MISSISSIPPI LEGISLATURE

2012 Regular Session

To: Education; Appropriations

By: Senator(s) Watson, McDaniel

Senate Bill 2294

AN ACT RELATING TO DIGITAL LEARNING; CREATING THE "MISSISSIPPI DIGITAL LEARNING NOW ACT"; PROVIDING LEGISLATIVE FINDINGS RELATED TO THE ELEMENTS TO BE INCLUDED IN HIGH-QUALITY DIGITAL LEARNING; PROVIDING DIGITAL PREPARATION REQUIREMENTS; PROVIDING FOR CUSTOMIZED AND ACCELERATED LEARNING; TO AMEND SECTION 37-165-7, MISSISSIPPI CODE OF 1972, AUTHORIZING THE ESTABLISHMENT OF VIRTUAL CHARTER SCHOOLS; PROVIDING APPLICATION REQUIREMENTS FOR ESTABLISHMENT OF A VIRTUAL CHARTER SCHOOL; AUTHORIZING A CHARTER SCHOOL TO IMPLEMENT BLENDED LEARNING COURSES; PROVIDING FUNDING FOR A VIRTUAL CHARTER SCHOOL; AND ESTABLISHING ADMINISTRATIVE FEES FOR A VIRTUAL CHARTER SCHOOL; TO AMEND SECTION 37-151-7, MISSISSIPPI CODE OF 1972, REDEFINING THE TERM "FULL-TIME EQUIVALENT STUDENT" AS IT APPLIES TO THE MISSISSIPPI VIRTUAL SCHOOL UNDER THE MISSISSIPPI ADEQUATE EDUCATION PROGRAM; AND PROVIDING INSTRUCTION, ELIGIBILITY, FUNDING, ASSESSMENT AND ACCOUNTABILITY REQUIREMENTS; TO AMEND SECTION 37-161-3, MISSISSIPPI CODE OF 1972, PROVIDING STANDARDS FOR THE MISSISSIPPI VIRTUAL PUBLIC SCHOOL PROGRAM; REVISING THE DEFINITION OF THE TERM "VIRTUAL INSTRUCTION PROGRAM"; REVISING SCHOOL DISTRICT REQUIREMENTS FOR PROVIDING VIRTUAL INSTRUCTION PROGRAMS; REQUIRING FULL-TIME AND PART-TIME VIRTUAL INSTRUCTION PROGRAM OPTIONS; AUTHORIZING A SCHOOL DISTRICT TO ENTER INTO AN AGREEMENT WITH A VIRTUAL CHARTER SCHOOL TO PROVIDE VIRTUAL INSTRUCTION TO DISTRICT STUDENTS; AUTHORIZING VIRTUAL CHARTER SCHOOL CONTRACTS; PROVIDING ADDITIONAL PROVIDER QUALIFICATIONS RELATING TO CURRICULUM, STUDENT PERFORMANCE ACCOUNTABILITY AND DISCLOSURE; AND REVISING STUDENT ELIGIBILITY REQUIREMENTS; TO AMEND SECTION 37-16-7, MISSISSIPPI CODE OF 1972, REQUIRING AT LEAST ONE COURSE REQUIRED FOR HIGH SCHOOL GRADUATION TO BE COMPLETED THROUGH ONLINE LEARNING; AND AUTHORIZING SCHOOL DISTRICTS TO OFFER VIRTUAL COURSES AND BLENDED LEARNING COURSES; TO AMEND SECTION 37-16-3, MISSISSIPPI CODE OF 1972, REQUIRING ALL STATEWIDE END-OF-COURSE ASSESSMENTS TO BE ADMINISTRATED ONLINE BEGINNING WITH THE 2014-2015 SCHOOL YEAR; AND REQUIRING THE DEPARTMENT OF EDUCATION TO SUBMIT A REPORT TO THE GOVERNOR AND THE LEGISLATURE RELATING TO SCHOOL DISTRICT OFFERING OF, AND STUDENT ACCESS TO, DIGITAL LEARNING; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Digital learning.  (1)  Mississippi Digital Learning NOW Act.  There is created the Mississippi Digital Learning NOW Act.

     (2)  Elements of high-quality digital learning.  The Legislature finds that each student should have access to a high-quality digital learning environment that provides:

          (a)  Access to digital learning.

          (b)  Access to high-quality digital content and online courses.

          (c)  Education that is customized to the needs of the student using digital content.

          (d)  A means for the student to demonstrate competency in completed coursework.

          (e)  High-quality digital content, instructional materials, and online and blended learning courses.

          (f)  High-quality digital instruction and teachers.

          (g)  Content and instruction that are evaluated on the metric of student learning.

          (h)  The use of funding as an incentive for performance, options and innovation.

          (i)  Infrastructure that supports digital learning.

          (j)  Online administration of state assessments.

     (3)  Digital preparation.  Each student must graduate from high school having taken at least one (1) online course, as provided in Section 37-16-7.

