MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Education

By: Representative Brown

House Bill 1121

AN ACT RELATING TO THE ADMINISTRATION AND GOVERNANCE OF LOCAL SCHOOL DISTRICTS; TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 37-7-301.1, MISSISSIPPI CODE OF 1972, TO GRANT HOME RULE TO LOCAL SCHOOL DISTRICTS; TO AMEND SECTION 37-17-11, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE STATE BOARD OF EDUCATION TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM COMPULSORY STANDARDS OF ACCREDITATION WHICH ARE PRESCRIBED OTHER THAN BY LAW; TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 37-17-12, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS MEETING LEVEL 4 OR LEVEL 5 ACCREDITATION STANDARDS FROM CERTAIN STATUTORY REQUIREMENTS AND THE PROCESS STANDARDS SET FORTH IN THE MISSISSIPPI PUBLIC SCHOOLS ACCOUNTABILITY MANUAL; TO AMEND SECTION 37-3-4, MISSISSIPPI CODE OF 1972, TO EXEMPT PRINCIPALS AND ADMINISTRATORS IN SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM CERTAIN CONTINUING EDUCATION REQUIREMENTS; TO AMEND SECTION 37-3-46, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM THE REQUIREMENT OF RECEIVING TECHNICAL ASSISTANCE FROM THE STATE DEPARTMENT OF EDUCATION IN REGARD TO FINANCIAL AND PERSONNEL APPRAISAL AND COMPENSATION SYSTEMS; TO AMEND SECTION 37-3-49, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM CERTAIN REQUIREMENTS RELATING TO INSTRUCTIONAL PROGRAMS; TO AMEND SECTION 37-7-337, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM REQUIREMENTS RELATING TO THE CREATION OF COMMUNITY INVOLVEMENT PLANS; TO AMEND SECTION 37-9-79, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM REQUIREMENTS RELATING TO SCHOOL GUIDANCE COUNSELORS; TO AMEND SECTION 37-17-6, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM REQUIREMENTS RELATING TO SCHOOL LIBRARIANS; TO AMEND SECTION 37-17-8, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM REQUIREMENTS RELATING TO STAFF DEVELOPMENT PLANS; TO AMEND SECTION 37-21-7, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM REQUIREMENT RELATED TO THE EMPLOYMENT OF ASSISTANT TEACHERS; TO AMEND SECTIONS 37-13-61, 37-13-67 AND 37-13-69, MISSISSIPPI CODE OF 1972, TO AUTHORIZE LOCAL SCHOOL BOARDS TO DESIGNATE THE OPENING AND CLOSING DATES OF THE SCHOOL TERM, THE NUMBER OF TEACHING HOURS PER SCHOOL DAY AND HOLIDAYS THAT ARE TO BE OBSERVED IN THE DISTRICT; TO AMEND SECTION 37-41-53, MISSISSIPPI CODE OF 1972, TO DELETE THE REQUIREMENT THAT SCHOOL BOARDS REQUIRE SCHOOL TRANSPORTATION VEHICLES TO BE INSPECTED ACCORDING TO STATE BOARD OF EDUCATION REGULATIONS; TO AMEND SECTION 37-7-301, MISSISSIPPI CODE OF 1972, TO AUTHORIZE SCHOOL DISTRICTS TO CONTRACT WITH PRIVATE ENTITIES TO PROVIDE CERTAIN NONINSTRUCTIONAL SERVICES; TO AMEND SECTIONS 25-11-103 AND 25-11-127, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTION 37-151-77, MISSISSIPPI CODE OF 1972, TO EXEMPT SCHOOLS ACCREDITED AT LEVEL 4 OR 5 FROM MAXIMUM PUPIL-TEACHER RATIOS IN GRADES 1 THROUGH 4; AND FOR RELATED PURPOSES.

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

     SECTION 1.  The following shall be codified as Section 37-7-301.1, Mississippi Code of 1972:

     37-7-301.1.  The school board of a school district may adopt any orders, resolutions or ordinances with respect to school district affairs, property and finances which are not inconsistent with the Mississippi Constitution of 1890, the Mississippi Code of 1972, or any other statute or law of the State of Mississippi.  Except as otherwise provided, the powers granted to the school boards are complete without the existence of or reference to any specific authority granted in any other statute or law of the State of Mississippi and may be exercised unless specifically prohibited by a statute or law of the State of Mississippi.  Unless such actions are specifically authorized by another statute or law of the State of Mississippi, this section shall not authorize a school board to:  (a) levy taxes of any kind or increase the levy of any authorized tax; (b) issue bonds of any kind; or (c) enter into collective bargaining agreements.  All other powers of the school boards may be exercised unless specifically prohibited by the statutes or laws of the State of Mississippi.  

     SECTION 2.  Section 37-17-11, Mississippi Code of 1972, is amended as follows:

     37-17-11.  The State Board of Education, in its discretion, may exempt any school * * * which meets Level 4 or 5 accreditation from any compulsory standard of accreditation.  * * * However, if the standard of accreditation is an educational policy required by statute, any such exemption shall only be made if specifically authorized by law.

     SECTION 3.  The following shall be codified as Section 37-17-12, Mississippi Code of 1972:

     37-17-12.  (1)  (a)  Schools meeting Level 4 or 5 accreditation standards are exempt from the requirements prescribed in Sections 37-3-4, 37-3-46, 37-3-49, 37-7-337, 37-9-79, 37-17-6, 37-17-8, 37-21-7 and 37-151-77 and the process standards included in the Mississippi Public Schools Accountability Manual which are not required by law.

          (b)  Each school initially meeting a Level 4 or 5 accreditation rating according to the official issuance of the State Board of Education accreditation ratings shall have its exemption status reevaluated every three (3) years.  If a previously exempted school's rating is reduced to Level 1, 2 or 3, then that school automatically shall lose its exempt status until it again achieves a Level 4 or 5 rating.

     (2)  For the purposes of this section, a Level 4 or 5 school is defined as a school designated by the State Board of Education as having such accreditation rating.

     (3)  Before December 1, 2006, the State Department of Education shall provide a report of all exempted process standards and nonexempted process standards to the Office of the Governor and the Chairs of the Education Committees of the House of Representatives and Senate.

     SECTION 4.  Section 37-3-4, Mississippi Code of 1972, is amended as follows:

     37-3-4.  (1)  There is established within the State Department of Education, the School Executive Management Institute.  The director shall be appointed by the State Board of Education upon recommendation by the State Superintendent of Public Education.  The State Superintendent of Public Education, with the approval of the State Board of Education, shall assign sufficient staff members from the State Department of Education to the institute.

     (2)  It shall be the purpose and duty of the institute to conduct thorough empirical studies and analyses of the school management needs of the local school districts throughout the state, to make recommendations to the State Board of Education regarding standards and programs of training that aid in the development of administrative and management skills of local school administrators, and to conduct such programs related to these purposes as they are implemented under guidelines established by the State Board of Education.

     (3)  The State Board of Education shall develop and implement through the School Executive Management Institute a program for the development of administrative and management skills of local school administrators under which all local school administrators shall be required to participate.  Subject to the extent of appropriations available for such purpose, the School Executive Management Institute or the Mississippi School Boards Association shall be required to offer courses at least twice a year on the uses of technology to principals, superintendents and other administrative personnel.  These courses shall relate to the application of technology to learning, as well as administrative problems.

     (4)  (a)  The institute shall have an advisory board composed of ten (10) qualified members appointed by the State Board of Education after consultation with the State Superintendent of Public Education.  This advisory board will offer recommendations to the institute on the types of training to be instituted and supported.  The membership of the advisory board shall be composed of the following members, two (2) to be appointed from each congressional district:  three (3) school administrators; one (1) representative of public community/junior colleges within the state; one (1) representative of a school of education in an institution of higher learning within the state; two (2) local school board members; one (1) classroom teacher; and two (2) lay persons.  In making the initial appointments, three (3) members shall be appointed for a term of one (1) year, three (3) members shall be appointed for a term of two (2) years, two (2) members shall be appointed for a term of three (3) years, and two (2) members shall be appointed for a term of four (4) years.  Thereafter, all members shall be appointed for a term of four (4) years.  The advisory board shall meet when called by the director, but in no event fewer than three (3) times per year.  The members of the advisory board shall be compensated at the per diem rate authorized by Section 25-3-69 and reimbursed for actual and necessary expenses as authorized by Section 25-3-41.

