MISSISSIPPI LEGISLATURE

2014 Regular Session

To: Education; Appropriations

By: Senator(s) Watson

Senate Bill 2362

AN ACT TO CODIFY SECTION 37-17-14, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT THE PERFORMANCE-BASED ACCREDITATION SYSTEM FOR SCHOOLS AND SCHOOL DISTRICTS SHALL INCLUDE THE DEVELOPMENT AND IMPLEMENTATION OF A FINANCIAL ACCOUNTABILITY RATING SYSTEM TO IDENTIFY HIGH ACADEMIC ACHIEVEMENT AND COST-EFFECTIVE SCHOOL OPERATIONS; TO DIRECT THE STATE DEPARTMENT OF EDUCATION TO REVIEW SCHOOL AND SCHOOL DISTRICT RESOURCE ALLOCATION PRACTICES; TO PRESCRIBE A PROCEDURE FOR PROJECTING A DEFICIT IN THE OPERATION OF SCHOOLS AND SCHOOL DISTRICTS; TO PROVIDE FOR REPORTS; TO CODIFY SECTION 37-17-15, MISSISSIPPI CODE OF 1972, TO DIRECT THE STATE BOARD OF EDUCATION TO ADOPT PERFORMANCE INDICATORS FOR STUDENT ACHIEVEMENT AND TO PROVIDE THAT THE PERFORMANCE-BASED ACCREDITATION SYSTEM FOR SCHOOLS AND SCHOOL DISTRICTS SHALL INCLUDE STUDENT ACHIEVEMENT PERFORMANCE INDICATORS; TO AMEND SECTION 37-17-6, MISSISSIPPI CODE OF 1972, IN CONFORMITY; AND FOR RELATED PURPOSES.

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

     SECTION 1.  The following provision shall be codified as Section 37-17-14, Mississippi Code Of 1972:

     37-17-14.  School district financial accountability.  (1)  The performance-based accreditation system implemented by the State Department of Education to assess the effectiveness of Mississippi's K-12 education delivery system shall include a fiscal accountability component to inform the public what is being received in return for funds invested in education.  The State Board of Education shall develop and the State Department of Education shall implement a financial accountability rating system for schools and school districts that:

          (a)  Distinguish among schools and school districts as applicable, based on levels of financial performance; and

          (b)  Include procedures to provide additional transparency to public education finance, and enable the State Board of Education and school district administrators to provide meaningful financial oversight and improvement.  The system must include uniform indicators adopted by the State Board of Education by which to measure the financial management performance of a school or school district.  The system may not include an indicator or any other performance measure that requires a school or school district to spend a minimum specified percentage of district operating funds for instructional purposes, or lowers the financial management performance rating of a school or school district for failure to spend a minimum specified percentage of district operating funds for instructional purposes.

     (2)  The State Department of Education shall identify schools and school districts that use resource allocation practices that contribute to high academic achievement and cost-effective operations.  In identifying schools and school districts under this section, the State Department of Education shall:

          (a)  Evaluate existing academic accountability and financial data by integrating the data;

          (b)  Rank the results of the evaluation under paragraph (a) of this subsection to identify the relative performance of schools and school districts; and

          (c)  Identify potential areas for schools and school district improvement.

     (3)  In reviewing resources allocation practices of schools and school district under this section, the State Department of Education shall ensure resources are being used for the instruction of students by evaluating:

          (a)  The operating cost for each student;

          (b)  The operating cost for each program; and

          (c)  The staffing cost for each student.

     (4)  The State Department of Education shall develop a review process to anticipate the future financial solvency of each school and school district.  The review process shall analyze:

          (a)  District revenues and expenditures for the preceding school year; and

          (b)  Projected district revenues and expenditures for the current school year and the following two (2) school years.

     (5)  In analyzing the information under subsection (4) of this section, the review process developed must consider, for the preceding school year, the current school year, and the following two (2) school years, as appropriate:

          (a)  Student-to-staff ratios relative to expenditures, including average staff salaries;

          (b)  The rate of change in the district unreserved general fund balance;

          (c)  The number of students enrolled in the district;

          (d)  The adopted tax rate of the district;

          (e)  Any independent audit report prepared for the district; and

          (f)  Actual district financial information for the first quarter.