     (4)  Customized and accelerated learning.  A school district must establish multiple opportunities for student participation in part-time and full-time Kindergarten through Grade 12 virtual instruction.  Options include, but are not limited to:

          (a)  School district operated part-time or full-time virtual instruction programs under Section 37-161-3 for Kindergarten through Grade 12 students enrolled in the school district.

          (b)  Mississippi Virtual School instructional services authorized under Section 37-161-3.

          (c)  Blended learning instruction provided by charter schools authorized under Section 37-165-7(10).

          (d)  Full-time virtual charter school instruction authorized under Section 37-165-7(10).

          (e)  Courses delivered in the traditional school setting by personnel providing direct instruction through a virtual environment or though a blended virtual and physical environment pursuant to Section 37-16-7.

          (f)  Virtual courses offered in the Course Code Directory to students within the school district or to students in other school districts throughout the state pursuant to Section 37-16-7.

     SECTION 2.  Section 37-165-7, Mississippi Code of 1972, is amended as follows:

     37-165-7.  (1)  The provisions of this chapter shall be applicable to only those chronically under-performing public schools in the State of Mississippi which seek to be converted, and ultimately may be converted, to conversion charter schools upon approval of a petition for conversion charter school status by the State Board of Education.

     (2)  The State Board of Education, subject to the requirements of the Mississippi Administrative Procedures Law, shall establish rules and regulations for the submission of petitions for the conversion of a public school to conversion charter school status and criteria and procedures for the operation of conversion charter schools.  The board shall receive and review each petition for the conversion of a public school to conversion charter school status from the school's sponsors and, in its discretion, may approve the petition and grant conversion charter school status.

     (3)  In order to be approved, a petition for conversion charter school status must adequately include:

          (a)  A plan for improvement at the school level for improving student learning and achieving a Successful rating or higher under the State Accountability Model;

          (b)  A set of academic or vocational, or both, performance-based objectives and student achievement-based objectives for the term of the contract and the means for measuring those objectives on no less than an annual basis;

          (c)  An agreement to provide a yearly report to parents, the school board of the school district in which the conversion charter school is located, and the State Board of Education which indicates the progress made by the conversion charter school in the previous year in meeting the academic or vocational, or both, performance objectives;

          (d)  An agreement that the conversion charter school shall be nonsectarian;

          (e)  An agreement that the conversion charter school shall not charge tuition; and

          (f)  An agreement requiring the conversion charter school to be subject to financial audits in the same manner as public school districts.

     (4)  The procedures and process for the conversion of a public school to conversion charter school status shall be as follows:

          (a)  A petition shall be developed by a sponsor or its appointed representative and shall be made available to all parents or guardians of students enrolled in a public school that is chronically Low-Performing, At-Risk of Failing or Failing, as determined by the State Department of Education, with a copy of the proposed conversion plan attached to the petition for their inspection and signing;

          (b)  The petition and conversion plan must be approved by more than fifty percent (50%) of the families of the students enrolled in a chronically under-performing public school during the third consecutive year in which the school has been designated as Low-Performing, At-Risk of Failing or Failing, as determined by the State Department of Education.  The family of a student enrolled in a chronically under-performing public school proposed to be converted to conversion charter school status shall be entitled to one (1) vote per family without regard to the number of children a family may have enrolled as students at the school.  The group of parents or guardians submitting or having the petition submitted on their behalf shall be considered the sponsor of the conversion charter school;

          (c)  The sponsor shall prepare and submit the petition and the conversion plan for conversion charter school status approved by the parents or guardians of students enrolled in a chronically under-performing public school to the State Board of Education upon forms prescribed by or in a format specified by the board;

          (d)  Before the petition for conversion granting a public school conversion charter school status is submitted to the State Board of Education for approval, the sponsor shall conduct a public hearing in the local school district in which the school proposed for conversion is located to allow the parents or guardians of students enrolled in the chronically under-performing public school affected by the conversion to be informed of the conversion process and to address any concerns relating to the process and subsequent operation of the conversion charter school; and

          (e)  After the State Board of Education approves a petition for conversion charter school status, the parents or guardians of the students enrolled in the conversion charter school shall select members to serve on the conversion charter school's local management board, which members shall be selected in accordance with the rules and regulations promulgated by the State Board of Education for the selection of conversion charter school local management board members.

     (5)  The conversion plan to be attached to the petition must include the following:

          (a)  A description of the plan for school improvement that addresses how the school proposes to work toward improving student learning and achieving a Successful rating or higher under the State Accountability Model;

          (b)  An outline of proposed academic or vocational, or both, performance criteria to be used during the initial period of the contract to measure progress of the school in improving student learning and achieving a Successful rating or higher under the State Accountability Model requiring that:

              (i)  Academic performance criteria must include specific and measureable benchmarks of academic performance on state assessments; and

              (ii)  Academic performance criteria include a requirement that conversion charter schools not miss adequate yearly progress for any two (2) consecutive years, as defined by the No Child Left Behind Act of 2001, or other future federal school accountability requirements;