          (b)  Board members of the Oxford-Lafayette Business and Industrial Complex shall be paid per diem and reimbursed for expenses and mileage from local funds in accordance with Section 37-6-13.

     (5)  (a)  Basic Education Course.  Subject to the extent of appropriations available for such purpose, the School Executive Management Institute of the State Department of Education shall prepare and conduct a course of training for basic education for the local school board members of this state, in order for board members to carry out their duties more effectively and be exposed to new ideas involving school restructuring.  The basic course shall be known as the "School Board Member Training Course" and shall consist of at least twelve (12) hours of training.  The School Executive Management Institute shall issue certificates of completion to those school board members who complete the basic education course.

          (b)  Continuing Education Course.  The Mississippi School Boards Association shall be responsible for preparing and conducting a course of training for continuing education for the local school board members of this state, in order for board members to carry out their duties more effectively and be exposed to new ideas involving school restructuring.  The continuing education course shall be known as the "Continuing Education Course for School Board Members" and shall consist of at least six (6) hours of training. 

     The Mississippi School Boards Association shall issue certificates of completion to those school board members who complete the continuing education course.  All costs and expenses for preparing and conducting the continuing education course provided for in this paragraph shall be paid out of any funds which are made available to the Mississippi School Boards Association upon authorization and appropriation by the Legislature to the State Department of Education.

     (6)  The Mississippi School Boards Association shall prepare and submit a report each year to the State Board of Education and to the respective Chairs of the House and Senate Education Committees describing the activities and providing an evaluation of the continuing education programs offered by the association each year.

     (7)  The School Executive Management Institute of the State Department of Education, or the Mississippi School Boards Association with the oversight of the State Board of Education, at least twice a year, shall prepare and conduct required courses of training for continuing education for the elementary and secondary school principals of this state, in order for principals to carry out their duties more effectively and be exposed to new ideas involving school management.  The continuing education course shall be known as the "Continuing Education Course for Principals" and shall consist of at least six (6) hours of training.  The content of the continuing education courses and the time and place such courses are to be conducted shall be determined by the School Executive Management Institute or the Mississippi School Boards Association; however, to the extent practicable, such training sessions shall be held within geographical proximity of local districts in order that travel times and costs shall not be prohibitive. 

     The institute shall issue certificates of completion to those principals who complete such courses.  All costs and expenses for preparing and conducting the basic and continuing education courses provided for in this subsection shall be paid out of any funds which are made available to the institute upon authorization and appropriation by the Legislature.

     (8)  Principals and other administrators at schools meeting Level 4 or 5 accreditation standards are exempt from the requirements of this section.

     SECTION 5.  Section 37-3-46, Mississippi Code of 1972, is amended as follows:

     37-3-46. * * * The State Department of Education, in regard to any school not meeting Level 4 or Level 5 accreditation standards, shall:

          (a)  Provide to local school districts financial, training and other assistance to implement and maintain a state program of educational accountability and assessment of performance.

          (b)  Provide to local school districts technical assistance and training in the development, implementation and administration of a personnel appraisal and compensation system for all school employees. * * *

          (c)  Provide to local school districts technical assistance in the development, implementation and administration of programs designed to keep children in school voluntarily and to prevent dropouts.

  * * *  

     SECTION 6.  Section 37-3-49, Mississippi Code of 1972, is amended as follows:

     37-3-49.  (1)  The State Department of Education shall provide an instructional program and establish guidelines and procedures for managing such program in the public schools as part of the State Program of Educational Accountability and Assessment of Performance as prescribed in Section 37-3-46.  Public school districts may (a) elect to adopt the instructional program and management system provided by the State Department of Education, or (b) elect to adopt an instructional program and management system which meets or exceeds criteria established by the State Department of Education for such.  This provision shall begin with the courses taught in Grades K-8 which contain skills tested through the Mississippi Basic Skills Assessment Program and shall proceed through all secondary school courses mandated for graduation and all secondary school courses in the Mississippi end-of-course testing program.  Other state core objectives must be included in the district's instructional program as they are provided by the State Department of Education along with instructional practices, resources, evaluation items and management procedures.  Districts are encouraged to adapt this program and accompanying procedures to all other instructional areas.  The department shall provide that such program and guidelines, or a program and guidelines developed by a local school district which incorporates the core objectives from the curriculum structure are enforced through the performance-based accreditation system.  It is the intent of the Legislature that every effort be made to protect the instructional time in the classroom and reduce the amount of paperwork which must be completed by teachers.  The State Department of Education shall take steps to insure that school districts properly use staff development time to work on the districts' instructional management plans.

     (2)  The State Department of Education shall provide such instructional program and management guidelines which shall require for every public school district that:

          (a)  All courses taught in Grades K-8 which contain skills which are tested through the Mississippi Basic Skills Assessment Program, all secondary school courses mandated for graduation, and all courses in the end-of-course testing program shall include the State Department of Education's written list of learning objectives.

          (b)  The local school board must adopt the objectives that will form the core curriculum which will be systematically delivered throughout the district.

          (c)  The set of objectives provided by the State Department of Education must be accompanied by suggested instructional practices and resources that would help teachers organize instruction so as to promote student learning of the objectives.  Objectives added by the school district must also be accompanied by suggested instructional practices and resources that would help teachers organize instruction.  The instructional practices and resources that are identified are to be used as suggestions and not as requirements that teachers must follow. The goal of the program is to have students to achieve the desired objective and not to limit teachers in the way they teach.

          (d)  Standards for student performance must be established for each core objective in the local program and those standards establish the district's definition of mastery for each objective.

          (e)  There shall be an annual review of student performance in the instructional program against locally established standards.  When weaknesses exist in the local instructional program, the district shall take action to improve student performance.

     (3)  The State Board of Education and the board of trustees of each school district shall adopt policies to limit and reduce the number and length of written reports that classroom teachers are required to prepare.

     (4)  This section shall not be construed to limit teachers from using their own professional skills to help students master instructional objectives, nor shall it be construed as a call for more detailed or complex lesson plans or any increase in testing at the local school district level.

     (5)  Schools meeting Level 4 or 5 accreditation standards are exempt from the requirements of this section.

     SECTION 7.  Section 37-7-337, Mississippi Code of 1972, is amended as follows:

     37-7-337.  (1)  The governing authorities of the county, counties or city in which a school district is located and the school board of each school district shall develop a five-year plan to encourage community involvement with the schools in such district. * * *

     (2)  Schools meeting Level 4 or 5 accreditation standards are exempt from participating in the development of the community involvement plan required under subsection (1) of this section.

     SECTION 8.  Section 37-9-79, Mississippi Code of 1972, is amended as follows:

     37-9-79.  (1) * * * The assignment of K-12 School Guidance Counselors to the particular schools within the district shall be at the discretion of the local school board with the following restrictions:

          (a)  No individual shall be employed as a school guidance counselor without a minimum of a Master's Degree in Guidance and Counseling, or in an emergency situation, an appropriate certification as determined by the Commission on Teacher and Administrator Education, Certification and Licensure and Development; and

          (b)  School guidance counselors shall provide the following comprehensive counseling services:   

              (i)  Academic and personal/social counseling;

              (ii)  Student assessment and assessment counseling;

              (iii)  Career and educational counseling;

              (iv)  Individual and group counseling (large/small);

              (v)  Crisis intervention and preventive counseling;

              (vi)  Referrals to community agencies;

              (vii)  Educational consultations and collaboration with teachers, administrators, parents and community leaders;

              (viii)  Educational and career placement services;

              (ix)  Follow-up counseling services;

              (x)  Conflict resolution; and

              (xi)  Other counseling duties or other duties as assigned by the school principal.

     (2)  School guidance counselors shall abide by the American School Counselor Association Code of Ethics.

     (3)  The State Department of Education may adopt regulations regarding the activities of the school guidance counselor as are not inconsistent with this section.

     (4)  Schools meeting Level 4 or 5 accreditation standards are exempt from the requirements relating to school guidance counselors prescribed under this section.

