MISSISSIPPI LEGISLATURE

2004 Regular Session

To: Education

By: Senator(s) Chaney

Senate Bill 2296

(As Sent to Governor)

AN ACT TO AMEND SECTIONS 37-9-3, 37-9-21, 37-9-27, 37-9-41, 37-9-43, 37-9-49, 37-9-70, 37-15-8, 37-39-1, 37-41-1, 37-41-29, 37-41-97, 37-41-99, 37-61-3, 37-61-9, 37-61-17, 37-61-19, 37-61-21, 37-61-23 AND 37-61-27, MISSISSIPPI CODE OF 1972, AND SECTION 1 OF CHAPTER 525, LAWS OF 1978, TO DELETE THE TERM "ADMINISTRATIVE SUPERINTENDENT" FROM CERTAIN STATUTES RELATING TO THE ADMINISTRATION OF PUBLIC SCHOOL DISTRICTS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 37-9-3, Mississippi Code of 1972, is amended as follows:

     37-9-3.  Within the limits of the available funds, the superintendent of schools * * * of a school district shall recommend to the school board thereof all noninstructional employees to be employed and may prescribe the duties thereof.  Compensation for such employees may be paid from any lawful funds.

     SECTION 2.  Section 37-9-21, Mississippi Code of 1972, is amended as follows:

     37-9-21.  It shall be illegal for any superintendent, * * * principal or other licensed employee to be elected by the school board if such superintendent, * * * principal or licensed employee is related within the third degree by blood or marriage according to the common law to a majority of the members of the school board.  No member of the school board shall vote for any person as a superintendent, * * * principal or licensed employee who is related to him within the third degree by blood or marriage or who is dependent upon him in a financial way.  Any contract entered into in violation of the provisions of this section shall be null and void.

     SECTION 3.  Section 37-9-27, Mississippi Code of 1972, is amended as follows:

     37-9-27.  The superintendent * * * of any school district, before entering upon the duties of his office, shall furnish a good and sufficient surety bond in the penal sum of One Hundred Thousand Dollars ($100,000.00), with sufficient surety.  Such bond shall be filed and recorded in the office of the clerk of the chancery court in which the school district is located, and shall be payable, conditioned and approved in the manner provided by law.  The premium on said bond shall be paid out of the school district maintenance fund.

     SECTION 4.  Section 37-9-41, Mississippi Code of 1972, is amended as follows:

     37-9-41.  The salaries of superintendents, * * * principals and licensed employees shall be paid by pay certificates issued by the school district superintendent * * *.  Such pay certificates may be issued without additional authorization of the school board where the amount of salary has been fixed and a contract entered into as is provided in this chapter.  All pay certificates shall be preserved by him as a part of the official records of his office for the same time and in the same manner as other records are preserved.  Except as is herein provided, the said warrants shall be governed in all respects by the same laws regulating the issuance of other warrants for other purposes.  All pay certificates and warrants issued shall show the gross amount of the salary and all authorized deductions therefrom for income taxes, Social Security, retirement contributions and other lawful purposes.

     SECTION 5.  Section 37-9-43, Mississippi Code of 1972, is amended as follows:

     37-9-43.  It shall be unlawful for any appointed superintendent, principal or licensed employee to be paid for any services as such until a written contract has been executed as is provided and required by this chapter.  If any school district superintendent * * * shall make any such payment prior to the execution of the contract he shall be civilly liable for the amount thereof, and, in addition, shall be liable upon his bond.  If any licensed employee, appointed superintendent or principal shall willfully and without just cause breach his contract and abandon his employment he shall not be entitled to any further salary payments either for services rendered prior to such breach or for services which were thereafter to have been rendered.  Nothing in this section, however, shall prevent the employment and payment of substitute teachers without a written contract.

     SECTION 6.  Section 37-9-49, Mississippi Code of 1972, is amended as follows:

     37-9-49.  It shall be unlawful for the superintendent of schools * * * to deduct or permit to be deducted from the salary of any superintendent, * * * principal or licensed employee any dues, fines or penalties payable or alleged to be payable because of the membership of such superintendent, * * * principal or licensed employee in any organization or association.  However, dues or premiums in health associations or corporations and tax sheltered annuity deductions authorized by the United States Internal Revenue Code may be deducted upon written authorization from the superintendent, * * * principal or licensed employee involved.  Any superintendent of schools * * * who shall make any such deduction or permit any such deduction to be made, except those herein provided, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than Twenty-five Dollars ($25.00) for each such deduction.