          (c)  A provision requiring the conversion charter school to comply with all rules, regulations, policies and procedures of the State Board of Education and the local school board and the provisions of the Mississippi Code of 1972 relating to the elementary and secondary education of students, except those rules, regulations, policies or procedures from which the conversion charter school specifically requests to be exempted and which have been agreed upon by the State Board of Education as specified in the school's contract.  Conversion charter schools must comply with general health and safety standards, state test assessments and accountability requirements, financial accountability and auditing requirements, and all reporting and data collecting requirements in the same manner as public schools in the local school district;

          (d)  The local management board shall not directly or indirectly communicate to a parent or guardian that the conversion charter school is unable to meet the needs of a child, but shall provide a free and public education to every student in the attendance zone;

          (e)  Conversion charter schools may not be exempted from the following statutes:

              (i)  Section 37-9-75, which relates to teacher strikes;

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

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

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

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

              (vi)  Section 37-151-107, which prohibits false reporting of student counts by school officials;

              (vii)  Applicable State Department of Health regulations;

              (viii)  Applicable federal No Child Left Behind requirements and any additional federal education programs; and

              (ix)  Applicable federal and state requirements for special education, gifted education and vocational education programs;

          (f)  A detailed budget and a clear business plan, including any projected costs that extend beyond the regular operational costs of the conversion charter school;

          (g)  A plan of governance and the process by which the members of the local management board of the conversion charter school shall be selected to serve as the governing administrative authority, provided that:

              (i)  The local management board shall be composed of parents or guardians of students enrolled in and in attendance at the conversion charter school, selected by other parents or guardians of students enrolled in and in attendance at that school;

              (ii)  Members of the local management board may serve a term of three (3) years; however, a member's term of service on the local management board is contingent upon that member having a child continuously enrolled as a student at the conversion charter school during each school year that the member serves on the board.  If a student no longer attends the conversion charter school and the board member has no other child enrolled in and attending the school, the term of the member-parent or guardian shall expire immediately and a new member selected.  If a student is promoted and the board member has no other child enrolled in and attending the conversion charter school, the term of the member-parent or guardian shall expire immediately and a new member selected, unless the member-parent or guardian has another child who will be enrolled in the conversion charter school in the next succeeding scholastic year;

              (iii)  Members of the local management board shall serve without compensation;

              (iv)  No member of the local school board of any public or private school district may serve on the local management board of a conversion charter school;

              (v)  Procedures for the subsequent selection of members and filling vacancies that occur on the local management board are included; and

              (vi)  The selection of members to the local management board of conversion charter schools shall be performed in accordance with the rules and regulations promulgated by the State Board of Education for the selection of conversion charter school local management board members;

          (h)  An agreement to provide an annual academic achievement report to parents, the local school board of any school district from which the conversion charter school draws students and the State Board of Education, which indicates the progress made by the conversion charter school during the previous year in meeting its academic or vocational performance objectives.  The report shall include, but not be limited to, the following information:

              (i)  Student progress concerning academic achievement;

              (ii)  Student attendance;

              (iii)  Student grades and scores on assessment instruments;

              (iv)  Incidents involving student discipline;

              (v)  Student socioeconomic data; and

              (vi)  Parent satisfaction with the schools;

          (i)  An agreement to provide a yearly financial report to parents, the local school board of any school district from which the conversion charter school draws students and the State Board of Education, which discloses all public and private funds received by the conversion charter school, and how those funds were expended;

          (j)  An agreement requiring all student records, financial documentation, and all other pertinent records of student and school data shall be accessible by the local school board;

          (k)  An agreement requiring members of the local management board of a conversion charter school to attend the training required under Section 37-3-4, provided by the Mississippi School Boards Association for local school board members and public school superintendents of this state, in order for those individuals to carry out their duties more effectively.  Members of the local management board shall be reimbursed for the necessary expenses and mileage in attending any required training and shall be paid a per diem for each day in attendance at the training by the local school district in the amount authorized by Section 37-6-13 for members of the local school board;

          (l)  A transcript of the public hearing required under subsection (4)(d) of this section; and

          (m)  A description of the discipline policy to be adopted by the local management board, or alternatively, an agreement that the local management board shall adhere to the discipline policy implemented for the school district by the local school board.

     (6)  If a petition for the conversion of a public school to conversion charter school status is approved, the local management board, subject to the utilization of any available resources, may:

          (a)  Extend the school day or length of the scholastic year;

          (b)  Develop and establish a curriculum that is consistent with the Mississippi Curriculum Framework which provides courses that promote postsecondary education and vocational preparation and/or admission;

          (c)  Select, purchase and use textbooks, literature and other instructional materials that would improve educational attainment by students in the school, subject to the approval of the State Board of Education;

          (d)  Select a person to be employed as the principal of the conversion charter school or may contract with a profit or nonprofit organization which has operated a successful public school in any state or the District of Columbia for the daily administrative management of the conversion charter school, provided that daily administrative management shall not include the authority to employ or terminate conversion charter school administrators, teachers or other personnel, establish curriculum or adopt a budget.  The person selected by the local management board to serve as principal of the conversion charter school must attend or must have attended a principal leadership program approved by the State Department of Education.  If the local management board contracts with a profit or nonprofit organization for daily administrative management functions, that contract shall not abrogate or preempt any provisions of the contract entered into between the local management board and the State Board of Education for the conversion of the public school to conversion charter school status; and

          (e)  Select licensed teachers who are highly qualified under the No Child Left Behind Act for employment in the conversion charter school and determine the salaries of those teachers employed.  The minimum salaries for licensed teachers employed in the conversion charter school shall be in accordance with the scale for teachers' salaries provided under the Teacher Opportunity Program, as established under Section 37-19-7.