     SECTION 9.  Section 37-17-6, Mississippi Code of 1972, is amended as follows:

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

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

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

     Number of Students                Number of Certified

     Per School Library                School Librarians

     0 - 499 Students                  ½ Full-time Equivalent                                             Certified Librarian

     500 or More Students              1 Full-time Certified                                              Librarian

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

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

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

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

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

          (g)  Schools meeting Level 4 or 5 accreditation standards are exempt from the requirements relating to school librarians prescribed under this subsection.

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

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

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

          (c)  A process to implement accountability at both the school district level and the school level;

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

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

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

          (g)  A determination of which schools are failing to meet their standards and a determination of the appropriate role of the State Board of Education and the State Department of Education in providing assistance and initiating possible intervention;

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

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

     The State Board of Education may continue to assign school district performance levels by using a number classification and may assign individual school performance levels by using a number classification to be consistent with school district performance levels.

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

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

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

     (8)  Deleted.

     (9)  The State Board of Education shall establish, for those school districts failing to meet accreditation standards, a program of development to be complied with in order to receive state funds, except as otherwise provided in subsection (14) of this section when the Governor has declared a state of emergency in a school district or as otherwise provided in Section 206, Mississippi Constitution of 1890.  The state board, in establishing these standards, shall provide for notice to schools and sufficient time and aid to enable schools to attempt to meet these standards, unless procedures under subsection (14) of this section have been invoked.

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

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

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

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

          (d)  Contract, in its discretion, with the institutions of higher learning or other appropriate private entities to assist school districts;

          (e)  Provide for publication of public notice at least one (1) time during the probationary period, in a newspaper published within the jurisdiction of the school district failing to meet accreditation standards, or if no newspaper is published therein, then in a newspaper having a general circulation therein.  The publication shall include the following:  declaration of school system's status as being on probation; all details relating to the impairment report, and other information as the State Board of Education deems appropriate.  Public notices issued under this section shall be subject to Section 13-3-31 and not contrary to other laws regarding newspaper publication.

     (11)  (a)  If the recommendations for corrective action are not taken by the local school district or if the deficiencies are not removed by the end of the probationary period, the Commission on School Accreditation shall conduct a hearing to allow such affected school district to present evidence or other reasons why its accreditation should not be withdrawn.  Subsequent to its consideration of the results of such hearing, the Commission on School Accreditation shall be authorized, with the approval of the State Board of Education, to withdraw the accreditation of a public school district, and issue a request to the Governor that a state of emergency be declared in that district.

          (b)  If the State Board of Education and the Commission on School Accreditation determine that an extreme emergency situation exists in a school district which jeopardizes the safety, security or educational interests of the children enrolled in the schools in that district and such emergency situation is believed to be related to a serious violation or violations of accreditation standards or state or federal law, the State Board of Education may request the Governor to declare a state of emergency in that school district.  For purposes of this paragraph, such declarations of a state of emergency shall not be limited to those instances when a school district's impairments are related to a lack of financial resources, but also shall include serious failure to meet minimum academic standards, as evidenced by a continued pattern of poor student performance.

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

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

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

              (iii)  Assign an interim conservator who will have those powers and duties prescribed in subsection (14) of this section;

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

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

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

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

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

          (e)  Not later than July 1 of each year, the State Department of Education shall develop an itemized accounting of the expenditures associated with the management of the conservator process with regard to each school district in which a conservator has been appointed, and an assessment as to the extent to which the conservator has achieved, or failed to achieve, the goals for which the conservator was appointed to guide the local school district.

     (12)  Upon the declaration of a state of emergency in a school district under subsection (11) of this section, the Commission on School Accreditation shall be responsible for public notice at least once a week for at least three (3) consecutive weeks in a newspaper published within the jurisdiction of the school district failing to meet accreditation standards, or if no newspaper is published therein, then in a newspaper having a general circulation therein.  The size of such notice shall be no smaller than one-fourth (1/4) of a standard newspaper page and shall be printed in bold print.  If a conservator has been appointed for the school district, such notice shall begin as follows:  "By authority of Section 37-17-6, Mississippi Code of 1972, as amended, adopted by the Mississippi Legislature during the 1991 Regular Session, this school district (name of school district) is hereby placed under the jurisdiction of the State Department of Education acting through its appointed conservator (name of conservator)."

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

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

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

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

     (14)  (a)  Whenever the Governor declares a state of emergency in a school district in response to a request made under subsection (11) of this section, the State Board of Education, in its discretion, may assign an interim conservator to the school district who will be responsible for the administration, management and operation of the school district, including, but not limited to, the following activities:

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

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

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

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

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

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

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

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

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

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

          (b)  In order to provide loans to school districts under a state of emergency which have impairments related to a lack of financial resources, the School District Emergency Assistance Fund is created as a special fund in the State Treasury into which monies may be transferred or appropriated by the Legislature from any available public education funds.  The maximum amount that may be appropriated or transferred to the School District Emergency Assistance Fund for any one (1) emergency shall be Two Million Dollars ($2,000,000.00), and the maximum amount that may be appropriated during any fiscal year shall be Three Million Dollars ($3,000,000.00).

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

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

     (15)  In the event a majority of the membership of the school board of any school district resigns from office, the State Board of Education shall be authorized to assign an interim conservator, who shall be responsible for the administration, management and operation of the school district until such time as new board members are selected or the Governor declares a state of emergency in that school district under subsection (11), whichever occurs first.  In such case, the State Board of Education, acting through the interim conservator, shall have all powers which were held by the previously existing school board, and may take such action as prescribed in Section 37-17-13 and/or one or more of the actions authorized in this section.

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

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

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

     SECTION 10.  Section 37-17-8, Mississippi Code of 1972, is amended as follows:

     37-17-8.  (1)  The State Board of Education, through the Commission on School Accreditation, shall establish criteria for comprehensive in-service staff development plans.  These criteria shall:  (a) include, but not be limited to, formula and guidelines for allocating available state funds for in-service training to local school districts; (b) require that a portion of the plans be devoted exclusively for the purpose of providing staff development training for beginning teachers within that local school district and for no other purpose; and (c) require that a portion of the school district's in-service training for administrators and teachers be dedicated to the application and utilization of various disciplinary techniques.  The board shall each year make recommendations to the Legislature concerning the amount of funds which shall be appropriated for this purpose.

     (2) * * * School districts shall not be required to submit staff development plans to the Commission on School Accreditation for approval.  However, any school district accredited at Level 1 or Level 2 shall include, as a part of any required corrective action plan, provisions to address staff development in accordance with State Board of Education requirements.  All school districts, unless specifically exempt from this section, must maintain on file staff development plans as required under this section.  The plan shall have been prepared by a district committee appointed by the district superintendent and consisting of teachers, administrators, school board members, and lay people, and it shall have been approved by the district superintendent.

     (3)  In order to insure that teachers are not overburdened with paperwork and written reports, local school districts and  the State Board of Education shall take such steps as may be necessary to further the reduction of paperwork requirements on teachers.

     (4)  Schools meeting Level 4 or 5 accreditation standards are exempt from the requirements relating to staff development plans prescribed under subsection (2) of this section.

     SECTION 11.  Section 37-21-7, Mississippi Code of 1972, is amended as follows:

     37-21-7.  (1)  This section shall be referred to as the "Mississippi Elementary Schools Assistant Teacher Program," the purpose of which shall be to provide an early childhood education program that assists in the instruction of basic skills.  The State Board of Education is authorized, empowered and directed to implement a statewide system of assistant teachers in kindergarten classes and in the first, second and third grades.  The assistant teacher shall assist pupils in actual instruction under the strict supervision of a licensed teacher.

     (2)  (a)  Except as otherwise authorized under subsection (7), each school district shall employ the total number of assistant teachers funded under subsection (6) of this section.  The superintendent of each district shall assign the assistant teachers to the kindergarten, first-, second- and third-grade classes in the district in a manner that will promote the maximum efficiency, as determined by the superintendent, in the instruction of skills such as verbal and linguistic skills, logical and mathematical skills, and social skills.

          (b)  If a licensed teacher to whom an assistant teacher has been assigned is required to be absent from the classroom, the assistant teacher may assume responsibility for the classroom in lieu of a substitute teacher.  However, no assistant teacher shall assume sole responsibility of the classroom for more than three (3) consecutive school days.  Further, in no event shall any assistant teacher be assigned to serve as a substitute teacher for any teacher other than the licensed teacher to whom that assistant teacher has been assigned.

