transported children" shall mean children being transported to school who live within legal limits for transportation and who are otherwise qualified for being transported to school at public expense as fixed by Mississippi state law.

          (m)  The term "year of teaching experience" shall mean nine (9) months of actual teaching in the public or private schools.  In no case shall more than one (1) year of teaching experience be given for all services in one (1) calendar or school year.  In determining a teacher's experience, no deduction shall be made because of the temporary absence of the teacher because of illness or other good cause, and the teacher shall be given credit therefor.  The State Board of Education shall fix a number of days, not to exceed twenty-five (25) consecutive school days, during which a teacher may not be under contract of employment during any school year and still be considered to have been in full-time employment for a regular scholastic term.  If a teacher exceeds the number of days established by the State Board of Education that a teacher may not be under contract but may still be employed, that teacher shall not be credited with a year of teaching experience.  In determining the experience of school librarians, each complete year of continuous, full-time employment as a professional librarian in a public library in this or some other state shall be considered a year of teaching experience.  If a full-time school administrator returns to actual teaching in the public schools, the term "year of teaching experience" shall include the period of time he or she served as a school administrator.  In determining the salaries of teachers who have experience in any branch of the military, the term "year of teaching experience" shall include each complete year of actual classroom instruction while serving in the military.  In determining the experience of speech-language pathologists and audiologists, each complete year of continuous full-time post master's degree employment in an educational setting in this or some other state shall be considered a year of teaching experience.

          (n)  The term "average daily attendance" shall be the figure which results when the total aggregate attendance during the period or months counted is divided by the number of days during the period or months counted upon which both teachers and pupils are in regular attendance for scheduled classroom instruction less the average daily attendance for self-contained special education classes and, prior to full implementation of the adequate education program the department shall deduct the average daily attendance for the alternative school program provided for in Section 37-19-22.

          (o)  The term "local supplement" shall mean the amount paid to an individual teacher over and above the adequate education program salary schedule for regular teaching duties.

          (p)  The term "aggregate amount of support from ad valorem taxation" shall mean the amounts produced by the district's total tax levies for operations.

          (q)  The term "adequate education program funds" shall mean all funds, both state and local, constituting the requirements for meeting the cost of the adequate program as provided for in Section 37-151-7.

          (r)  "Department" shall mean the State Department of Education.

          (s)  "Commission" shall mean the Mississippi Commission on School Accreditation created under Section 37-17-3.

     SECTION 3.  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.  During months two (2) and three (3) of the current school year, the average daily attendance of a school district shall be computed, or the average daily attendance for the prior school year shall be used, whichever is greater.  For purposes of this calculation, "current" school year shall mean the school year for which appropriations are made by the Legislature, and "prior" school year shall mean the school year immediately preceding the year for which appropriations are made by the Legislature.  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.  The State Board of Education, on or before August 1, with adjusted estimate no later than January 2, shall annually 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 an average school district meeting Level III accreditation standards required by the Commission on School Accreditation:  (i) Instructional Cost; (ii) Administrative Cost; (iii) Operation and Maintenance of Plant; and (iv) Ancillary Support Cost.  The department shall utilize a statistical methodology which considers such factors as, but not limited to, (i) school size; (ii) assessed valuation per pupil; (iii) the percentage of students receiving free lunch; (iv) the local district maintenance tax levy; (v) other local school district revenues; and (vi) the district's accreditation level, in the selection of the representative Mississippi school districts for which cost information shall be obtained for each of the above listed cost areas.

     For the instructional cost component, the department shall determine the instructional cost of each of the representative school districts selected above, excluding instructional cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts.  The instructional cost is then totaled and divided by the total average daily attendance for the selected school districts to yield the instructional cost component.  For the administrative cost component, the department shall determine the administrative cost of each of the representative school districts selected above, excluding administrative cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts.  The administrative cost is then totaled and divided by the total average daily attendance for the selected school districts to yield the administrative cost component.  For the plant and maintenance cost component, the department shall determine the plant and maintenance cost of each of the representative school districts selected above, excluding plant and maintenance cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts.  The plant and maintenance cost is then totaled and divided by the total average daily attendance for the selected school districts to yield the plant and maintenance cost component.  For the ancillary support cost component, the department shall determine the ancillary support cost of each of the representative school districts selected above, excluding ancillary support cost of self-contained special education programs and vocational education programs, and the average daily attendance in the selected school districts.  The ancillary support cost is then totaled and divided by the total average daily attendance for the selected school districts to yield the ancillary support cost component.  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).

          (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.

          (g)  Supplemental grant to school districts.  In addition to the adequate education program grant, the State Department of Education shall annually distribute an additional amount as follows:  Multiply the base student cost for the appropriate fiscal year as determined under paragraph (b) by thirteen one-hundredths percent (.13%) and multiply that product by the average daily attendance of each school district.  Such grant shall not be subject to the local revenue requirement provided in subsection (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 Board 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 subsection (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 Board 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.

     (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, including the supplemental grant to school districts provided under subsection (1)(g), 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 appropriation is less than full funding for fiscal year 2003, allocations for state contributions to school districts in support of the adequate education program will be determined by the State Department of Education in the following manner:

              (i)  Calculation of the full funding amount under this chapter, with proportionate reductions as required by the appropriation level.

              (ii)  Calculation of the amount equal to the state funds allocated to school districts for fiscal year 2002 plus the estimated amount to fund the adequate education program salary schedule for fiscal year 2003.  For purposes of this item (ii), state funds shall be those described in paragraph (b) and an amount equal to the allocation for the adequate education program in fiscal year 2002, plus any additional amount required to satisfy fiscal year 2003 pledges in accordance with paragraphs (d), (e) and (f) of subsection (5) of this section.  If a school district's fiscal year 2003 pledge is different than the pledge amount for fiscal year 2002, the district shall receive an amount equal to the fiscal year 2003 pledge or the amount of funds calculated under the adequate education formula for fiscal year 2002 before any pledge guarantee for fiscal year 2002, whichever is greater.  If the pledge is no longer in effect, the district shall receive the amount of funds calculated under the formula for fiscal year 2002 before any pledge guarantee for fiscal year 2002.

              (iii)  The portion of any district's allocation calculated in item (i) of this paragraph which exceeds amounts as calculated in item (ii) shall be reduced by an amount not to exceed twenty-one percent (21%).  The amount of funds generated by this reduction of funds shall be redistributed proportionately among those districts receiving insufficient funds to meet the amount calculated in item (ii).  In no case may any district receive funds in an amount greater than the amount that the district would have received under full funding of the program for fiscal year 2003.

          (d)  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 manmade, 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)  If during the year for which adequate education program funds are appropriated, any school district experiences a three percent (3%) or greater increase in average daily attendance during the second and third month over the preceding year's second and third month, an additional allocation of adequate education program funds calculated in the following manner shall be granted to that district, using any additional funds available to the Department of Education that exceed the amount of funds due to the school districts under the basic adequate education program distribution as provided for in this chapter:

          (a)  Determine the percentage increase in average daily attendance for the second and third months of the year for which adequate education program funds are appropriated over the preceding year's second and third month average daily attendance.

          (b)  For those districts that have a three percent (3%) or greater increase as calculated in paragraph (a) of this subsection, multiply the total increase in students in average daily attendance for the second and third months of the year for which adequate education program funds are appropriated over the preceding year's second and third month average daily attendance times the base student cost used in the appropriation.

          (c)  Subtract the percentage of the district's local contribution arrived at in subsection (2) of this section from the amount calculated in paragraph (b) of this subsection.  The remainder is the additional allocation in adequate education program funds for that district.