     (7)  (a)  All functions and decisions of the local management board impacting the academic curriculum, student progress and assessment, and the accountability standards of a conversion charter school shall be subject to the reviewing and approval authority of the State Board of Education.

          (b)  All administrative functions and decisions of the local management board impacting the financial or any other managerial or operational functions of a conversion charter school shall be subject to the reviewing and approval authority of the local school board.

     (8)  Meetings of the local management board shall be subject to the requirements of Sections 25-41-1 through 25-41-17 governing open meetings.

     (9)  Nothing in this chapter prohibits conversion charter schools from offering virtual service pursuant to state law and regulations defining virtual schools, as provided in subsection (10) of this section and the Mississippi Digital Learning NOW Act.

     (10)  A charter school must amend its charter or submit a new application pursuant to this subsection (10) to become a virtual charter school.  A virtual charter school is subject to the requirements of this section.  For the establishment of a virtual charter school, documents are required that the applicant has contracted with a provider of virtual instruction services pursuant to Section 37-161-3.  In order to provide students with access to diverse instructional delivery models, to facilitate the integration of technology within traditional classroom instruction, and to provide students with the skills they need to compete in the 21st Century economy, the Legislature encourages instructional methods for blended learning courses consisting of both traditional classroom and online instructional techniques.  Charter schools may implement blended learning courses which combine traditional classroom instruction and virtual instruction.  Students in a blended learning course must be full-time students of the charter school and receive the online instruction in a classroom setting at the charter school.  Instructional personnel who provide virtual instruction for blended learning courses may be employees of the charter school or may be under contract to provide instructional services to charter school students.  At a minimum, such instructional personnel must hold an active state or school district certification for the subject area of the blended learning course.  The funding and performance accountability requirements for blended learning courses are the same as those for traditional courses.  Funding for a virtual charter school shall be as provided in Section 37-151-7.  The sponsor of a virtual charter school may withhold a fee of up to five percent (5%).  The funds shall be used to cover the cost of services provided and for the school district's local instructional improvement system or other technological tools that are required to access electronic and digital instructional materials.

     SECTION 3.  Section 37-151-7, Mississippi Code of 1972, is amended as follows:

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

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

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

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

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

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

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

     Fund 1130 All Functions, Object Code 210 and 215;

     Fund 2001 Functions 1110-1199 Objects 100-999;

     Fund 2070 Functions 1110-1199 Objects 100-999;

     Fund 2420 Functions 1110-1199 Objects 100-999;

     Fund 2711 All Functions, Object Code 210 and 215.

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

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

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

          Objects 100-999;

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

          Objects 100-999.

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

     Fund 1120 Functions 2600-2699, Objects 100-699

          and Objects 800-999;

     Fund 2711 Functions 2600-2699, Objects 100-699

          and Objects 800-999;

     Fund 2430 Functions 2600-2699, Objects 100-699

          and Objects 800-999.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (f)  The Mississippi Virtual School.  Funding for the Mississippi Virtual School shall be provided as follows:

              (i)  1.  For a student in Grades 9 through 12, a "full-time equivalent student" is one (1) student who has successfully completed six (6) full-credit courses that shall count toward the minimum number of credits required for high school graduation.  A student who completes fewer than six (6) full-credit courses is a fraction of a full-time equivalent student.  Half-credit course completions shall be included in determining a full-time equivalent student.  Credits completed by a student in excess of the minimum required for that student for high school graduation is not eligible for funding.

                   2.  For a student in Kindergarten through Grade 8, a "full-time equivalent student" is one (1) student who has successfully completed six (6) courses or the prescribed level of content that counts toward promotion to the next grade.  A student who completes fewer than six (6) courses or the prescribed level of content shall be a fraction of a full-time equivalent student.

                   3.  Beginning in the 2014-2015 fiscal year, when Section 37-163-3 is implemented, the reported full-time equivalent students and associated funding of students enrolled in courses requiring passage of an end-of-course assessment shall be adjusted after the student completes the end-of-course assessment. However, no adjustment shall be made for home education program students who choose not to take an end-of-course assessment.

              (ii)  1.  The Mississippi Virtual School may provide full-time instruction for students in Kindergarten through Grade 12 and part-time instruction for students in Grades 4 through 12.  To receive full-time instruction in Grades 2 through 5, a student must meet at least one (1) of the eligibility criteria in Section 37-161-3.  Part-time instruction for Grades 4 and 5 may be provided only to public school students taking Grades 6 through 8 courses.