     (3)  Assistant teachers shall have, at a minimum, a high school diploma or a GED equivalent, and shall show demonstratable proficiency in reading and writing skills.  The State Department of Education shall develop a testing procedure for assistant teacher applicants to be used in all school districts in the state.

     (4)  (a)  In order to receive funding, each school district shall:

              (i)  Submit a plan on the implementation of a reading improvement program to the State Department of Education; and

              (ii)  Develop a plan of educational accountability and assessment of performance, including pretests and posttests, for reading in Grades 1 through 6.

          (b)  Additionally, each school district shall:

              (i)  Provide annually a mandatory preservice orientation session, using an existing in-school service day, for administrators and teachers on the effective use of assistant teachers as part of a team in the classroom setting and on the role of assistant teachers, with emphasis on program goals;

              (ii)  Hold periodic workshops for administrators and teachers on the effective use and supervision of assistant teachers;

              (iii)  Provide training annually on specific instructional skills for assistant teachers;

              (iv)  Annually evaluate their program in accordance with their educational accountability and assessment of performance plan; and

              (v)  Designate the necessary personnel to supervise and report on their program.

     (5)  The State Department of Education shall:

          (a)  Develop and assist in the implementation of a statewide uniform training module, subject to the availability of funds specifically appropriated therefor by the Legislature, which shall be used in all school districts for training administrators, teachers and assistant teachers.  The module shall provide for the consolidated training of each assistant teacher and teacher to whom the assistant teacher is assigned, working together as a team, and shall require further periodical training for administrators, teachers and assistant teachers regarding the role of assistant teachers;

          (b)  Annually evaluate the program on the district and state level.  Subject to the availability of funds specifically appropriated therefor by the Legislature, the department shall develop:  (i) uniform evaluation reports, to be performed by the principal or assistant principal, to collect data for the annual overall program evaluation conducted by the department; or (ii) a program evaluation model that, at a minimum, addresses process evaluation; and

          (c)  Promulgate rules, regulations and such other standards deemed necessary to effectuate the purposes of this section.  Noncompliance with the provisions of this section and any rules, regulations or standards adopted by the department may result in a violation of compulsory accreditation standards as established by the State Board of Education and Commission on School Accreditation.

     (6)  In addition to other funds allotted under the Minimum Education or Adequate Education Program, each school district shall be allotted sufficient funding for the purpose of employingassistant teachers.  No assistant teacher shall be paid less than the amount he or she received in the prior school year.  No school district shall receive any funds under this section for any school year during which the aggregate amount of the local contribution to the salaries of assistant teachers by the district shall have been reduced below such amount for the previous year.

 * * *

     For the 2005-2006 school year and school years thereafter, the minimum salary for assistant teachers shall be Twelve Thousand Dollars ($12,000.00).

     In addition, for each one percent (1%) that the Sine Die General Fund Revenue Estimate Growth exceeds five percent (5%) in fiscal year * * * 2006, as certified by the Legislative Budget Office to the State Board of Education and subject to the specific appropriation therefor by the Legislature, the State Board of Education shall revise the salary scale in the appropriate year to provide an additional one percent (1%) across the board increase in the base salaries for assistant teachers.  The State Board of Education shall revise the salaries prescribed above for assistant teachers to conform to any adjustments made in prior fiscal years due to revenue growth over and above five percent (5%).  The assistant teachers shall not be restricted to working only in the grades for which the funds were allotted, but may be assigned to other classes as provided in subsection (2)(a) of this section.

     (7)  (a)  As an alternative to employing assistant teachers, any school district may use the allotment provided under subsection (6) of this section for the purpose of employing licensed teachers for kindergarten, first-, second- and third-grade classes; however, no school district shall be authorized to use the allotment for assistant teachers for the purpose of employing licensed teachers unless the district has established that the employment of licensed teachers using such funds will reduce the teacher:student ratio in the kindergarten, first-, second- and third-grade classes.  All state funds for assistant teachers shall be applied to reducing teacher:student ratio in Grades K-3.

     It is the intent of the Legislature that no school district shall dismiss any assistant teacher for the purpose of using theassistant teacher allotment to employ licensed teachers.  School districts may rely only upon normal attrition to reduce the number of assistant teachers employed in that district.

          (b)  Schools meeting Level 4 or 5 accreditation standards are exempt from the requirements of this section.

     SECTION 12.  Section 37-13-61, Mississippi Code of 1972, is amended as follows:

     37-13-61.  The local school board shall have the power and authority to fix the date for the opening and closing of the school term, subject to the minimum number of days which schools must be in session during a scholastic year, as prescribed under Section 37-13-63. * * * However, * * * local school boards are authorized to keep school in session in excess of the minimum number of days prescribed in Section 37-13-63.

     SECTION 13.  Section 37-13-67, Mississippi Code of 1972, is amended as follows:

     37-13-67.  * * * The number of hours of actual teaching which shall constitute a school day shall be determined and fixed by the board of trustees of the school district at not less than five (5) hours * * *.

     SECTION 14.  Section 37-13-69, Mississippi Code of 1972, is amended as follows:

     37-13-69.  All public schools of this state may observe such legal holidays as may be designated by the local school board, and no sessions of school shall be held on holidays so designated and observed.  However, all schools shall operate for the full minimum term required by law exclusive of the holidays authorized by this section.  The holidays thus observed shall not be deducted from the reports of the superintendents, principals and teachers, and such superintendents, principals and teachers shall be allowed pay for full time as though they had taught on those holidays.  However, such holidays shall not be counted or included in any way in determining the average daily attendance of the school.

     SECTION 15.  Section 37-41-53, Mississippi Code of 1972, is amended as follows:

     37-41-53.  (1)  Each school board, person, firm or corporation transporting public school children on the public roads, streets and highways of the state with motor vehicles shall have the motor vehicles inspected according to the laws of the state * * *.  Each motor vehicle shall be inspected by a competent mechanic to be safe for transporting pupils on the roads, streets and highways of the state before it is released for such purpose.  If such motor vehicle is found to be unsafe for transporting pupils, then it shall be properly repaired or adjusted as necessary before being used to transport pupils.  The provisions of this subsection shall not apply to vehicles owned by individuals and under private contract to the school district and used exclusively for transporting members of their immediate families.

     (2)  The State Department of Education may inspect, at its discretion, * * * any school bus used for transporting pupils to and from the public schools or for activity purposes to determine the safety of such motor vehicle for operation on the roads, streets and highways of this state.  In the event a vehicle is inspected and is found to be unsafe for transporting pupils, a report shall be filed with the appropriate school official indicating its deficiencies with recommendations for correcting such deficiencies.

     (3)  If it is determined that any buses are in such defective condition as to constitute an emergency safety hazard, those buses may be condemned and removed from service and shall not be returned to service until adequate repairs are completed and such buses are reinspected by the State Department of Education.  Any school official who approves the operation of any school bus that has been removed from service under the conditions listed above, prior to being reinspected by the State Department of Education, 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 a fine of not less than Five Hundred Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), or by both such fine and imprisonment, in the discretion of the court.