     If the funds available to the Department of Education are not sufficient to fully fund the additional allocations to school districts eligible for those allocations, then the department shall prorate the available funds among the eligible school districts, using the same percentage of the total funds that the school district would have received if the allocations were fully funded.

     This subsection (4) shall stand repealed on July 1, 2004.

     (5)  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 created in subsection (4).  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 (5) 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)  From and after October 1, 1997, through June 30, 1998, in addition to any other authority a school district may have, any school district may issue State Aid Capital Improvement Bonds secured in whole by a continuing annual pledge of any Mississippi Adequate Education Program funds available to the district, in an amount not to exceed One Hundred Sixty Dollars ($160.00) per pupil based on the latest completed average daily attendance count certified by the department prior to the issuance of the bonds.  Such State Aid Capital Improvement Bonds may be issued for the purposes enumerated in subsections (a), (b), (c) and (g) of this section.  Prior to issuing such bonds, the school board of the district shall adopt a resolution declaring the necessity for and its intention of issuing such bonds and borrowing such money, specifying the approximate amount to be so borrowed, how such money is to be used and how such indebtedness is to be evidenced.  Any capital improvement project financed with State Aid Capital Improvement Bonds shall be approved by the department, and based on an approved long-range plan.  The State Board of Education shall promulgate minimum requirements for the approval of such school district capital expenditure plans.  The State Board of Education shall not approve any capital expenditure plan for a pledge of funds under this paragraph unless it determines (i) that the quality of instruction in such district will not be reduced as a result of this pledge, and (ii) the district has other revenue available to attain and maintain at least Level III accreditation.

     A district issuing State Aid Capital Improvement Bonds may pledge for the repayment of such bonds all funds received by the district from the state, in an amount not to exceed One Hundred Sixty Dollars ($160.00) per pupil in average daily attendance in the school district as set forth above, and not otherwise permanently pledged under paragraph (d) of this subsection or under Section 37-61-33(2)(d), Mississippi Code of 1972.  The district's school board shall specify by resolution the amount of state funds, which are being pledged by the district for the repayment of the State Aid Capital Improvement Bonds.  Once such a pledge is made to secure the bonds, the district shall notify the department of such pledge.  Upon making such a pledge, the school district may request the department which may agree to irrevocably transfer a specified amount or percentage of the district's state revenue pledged to repay the district's State Aid Capital Improvement Bonds directly to a state or federally chartered bank serving as a trustee or paying agent on such bonds for the payment of all or portion of such State Aid Capital Improvement Bonds.  Such instructions shall be incorporated into a resolution by the school board for the benefit of holders of the bonds and may provide that such withholding and transfer of such other available funds shall be made only upon notification by a trustee or paying agent on such bonds that the amounts available to pay such bonds on any payment date will not be sufficient.  It is the intent of this provision to allow school districts to irrevocably pledge a certain, constant stream of revenue as security for State Aid Capital Improvement Bonds issued hereunder.  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 state revenues up to an amount equal to One Hundred Sixty Dollars ($160.00) per pupil as set forth above which have been pledged to repay debt as set forth herein shall not be reduced so long as any State Aid Capital Improvement Bonds are outstanding.

     Any such State Aid Capital Improvement bonds shall mature as determined by the district's school bond over a period not to exceed twenty (20) years.  Such bonds shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-101, Mississippi Code of 1972.  The further details and terms of such bonds shall be as determined by the school board of the district.

     The provisions of this subsection shall be cumulative and supplemental to any existing funding programs or other authority conferred upon school districts or school boards.  Debt of a school district secured in whole by a pledge of revenue pursuant to this section shall not be subject to any debt limitation.  

     For purposes of this paragraph (e), "State Aid Capital Improvement Bond" shall mean any bond, note, or other certificate of indebtedness issued by a school district under the provisions hereof.

     This paragraph (e) shall stand repealed from and after June 30, 1998.

          (f)  As an alternative to the authority granted under paragraph (e), a school district, in its discretion, may authorize the State Board of Education to withhold an amount of the district's adequate education program allotment equal to up to One Hundred Sixty Dollars ($160.00) per student in average daily attendance in the district to be allocated to the State Public School Building Fund to the credit of such school district.  A school district may choose the option provided under this paragraph (e) or paragraph (f), but not both.  In addition to the grants made by the state pursuant to Section 37-47-9, a school district shall be entitled to grants based on the allotments to the State Public School Building Fund credited to such school district under this paragraph.  This paragraph (f) shall stand repealed from and after June 30, 1998.

          (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 pursuant to this act 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 (5) shall be cumulative and supplemental to any existing funding programs or other authority conferred upon school districts or school boards.

     SECTION 4.  Section 37-151-9, Mississippi Code of 1972, is brought forward as follows:

     37-151-9.  (1)  The State Board of Education and State Superintendent of Education shall establish within the State Department of Education a special unit at the division level called the Office of Educational Accountability.  The Director of the Office of Educational Accountability shall hold a position comparable to a deputy superintendent and shall be appointed by the State Board of Education with the advice and consent of the Senate.  He shall serve at the will and pleasure of the State Board of Education and may employ necessary professional, administrative and clerical staff.  The Director of the Office of Educational Accountability shall provide all reports to the Legislature, Governor, Mississippi Commission on School Accreditation and State Board of Education and respond to any inquiries for information.

     (2)  The Office of Educational Accountability is responsible for monitoring and reviewing programs developed under the Education Reform Act, the Mississippi Adequate Education Program Act of 1994, the Education Enhancement Fund, and subsequent education initiatives, and shall provide information, recommendations and an annual assessment to the Legislature, Governor, Mississippi Commission on School Accreditation and the State Board of Education.  Commencing in 1995, the annual assessment of education reform programs shall be performed by the Office of Educational Accountability by December 1 of each year.  The Office of Educational Accountability shall specifically monitor the implementation of Level III accreditation in all school districts, and shall make an assessment with recommendations to the 1996 Regular Session of the Legislature.

     (3)  In addition, the Office of Educational Accountability shall have the following specific duties and responsibilities:

          (a)  Developing and maintaining a system of communication with school district personnel;

          (b)  Provide opportunities for public comment on the current functions of the State Department of Education's programs, needed public education services and innovative suggestions;

          (c)  Assess both positive and negative impact on school districts of new education programs, including but not limited to The Mississippi Report Card and alternative school programs.

     SECTION 5.  Section 37-151-10, Mississippi Code of 1972, is brought forward as follows:

     37-151-10.  (1)  There is established a Center for Education Analysis which shall be an advisory group attached to the Public Education Forum of Mississippi.  The Center for Education Analysis shall create a structure to systematically collect, compile and coordinate data that can be disseminated to business, legislative and education entities for decision-making purposes relating to public education.  The Center for Education Analysis may enter into a contractual agreement with the Public Education Forum of Mississippi in order to place the Center within the administrative framework of the Public Education Forum under the following conditions:

          (a)  All new programs authorized in this section are subject to the availability of funds specifically appropriated therefor by the Legislature from the Education Enhancement Fund to the Public Education Forum for the support and maintenance of the programs of the Center for Education Analysis.

          (b)  The Public Education Forum will provide a business framework to coordinate its recommendations and reports with the programs of the Center for Education Analysis.

          (c)  The Public Education Forum shall employ a Director for the Center for Education Analysis with appropriate qualifications.  Any public funds expended pursuant to this section shall be audited by the Mississippi Department of Audit.

     There is created in the State Treasury a special fund to be known as the "Center for Education Analysis Fund."  Monies may be expended out of such funds pursuant to appropriation by the Legislature, to implement the public education analysis program established under the provisions of this section. Disbursements from such fund shall be made only upon requisition of the Director for the Center for Education Analysis.