                   2.  For students receiving part-time instruction in Grades 4 and 5 and students receiving full-time instruction in Kindergarten through Grade 12 from the Mississippi Virtual School, the combined total of all FTE reported by both the school district and the Mississippi Virtual School may not exceed 1.0 FTE.

              (iii)  Each elementary school principal must notify the parent of each student who scores at Level 4 or Level 5 on MCAT Reading or MCAT Mathematics of the option for the student to take accelerated courses through the Mississippi Virtual School.

              (iv)  1.  Public school students receiving full-time instruction in Kindergarten through Grade 12 by the Mississippi Virtual School must take all statewide assessments required pursuant to Section 37-16-7.

                   2.  Public school students receiving part-time instruction by the Mississippi Virtual School in courses requiring statewide end-of-course assessments must take all statewide end-of-course assessments required pursuant to Section 37-16-7.

                   3.  All statewide assessments must be taken within the school district in which the student resides.  A school district must provide the student with access to the district's testing facilities.

              (v)  The Mississippi Virtual School shall receive a school grade pursuant to Section 37-16-7 for students receiving full-time instruction.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (e)  [Repealed]

          (f)  [Repealed]

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

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

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

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

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

     SECTION 4.  Section 37-161-3, Mississippi Code of 1972, is amended as follows:

     37-161-3.  (1)  The Legislature finds and declares the following:

          (a)  Meeting the educational needs of children in our state's schools is of the greatest importance to the future welfare of the State of Mississippi;

          (b)  Closing the achievement gap between high-performing students, including the achievement gap among at-risk students, is a significant and present challenge;

          (c)  Providing a broader range of educational options to parents and utilizing existing resources, along with technology, may help students in the state improve their academic achievement; and

          (d)  Many of the state's school districts currently lack the capacity to provide other public school choices for students whose schools are low performing.

     (2)  There is created the Mississippi Virtual Public School Program, which is the responsibility of the State Department of Education.  It is the intent of the Legislature that the Mississippi Virtual Public School established under this section provides Mississippi families with an alternative choice to access additional educational resources in an effort to improve academic achievement.  The Mississippi Virtual Public School must be recognized as a public school and provide equitable treatment and resources as are other public schools in the state.  Private providers, overseen by the State Department of Education, may be selected by the State Board of Education to administer, manage or operate virtual school programs in this state, including the total operation of the Mississippi Virtual Public School Program as provided in subsections (6) through (19) of this section.  Any private provider chosen to provide services under the provisions of this subsection shall be chosen through a competitive RFP process.

     (3)  Nothing in this section may be interpreted as precluding the use of computer- and Internet-based instruction for students in a virtual or remote setting utilizing the Mississippi Virtual Public School.

     (4)  As used in this section, the following words and phrases have the meanings respectively ascribed unless the context clearly requires otherwise:

          (a)  "Mississippi Virtual Public School" means a public school in which the state uses technology in order to deliver instruction to students via the Internet in a virtual or remote setting.

          (b)  "Sponsor" means the public school district is responsible for the academic process for each student including, but not limited to, enrollment, awarding of credit and monitoring progress.

     (5) * * *  The State Board of Education shall establish the Mississippi Virtual Public School beginning in school year 2006-2007, and effective with school year 2012-2013, the Mississippi Virtual Public School Program shall include the standards prescribed in subsections (6) through (19) of this section.

 * * *

     (6)  (a)  Beginning with the 2012-2013 school year, the term "virtual instruction program" means a program of instruction provided in an interactive learning environment created through technology in which students are separated from their teachers by time or space, or both.

          (b)  Beginning with the 2012-2013 school year, each school district that is rated on Academic Watch or lower shall provide all enrolled public school students within its boundaries the option of participating in part-time and full-time virtual instruction programs.  Each school district that is rated as successful or higher shall provide at least three (3) options for part-time and full-time virtual instruction.  All school districts must provide parents with timely written notification of an open enrollment period for full-time students of at least ninety (90) days that ends no later than thirty (30) days prior to the first day of the school year.  The purpose of the program is to make quality virtual instruction available to students using online and distance learning technology in the nontraditional classroom.  A virtual instruction program shall provide the following:

              (i)  Full-time virtual instruction for students enrolled in Kindergarten through Grade 12.

              (ii)  Part-time virtual instruction for students enrolled in Grades 9 through 12 courses that are measured pursuant to subsection (16)(a)(ii) of this section.

              (iii)  Full-time or part-time virtual instruction for students enrolled in dropout prevention and academic intervention programs, Juvenile Justice education programs, core-curricula courses to meet class size requirements, or community colleges under this section.

     (7)  To provide students with the option of participating in virtual instruction programs as required by subsection (6) of this section, a school district may:

          (a)  Contract with the Mississippi Virtual School or establish a franchise of the Mississippi Virtual School for the provision of a program under subsection (6) of this section.