     SECTION 7.  Section 37-9-70, Mississippi Code of 1972, is amended as follows:

     37-9-70.  (1)  The superintendent * * * shall keep and maintain an office as necessary for the discharge of his or her duties and responsibilities in office.  The cost of the operation of said office shall be paid out of such funds as may be available to the school board from all sources, except as provided for in the following subsection.

     (2)  In all school districts in which the superintendent or the administrative superintendent was, prior to July 1, 1986, known and referred to as county superintendent of education under the statutes of the State of Mississippi or as district superintendent of a special municipal separate school district which embraces all of the territory of a county, the board of supervisors shall be responsible for providing an office together with all necessary furniture and water, gas, electricity, and other utilities necessary and required for the operation of his said office, which shall be paid for out of the general fund of the county upon allowance of the board of supervisors.

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

     37-15-8.  The superintendent * * * of the school district shall have the authority, with the approval of the school board of the school district spread upon its minutes, to dispose of the following records:

          (a)  After five (5) years:

              (1)  Bank statements;

              (2)  Cancelled warrants and pay certificates;

              (3)  School board paid bills;

              (4)  Bids received, either accepted or rejected, for supplies, materials, equipment and construction;

              (5)  Depository receipt warrants;

              (6)  School board claims dockets, where claims are recorded on the minutes of the board;

              (7)  Original of school board's orders after such orders have been recorded in the minute book;

              (8)  Cancelled bonds and coupons;

              (9)  Tax collector's reports of tax collection to superintendent of schools * * *;

              (10)  Transportation records.

          (b)  After three (3) years:

              (1)  Teacher contracts, computed from the expiration date thereof;

              (2)  Bus purchase documents;

              (3)  Teachers' registers, principals' reports and other evidence necessary to prepare the reports to the State Board of Education.

          (c)  After period to be set by the State Board of Education such other documents of a temporary or transitory nature as the State Board of Education by regulation shall designate.

     Notwithstanding any of the provisions of Sections 37-15-1 through 37-15-4, 37-15-8 and 37-15-10 to the contrary, no records which are in the process of being audited by the State Department of Audit, or which are the basis of litigation, shall be destroyed until at least twelve (12) months after final completion of said audits and litigation.

     SECTION 9.  Section 37-39-1, Mississippi Code of 1972, is amended as follows:

     37-39-1.  The following words and phrases, when used in this chapter, shall, for the purpose of this chapter, have the meanings respectively ascribed to them in this section:

          (a)  "Perishables" shall mean items which have a variable market price on which vendors are unable to submit a long-range price such as fruits and vegetables;

          (b)  "Purchasing agent" shall mean the superintendent, * * * or other individual or individuals designated by the school board or by the school boards acting jointly as its agent or agents to negotiate and make private contract or to purchase;

          (c)  "School boards" shall mean the local governing boards of all school districts in the state, whether they act jointly or separately;

          (d)  "Services" shall mean maintenance, operational and scholastic services utilized within and for the school district or school districts.

     SECTION 10.  Section 37-41-1, Mississippi Code of 1972, is amended as follows:

     37-41-1.  The State Board of Education is authorized, empowered and directed to promulgate rules and regulations for:

          (a)  Setting standards for public school bus routes;

          (b)  Approving or disapproving plans for public school routes;

          (c)  Setting standards for public school buses;

          (d)  Setting standards for public school bus drivers;

          (e)  Formulating procedure for selecting public school bus drivers;

          (f)  Formulating courses of training for public school bus drivers and mechanics, and assist in administering and financing such courses;

          (g)  Providing operation procedure for public school buses to insure safety of pupils;

          (h)  Furnishing consultative supervision for the operation of county school bus garages, and approving plans for such garages and the proposed expenditure of transportation funds therefor;

          (i)  Formulating specifications for use in purchasing public school buses; getting bids on public school buses; equipment and supplies; and fixing prices based upon said bids which school districts may not exceed in purchasing said equipment;

          (j)  Formulating specifications for use by school districts in purchasing used school buses;

          (k)  Providing a system of records and reports for the purpose of carrying out the provisions of Sections 37-41-1 through 37-41-51, and providing the superintendent of schools * * * with a sufficient supply of report forms;

          (l)  Conduct upon said buses; and

          (m)  The method by which, and the circumstances in which, any individual who is not a student scheduled to be a passenger upon that particular bus, a member of the public school administration or faculty, or a law enforcement official may obtain entry upon said buses.