     (2)  The Center for Education Analysis established in subsection (1) shall develop and submit to the Legislature and the Governor an annual report on the implementation of the Mississippi Adequate Education Program funding formula and the Interim School District Capital Expenditure Fund program.  The first report shall be submitted on January 1, 1999, relating to implementation of the adequate education program and interim capital expenditure program activities during the preceding fiscal year, and shall be submitted annually on January 1 of each subsequent year until January 1, 2003, at which time the report shall become a distinct part of the Mississippi Report Card describing the one hundred percent (100%) implementation of the Mississippi Adequate Education Program funding formula.  The annual report shall include the following:

          (a)  A description of the amount of Mississippi Adequate Education Program funds available to each school district during the phase-in period compared to the amount of funds available upon full implementation of the funding formula;

          (b)  A description of each school district's capital expenditure plan, including:

              (i)  A listing of the school district facilities to be constructed, purchased, repaired, renovated, remodeled or enlarged, with designation of the nature of each such project as new construction, retrofitting/renovation, or site work and/or preparation;

              (ii)  For each completed capital improvement project and upon the completion of any approved capital expenditure plan, a listing by individual project of:

                   (A)  The total dimensions of each construction, renovation or site preparation project;

                   (B)  The total project cost in dollars;

                   (C)  The project cost per square foot of newly constructed space or, in the case of renovation, per square foot of the principal structure affected by such renovation;

                   (D)  The total cost of all furniture and equipment per project;

                   (E)  The total amount of nonconstruction fees per project;

                   (F)  The total of other costs associated with the project not otherwise included in items (A) through (E) above; and

                   (G)  The number of classrooms created and/or affected by the project;

               (iii)  A listing of all school district State Aid Capital Improvement Bonds secured by Mississippi Adequate Education Program funds issued by school districts and the capital improvements funded through such bond issue;

              (iv)  A description of any other local bond issue proceeds combined with such funds for capital improvement purposes; and

              (v)  Any other appropriate information relating to capital improvements by school districts as determined by the State Board of Education;

          (c)  An annual assessment of the impact of additional funding under the Mississippi Adequate Education Program on such school districts with less than a Level III accreditation; and

          (d)  An annual assessment of the impact of teacher recruitment incentives on the employment of licensed teachers in critical teacher shortage geographic areas, including, but not limited to, all incentive programs authorized under House Bill No. 609, 1998 Regular Session [Laws, 1998, Ch. 544].

     SECTION 6.  Section 37-151-11, Mississippi Code of 1972, is brought forward as follows:

     37-151-11.  The State Board of Education shall establish and design an annual program of awards for exemplary performing teachers in Mississippi's public school districts, to be called the "Mississippi Teacher of the Year" Award Program.

     The board shall establish criteria and guidelines for making the annual award to one (1) exemplary performing teacher in Mississippi, which shall include a cash award of Five Thousand Dollars ($5,000.00) to be paid by the State Department of Education pursuant to appropriation therefor and shall be unrestricted as to its use by the recipient.  Such award shall be paid as a supplement to such teacher's contracted salary in the year subsequent to receiving the recognition.

     The State Board of Education shall utilize such awards to bring the best teaching practices to the attention of other schools.  The awards shall include public recognition by the local school board and the State Board of Education and the awarding of plaques, certificates and the monetary award for teachers that perform well.

     SECTION 7.  Section 37-151-13, Mississippi Code of 1972, is brought forward as follows:

     37-151-13.  The State Board of Education shall establish and design an annual program of awards for exemplary performing administrators in Mississippi's public school districts, to be called the "Mississippi Administrator of the Year" Award Program.

     The board shall establish criteria and guidelines for making the annual award to one (1) exemplary performing administrator in Mississippi, which shall include a cash award of Five Thousand Dollars ($5,000.00) to be paid by the State Department of Education pursuant to appropriation therefor and shall be unrestricted as to its use by the recipient.  Such award shall be paid as a supplement to such administrator's contracted salary in the year subsequent to receiving the recognition.

     The State Board of Education shall utilize such awards to bring the best administrative practices to the attention of other schools.  The awards shall include public recognition by the local school board and the State Board of Education and the awarding of plaques, certificates and the monetary award for administrators that perform well.

     SECTION 8.  Section 37-151-15, Mississippi Code of 1972, is brought forward as follows:

     37-151-15.  (1)  The purpose of Sections 37-151-15 through 37-151-61 is to provide access to individualized instruction through computer-based technology, video and other technology-based instruction to eligible school districts.

     (2)  As used in Sections 37-151-15 through 37-151-61, unless the context indicates otherwise:

          (a)  "Council" means the Council for Education Technology.

          (b)  "Technology" includes, but is not limited to, 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.

     SECTION 9.  Section 37-151-17, Mississippi Code of 1972, is brought forward as follows:

     37-151-17.  (1)  There is established the Council for Education Technology which shall be an advisory group attached to the State Board of Education.  The council shall develop a master plan for education technology.

     (2)  The council shall consist of the State Superintendent of Education, or his designee, the Executive Director of the Mississippi Department of Information Technology Services, the Executive Director of Mississippi Educational Television (ETV), the Executive Director of the Mississippi Library Commission, the Executive Director of the State Board for Community and Junior Colleges and the Commissioner of Higher Education, who shall serve as ex officio voting members and four (4) members appointed within thirty (30) days after July 1, 1994, as follows:

          (a)  One (1) member appointed by the State Board of Education;

          (b)  Two (2) members appointed by the Governor; and

          (c)  One (1) member appointed by the Executive Director of the Mississippi Development Authority.  All appointed members of the council shall have a demonstrated knowledge in an area of technology as defined in Section 37-151-15(2).  All appointments to the council shall be made with the advice and consent of the Senate.  A majority of the membership present at any meeting shall constitute a quorum for the official conduct of business.

     (3)  Members shall be appointed for four-year terms and may be reappointed.  Members may be reimbursed for mileage and actual and necessary expenses in accordance with state law, and members who are not state officers or employees shall receive per diem as authorized in Section 25-3-69, Mississippi Code of 1972.

     (4)  Immediately upon receiving notice of the appointment of all members, the State Superintendent of Education shall call an organizational meeting.  At this meeting the State Superintendent of Education shall preside as temporary chairman, and the council shall elect from among the members a chairman and any other officers it deems necessary, and define the duties of the officers.

     (5)  Meetings shall be held at least four (4) times per year, or upon call of the chairman, at a time and place designated by the chairman.  The State Department of Education shall provide staff support for the council.

     (6)  The duties and responsibilities of the council shall include, but not be limited to, the following:

          (a)  Developing a long-range master plan for the efficient and equitable use of technology at all levels from primary school through higher education, including vocational and adult education.  The plan shall focus on the technology requirements of classroom instruction, literacy laboratories, student record management, financial and administrative management, distance learning and communications as they relate to the state's performance goals for students.  The plan shall be presented to the Mississippi Department of Information Technology Services for approval;

          (b)  Creating, overseeing and monitoring a well-planned and efficient statewide network of technology services designed to meet the educational and informational needs of the schools;

          (c)  Working with private enterprise to encourage the development of technology products specifically designed to answer Mississippi's educational needs;

          (d)  Encouraging an environment receptive to technological progress in education throughout the state; and

          (e)  Working with other state entities to maximize the use and benefit of the state's technology infrastructure, to avoid duplication of public and private resources and to maximize the purchasing ability of the state.  When appropriate, shared resources and competitive bidding shall be used.

     All contracts, requests for proposals and bid awards shall be subject to the approval of the Mississippi Department of Information Technology Services.