          (b)  Contract with an approved provider under subsection (10) of this section for the provision of a full-time program or a part-time program.

          (c)  Enter into an agreement with other school districts to allow the participation of its students in an approved virtual instruction program provided by the other school district.  The agreement must indicate a process for the transfer of funds.

          (d)  Establish school district operated part-time or full-time Kindergarten through Grade 12 virtual instruction programs under subsection (6) of this section for students enrolled in the school district.

          (e)  Enter into an agreement with a virtual charter school authorized by the school district under Section 37-165-7(10).  Contracts under paragraph (a) or paragraph (b) of this subsection may include multidistrict contractual arrangements that may be executed by a regional consortium for its member districts.  A multidistrict contractual arrangement or an agreement under paragraph (c) of this subsection does not require the participating school districts to be contiguous.  These arrangements may be used to fulfill the requirements of subsection (6) of this section.

     (8)  A virtual charter school may provide full-time virtual instruction for students in Kindergarten through Grade 12 if the virtual charter school has a charter approved pursuant to Section 37-165-7(10) authorizing full-time virtual instruction.  A virtual charter school may:

          (a)  Contract with the Mississippi Virtual School.

          (b)  Contract with an approved provider under subsection (10) of this section.

          (c)  Enter into an agreement with a school district to allow the participation of the virtual charter school's students in the school district's virtual instruction program.  The agreement must indicate a process for reporting of student enrollment and the transfer of funds required by subsection (15)(f) of this section.

     (9)  Each school district shall:

          (a)  Provide to the department by October 1, 2012, and by each October 1 thereafter, a copy of each contract and the amounts paid per unweighted full-time equivalent student for services procured pursuant to subsection (7)(a) and (b) of this section.

          (b)  Expend the difference in funds provided for a student participating in the virtual instruction program pursuant to subsection (7) of this section and the price paid for contracted services procured pursuant to subsection (7)(a) and (b) of this section for the district's local instructional improvement system or other technological tools that are required to access electronic and digital instructional materials.

          (c)  At the end of each fiscal year, but no later than September 1, report to the department an itemized list of the technological tools purchased with these funds.

     (10)  Provider qualifications.  (a)  The department shall annually publish online a list of providers approved to offer virtual instruction programs.  To be approved by the department, a provider must document that it:

              (i)  Is nonsectarian in its programs, admission policies, employment practices, and operations;

              (ii)  Complies with antidiscrimination provisions;

              (iii)  Locates an administrative office or offices in this state, requires its administrative staff to be state residents, requires all instructional staff to be Mississippi-certified teachers, and conducts background screenings for all employees or contracted personnel using state and national criminal history records;

              (iv)  Possesses prior, successful experience offering online courses to elementary, middle, or high school students as demonstrated by quantified student learning gains in each subject area and grade level provided for consideration as an instructional program option;

              (v)  Is accredited by a regional accrediting association as defined by State Board of Education rule, or the Southern Association of Colleges and Schools Council on Accreditation and School Improvement;

              (vi)  Ensures instructional and curricular quality through a detailed curriculum and student performance accountability plan that addresses every subject and grade level it intends to provide through contract with the school district, including:

                   1.  Courses and programs that meet the standards of the International Association for K-12 Online Learning and the Southern Regional Education Board.

                   2.  Instructional content and services that align with, and measure student attainment of, student proficiency in the State Department of Education Standards.

                   3.  Mechanisms that determine and ensure that a student has satisfied requirements for grade level promotion and high school graduation with a standard diploma, as appropriate; and

              (vii)  Publishes for the general public, in accordance with disclosure requirements adopted in rule by the State Board of Education, as part of its application as a provider and in all contracts negotiated pursuant to this section:

                   1.  Information and data about the curriculum of each full-time and part-time program;

                   2.  School policies and procedures;

                   3.  Certification status and physical location of all administrative and instructional personnel;

                   4.  Hours and times of availability of instructional personnel;

                   5.  Student-teacher ratios;

                   6.  Student completion and promotion rates;

                   7.  Student, educator, and school performance accountability outcomes; and

                   8.  If the provider is a community college, employs instructors who meet the certification requirements for instructional staff.

          (b)  An approved provider shall retain its approved status during the three (3) school years after the date of the department's approval under paragraph (a) of this subsection as long as the provider continues to comply with all requirements of this section.  However, each provider approved by the department for the 2012-2013 school year must reapply for approval to provide a part-time program for students in Grades 9 through 12.

     (11)  Virtual instruction program requirements.  Each virtual instruction program under this section must:

          (a)  Align virtual course curriculum and course content to the State Department of Education Standards.

          (b)  Offer instruction that is designed to enable a student to gain proficiency in each virtually delivered course of study.

          (c)  Provide each student enrolled in the program with all the necessary instructional materials.

          (d)  Provide each full-time student enrolled in the program who qualifies for free or reduced price school lunches under the National School Lunch Act, or who is on the direct certification list, and who does not have a computer or Internet access in his or her home with:

              (i)  All equipment necessary for participants in the virtual instruction program, including, but not limited to, a computer, computer monitor, and printer, if a printer is necessary to participate in the program; and

              (ii)  Access to or reimbursement for all Internet services necessary for online delivery of instruction.