     SECTION 16.  Section 37-7-301, Mississippi Code of 1972, is amended as follows:

     37-7-301.  The school boards of all school districts shall have the following powers, authority and duties in addition to all others imposed or granted by law, to wit:

          (a)  To organize and operate the schools of the district and to make such division between the high school grades and elementary grades as, in their judgment, will serve the best interests of the school;

          (b)  To introduce public school music, art, manual training and other special subjects into either the elementary or high school grades, as the board shall deem proper;

          (c)  To be the custodians of real and personal school property and to manage, control and care for same, both during the school term and during vacation;

          (d)  To have responsibility for the erection, repairing and equipping of school facilities and the making of necessary school improvements;

          (e)  To suspend or to expel a pupil or to change the placement of a pupil to the school district's alternative school or home-bound program for misconduct in the school or on school property, as defined in Section 37-11-29, on the road to and from school, or at any school-related activity or event, or for conduct occurring on property other than school property or other than at a school-related activity or event when such conduct by a pupil, in the determination of the school superintendent or principal, renders that pupil's presence in the classroom a disruption to the educational environment of the school or a detriment to the best interest and welfare of the pupils and teacher of such class as a whole, and to delegate such authority to the appropriate officials of the school district;

          (f)  To visit schools in the district, in their discretion, in a body for the purpose of determining what can be done for the improvement of the school in a general way;

          (g)  To support, within reasonable limits, the superintendent, principal and teachers where necessary for the proper discipline of the school;

          (h)  To exclude from the schools students with what appears to be infectious or contagious diseases; provided, however, such student may be allowed to return to school upon presenting a certificate from a public health officer, duly licensed physician or nurse practitioner that the student is free from such disease;

          (i)  To require those vaccinations specified by the State Health Officer as provided in Section 41-23-37;

          (j)  To see that all necessary utilities and services are provided in the schools at all times when same are needed;

          (k)  To authorize the use of the school buildings and grounds for the holding of public meetings and gatherings of the people under such regulations as may be prescribed by said board;

          (l)  To prescribe and enforce rules and regulations not inconsistent with law or with the regulations of the State Board of Education for their own government and for the government of the schools, and to transact their business at regular and special meetings called and held in the manner provided by law;

          (m)  To maintain and operate all of the schools under their control for such length of time during the year as may be required;

          (n)  To enforce in the schools the courses of study and the use of the textbooks prescribed by the proper authorities;

          (o)  To make orders directed to the superintendent of schools for the issuance of pay certificates for lawful purposes on any available funds of the district and to have full control of the receipt, distribution, allotment and disbursement of all funds provided for the support and operation of the schools of such school district whether such funds be derived from state appropriations, local ad valorem tax collections, or otherwise.  The local school board shall be authorized and empowered to promulgate rules and regulations that specify the types of claims and set limits of the dollar amount for payment of claims by the superintendent of schools to be ratified by the board at the next regularly scheduled meeting after payment has been made;

          (p)  To select all school district personnel in the manner provided by law, and to provide for such employee fringe benefit programs, including accident reimbursement plans, as may be deemed necessary and appropriate by the board;

          (q)  To provide athletic programs and other school activities and to regulate the establishment and operation of such programs and activities;

          (r)  To join, in their discretion, any association of school boards and other public school-related organizations, and to pay from local funds other than minimum foundation funds, any membership dues;

          (s)  To expend local school activity funds, or other available school district funds, other than minimum education program funds, for the purposes prescribed under this paragraph.  "Activity funds" shall mean all funds received by school officials in all school districts paid or collected to participate in any school activity, such activity being part of the school program and partially financed with public funds or supplemented by public funds.  The term "activity funds" shall not include any funds raised and/or expended by any organization unless commingled in a bank account with existing activity funds, regardless of whether the funds were raised by school employees or received by school employees during school hours or using school facilities, and regardless of whether a school employee exercises influence over the expenditure or disposition of such funds.  Organizations shall not be required to make any payment to any school for the use of any school facility if, in the discretion of the local school governing board, the organization's function shall be deemed to be beneficial to the official or extracurricular programs of the school.  For the purposes of this provision, the term "organization" shall not include any organization subject to the control of the local school governing board.  Activity funds may only be expended for any necessary expenses or travel costs, including advances, incurred by students and their chaperons in attending any in-state or out-of-state school-related programs, conventions or seminars and/or any commodities, equipment, travel expenses, purchased services or school supplies which the local school governing board, in its discretion, shall deem beneficial to the official or extracurricular programs of the district, including items which may subsequently become the personal property of individuals, including yearbooks, athletic apparel, book covers and trophies.  Activity funds may be used to pay travel expenses of school district personnel.  The local school governing board shall be authorized and empowered to promulgate rules and regulations specifically designating for what purposes school activity funds may be expended.  The local school governing board shall provide (i) that such school activity funds shall be maintained and expended by the principal of the school generating the funds in individual bank accounts, or (ii) that such school activity funds shall be maintained and expended by the superintendent of schools in a central depository approved by the board.  The local school governing board shall provide that such school activity funds be audited as part of the annual audit required in Section 37-9-18.  The State Department of Education shall prescribe a uniform system of accounting and financial reporting for all school activity fund transactions;

          (t)  To contract, on a shared savings, lease or lease-purchase basis, for energy efficiency services and/or equipment as provided for in Section 31-7-14, not to exceed ten (10) years;

          (u)  To maintain accounts and issue pay certificates on school food service bank accounts;

          (v)  (i)  To lease a school building from an individual, partnership, nonprofit corporation or a private for-profit corporation for the use of such school district, and to expend funds therefor as may be available from any nonminimum program sources.  The school board of the school district desiring to lease a school building shall declare by resolution that a need exists for a school building and that the school district cannot provide the necessary funds to pay the cost or its proportionate share of the cost of a school building required to meet the present needs.  The resolution so adopted by the school board shall be published once each week for three (3) consecutive weeks in a newspaper having a general circulation in the school district involved, with the first publication thereof to be made not less than thirty (30) days prior to the date upon which the school board is to act on the question of leasing a school building.  If no petition requesting an election is filed prior to such meeting as hereinafter provided, then the school board may, by resolution spread upon its minutes, proceed to lease a school building.  If at any time prior to said meeting a petition signed by not less than twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the school district involved shall be filed with the school board requesting that an election be called on the question, then the school board shall, not later than the next regular meeting, adopt a resolution calling an election to be held within such school district upon the question of authorizing the school board to lease a school building.  Such election shall be called and held, and notice thereof shall be given, in the same manner for elections upon the questions of the issuance of the bonds of school districts, and the results thereof shall be certified to the school board.  If at least three-fifths (3/5) of the qualified electors of the school district who voted in such election shall vote in favor of the leasing of a school building, then the school board shall proceed to lease a school building.  The term of the lease contract shall not exceed twenty (20) years, and the total cost of such lease shall be either the amount of the lowest and best bid accepted by the school board after advertisement for bids or an amount not to exceed the current fair market value of the lease as determined by the averaging of at least two (2) appraisals by certified general appraisers licensed by the State of Mississippi.  The term "school building" as used in this paragraph (v)(i) shall be construed to mean any building or buildings used for classroom purposes in connection with the operation of schools and shall include the site therefor, necessary support facilities, and the equipment thereof and appurtenances thereto such as heating facilities, water supply, sewage disposal, landscaping, walks, drives and playgrounds.  The term "lease" as used in this paragraph (v)(i) may include a lease/purchase contract;

              (ii)  If two (2) or more school districts propose to enter into a lease contract jointly, then joint meetings of the school boards having control may be held but no action taken shall be binding on any such school district unless the question of leasing a school building is approved in each participating school district under the procedure hereinabove set forth in paragraph (v)(i).  All of the provisions of paragraph (v)(i) regarding the term and amount of the lease contract shall apply to the school boards of school districts acting jointly.  Any lease contract executed by two (2) or more school districts as joint lessees shall set out the amount of the aggregate lease rental to be paid by each, which may be agreed upon, but there shall be no right of occupancy by any lessee unless the aggregate rental is paid as stipulated in the lease contract.  All rights of joint lessees under the lease contract shall be in proportion to the amount of lease rental paid by each;

          (w)  To employ all noninstructional and noncertificated employees and fix the duties and compensation of such personnel deemed necessary pursuant to the recommendation of the superintendent of schools;

          (x)  To employ and fix the duties and compensation of such legal counsel as deemed necessary;

          (y)  Subject to rules and regulations of the State Board of Education, to purchase, own and operate trucks, vans and other motor vehicles, which shall bear the proper identification required by law;

          (z)  To expend funds for the payment of substitute teachers and to adopt reasonable regulations for the employment and compensation of such substitute teachers;

          (aa)  To acquire in its own name by purchase all real property which shall be necessary and desirable in connection with the construction, renovation or improvement of any public school building or structure.  Whenever the purchase price for such real property is greater than Fifty Thousand Dollars ($50,000.00), the school board shall not purchase the property for an amount exceeding the fair market value of such property as determined by the average of at least two (2) independent appraisals by certified general appraisers licensed by the State of Mississippi.  If the board shall be unable to agree with the owner of any such real property in connection with any such project, the board shall have the power and authority to acquire any such real property by condemnation proceedings pursuant to Section 11-27-1 et seq., Mississippi Code of 1972, and for such purpose, the right of eminent domain is hereby conferred upon and vested in said board.  Provided further, that the local school board is authorized to grant an easement for ingress and egress over sixteenth section land or lieu land in exchange for a similar easement upon adjoining land where the exchange of easements affords substantial benefit to the sixteenth section land; provided, however, the exchange must be based upon values as determined by a competent appraiser, with any differential in value to be adjusted by cash payment.  Any easement rights granted over sixteenth section land under such authority shall terminate when the easement ceases to be used for its stated purpose.  No sixteenth section or lieu land which is subject to an existing lease shall be burdened by any such easement except by consent of the lessee or unless the school district shall acquire the unexpired leasehold interest affected by the easement;