     SECTION 10.  Section 37-151-19, Mississippi Code of 1972, is brought forward as follows:

     37-151-19.  (1)  The Council for Education Technology shall develop the master plan for education technology and submit the plan to the State Board of Education and the Legislature.  Implementation of each stage of the master plan shall begin immediately upon approval of the State Board of Education.  The plan shall outline the state's five-year activities related to purchasing, developing and using technology to:

          (a)  Improve learning and teaching and the ability to meet individual students' needs to increase student achievement;

          (b)  Improve curriculum delivery to help meet the needs for educational equity across the state;

          (c)  Improve delivery of professional development;

          (d)  Improve the efficiency and productivity of administrators; and

          (e)  Encourage development by the private sector and acquisition by districts of technologies and applications appropriate for education.

     (2)  The five-year plan shall cover all aspects of education technology, including but not limited to, its use in educational instruction and administration, video and computer systems, software and hardware, multiple delivery systems for satellite, microwave, cable, instructional television fixed service, fiber optic and computer connections products, video cameras and monitoring equipment for classrooms, school buildings and school buses, the preparation of school buildings for technological readiness, and the development of staff necessary to implement the plan.

     (3)  Periodically, to develop and make specific recommendations to the State Board of Education for the adoption of minimum specifications for the equipment to be utilized in the education technology plan by school districts.  The State Board of Education shall adopt and promulgate said minimum guidelines for the utilization of said education technology equipment which shall be monitored through the accreditation process.

     (4)  The integrated technology-based communications system shall provide comprehensive, current, accurate and accessible information relating to management, finance, operations, instruction and pupil programs which are under the jurisdiction of the Department of Education.

     (5)  To facilitate communication among teachers, parents, students and prospective employers of students, and to provide access to many vital technological services, the five-year plan may include the installation of telephone lines in each classroom.

     (6)  In designing and implementing the five-year plan, the council shall consider seeking the active participation of private organizations whose knowledge and assistance will be useful.

     (7)  The council shall update as necessary the plan developed under subsection (2) of this section and report to the Legislature at the completion of each implementation phase of the master plan.

     (8)  The council shall submit its recommendations for a statewide technology plan to the State Board of Education, which shall accept the recommendations, or return them to the council along with suggestions for changes to make the recommendations consistent with the policies of the State Board of Education.

     SECTION 11.  Section 37-151-21, Mississippi Code of 1972, is brought forward as follows:

     37-151-21.  The council shall create a strategic plan for distance learning in the state and submit it to the Legislature by November 1, 1995.  The plan shall set forth the state's vision for developing a long-term and statewide distance learning strategy.  It shall include, but not be limited to, definitions of the types of distance learning delivery systems, an evaluation process for determining and certifying the educational and cost-effectiveness of each type of delivery system, comparisons of the various types of delivery systems and recommendations for implementation.

     SECTION 12.  Section 37-151-23, Mississippi Code of 1972, is brought forward as follows:

     37-151-23.  There is hereby created in the State Treasury a special fund to be designated the "State Public School Education Technology Fund."  Any unexpended balance in said fund at the end of the fiscal year shall carry over into the subsequent fiscal year and shall not lapse into the State General Fund.  School districts shall be required to submit a plan for the use of such funds for education technology to the State Board of Education.  The State Board of Education, consistent with policies adopted pursuant to recommendations of the council, shall allocate funds provided from the proceeds of State Education Technology bonds and funds provided from appropriation by the Legislature into the State Public School Education Technology Fund, to school districts based on the approved education technology plan, which demonstrates need consistent with the district's existing technology, for the purchase or lease of education technology for the schools.  The State Board of Education is authorized to apply said funds to matching grants from federal or private sources to generate additional funds for the purchase or lease of education technology for the schools. 

     SECTION 13.  Section 37-151-25, Mississippi Code of 1972, is brought forward as follows:

     37-151-25.  There is hereby created in the State Treasury a special fund to be designated as the "Tech-Prep Fund."  Any unexpended balance in said fund at the end of the fiscal year shall carryover to the succeeding fiscal year and shall not lapse into the State General Fund.  Said fund shall be credited with any funds appropriated by the Legislature and from the proceeds of State Education Technology bonds for the implementation of the Tech-Prep program in Grades 7-12 and in the public community colleges and junior colleges through approved programs and from the proceeds of bonds issued under Sections 31 through 51 of Laws, 1997, Chapter 612, and shall be allocated to school districts by the State Board of Education for the following purposes:

          (a)  Equip labs for hands-on:  Career Discovery Course in the 7th grade, Computer Discovery Course in the 8th grade, and Technology Discovery Course in the 9th grade;

          (b)  Implement application based teaching methodology in existing academic courses;

          (c)  Develop and implement articulation, integration and sequential course study plans in Vocational and Academic courses;

          (d)  Administer Occupational Tests;

          (e)  Implement and Update Career/Educational Plans for each student;

          (f)  Implement Career Centers for each school;

          (g)  To provide equipment upgrades to meet technology demands, staff development and teaching materials to implement application based methodology for each of the community college sites.

     The State Department of Education is authorized to escalate spending authority based upon the proceeds of bonds issued under Sections 31 through 51 of Laws, 1997, Chapter 612.

     No community or junior college shall deny admittance into its Tech-Prep program funded under this section to any student who has graduated from high school with a qualifying grade point average, regardless of the curriculum or coursework completed by the student.

     SECTION 14.  Section 37-151-27, Mississippi Code of 1972, is brought forward as follows:

     37-151-27.  For the purpose of providing funds to enable the State Board of Education to make allocations to school districts as provided by Section 37-151-23, the State Bond Commission is hereby authorized and empowered to issue State Education Technology bonds under the conditions prescribed in Sections 37-151-27 through 37-151-61.  The aggregate principal amount of such bonds outstanding at any one time, after deducting the amount of the sinking fund provided for the retirement of bonds issued for such purposes, shall never exceed the sum of Sixty Million Dollars ($60,000,000.00).  Within such limits, however, State Education Technology bonds may be issued from time to time under the conditions prescribed in this article.

     SECTION 15.  Section 37-151-29, Mississippi Code of 1972, is brought forward as follows:

     37-151-29.  Before any State Education Technology bonds are issued as authorized by this article, the State Board of Education shall transmit to the State Bond Commission a request for the issuance thereof in the form of a resolution adopted by said council.  Said request shall embody the following:

          (a)  A schedule showing the aggregate of bonds issued pursuant to previous requests, the purposes for which the same were issued, the annual payments required to retire such bonds and the interest thereon, and the amount of sinking fund applicable to the retirement of such outstanding bonds;

          (b)  The amount of bonds sought to be issued, the purpose or purposes for which such bonds are to be issued, and the amount intended for each purpose;

          (c)  A schedule showing future annual principal requirements and estimated annual interest requirements on the bonds requested to be issued;

          (d)  The estimated amount of the allotments which the State Board of Education intends to make within the then current fiscal year;

          (e)  The aggregate amount for which allotments have been approved, but which await completion because the funds necessary to make the same are not available.

     SECTION 16.  Section 37-151-31, Mississippi Code of 1972, is brought forward as follows:

     37-151-31.  If it shall appear to the satisfaction of the State Bond Commission from the request provided for in Section 37-151-29:

          (a)  That the estimate of the needs for the then current fiscal year as shown pursuant to the requirement of Section 37-151-29 requires bonds to be issued in the amount requested; and

          (b)  That the issue will be within the limitations prescribed by Section 37-151-27; then it shall be the duty of the State Bond Commission to issue State Education Technology bonds in accordance with said request.

     SECTION 17.  Section 37-151-33, Mississippi Code of 1972, is brought forward as follows:

     37-151-33.  The principal of and interest on the bonds authorized under Section 37-151-27 of this article shall be payable in the manner provided in this section.  Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates not exceeding the limits set forth in Section 75-17-101, be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty (20) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as determined by resolution of the State Bond Commission.