     All rules and regulations adopted and promulgated by the State Board of Education relating to school bus drivers shall also be applicable to drivers of privately-owned buses transporting public school children.

     All rules and regulations adopted and promulgated by the State Board of Education pursuant to the authority conferred by this section shall be spread at large upon the minutes of the State Board of Education and copies thereof shall be furnished to all school boards not less than thirty (30) days prior to the effective date of such rules and regulations.

     SECTION 11.  Section 37-41-29, Mississippi Code of 1972, is amended as follows:

     37-41-29.  It shall be the duty of the school boards, as existing private contracts providing for transportation of school pupils expire, to replace such private transportation with publicly owned transportation unless publicly owned transportation is deemed impractical.  The school boards may acquire, when so requested by holders of private transportation contracts, from such holders of private transportation contracts, all buses which, in the opinion of the school boards, can be practicably operated as units of the public transportation system.  The actual market value shall be paid therefor, said value to be determined by an appraisal by three (3) experienced and impartial citizens, the selection of whom shall be mutually agreed upon by the parties thereto.

     With the approval of the State Board of Education, present private contracts providing for transportation of school pupils may be continued, or new contracts may be entered into whenever it is deemed that the needs of the pupils can best be served by such method of transportation.  However, in no case shall the amount allotted per pupil from state funds for transportation in facilities provided by private contracts exceed the amount allowed per pupil from state funds for public transportation in the same county and district.

     Before any money is allocated or disbursed from the state transportation funds to any school board which is transporting children under private contracts, written contracts shall be entered into by and between the respective carriers and school boards.  A copy of each contract shall be filed with the superintendent of schools * * *.  The aforesaid contract shall show the length of the route, the amount of money to be paid the carrier, the type and condition of the bus, and any other information which may be required by the State Board of Education.

     Local school boards are not required to file a copy of any private contract for the transportation of exceptional children or the transportation of children under extraordinary circumstances with the State Board of Education.

     SECTION 12.  Section 37-41-97, Mississippi Code of 1972, is amended as follows:

     37-41-97.  The proceeds of all notes or bonds issued under the authority of Section 37-41-89 shall be deposited in the proper county or municipal treasury to the credit of a special school transportation equipment fund and shall be used and expended by the school board for the purpose or purposes for which they were issued under such rules and regulations as may be prescribed by the State Board of Education, and for no other purposes.

     All such funds shall be paid out on warrants issued by the clerk of the board of supervisors or the municipal clerk, as the case may be, on pay certificates issued by the superintendent of schools * * * upon order of the school board.

     SECTION 13.  Section 37-41-99, Mississippi Code of 1972, is amended as follows:

     37-41-99.  The principal of and interest upon all notes or bonds issued under the authority of Section 37-41-89 shall be paid out of such transportation funds of the school district as may be available for such purpose.  It shall be the duty of the school board to set aside each year out of such transportation funds a sufficient amount to pay the principal of and interest upon said notes or bonds as and when the same shall respectively mature and accrue.  It shall be the duty of the superintendent of schools * * * to include in the school budget each year separate items showing the amount required for the payment of the principal of and the interest upon all notes or bonds issued under the authority of said section.

     SECTION 14.  Section 37-61-3, Mississippi Code of 1972, is amended as follows:

     37-61-3.  The adequate education program allotments of the public school districts and the funds derived from the supplemental school district tax levies authorized by law shall be used exclusively for the support, maintenance and operation of the schools in the manner provided by law for the fiscal years for which such funds were appropriated, collected or otherwise made available, and no part of said funds or allotments shall be used in paying any expenses incurred during any preceding fiscal year. However, this shall not be construed to prohibit the payment of expenses incurred during the fiscal year after the close of such fiscal year from amounts remaining on hand at the end of such fiscal year, provided that such expenses were properly payable from such amounts.  Moreover, this shall not be construed to prohibit the payment of the salaries of superintendents, * * * principals and teachers and other school employees whose salaries are payable in twelve (12) monthly installments after the close of the fiscal year from amounts on hand for such purpose at the end of the fiscal year.