          (e)  Not require tuition or student registration fees.

     (12)  Contract requirements.  Each contract with an approved provider must at minimum:

          (a)  Set forth a detailed curriculum plan that illustrates how students will be provided services and be measured for attainment of proficiency in the State Department of Education Standards for each grade level and subject.

          (b)  Provide a method for determining that a student has satisfied the requirements for graduation in Section 37-16-7 if the contract is for the provision of a full-time virtual instruction program to students in Grades 9 through 12.

          (c)  Specify a method for resolving conflicts among the parties.

          (d)  Specify authorized reasons for termination of the contract.

          (e)  Require the approved provider to be responsible for all debts of the virtual instruction program if the contract is not renewed or is terminated.

          (f)  Require the approved provider to comply with all requirements of this section.

     (13)  Student eligibility.  A student may enroll in a virtual instruction program provided by the school district or by a virtual charter school operated in the district in which he or she resides if the student meets eligibility requirements for virtual instruction pursuant to at least one (1) of the following conditions:

          (a)  The student has spent the prior school year in attendance at a public school in this state and was enrolled and reported by a public school district for funding during the preceding October and February for purposes of the Mississippi Average Daily Attendance surveys.

          (b)  The student is a dependent child of a member of the United States Armed Forces who was transferred within the last twelve (12) months to this state from another state or from a foreign country pursuant to the parent's permanent change of station orders.

          (c)  The student was enrolled during the prior school year in a virtual instruction program under this section.

          (d)  The student has a sibling who is currently enrolled in a virtual instruction program and that sibling was enrolled in such program at the end of the prior school year.

          (e)  The student is eligible to enter Kindergarten or First Grade.

     (14)  Student participation requirements.  Each student enrolled in a virtual instruction program or virtual charter school must:

          (a)  Comply with the compulsory attendance requirements of Section 37-13-91.  Student attendance must be verified by the school district.

          (b)  Take state assessment tests within the school district in which such student resides, which must provide the student with access to the district's testing facilities.

     (15)  Virtual instruction program and virtual charter school funding.  (a)  Students enrolled in a virtual instruction program or a virtual charter school shall be funded through the Mississippi Adequate Education Program.  However, such funds may not be provided for the purpose of fulfilling the class size requirements under MAEP.

          (b)  For purposes of a virtual instruction program or a virtual charter school, "full-time equivalent student" has the same meaning as provided in Section 37-151-7(f).

          (c)  For a student enrolled part-time in a Grades 6 through 12 program, a "full-time equivalent student" has the same meaning as provided in Section 37-151-7(f).

          (d)  A student may not be reported as more than 1.0 full-time equivalent student in any given school year.

          (e)  Beginning in the 2014-2015 fiscal year, when Section 37-161-3 is fully implemented, the reported full-time equivalent students and associated funding of students enrolled in courses requiring passage of an end-of-course assessment shall be adjusted after the student completes the end-of-course assessment.

          (f)  The school district in which the student resides shall report full-time equivalent students for a virtual instruction program or a virtual charter school to the department in a manner prescribed by the department, and funding shall be provided through the MAEP Program.  Funds received by the school district of residence for a student in a virtual instruction program provided by another school district under this section shall be transferred to the school district providing the virtual instruction program.

          (g)  A community college provider may not report students who are served in a virtual instruction program for funding under the Community College Funding Program.

     (16)  Assessment and accountability.  (a)  Each approved provider contracted under this section must:

              (i)  Participate in the statewide assessment program under Section 37-16-3 and in the state's education performance accountability system.

              (ii)  Receive a school grade under Section 37-16-3 or a school improvement rating, as applicable.  The school grade or school improvement rating received by each approved provider shall be based upon the aggregated assessment scores of all students served by the provider statewide.  The department shall publish the school grade or school improvement rating received by each approved provider on its Internet website.  The department shall develop an evaluation method for providers of part-time programs which includes the percentage of students making learning gains, the percentage of students successfully passing any required end-of-course assessment, the percentage of students taking Advanced Placement examinations, and the percentage of students scoring three (3) or higher on an Advanced Placement examination.

          (b)  The performance of part-time students in Grades 9 through 12 shall not be included for purposes of school grades or school improvement ratings under paragraph (a)(ii) of this subsection; however, their performance shall be included for school grading or school improvement rating purposes by the nonvirtual school providing the student's primary instruction.

          (c)  An approved provider that receives a school grade of "D" or "F" under Section 37-16-3 or a school improvement rating of Academic Watch or lower must file a school improvement plan with the department for consultation to determine the causes for low performance and to develop a plan for correction and improvement.