          (bb)  To charge reasonable fees related to the educational programs of the district, in the manner prescribed in Section 37-7-335;

          (cc)  Subject to rules and regulations of the State Board of Education, to purchase relocatable classrooms for the use of such school district, in the manner prescribed in Section 37-1-13;

          (dd)  Enter into contracts or agreements with other school districts, political subdivisions or governmental entities to carry out one or more of the powers or duties of the school board, or to allow more efficient utilization of limited resources for providing services to the public;

          (ee)  To provide for in-service training for employees of the district * * *;

          (ff)  As part of their duties to prescribe the use of textbooks, to provide that parents and legal guardians shall be responsible for the textbooks and for the compensation to the school district for any books which are not returned to the proper schools upon the withdrawal of their dependent child.  If a textbook is lost or not returned by any student who drops out of the public school district, the parent or legal guardian shall also compensate the school district for the fair market value of the textbooks;

          (gg)  To conduct fund-raising activities on behalf of the school district that the local school board, in its discretion, deems appropriate or beneficial to the official or extracurricular programs of the district; provided that:

              (i)  Any proceeds of the fund-raising activities shall be treated as "activity funds" and shall be accounted for as are other activity funds under this section; and

              (ii)  Fund-raising activities conducted or authorized by the board for the sale of school pictures, the rental of caps and gowns or the sale of graduation invitations for which the school board receives a commission, rebate or fee shall contain a disclosure statement advising that a portion of the proceeds of the sales or rentals shall be contributed to the student activity fund;

          (hh)  To allow individual lessons for music, art and other curriculum-related activities for academic credit or nonacademic credit during school hours and using school equipment and facilities, subject to uniform rules and regulations adopted by the school board;

          (ii)  To charge reasonable fees for participating in an extracurricular activity for academic or nonacademic credit for necessary and required equipment such as safety equipment, band instruments and uniforms;

          (jj)  To conduct or participate in any fund-raising activities on behalf of or in connection with a tax-exempt charitable organization;

          (kk)  To exercise such powers as may be reasonably necessary to carry out the provisions of this section;

          (ll)  To expend funds for the services of nonprofit arts organizations or other such nonprofit organizations who provide performances or other services for the students of the school district;

          (mm)  To expend federal No Child Left Behind Act funds, or any other available funds that are expressly designated and authorized for that use, to pay training, educational expenses, salary incentives and salary supplements to employees of local school districts; except that incentives shall not be considered part of the local supplement as defined in Section 37-151-5(o), nor shall incentives be considered part of the local supplement paid to an individual teacher for the purposes of Section 37-19-7(1).  Mississippi Adequate Education Program funds or any other state funds may not be used for salary incentives or salary supplements as provided in this paragraph (mm);

          (nn)  To use any available funds, not appropriated or designated for any other purpose, for reimbursement to the state-licensed employees from both in-state and out-of-state, who enter into a contract for employment in a school district, for the expense of moving when the employment necessitates the relocation of the licensed employee to a different geographical area than that in which the licensed employee resides before entering into the contract.  The reimbursement shall not exceed One Thousand Dollars ($1,000.00) for the documented actual expenses incurred in the course of relocating, including the expense of any professional moving company or persons employed to assist with the move, rented moving vehicles or equipment, mileage in the amount authorized for county and municipal employees under Section 25-3-41 if the licensed employee used his personal vehicle or vehicles for the move, meals and such other expenses associated with the relocation.  No licensed employee may be reimbursed for moving expenses under this section on more than one (1) occasion by the same school district.  Nothing in this section shall be construed to require the actual residence to which the licensed employee relocates to be within the boundaries of the school district that has executed a contract for employment in order for the licensed employee to be eligible for reimbursement for the moving expenses.  However, the licensed employee must relocate within the boundaries of the State of Mississippi.  Any individual receiving relocation assistance through the Critical Teacher Shortage Act as provided in Section 37-159-5 shall not be eligible to receive additional relocation funds as authorized in this paragraph;

          (oo)  To use any available funds, not appropriated or designated for any other purpose, to reimburse persons who interview for employment as a licensed employee with the district for the mileage and other actual expenses incurred in the course of travel to and from the interview at the rate authorized for county and municipal employees under Section 25-3-41;

          (pp)  Consistent with the report of the Task Force to Conduct a Best Financial Management Practices Review, to improve school district management and use of resources and identify cost savings as established in Section 8 of Chapter 610, Laws of 2002, local school boards are encouraged to conduct independent reviews of the management and efficiency of schools and school districts.  Such management and efficiency reviews shall provide state and local officials and the public with the following:

              (i)  An assessment of a school district's governance and organizational structure;

              (ii)  An assessment of the school district's financial and personnel management;

              (iii)  An assessment of revenue levels and sources;

              (iv)  An assessment of facilities utilization, planning and maintenance;

              (v)  An assessment of food services, transportation and safety/security systems;

              (vi)  An assessment of instructional and administrative technology;

              (vii)  A review of the instructional management and the efficiency and effectiveness of existing instructional programs; and

              (viii)  Recommended methods for increasing efficiency and effectiveness in providing educational services to the public;

          (qq)  To enter into agreements with other local school boards for the establishment of an educational service agency (ESA) to provide for the cooperative needs of the region in which the school district is located, as provided in Section 37-7-345.  This paragraph shall repeal on July 1, 2007;

          (rr)  To implement a financial literacy program for students in Grades 10 and 11.  The board may review the national programs and obtain free literature from various nationally recognized programs.  After review of the different programs, the board may certify a program that is most appropriate for the school districts' needs.  If a district implements a financial literacy program, then any student in Grade 10 or 11 may participate in the program.  The financial literacy program shall include, but is not limited to, instruction in the same areas of personal business and finance as required under Section 37-1-3(2)(b).  The school board may coordinate with volunteer teachers from local community organizations, including, but not limited to, the following:  United States Department of Agriculture Rural Development, United States Department of Housing and Urban Development, Junior Achievement, bankers and other nonprofit organizations.  Nothing in this paragraph shall be construed as to require school boards to implement a financial literacy program;

          (ss)  To collaborate with the State Board of Education, Community Action Agencies or the Department of Human Services to develop and implement a voluntary program to provide services for a full-day prekindergarten program that addresses the cognitive, social, and emotional needs of four-year-old and three-year-old children.  The school board may utilize nonstate source special funds, grants, donations or gifts to fund the voluntary program;

          (tt)  With respect to any lawful, written obligation of a school district, including, but not limited to, leases (excluding leases of sixteenth section public school trust land), bonds, notes, or other agreement, to agree in writing with the obligee that the State Tax Commission or any state agency, department or commission created under state law may:

              (i)  Withhold all or any part (as agreed by the school board) of any monies which such local school board is entitled to receive from time to time under any law and which is in the possession of the State Tax Commission, or any state agency, department or commission created under state law; and

              (ii)  Pay the same over to any financial institution, trustee or other obligee, as directed in writing by the school board, to satisfy all or part of such obligation of the school district.

     The school board may make such written agreement to withhold and transfer funds irrevocable for the term of the written obligation and may include in the written agreement any other terms and provisions acceptable to the school board.  If the school board files a copy of such written agreement with the State Tax Commission, or any state agency, department or commission created under state law then the State Tax Commission or any state agency, department or commission created under state law shall immediately make the withholdings provided in such agreement from the amounts due the local school board and shall continue to pay the same over to such financial institution, trustee or obligee for the term of the agreement.