     SECTION 18.  Section 37-151-35, Mississippi Code of 1972, is brought forward as follows:

     37-151-35.  The bonds authorized under Section 37-151-27 shall be signed by the Chairman of the State Bond Commission, or by his facsimile signature, and the official seal of the State Bond Commission shall be affixed thereto, attested by the Secretary of the State Bond Commission.  The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers.  Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear.  However, notwithstanding anything in this article to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.

     SECTION 19.  Section 37-151-37, Mississippi Code of 1972, is brought forward as follows:

     37-151-37.  All bonds and interest coupons issued under the provisions of Sections 37-151-27 through 37-151-61 have all the qualities and incidents of negotiable instruments under the provisions of the Mississippi Uniform Commercial Code, and in exercising the powers granted by Sections 37-151-27 through 37-151-61, the State Bond Commission shall not be required to and need not comply with the provisions of the Mississippi Uniform Commercial Code.

     SECTION 20.  Section 37-151-39, Mississippi Code of 1972, is brought forward as follows:

     37-151-39.  The State Bond Commission shall act as the issuing agent for the bonds authorized under Sections 37-151-27 through 37-151-61, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do all other things necessary and advisable in connection with the issuance and sale of the bonds.  The State Bond Commission may pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this article from the proceeds derived from the sale of the bonds.  The State Bond Commission shall sell such bonds on sealed bids at public sale, and for such price as it may determine to be for the best interest of the State of Mississippi, but no such sale may be made at a price less than par plus accrued interest to the date of delivery of the bonds to the purchaser. All interest accruing on such bonds so issued shall be payable semiannually or annually; however, the first interest payment may be for any period of not more than one (1) year.

     Notice of the sale of any such bond shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, and in one or more other newspapers or financial journals with a national circulation, to be selected by the State Bond Commission.

     The State Bond Commission, when issuing any bonds under the authority of Sections 37-151-27 through 37-151-61, may provide that the bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.

     SECTION 21.  Section 37-151-41, Mississippi Code of 1972, is brought forward as follows:

     37-151-41.  The bonds issued under the provisions of Sections 37-151-27 through 37-151-61 are general obligations of the State of Mississippi, and for the payment of the bonds the full faith and credit of the State of Mississippi is irrevocably pledged.  The Legislature shall appropriate funds from the Education Enhancement Fund as necessary to pay the principal of and interest on such bonds, and if the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds when they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated.  All such bonds shall contain recitals on their faces substantially covering the provisions of this section.

     SECTION 22.  Section 37-151-43, Mississippi Code of 1972, is brought forward as follows:

     37-151-43.  The State Treasurer is authorized to certify to the State Fiscal Officer the necessity for warrants, and the State Fiscal Officer is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accredited value of, all bonds issued under Sections 37-151-27 through 37-151-61; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest on the bonds, on their due dates.

     SECTION 23.  Section 37-151-45, Mississippi Code of 1972, is brought forward as follows:

     37-151-45.  All State Education Technology bonds issued under the provisions of Sections 37-151-27 through 37-151-61 shall be sold by the said State Bond Commission upon sealed competitive bids or proposals after advertisement therefor and publication of the notice of such sale in the manner provided by law.

     The proceeds of the sale of all State Education Technology bonds shall be placed in the "State Public School Education Technology Fund" created under Section 37-151-23 and shall be expended only for the purposes authorized by Sections 37-151-27 through 37-151-61.

     SECTION 24.  Section 37-151-47, Mississippi Code of 1972, is brought forward as follows:

     37-151-47.  The bonds authorized under Sections 37-151-27 through 37-151-61 may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things that are specified or required by Sections 37-151-27 through 37-151-61.  Any resolution providing for the issuance of bonds under Sections 37-151-27 through 37-151-61 shall become effective immediately upon its adoption by the State Bond Commission, and any such resolution may be adopted at any regular or special meeting of the State Bond Commission by a majority of its members.

     SECTION 25.  Section 37-151-49, Mississippi Code of 1972, is brought forward as follows:

     37-151-49.  The bonds authorized under the authority of Sections 37-151-27 through 37-151-61 of this article may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds.  The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.

     SECTION 26.  Section 37-151-51, Mississippi Code of 1972, is brought forward as follows:

     37-151-51.  Any holder of bonds issued under Sections 37-151-27 through 37-151-61 or of any of the interest coupons pertaining to the bonds may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce all rights granted under Sections 37-151-27 through 37-151-61, or under such resolution, and may enforce and compel performance of all duties required by Sections 37-151-27 through 37-151-61 to be performed, in order to provide for the payment of bonds and interest on the bonds.

     SECTION 27.  Section 37-151-53, Mississippi Code of 1972, is brought forward as follows:

     37-151-53.  All bonds issued under Sections 37-151-27 through 37-151-61 shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities that may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.

     SECTION 28.  Section 37-151-55, Mississippi Code of 1972, is brought forward as follows:

     37-151-55.  Bonds issued under Sections 37-151-27 through 37-151-61 and income from the bonds shall be exempt from all taxation in the State of Mississippi.

     SECTION 29.  Section 37-151-57, Mississippi Code of 1972, is brought forward as follows:

     37-151-57.  Sections 37-151-27 through 37-151-61 shall be deemed to be full and complete authority for the exercise of the powers granted, but Sections 37-151-27 through 37-151-61 shall not be deemed to repeal or to be in derogation of any existing law of this state.

     SECTION 30.  Section 37-151-59, Mississippi Code of 1972, is brought forward as follows:

     37-151-59.  Nothing in this chapter shall be construed to prohibit a school district from issuing its bonds, negotiable notes or certificates of indebtedness for the purposes, in the manner, to the extent and subject to the limitations provided by Sections 37-59-1 through 37-59-45, Mississippi Code of 1972, or any other applicable sections, and the authority granted by this article shall be construed as being additional, supplemental and cumulative thereto.  The proceeds of the sale of any such bonds, negotiable notes or certificates of indebtedness so issued by any such school district may be used for the purpose for which they were issued and may be expended in conjunction with funds provided by the Council for Education Technology under the provisions of this article, or may be expended without such funds, if same be not available.

     SECTION 31.  Section 37-151-61, Mississippi Code of 1972, is brought forward as follows:

     37-151-61.  Any school board of any school district which may be aggrieved by any final rule, regulation or order of the State Board of Education adopted under the provisions of this chapter shall have the right to appeal therefrom to the chancery court of the county in which the school district involved or any part thereof is located in like manner, within the same time, with like effect, and subject in all other respects to appeals from orders, rules and regulations of the State Board of Education, the provisions of which are hereby made applicable in all respects to appeals from orders, rules and regulations of the commission under the provisions of this chapter.

     SECTION 32.  Section 37-151-77, Mississippi Code of 1972, is brought forward as follows:

     37-151-77.  To qualify for funds provided in this chapter, each school district shall not exceed a pupil-teacher ratio based on enrollment in Grades 1, 2, 3 and 4 as follows:  27:1

     For Grades kindergarten and 5 through 12, pupil-teacher ratio shall be determined based on appropriate accreditation standards developed by the Mississippi Commission on School Accreditation.

     Any local district may apply to the State Board of Education for approval of a waiver to this section by submitting and justifying an alternative educational program to serve the needs of enrollment in Grades kindergarten and 1 through 4.  The State Board of Education shall approve or disapprove of such waiver forty-five (45) days after receipt of such application.  If a school district violates the provisions of this section, the state aid for the ensuing fiscal year to such school district shall be reduced by the percentage variance that the actual pupil-teacher ratios in such school district has to the required pupil-teacher ratios mandated in this section.  Provided, that notwithstanding the provisions of this section, the State Board of Education is authorized to waive the pupil-teacher requirements specified herein upon a finding that a good faith effort is being made by the school district concerned to comply with the ratio provisions but that for lack of classroom space which was beyond its control it is physically impossible for the district to comply, and the cost of temporary classroom space cannot be justified.  In the event any school district meets Level 4 or 5 accreditation standards, the State Board of Education may, in its discretion, exempt such school district from the maximum pupil-teacher ratio in Grades 1, 2, 3 and 4 prescribed herein.