          (d)  An approved provider's contract must be terminated if the provider receives a school grade of "D" or "F" under Section 37-16-3 or a school improvement rating of Academic Watch or lower for two (2) years during any consecutive four-year period or has violated any qualification requirement pursuant to subsection (2) of this section.  A provider that has a contract terminated under this paragraph may not be an approved provider for a period of at least one (1) year after the date upon which the contract was terminated and until the department determines that the provider is in compliance with subsection (2) of this section and has corrected each cause of the provider's low performance.

     (17)  Exceptions.  A provider of digital or online content or curriculum that is used to supplement the instruction of students who are not enrolled in a virtual instruction program under this section is not required to meet the requirements of this section.

     (18)  Marketing.  Each school district shall provide information to parents and students about the parent's and student's right to participate in a virtual instruction program under this section and in courses offered by the Mississippi Virtual School under Section 37-161-6.

     (19)  Rules.  The State Board of Education shall adopt rules necessary to administer this section.

     SECTION 5.  Section 37-16-7, Mississippi Code of 1972, is amended as follows:

     37-16-7.  (1)  Each district school board shall establish standards for graduation from its schools which shall include as a minimum:

          (a)  Mastery of minimum academic skills as measured by assessments developed and administered by the State Board of Education.

          (b)  Completion of a minimum number of twenty-four (24) academic credits, and all other applicable requirements prescribed by the district school board.  The twenty-four (24) credits may be earned through applied, integrated, and combined courses approved by the Department of Education.  The twenty-four (24) credits shall be distributed as follows:

     Beginning with students entering Grade 9 in the 2012-2013 school year, at least one (1) course within the twenty-four (24) credits required in this subsection must be completed through online learning.  However, an online course taken during Grades 6 through 8 fulfills this requirement.  This requirement shall be met through an online course offered by the Mississippi Virtual School, an online course offered by the high school, or an online dual enrollment course offered pursuant to a district interinstitutional articulation agreement pursuant to Section 37-161-3.  A student who is enrolled in a full-time or part-time virtual instruction program under Section 37-161-3 meets this requirement.

     (2)  A student who meets all requirements prescribed in subsection (1) of this section shall be awarded a standard diploma in a form prescribed by the state board.

     (3)  The State Board of Education may establish student proficiency standards for promotion to grade levels leading to graduation.

     SECTION 6.  Section 37-16-3, Mississippi Code of 1972, is amended as follows:

     37-16-3.  (1)  The State Department of Education is directed to implement a program of statewide assessment testing which shall provide for the improvement of the operation and management of the public schools.  The statewide program shall be timed, as far as possible, so as not to conflict with ongoing district assessment programs.  As part of the program, the department shall:

          (a)  Establish, with the approval of the State Board of Education, minimum performance standards related to the goals for education contained in the state's plan including, but not limited to, basic skills in reading, writing and mathematics.  The minimum performance standards shall be approved by April 1 in each year they are established.

          (b)  Conduct a uniform statewide testing program in grades deemed appropriate.  The program may test skill areas, basic skills and high school course content.

          (c)  Monitor the results of the assessment program and, at any time the composite student performance of a school or basic program is found to be below the established minimum standards, notify the district superintendent, the school principal and the school advisory committee or other existing parent group of the situation within thirty (30) days of its determination.  The department shall further provide technical assistance to the district in the identification of the causes of this deficiency and shall recommend courses of action for its correction.

          (d)  Provide technical assistance to the school districts, when requested, in the development of student performance standards in addition to the established minimum statewide standards.

          (e)  Issue security procedure regulations providing for the security and integrity of the tests that are administered under the basic skills assessment program.

     (2)  Uniform basic skills tests shall be completed by each student in the appropriate grade.  These tests shall be administered in such a manner as to preserve the integrity and validity of the assessment.  In the event of excused or unexcused student absences, make-up tests shall be given.  The school superintendent of every school district in the state shall annually certify to the State Department of Education that each student enrolled in the appropriate grade has completed the required basic skills assessment test for his or her grade in a valid test administration.

     (3)  Student and statewide assessment program for public schools.  The State Board of Education shall design and implement a statewide program of educational assessment that provides information for the improvement of the operation and management of the public schools, including schools operating for the purpose of providing educational services to youth in Juvenile Justice programs.  The State Board of Education may enter into contracts for the continued administration of the assessment, testing and evaluation programs authorized and funded by the Legislature.  Pursuant to the statewide assessment program, the State Board of Education shall:  Beginning with the 2014-2015 school year, all statewide end-of-course assessments shall be administered online.

     (4)  By December 1, 2013, the Department of Education shall submit a report to the Governor and the Legislature which identifies and explains the best methods and strategies by which the department can assist district school boards in acquiring digital learning at the most reasonable prices possible and provides a plan under which district school boards may voluntarily pool their bids for such purchases.  The report shall identify criteria that will enable district school boards to differentiate between the level of service and pricing based upon factors such as the level of student support, the frequency of teacher-student communications, instructional accountability standards, and academic integrity.  The report shall also include ways to increase student access to digital learning, including identification and analysis of the best methods and strategies for implementing part-time virtual education in Kindergarten through Grade 5.

     SECTION 7.  This act shall take effect and be in force from and after July 1, 2012.