     (6)  The State Department of Education shall consult school district financial officers and public finance experts in developing the review process under this section.

     (7)  The State Department of Education shall develop an electronic-based program for school districts to use in submitting information to the State Department of Education for purposes of this section.  Each district shall update information for purposes of the program within the period prescribed by the State Board of Education.  The State Board of Education shall adopt rules under this subsection to allow a district to enter estimates of critical data into the program before the district adopts its budget.  The program must:

          (a)  Be capable of importing, to the extent practicable, data a district has previously submitted to the State Department of Education;

          (b)  Include an entry space that allows a district to enter information explaining any irregularity in data submitted; and

          (c)  Provide alerts for:

               (i)  A student-to-staff ratio that is significantly outside the norm;

               (ii)  A rapid depletion of the district general fund balance; and

               (iii)  A significant discrepancy between actual budget figures and projected revenues and expenditures.

     (8)  An alert in the program developed under subsection (7) of this section, must be developed to notify the State Department of Education immediately on the occurrence of a condition described by subsection (7)(c) of this section.  After the State Department of Education is alerted, the State Department of Education shall immediately notify the affected school district regarding the condition triggering the alert.

     (9)  If the review process under subsection (7) of this section indicates a projected deficit for a school district general fund within the following three (3) school years, the district shall provide the State Department of Education interim financial reports, supplemented by staff and student count data, as needed, to evaluate the district's current budget status.

     (10)  If the interim financial data provided under subsection (9) of this section substantiates the projected deficit, the school district shall develop a financial plan and submit the plan to the State Department of Education for approval.  The State Department of Education may approve the plan only if the State Department of Education determines the plan will permit the district to avoid the projected insolvency.

     (11)  The State Board of Education shall assign a school district an accredited-warned status if:

          (a)  The district fails to submit a plan as provided by subsection (10) of this section;

          (b)  The district fails to obtain approval from the State Department of Education for a plan as provided by subsection (10) of this section;

          (c)  The district fails to comply with a plan approved by the State Department of Education under subsection (10) of this section; or

          (d)  The State Department of Education determines in a subsequent school year, based on financial data submitted by the district, that the approved plan for the district is no longer sufficient or is not appropriately implemented.

     (12)  The State Board of Education shall develop, as part of the system, a reporting procedure under which:

          (a)  Each school district is required to prepare and distribute an annual financial management report;

          (b)  The public is provided an opportunity to comment on the report at a hearing; and

          (c)  The annual financial management report must include:

               (i)  A description of the district's financial management performance based on a comparison, provided by the State Department of Education, of the district's performance on the indicators adopted under subsection (1) of this section to:

                    1.  State-established standards; and

                    2.  The district's previous performance on the indicators;

               (ii)  A description of the data submitted using the electronic-based program developed under subsection (7) of this section; and

               (iii)  Any descriptive information required by the State Board of Education.

     (13)  The report may include information concerning the district's:

          (a)  Financial allocations;

          (b)  Tax collections;

          (c)  Financial strength;

          (d)  Operating cost management;

          (e)  Personnel management;

          (f)  Debt management;

          (g)  Facility acquisition and construction management;

          (h)  Cash management;

          (i)  Budgetary planning;

          (j)  Overall business management;

          (k)  Compliance with rules;

          (l)  Data quality; and

          (m)  Any other information the local school board determines to be necessary or useful.

     (14)  The local school board of each school district shall hold a public hearing on the report.  The board shall give notice of the hearing to owners of real property in the district and to parents of district students.  In addition to other notice required by law, notice of the hearing must be provided:

          (a)  To a newspaper of general circulation in the district; and

          (b)  Through electronic mail to media serving the district.

     (15)  After the hearing, the report shall be disseminated in the district in the manner prescribed by the State Board of Education.

     (16)  On final approval of the budget by the local school board, the school district shall post on the district's Internet website a copy of the budget adopted by the school board.  The district's Internet website must prominently display the electronic link to the adopted budget.  The district shall maintain the adopted budget on the district's Internet website until the third anniversary of the date the budget was adopted.