     SECTION 33.  Section 37-151-79, Mississippi Code of 1972, is brought forward as follows:

     37-151-79.  In addition to other funds provided for in this chapter, there shall be added to the allotment for each school district for each vocational teacher employed full time during the regular school term in a vocational education program approved by the State Department of Education the value of one-half (1/2) of the adequate education program salary schedule provided in Section 37-19-7, Mississippi Code of 1972, based on the type of certificate and number of years' teaching experience held by each approved vocational teacher plus one hundred percent (100%) of the applicable employer's rate for social security and state retirement.

     SECTION 34.  Section 37-151-81, Mississippi Code of 1972, is brought forward as follows:

     37-151-81.  (1)  In addition to other funds provided for in this chapter, there shall be added to the allotment for each school district for each teacher employed in a State Department of Education approved program for exceptional children as defined in Section 37-23-3, Mississippi Code of 1972, the value of one hundred percent (100%) of the adequate education program salary schedule prescribed in Section 37-19-7, Mississippi Code of 1972, based on the type of certificate and number of years' teaching experience held by each approved special education teacher plus one hundred percent (100%) of the applicable employer's rate for social security and state retirement, except that only seventy percent (70%) of the value will be added for the program for three- and four-year old exceptional children.

     (2)  In addition to the allowances provided above, for each handicapped child who is being educated by a public school district or is placed in accord with Section 37-23-77, Mississippi Code of 1972, and whose individualized educational program (IEP) requires an extended school year in accord with the State Department of Education criteria, a sufficient amount of funds shall be allocated for the purpose of providing the educational services the student requires.  The State Board of Education shall promulgate such regulations as are required to insure the equitable distribution of these funds.  All costs for the extended school year for a particular summer shall be reimbursed from funds appropriated for the fiscal year beginning July 1 of that summer.  If sufficient funds are not made available to finance all of the required educational services, the State Department of Education shall expend available funds in such a manner that it does not limit the availability of appropriate education to handicapped students more severely than it does to nonhandicapped students.

     (3)  The State Department of Education is hereby authorized to match adequate education program and other funds allocated for provision of services to handicapped children with Division of Medicaid funds to provide language-speech services, physical therapy and occupational therapy to handicapped students who meet State Department of Education or Division of Medicaid standards and who are Medicaid eligible.  Provided further, that the State Department of Education is authorized to pay such funds as may be required as a match directly to the Division of Medicaid pursuant to an agreement to be developed between the State Department of Education and the Division of Medicaid.

     (4)  In addition to other funds provided for in this chapter, there shall be added to the allotment for each school district for each teacher employed in a State Department of Education approved program for gifted education as defined in Sections 37-23-173 through 37-23-181, Mississippi Code of 1972, the value of one hundred percent (100%) of the adequate education program salary schedule prescribed in Section 37-19-7, Mississippi Code of 1972, based on the type of certificate and number of years' teaching experience held by each approved gifted education teacher plus one hundred percent (100%) of the applicable employer's rate for social security and state retirement.

     (5)  When any children who are residents of the State of Mississippi and qualify under the provisions of Section 37-23-31, Mississippi Code of 1972, shall be provided a program of education, instruction and training within a school under the provisions of said section, the State Department of Education shall allocate the value of one hundred percent (100%) of the adequate education program salary schedule prescribed in Section 37-19-7, Mississippi Code of 1972, for each approved program based on the type of certificate and number of years' teaching experience held by each approved teacher plus one hundred percent (100%) of the applicable employer's rate for social security and state retirement.  The university or college shall be eligible for state and federal funds for such programs on the same basis as local school districts.  The university or college shall be responsible for providing for the additional costs of the program.

     (6)  In addition to the allotments provided above, a school district may provide a program of education and instruction to  children ages five (5) years through twenty-one (21) years, who are resident citizens of the State of Mississippi, who cannot have their educational needs met in a regular public school program and who have not finished or graduated from high school, if those children are determined by competent medical authorities and psychologists to need placement in a state licensed facility for inpatient treatment, day treatment or residential treatment or a therapeutic group home.  Such program shall operate under rules, regulations, policies and standards of school districts as determined by the State Board of Education.  If a private school approved by the State Board of Education is operated as an integral part of the state licensed facility that provides for the treatment of such children, the private school within the facility may provide a program of education, instruction and training to such children by requesting the State Department of Education to allocate one (1) teacher unit or a portion of a teacher unit for each approved class.  The facility shall be responsible for providing any additional costs of the program.

     Such funds will be allotted based on the type of certificate and number of years' teaching experience held by each approved teacher.  Such children shall not be counted in average daily attendance when determining regular teacher unit allocation.

     SECTION 35.  Section 37-151-83, Mississippi Code of 1972, is brought forward as follows:

     37-151-83.  (1)  In addition to other funds allowed under the Adequate Education Program, each school district shall receive a grant for the support of alternative school programs established under Section 37-13-92, Mississippi Code of 1972, in accordance with the following:  Three-fourths of one percent (.75%) of the school district's average daily attendance or twelve (12) pupils, whichever is greater, multiplied by the average expenditure of public monies per pupil in the State of Mississippi, as determined by the State Board of Education.

     (2)  An alternative school advisory board may be created within each school district maintaining a freestanding alternative school or two (2) or more adjacent school districts operating a freestanding alternative school pursuant to a contract approved by the State Board of Education.  The advisory board shall meet no less than two (2) times during each school year to study the alternative school program and to make recommendations for improvements to the superintendent of the local school board or boards, as the case may be, and the State Superintendent of Education.  The alternative school advisory board shall consist of the following members:  one (1) school administrator to be appointed by each local school board of the school district or districts operating the alternative school; one (1) school board member and one (1) parent to be appointed by each superintendent of the school district or districts operating the alternative school; one (1) classroom teacher to be appointed by the classroom teachers in each school district operating the alternative school; one (1) individual to be appointed by the local youth court judge, or if there is no such court the chancery court judge; and one (1) law enforcement officer to be appointed by the local sheriff.  The initial members of the advisory board shall serve as follows: One-third (1/3) of the members shall serve two (2) years; one-third (1/3) of the members shall serve three (3) years; and one-third (1/3) of the members shall serve four (4) years, to be designated by the appointing authority at the time of appointment.  Thereafter, the term of each member shall be for a period of four (4) years.

     An alternative school advisory board shall have no governing authority over the alternative school program, and not in any manner shall an advisory board's authority supersede the authority of the school district or lead district in those alternative school programs operated jointly by two (2) or more districts.