     This paragraph (tt) shall not grant any extra authority to a school board to issue debt in any amount exceeding statutory limitations on assessed value of taxable property within such school district or the statutory limitations on debt maturities, and shall not grant any extra authority to impose, levy or collect a tax which is not otherwise expressly provided for, and shall not be construed to apply to sixteenth section public school trust land;

          (uu)  With respect to any matter or transaction that is competitively bid by a school district, to accept from any bidder as a good faith deposit or bid bond or bid surety, the same type of good faith deposit or bid bond or bid surety that may be accepted by the state or any other political subdivision on similar competitively bid matters or transactions.  This paragraph (uu) shall not be construed to apply to sixteenth section public school trust land.  The school board may authorize the investment of any school district funds in the same kind and manner of investments, including pooled investments, as any other political subdivision, including community hospitals; * * *

          (vv)  To utilize the alternate method for the conveyance or exchange of unused school buildings and/or land, reserving a partial or other undivided interest in the property, as specifically authorized and provided in Section 37-7-485, Mississippi Code of 1972; and

          (ww)  To delegate, privatize or otherwise enter into a contract with private entities for the operation of any and all functions of nonacademic school process, procedures and operations including, but not limited to, cafeteria workers, janitorial services, transportation, professional development, achievement and instructional consulting services materials and products, purchasing cooperatives, insurance, business manager services, auditing and accounting services, school safety/risk prevention, data processing and student records, and other staff services.  Local school districts, working through their regional education service agency, are encouraged to enter into buying consortia with other member districts for the purposes of more efficient use of state resources as described in Section 37-7-345.

     SECTION 17.  Section 25-11-103, Mississippi Code of 1972, is amended as follows:

     25-11-103.  The following words and phrases as used in Articles 1 and 3, unless a different meaning is plainly required by the context, have the following meanings:

          (a)  "Accumulated contributions" means the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the annuity savings account, together with regular interest as provided in Section 25-11-123.

          (b)  "Actuarial cost" means the amount of funds presently required to provide future benefits as determined by the board based on applicable tables and formulas provided by the actuary.

          (c)  "Actuarial equivalent" means a benefit of equal value to the accumulated contributions, annuity or benefit, as the case may be, when computed upon the basis of such mortality tables as adopted by the board of trustees, and regular interest.

          (d)  "Actuarial tables" means such tables of mortality and rates of interest as adopted by the board in accordance with the recommendation of the actuary.

          (e)  "Agency" means any governmental body employing persons in the state service.

          (f)  "Average compensation" means the average of the four (4) highest years of earned compensation reported for an employee in a fiscal or calendar year period, or combination thereof that do not overlap, or the last forty-eight (48) consecutive months of earned compensation reported for an employee.  The four (4) years need not be successive or joined years of service.  In no case shall the average compensation so determined be in excess of One Hundred Fifty Thousand Dollars ($150,000.00).  In computing the average compensation, any amount lawfully paid in a lump sum for personal leave or major medical leave shall be included in the calculation to the extent that the amount does not exceed an amount that is equal to thirty (30) days of earned compensation and to the extent that it does not cause the employees' earned compensation to exceed the maximum reportable amount specified in Section 25-11-103(k); however, this thirty-day limitation shall not prevent the inclusion in the calculation of leave earned under federal regulations before July 1, 1976, and frozen as of that date as referred to in Section 25-3-99.  Only the amount of lump-sum pay for personal leave due and paid upon the death of a member attributable for up to one hundred fifty (150) days shall be used in the deceased member's average compensation calculation in determining the beneficiary's benefits.  In computing the average compensation, no amounts shall be used that are in excess of the amount on which contributions were required and paid, and no nontaxable amounts paid by the employer for health or life insurance premiums for the employee shall be used.  If any member who is or has been granted any increase in annual salary or compensation of more than eight percent (8%) retires within twenty-four (24) months from the date that the increase becomes effective, then the board shall exclude that part of the increase in salary or compensation that exceeds eight percent (8%) in calculating that member's average compensation for retirement purposes.  The board may enforce this provision by rule or regulation.  However, increases in compensation in excess of eight percent (8%) per year granted within twenty-four (24) months of the date of retirement may be included in the calculation of average compensation if satisfactory proof is presented to the board showing that the increase in compensation was the result of an actual change in the position held or services rendered, or that the compensation increase was authorized by the State Personnel Board or was increased as a result of statutory enactment, and the employer furnishes an affidavit stating that the increase granted within the last twenty-four (24) months was not contingent on a promise or agreement of the employee to retire.  Nothing in Section 25-3-31 shall affect the calculation of the average compensation of any member for the purposes of this article.  The average compensation of any member who retires before July 1, 1992, shall not exceed the annual salary of the Governor.

          (g)  "Beneficiary" means any person entitled to receive a retirement allowance, an annuity or other benefit as provided by Articles 1 and 3.  The term "beneficiary" may also include an organization, estate, trust or entity; however, a beneficiary designated or entitled to receive monthly payments under an optional settlement based on life contingency or pursuant to a statutory monthly benefit may only be a natural person.  In the event of the death before retirement of any member whose spouse and/or children are not entitled to a retirement allowance on the basis that the member has less than four (4) years of service credit and/or has not been married for a minimum of one (1) year or the spouse has waived his or her entitlement to a retirement allowance under Section 25-11-114, the lawful spouse of a member at the time of the death of the member shall be the beneficiary of the member unless the member has designated another beneficiary after the date of marriage in writing, and filed that writing in the office of the executive director of the board of trustees.  No designation or change of beneficiary shall be made in any other manner.

          (h)  "Board" means the board of trustees provided in Section 25-11-15 to administer the retirement system created under this article.

          (i)  "Creditable service" means "prior service," "retroactive service" and all lawfully credited unused leave not exceeding the accrual rates and limitations provided in Section 25-3-91 et seq., as of the date of withdrawal from service plus "membership service" for which credit is allowable as provided in Section 25-11-109.  Except to limit creditable service reported to the system for the purpose of computing an employee's retirement allowance or annuity or benefits provided in this article, nothing in this paragraph shall limit or otherwise restrict the power of the governing authority of a municipality or other political subdivision of the state to adopt such vacation and sick leave policies as it deems necessary.

          (j)  "Child" means either a natural child of the member, a child that has been made a child of the member by applicable court action before the death of the member, or a child under the permanent care of the member at the time of the latter's death, which permanent care status shall be determined by evidence satisfactory to the board.

          (k)  "Earned compensation" means the full amount earned by an employee for a given pay period including any maintenance furnished up to a maximum of One Hundred Fifty Thousand Dollars ($150,000.00) per year, and proportionately for less than one (1) year of service.  The value of that maintenance when not paid in money shall be fixed by the employing state agency, and, in case of doubt, by the board of trustees as defined in Section 25-11-15.  Earned compensation shall not include any nontaxable amounts paid by the employer for health or life insurance premiums for an employee.  In any case, earned compensation shall be limited to the regular periodic compensation paid, exclusive of litigation fees, bond fees, and other similar extraordinary nonrecurring payments.  In addition, any member in a covered position, as defined by Public Employees' Retirement System laws and regulations, who is also employed by another covered agency or political subdivision shall have the earnings of that additional employment reported to the Public Employees' Retirement System regardless of whether the additional employment is sufficient in itself to be a covered position.  In addition, computation of earned compensation shall be governed by the following:

              (i)  In the case of constables, the net earnings from their office after deduction of expenses shall apply, except that in no case shall earned compensation be less than the total direct payments made by the state or governmental subdivisions to the official.

              (ii)  In the case of chancery or circuit clerks, the net earnings from their office after deduction of expenses shall apply as expressed in Section 25-11-123(f)(4).

              (iii)  In the case of members of the State Legislature, all remuneration or amounts paid, except mileage allowance, shall apply.

              (iv)  The amount by which an eligible employee's salary is reduced under a salary reduction agreement authorized under Section 25-17-5 shall be included as earned compensation under this paragraph, provided this inclusion does not conflict with federal law, including federal regulations and federal administrative interpretations under the federal law, pertaining to the Federal Insurance Contributions Act or to Internal Revenue Code Section 125 cafeteria plans.

              (v)  Compensation in addition to an employee's base salary that is paid to the employee under the vacation and sick leave policies of a municipality or other political subdivision of the state that employs him that exceeds the maximums authorized by Section 25-3-91 et seq. shall be excluded from the calculation of earned compensation under this article.