     SECTION 15.  Section 37-61-9, Mississippi Code of 1972, is amended as follows:

     37-61-9.  (1)  On or before the fifteenth day of August of each year, the local school board of each school district, with the assistance of the superintendent of schools * * *,shall prepare and file with the levying authority for the school district, as defined in Section 37-57-1, Mississippi Code of 1972, at least two (2) copies of a budget of estimated expenditures for the support, maintenance and operation of the public schools of the school district for the fiscal year commencing on July 1 of such year.  Such budget shall be prepared on forms prescribed and provided by the State Auditor and shall contain such information as the State Auditor may require.

     (2)  In addition, on or before the fifteenth day of August of each year, the local school board of each school district, with the assistance of the superintendent of schools * * *, shall prepare and file with the State Department of Education such budgetary information as the State Board of Education may require.  The State Board of Education shall prescribe and provide forms to each school district for this purpose.

     (3)  Prior to the adoption of a budget pursuant to this section, the school board of each school district shall hold at least one (1) public hearing to provide the general public with an opportunity to comment on the taxing and spending plan incorporated in the proposed budget.  The public hearing shall be held at least one (1) week prior to the adoption of the budget with advance notice.  After final adoption of the budget, a synopsis of such budget in a form prescribed by the State Department of Audit shall be published in a newspaper having general circulation in the school district on a date different from the date on which the county or any municipality therein may publish its budget.

     (4)  Beginning with the fiscal year 1995-1996, there shall be imposed limitations on budgeted expenditures for certain administration costs, as defined hereinafter, in an amount not greater than One Hundred Fifty Thousand Dollars ($150,000.00) plus four percent (4%) of the expenditures of all school districts each year.  For purposes of this subsection, "administration costs" shall be defined as expenditures for salaries and fringe benefits paid for central administration costs from all sources of revenue in the following expenditure functions as defined in the MISSISSIPPI PUBLIC SCHOOL DISTRICT FINANCIAL ACCOUNTING MANUAL:

     2300 =    Support Services - General Administration

          2310 =    Board of Education Services

          2320 =    Executive Administration Services

          2330 =    Special Area Administration Services

     2500 =    Business Services

          2510 =    Fiscal Services

          2520 =    Purchasing Services

          2530 =    Warehousing and Distributing Services

          2540 =    Printing, Publishing and Duplicating Services

          2590 =    Other Support Services - Business

     2800 =    Support Services - Central

          2810 =    Planning, Research, Development and Evaluation

          2820 =    Information Services

          2830 =    Staff Services

          2840 =    Data Processing Services

     Any costs classified as "administration costs" for purposes of this subsection which can be demonstrated by the local school district to be an expenditure that results in a net cost savings to the district that may otherwise require budget expenditures for functions not covered under the definition of administration costs herein may be excluded from the limitations imposed herein.  The local school board shall make a specific finding of such costs and spread such finding upon its minutes, which shall be subject to the approval of the Office of Educational Accountability of the State Department of Education.  Any school district required to make expenditure cuts, as a result of application of this subsection, shall not be required to reduce such expenditures more than twenty-five percent (25%) in any year in order to comply with this mandate.

     The State Auditor shall ensure that functions in all expenditure categories to which this administrative limitation applies shall be properly classified.

     This section shall not apply to central administration with five (5) or less full-time employees, or to those school districts which can substantiate that comparable reductions have occurred in administrative costs for the five-year period immediately prior to school year 1993-1994.  In the event the application of this section may jeopardize the fiscal integrity or operations of the school district, have an adverse impact on the ability of the district to deliver educational services, or otherwise restrict the district from achieving or maintaining a quality education program, the State Board of Education shall be authorized to exempt the application of this section to such school district pursuant to rules and regulations of the State Board of Education consistent with the intent of this section.

     SECTION 16.  Section 37-61-17, Mississippi Code of 1972, is amended as follows:

     37-61-17.  It shall be the duty of the State Auditor to prescribe the forms for the budgets provided for in this chapter. It shall be the duty of such superintendents of schools * * * and school boards to use such forms in preparing said budgets.  No distribution of school funds shall be made to any school district until the budgets required by this chapter shall be filed.