     SECTION 36.  Section 37-151-85, Mississippi Code of 1972, is brought forward as follows:

     37-151-85.  (1)  The amount to be allotted by the State Board of Education for transportation shall be determined as follows:

     The State Department of Education shall calculate the cost of transportation in school districts by ascertaining the average cost per pupil in average daily attendance of transported pupils in school districts classified in different density groups as determined by the State Department of Education.  Based on these calculations, the State Department of Education shall develop a scale for determining the allowable cost per pupil in different density groups, which scale shall provide greatest allowance per pupil transported in school districts with lowest densities and smallest allowance per pupil in school districts with highest densities.  The total allowance in the adequate education program for transported children for any school district for the current year shall be the average daily attendance of the transported children for the nine (9) months of the prior year, multiplied by the allowance per transported pupil as provided herein.  However, the State Department of Education is hereby authorized and empowered to make proper adjustments in allotments, under rules and regulations of the State Board of Education, in cases where major changes in the number of children in average daily attendance transported occur from one year to another as a result of changes or alterations in the boundaries of school districts, a change in or relocation of attendance centers, or for other reasons which would result in major decrease or increase in the number of children in average daily attendance transported during the current school year as compared with the preceding year.  Moreover, the State Board of Education is hereby authorized and empowered to make such payments to all districts and/or university-based programs as deemed necessary in connection with transporting exceptional children as defined in Section 37-23-3. The State Board of Education shall establish and implement all necessary rules and regulations to allot transportation payments to university-based programs.  In developing density classifications under the provisions hereof, the State Department of Education may give consideration to the length of the route, the sparsity of the population, the lack of adequate roads, highways and bridges, and the presence of large streams or other geographic obstacles.  In addition to funds allotted under the above provisions, funds shall be allotted to each school district that transports students from their assigned school or attendance center to classes in an approved vocational-technical center at a rate per mile not to exceed the average statewide cost per mile of school bus transportation during the preceding year exclusive of bus replacement.  All such transportation must have prior approval by the State Department of Education.

     (2)  The average daily attendance of transported children shall be reported by the school district in which such children attend school.  If children living in a school district are transported at the expense of such school district to another school district, the average daily attendance of such transported children shall be deducted by the State Department of Education from the aggregate average daily attendance of transported children in the school district in which they attend school and shall be added to the aggregate average daily attendance of transported children of the school district from which they come for the purpose of calculating transportation allotments.  However, such deduction shall not be made for the purpose of calculating adequate education program pupil-based funding. 

     (3)  The State Department of Education shall include in the allowance for transportation for each school district an amount for the replacement of school buses or the purchase of new buses, which amount shall be calculated upon the estimated useful life of all school buses being used for the transportation of children in such school district, whether such buses be publicly or privately owned.

     (4)  The school boards of all districts operating school bus transportation are authorized and directed to establish a salary schedule for school bus drivers.  No school district shall be entitled to receive the funds herein allotted for transportation unless it pays each of its nonstudent adult school bus drivers paid from such transportation allotments a minimum of One Hundred Ninety Dollars ($190.00) per month.  In addition, local school boards may compensate school bus drivers for actual expenses incurred when acquiring an initial commercial license or any renewal of a commercial license in order to drive a school bus.

     (5)  The State Board of Education shall be authorized and empowered to use such part of the funds appropriated for transportation in the adequate education fund as may be necessary to finance driver training courses as provided for in Section 37-41-1, Mississippi Code of 1972.

     SECTION 37.  Section 37-151-87, Mississippi Code of 1972, is brought forward as follows:

     37-151-87.  No school district shall pay any teacher less than the state minimum salary.  No school district shall receive any funds under the provisions of this chapter for any school year during which the aggregate amount of local supplement as defined in Section 37-151-1 shall have been reduced below such amount for the previous year; however, where there has been a reduction in adequate education program allocations for such district in such year, where there has been a reduction in the amount of federal funds to such district below the previous year, or where there has been a reduction in ad valorem taxes to such school district for the 1986-1987 school year below the amount for the previous year due to the exemption of nuclear generating plants from ad valorem taxation, pursuant to Section 27-35-309, Mississippi Code of 1972, the aggregate amount of local supplement in such district may be reduced proportionately without loss of funds under this chapter.  No school district may receive any funds under the provisions of this chapter for any school year if the aggregate amount of support from ad valorem taxation shall be reduced during such school year below such amount for the previous year; however, where there is a loss in adequate education program allocations, or where there is or heretofore has been a decrease in the total assessed value of taxable property within a school district, the aggregate amount of such support may be reduced proportionately.  Nothing herein contained shall prohibit any school district from adopting or continuing a program or plan whereby teachers are paid varying salaries according to the teaching ability, classroom performance and other similar standards.

     SECTION 38.  Section 37-151-89, Mississippi Code of 1972, is brought forward as follows:

     37-151-89.  The minimum base pay for all classroom teachers may be increased by the district from any funds available to it; and those districts which have not prior to July 1, 1978, so increased said base pay, shall increase the minimum base pay for classroom teachers as fixed by this chapter and as authorized by any of the provisions of or standards set forth in this chapter.

     SECTION 39.  Section 37-151-91, Mississippi Code of 1972, is brought forward as follows:

     37-151-91.  The school boards of all school districts may establish salary schedules based on training, experience and other such factors as may be incorporated therein, including student progress and performance as developed by the State Board of Education, paying teachers greater amounts than the scale provided herein, but no teacher may be paid less than the amount based upon the minimum scale of pay provided in the adequate education program as prescribed in Section 37-19-7, Mississippi Code of 1972, and all supplements paid from local funds shall be based upon the salary schedules so established.  The school boards may call upon the State Department of Education for aid and assistance in formulating and establishing such salary schedules, and it shall be the duty of the State Department of Education, when so called upon, to render such aid and assistance.  The amount actually paid to each teacher shall be based upon and determined by the type of certificate held by such teacher.

     SECTION 40.  Section 37-151-93, Mississippi Code of 1972, is brought forward as follows:

     37-151-93.  (1)  Legally transferred students going from one school district to another shall be counted for adequate education program allotments by the school district wherein the pupils attend school, but shall be counted for transportation allotment purposes in the school district which furnishes or provides the transportation.  The school boards of the school districts which approve the transfer of a student under the provisions of Section 37-15-31 shall enter into an agreement and contract for the payment or nonpayment of any portion of their local maintenance funds which they deem fair and equitable in support of any transferred student.  Except as provided in subsection (2) of this section, local maintenance funds shall be transferred only to the extent specified in the agreement and contract entered into by the affected school districts.  The terms of any local maintenance fund payment transfer contract shall be spread upon the minutes of both of the affected school district school boards.  The school district accepting any transfer students shall be authorized to accept tuition from such students under the provisions of Section 37-15-31(1) and such agreement may remain in effect for any length of time designated in the contract.  The terms of such student transfer contracts and the amounts of any tuition charged any transfer student shall be spread upon the minutes of both of the affected school boards.  No school district accepting any transfer students under the provisions of Section 37-15-31(2), which provides for the transfer of certain school district employee dependents, shall be authorized to charge such transfer students any tuition fees.

     (2)  Local maintenance funds shall be paid by the home school district to the transferee school district for students granted transfers under the provisions of Sections 37-15-29(3) and 37-15-31(3), Mississippi Code of 1972, not to exceed the "base student cost" as defined in Section 37-151-5, Mississippi Code of 1972, multiplied by the number of such legally transferred students.

     SECTION 41.  Section 37-151-95, Mississippi Code of 1972, is brought forward as follows:

     37-151-95.  Adequate education program funds shall include one hundred percent (100%) of the cost of the State and School Employees' Life and Health Insurance Plan created under Article 7, Chapter 15, Title 25, Mississippi Code of 1972, for all district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers employed by the district.

     Where the use of federal funding is allowable to defray, in full or in part, the cost of participation in the insurance plan by district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers, whose salaries are paid, in full or in part, by federal funds, the allowance under this section shall be reduced to the extent of the federal funding.  Where the use of federal funds is allowable but not available, it is the intent of the Legislature that school districts contribute the cost of participation for such employees from local funds, except that parent fees for child nutrition programs shall not be increased to cover such cost.