              (vi)  The maximum salary applicable for retirement purposes before July 1, 1992, shall be the salary of the Governor.

              (vii)  Nothing in Section 25-3-31 shall affect the determination of the earned compensation of any member for the purposes of this article.

          (l)  "Employee" means any person legally occupying a position in the state service, and shall include the employees of the retirement system created under this article.  The term "employee" does not include any employee of a private entity that  leases staff to a local school board to provide noninstructional services pursuant to Section 37-7-301(ww).

          (m)  "Employer" means the State of Mississippi or any of its departments, agencies or subdivisions from which any employee receives his compensation.

          (n)  "Executive director" means the secretary to the board of trustees, as provided in Section 25-11-15(9), and the administrator of the Public Employees' Retirement System and all systems under the management of the board of trustees.  Wherever the term "Executive Secretary of the Public Employees' Retirement System" or "executive secretary" appears in this article or in any other provision of law, it shall be construed to mean the Executive Director of the Public Employees' Retirement System.

          (o)  "Fiscal year" means the period beginning on July 1 of any year and ending on June 30 of the next succeeding year.

          (p)  "Medical board" means the board of physicians or any governmental or nongovernmental disability determination service designated by the board of trustees that is qualified to make disability determinations as provided for in Section 25-11-119.

          (q)  "Member" means any person included in the membership of the system as provided in Section 25-11-105.

          (r)  "Membership service" means service as an employee rendered while a member of the retirement system.

          (s)  "Position" means any office or any employment in the state service, or two (2) or more of them, the duties of which call for services to be rendered by one (1) person, including positions jointly employed by federal and state agencies administering federal and state funds.  The employer shall determine upon initial employment and during the course of employment of an employee who does not meet the criteria for coverage in the Public Employees' Retirement System based on the position held, whether the employee is or becomes eligible for coverage in the Public Employees' Retirement System based upon any other employment in a covered agency or political subdivision.  If or when the employee meets the eligibility criteria for coverage in the other position, then the employer must withhold contributions and report wages from the noncovered position in accordance with the provisions for reporting of earned compensation.  Failure to deduct and report those contributions shall not relieve the employee or employer of liability thereof. The board shall adopt such rules and regulations as necessary to implement and enforce this provision.

          (t)  "Prior service" means service rendered before February 1, 1953, for which credit is allowable under Sections 25-11-105 and 25-11-109, and which shall allow prior service for any person who is now or becomes a member of the Public Employees' Retirement System and who does contribute to the system for a minimum period of four (4) years.

          (u)  "Regular interest" means interest compounded annually at such a rate as determined by the board in accordance with Section 25-11-121.

          (v)  "Retirement allowance" means an annuity for life as provided in this article, payable each year in twelve (12) equal monthly installments beginning as of the date fixed by the board.  The retirement allowance shall be calculated in accordance with Section 25-11-111.  However, any spouse who received a spouse retirement benefit in accordance with Section 25-11-111(d) before March 31, 1971, and those benefits were terminated because of eligibility for a social security benefit, may again receive his spouse retirement benefit from and after making application with the board of trustees to reinstate the spouse retirement benefit.

          (w)  "Retroactive service"means service rendered after February 1, 1953, for which credit is allowable under Section 25-11-105(b) and Section 25-11-105(k).

          (x)  "System" means the Public Employees' Retirement System of Mississippi established and described in Section 25-11-101.

          (y)  "State" means the State of Mississippi or any political subdivision thereof or instrumentality of the state.

          (z)  "State service" means all offices and positions of trust or employment in the employ of the state, or any political subdivision or instrumentality of the state, that elect to participate as provided by Section 25-11-105(f), including the position of elected or fee officials of the counties and their deputies and employees performing public services or any department, independent agency, board or commission thereof, and also includes all offices and positions of trust or employment in the employ of joint state and federal agencies administering state and federal funds and service rendered by employees of the public schools.  Effective July 1, 1973, all nonprofessional public school employees, such as bus drivers, janitors, maids, maintenance workers and cafeteria employees, shall have the option to become members in accordance with Section 25-11-105(b), and shall be eligible to receive credit for services before July 1, 1973, provided that the contributions and interest are paid by the employee in accordance with that section;in addition, the county or municipal separate school district may pay the employer contribution and pro rata share of interest of the retroactive service from available funds.  From and after July 1, 1998, retroactive service credit shall be purchased at the actuarial cost in accordance with Section 25-11-105(b).

          (aa)  "Withdrawal from service" or "termination from service" means complete severance of employment in the state service of any member by resignation, dismissal or discharge.

          (bb)  The masculine pronoun, wherever used, includes the feminine pronoun.

     SECTION 18.  Section 25-11-127, Mississippi Code of 1972, is amended as follows:

     25-11-127.  (1)  (a)  No person who is being paid a retirement allowance or a pension after retirement under this article shall be employed or paid for any service by the State of Mississippi, except as provided in this section.

          (b)  No retiree of this retirement system who is reemployed or is reelected to office after retirement shall continue to draw retirement benefits while so reemployed, except as provided in this section.

          (c)  No person employed or elected under the exceptions provided for in this section shall become a member under Article 3 of the retirement system.

     (2)  Any person who has been retired under the provisions of Article 3 and who is later reemployed in service covered by this article shall cease to receive benefits under this article and shall again become a contributing member of the retirement system.  When the person retires again, if the reemployment exceeds six (6) months, the person shall have his or her benefit recomputed, including service after again becoming a member, provided that the total retirement allowance paid to the retired member in his or her previous retirement shall be deducted from the member's retirement reserve and taken into consideration in recalculating the retirement allowance under a new option selected.

     (3)  The board shall have the right to prescribe rules and regulations for carrying out the provisions of this section.

     (4)  The provisions of this section shall not be construed to prohibit any retiree, regardless of age, from being employed and drawing a retirement allowance either:

          (a)  For a period of time not to exceedone-half (1/2) of the normal working days for the position in any fiscal year during which the retiree will receive no more than one-half (1/2) of the salary in effect for the position at the time of employment, or

          (b)  For a period of time in any fiscal year sufficient in length to permit a retiree to earn not in excess of twenty-five percent (25%) of retiree's average compensation.

     To determine the normal working days for a position under paragraph (a) of this subsection, the employer shall determine the required number of working days for the position on a full-time basis and the equivalent number of hours representing the full-time position.  The retiree then may work up to one-half (1/2) of the required number of working days or up to one-half (1/2) of the equivalent number of hours and receive up to one-half (1/2) of the salary for the position.  In the case of employment with multiple employers, the limitation shall equal one-half (1/2) of the number of days or hours for a single full-time position.

     Notice shall be given in writing to the executive director, setting forth the facts upon which the employment is being made, and the notice shall be given within five (5) days from the date of employment and also from the date of termination of the employment.

     (5)  Any member may continue in municipal or county elected office or be elected to a municipal or county office, provided that the person:

          (a)  Files annually, in writing, in the office of the employer and the office of the executive director of the system before the person takes office or as soon as possible after retirement, a waiver of all salary or compensation and elects to receive in lieu of that salary or compensation a retirement allowance as provided in this section, in which event no salary or compensation shall thereafter be due or payable for those services; however, any such officer or employee may receive, in addition to the retirement allowance, office expense allowance, mileage or travel expense authorized by any statute of the State of Mississippi; or

          (b)  Elects to receive compensation for that elective office in an amount not to exceed twenty-five percent (25%) of the retiree's average compensation.  As used in this paragraph, the term "compensation" shall not include office expense allowance, mileage or travel expense authorized by a statute of the State of Mississippi.  In order to receive compensation as allowed in this paragraph, the member shall file annually, in writing, in the office of the employer and the office of the executive director of the system, an election to receive, in addition to a retirement allowance, compensation as allowed in this paragraph.

     This section may not be construed to mean that any employee of a private entity that leases staff to local school boards to provide noninstructional services, as authorized in Section 37-7-301(ww), may become a member of the retirement system.

     SECTION 19.  Section 37-151-77, Mississippi Code of 1972, is amended 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.  However, 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 * * * meets Level 4 or 5 accreditation standards, the * * * school is exempt from the maximum pupil-teacher ratio in Grades 1, 2, 3 and 4 prescribed in this section.

     SECTION 20.  This act shall take effect and be in force from and after July 1, 2006.