     SECTION 17.  Section 37-61-19, Mississippi Code of 1972, is amended as follows:

     37-61-19.  It shall be the duty of the superintendents of schools * * * and the school boards of all school districts to limit the expenditure of school funds during the fiscal year to the resources available.  It shall be unlawful for any school district to budget expenditures from a fund in excess of the resources available within that fund.  Furthermore, it shall be unlawful for any contract to be entered into or any obligation incurred or expenditure made in excess of the resources available for such fiscal year.  Any member of the school board, superintendent of schools, or other school official, who shall knowingly enter into any contract, incur any obligation, or make any expenditure in excess of the amount available for the fiscal year shall be personally liable for the amount of such excess.  However, no school board member, superintendent or other school official shall be personally liable (a) in the event of any reduction in adequate education program payments by action of the Governor acting through the Department of Finance and Administration, or (b) for claims, damages, awards or judgments, on account of any wrongful or tortious act or omission or breach of implied term or condition of any warranty or contract; provided, however, that the foregoing immunity provisions shall not be a defense in cases of fraud, criminal action or an intentional breach of fiduciary obligations imposed by statute.

     SECTION 18.  Section 37-61-21, Mississippi Code of 1972, is amended as follows:

     37-61-21.  If it should appear to the superintendent of schools * * * or the school board of any school district that the amounts to be received from state appropriations, taxation or any other source will be more than the amount estimated in the budget filed and approved, or if it should appear that such amounts shall be less than the amount estimated, the school board of the school district, with assistance from the superintendent, may revise the budget at any time during the fiscal year by increasing or decreasing the fund budget, in proportion to the increase or decrease in the estimated amounts.  If it should appear to the superintendent of schools * * * or the school board of a school district that some function of the budget as filed is in excess of the requirement of that function and that the entire amount budgeted for such function will not be needed for expenditures therefor during the fiscal year, the school board of the school district, with assistance from the superintendent, may transfer resources to and from functions and funds within the budget when and where needed; however, no such transfer shall be made from fund to fund or from function to function which will result in the expenditure of any money for any purpose different from that for which the money was appropriated, allotted, collected or otherwise made available or for a purpose which is not authorized by law.  No revision of any budget under the provisions hereof shall be made which will permit a fund expenditure in excess of the resources available for such purpose.  The revised portions of the budgets shall be incorporated in the minutes of the school board by spreading them on the minutes or by attaching them as an addendum.  Final budget revisions, pertinent to a fiscal year, shall be approved on or before the date set by the State Board of Education for the school district to submit its financial information for that fiscal year.

     SECTION 19.  Section 37-61-23, Mississippi Code of 1972, is amended as follows:

     37-61-23.  The superintendent of schools of each school district * * * shall open and keep regular sets of books, as prescribed by the State Auditor, which shall be subject to inspection during office hours by any citizen so desiring to inspect the same.  The books for each fiscal year shall be kept separately and same shall be safely preserved by the superintendent of schools * * *.

     SECTION 20.  Section 37-61-27, Mississippi Code of 1972, is amended as follows:

     37-61-27.  If any member of the school board or the superintendent of schools * * * disbursing and handling school funds shall fail, refuse or neglect to comply with the provisions of Section 37-61-9, he shall, upon conviction, be guilty of a misdemeanor and shall be fined not more than Five Hundred Dollars ($500.00) for such failure, refusal or neglect for each offense.  In addition thereto, he shall be liable to a penalty of Five Hundred Dollars ($500.00) recoverable on his official bond by suit filed by any county or district attorney or any interested citizen, upon his official bond.

     SECTION 21.  Section 1 of Chapter 525, Laws of 1978, is amended as follows:

     Section 1.  For purposes of this act, the following terms shall have the meaning ascribed herein, unless the context shall otherwise require.

          (a)  "Board of education" shall mean that school board of the school district in whose present jurisdiction (i) is situated a sixteenth section of land, or (ii) was originally situated a sixteenth section of land for which land has been granted in lieu thereof.  Provided, however, that in the event a sixteenth section is situated within two (2) or more school districts, the term "board of education" shall mean that school board whose school district embraces the greatest land area within the township in which said sixteenth section is located.

          (b)  "Superintendent of education" shall mean that superintendent of schools * * * of a school district whose board of education has control and jurisdiction over any sixteenth section lands or lands granted in lieu thereof.

     SECTION 22.  This act shall take effect and be in force from and after July 1, 2004.