     The State Department of Education, in accordance with rules and regulations established by the State Board of Education, may withhold a school district's adequate education program funds for failure of the district to timely report student, fiscal and personnel data necessary to meet state and/or federal requirements.  The rules and regulations promulgated by the State Board of Education shall require the withholding of adequate education program funds for those districts that fail to remit premiums, interest penalties and/or late charges under the State and School Employees' Life and Health Insurance Plan.  Noncompliance with such rules and regulations shall result in a violation of compulsory accreditation standards as established by the State Board of Education and Commission on School Accreditation.

     SECTION 42.  Section 37-151-97, Mississippi Code of 1972, is brought forward as follows:

     37-151-97.  The State Department of Education shall develop an annual reporting process to inform the Legislature, local district personnel and the general public as to the ongoing and future plans for the state's educational programs.  The annual reporting process will include those vital statistics that are commonly reported by schools and districts and that can provide clear demographic, strategic and educational information to constituencies such as, but not limited to, the following information:

          (a)  Student enrollment, attendance, drop-out and graduation;

          (b)  Overall student and district achievement;

          (c)  Budget, administrative costs and other pertinent fiscal information;

          (d)  Teacher and administrator certification and experience levels; and

          (e)  Other as directed by the State Board of Education.

     Further, the reporting process will include an annual report developed specifically to relate the mission and goals of the State Board of Education, state superintendent and departments.  This document will become the method through which the strategic planning and management process of the department is articulated to the public.  It will explain and inform the public of the major initiatives of the department and clearly identify rationale for program development and/or elimination.  The report will establish benchmarks, future plans and discuss the effectiveness of educational programs.

     In addition to the information specified herein, the State Board of Education shall have full and plenary authority and power to require the furnishing of such further, additional and supplementary information as it may deem necessary for the purpose of determining the cost of the adequate education program in such school district for the succeeding fiscal year, the amount of the adequate education program funds to be allotted to each school district for the succeeding fiscal year, and for any other purpose authorized by law or deemed necessary by said State Board of Education.

     It shall be the duty of the State Department of Education to prescribe the forms for the reports provided for in this section.

     SECTION 43.  Section 37-151-99, Mississippi Code of 1972, is brought forward as follows:

     37-151-99.  Based upon the information obtained pursuant to Section 37-151-97 and upon such other and further information as provided by law, the State Department of Education shall, on or before June 1 of each year, or as soon thereafter as is practical, furnish each school board the preliminary estimate of the amount each will receive from the common school fund and the adequate education program fund for the succeeding scholastic year, and at the same time shall furnish each such school board with a tentative estimate of the cost of the adequate education program in the school district for such succeeding fiscal year.

     SECTION 44.  Section 37-151-101, Mississippi Code of 1972, is brought forward as follows:

     37-151-101.  It shall be the duty of the State Department of Education to file with the State Treasurer and the State Fiscal Officer such data and information as may be required to enable the said State Treasurer and State Fiscal Officer to distribute the common school funds and adequate education program funds by electronic funds transfer to the several school districts at the time required and provided under the provisions of this chapter.  Such data and information so filed shall show in detail the amount of funds to which each school district is entitled from such common school fund and adequate education program fund.  Such data and information so filed may be revised from time to time as necessitated by law.  At the time provided by law, the State Treasurer and the State Fiscal Officer shall distribute to the several school districts the amounts to which they are entitled from the common school fund and the adequate education program fund as provided by this chapter.  Such distribution shall be made by electronic funds transfer to the depositories of the several school districts designated in writing to the State Treasurer based upon the data and information supplied by the State Department of Education for such distribution.  In such instances, the State Treasurer shall submit a request for an electronic funds transfer to the State Fiscal Officer, which shall set forth the purpose, amount and payees, and shall be in such form as may be approved by the State Fiscal Officer so as to provide the necessary information as would be required for a requisition and issuance of a warrant.  A copy of the record of said electronic funds transfers shall be transmitted by the school district depositories to the Treasurer, who shall file duplicates with the State Fiscal Officer.  The Treasurer and State Fiscal Officer shall jointly promulgate regulations for the utilization of electronic funds transfers to school districts.

     SECTION 45.  Section 37-151-103, Mississippi Code of 1972, is brought forward as follows:

     37-151-103.  (1)  Funds due each school district under the terms of this chapter from the Adequate Education Program Fund shall be paid in the following manner:  On the twenty-fifth day of each month, or the next business date after that date, there shall be paid to each school district by electronic funds transfer one-twelfth (1/12) of the funds to which the district is entitled from funds appropriated for the Adequate Education Program Fund.   However, in December those payments shall be made on December 15th or the next business day after that date.  In addition, the State Department of Education may pay school districts from the common school fund and the Adequate Education Program Fund on a date earlier than provided for by this section if it is determined that it is in the best interest of school districts to do so.

     Provided, however, that if the cash balance in the State General Fund is not adequate on the due date to pay the amounts due to all school districts in the state as determined by the State Superintendent of Education, the State Fiscal Officer shall not transfer said funds payable to any school district or districts until money is available to pay the amount due to all districts.

     (2)  Notwithstanding any provision of this chapter or any other law requiring the number of children in average daily attendance or the average daily attendance of transported children to be determined on the basis of the preceding year, the State Board of Education is hereby authorized and empowered to make proper adjustments in allotments in cases where major changes in the number of children in average daily attendance or the average daily attendance of transported children occurs from one year to another as a result of changes or alterations in the boundaries of school districts, the sending of children from one county or district to another upon a contract basis, the termination or discontinuance of a contract for the sending of children from one county or district to another, a change in or relocation of attendance centers, or for any other reason which would result in a major decrease or increase in the number of children in average daily attendance or the average daily attendance of transported children during the current school year as compared with the preceding year.

     (3)  In the event of an inordinately large number of absentees in any school district as a result of epidemic, natural disaster, or any concerted activity discouraging school attendance, then in such event school attendance for the purposes of determining average daily attendance under the adequate education program shall be based upon the average daily attendance for the preceding school year for such school district.

     SECTION 46.  Section 37-151-105, Mississippi Code of 1972, is brought forward as follows:

     37-151-105.  The State Board of Education shall have the authority to make such regulations not inconsistent with law which it deems necessary for the administration of this chapter.  The State Board of Education, if it deems such practice necessary, may use reports of the first six (6) months of school for the purpose of determining average daily attendance and the number of pupils transported for that year.

     SECTION 47.  Section 37-151-107, Mississippi Code of 1972, is brought forward as follows:

     37-151-107.  Any superintendent of education, member of the local school board of any school district, superintendent, principal, teacher, carrier, bus driver or member or employee of the State Department of Education or State Board of Education, or any other person, who shall willfully violate any of the provisions of this chapter, or who shall willfully make any false report, list or record, or who shall willfully make use of any false report, list or record, concerning the number of school children in average daily attendance or the number of children being transported or entitled to be transported in any county or school district, shall be guilty of a misdemeanor and upon conviction shall be punished by imprisonment in the county jail for a period not to exceed sixty (60) days or by a fine of not less than One Hundred Dollars ($100.00), nor more than Three Hundred Dollars ($300.00), or by both such fine and imprisonment, in the discretion of the court.  In addition, any such person shall be civilly liable for all amounts of public funds which are illegally, unlawfully or wrongfully expended or paid out by virtue of or pursuant to such false report, list or record, and upon conviction or adjudication of civil liability hereunder, such person shall forfeit his license to teach for a period of three (3) years, if such person is the holder of such a license.  Any suit to recover such funds illegally, unlawfully or wrongfully expended or paid out may be brought in the name of the State of Mississippi by the Attorney General or the proper district attorney or county attorney, and, in the event such suit be brought against a person who is under bond, the sureties upon such bond shall likewise be liable for such amount illegally, unlawfully or wrongfully expended or paid out.

     SECTION 48.  This act shall take effect and be in force from and after July 1, 2004.