     (17)  If a school district does not satisfy the financial accountability standard as determined by the State Board of Education under this section, the State Board of Education shall take any of the actions authorized under Section 37-17-6 et seq. to the extent the State Board of Education determines necessary for schools and school districts failing to meet accreditation standards

     SECTION 2.  The following provision shall be codified as Section 37-17-15, Mississippi Code Of 1972:

     37-17-15.  Performance indicators for student achievement.  (1)  The performance-based accreditation system implemented by the State Department of Education to assess the effectiveness of Mississippi's K-12 education delivery system shall include a performance indicator system for student achievement.  The State Board of Education shall adopt a set of indicators of the quality of learning and student achievement.  The State Board of Education biennially shall review the indicators for the consideration of appropriate revisions.

     (2)  Performance on the student achievement indicators adopted under this section shall be compared to state-established standards.  The indicators must be based on information that is disaggregated by race, ethnicity and socioeconomic status.

     (3)  Indicators of student achievement adopted under this section must include:

          (a)  The results of assessment instruments required under Section 37-16-1 et seq., including the results of assessment instruments required for graduation retaken by a student, aggregated across grade levels by subject area, including:

               (i)  The percentage of students who performed satisfactorily on the assessment instruments, aggregated across grade levels by subject area;

               (ii)  For students who did not perform satisfactorily, the percentage of students who met the standard for annual improvement, as determined by the State Department of Education on the assessment instruments, aggregated across grade levels by subject area;

               (iii)  For the college readiness performance standard, the percentage of students who performed satisfactorily on the assessment instruments, aggregated across grade levels by subject area; and

               (iv)  For students who did not perform satisfactorily, the percentage of students who met the standard for annual improvement, as determined by the State Board of Education on the assessment instruments, aggregated across grade levels by subject area;

          (b)  Dropout rates, including dropout rates and district completion rates for grade levels 9 through 12, computed in accordance with standards and definitions adopted by the

National Center for Education Statistics of the United States Department of Education; and

          (c)  High school graduation rates, computed in accordance with standards and definitions adopted in compliance with the No Child Left Behind Act of 2001 (20 USC Section 6301 et seq.).

     (4)  For purposes of subsection (3) of this section, the State Board of Education by rule shall determine the period within which a student must retake an assessment instrument for that assessment instrument to be considered in determining the performance rating of the district.

     (5)  Performance on the student achievement indicators under subsection (3)(a) and (b) of this section shall be compared to state standards and required improvement.  The state standard shall be established by the State Board of Education.  Required improvement is the progress necessary for the school or district to meet state standards and for the student achievement indicator under subsection (3)(a) of this section for its students to meet each of the performance standards.

     (6)  Annually, the State Board of Education shall define the state standard for the current school year for each student achievement indicator described by subsection (5) of this section, and shall project the state standards for each indicator for the following two (2) school years.  The State Board of Education shall periodically raise the state standards for the student achievement indicator described by subsection (3) of this section for accreditation as necessary to reach the goals of achieving, by not later than the 2019-2020 school year:

          (a)  Student performance in this state, disaggregated by race, ethnicity and socioeconomic status, that ranks nationally in the top ten (10) states in terms of college readiness; and

          (b)  Student performance, including the percentage of students graduating under the recommended or advanced high school program, with no significant achievement gaps by race, ethnicity and socioeconomic status.

     (7)  In defining the required state standard for the indicator described by subsection (3)(b) of this section, the State Board of Education may not consider as a dropout a student whose failure to attend school results from:

          (a)  The student's expulsion; and

          (b)  As applicable:

               (i)  Adjudication as having engaged in delinquent conduct or conduct indicating a need for supervision, as defined by law; or

               (ii)  Conviction of a sentencing for felony offense.

     (8)  In computing dropout and completion rates under subsection (3)(b) of this section, the State Board of Education shall exclude:

          (a)  Students who are ordered by a court to attend a high school equivalency certificate program but who have not yet earned a high school equivalency certificate;

          (b)  Students who were previously reported to the state as dropouts;

          (c)  Students in attendance who are not in membership for purposes of average daily attendance;

          (d)  Students whose initial enrollment in a school in the United States in Grades 7 through 12 was as unschooled refugees or asylees;

          (e)  Students who are in the district exclusively as a function of having been detained at a county detention facility but are otherwise not students of the district in which the facility is located; and

          (f)  Students who are incarcerated in state jails and federal penitentiaries as adults and as persons certified to stand trial as adults.

     (9)  Each school district shall cooperate with the State Department of Education in determining whether a student is a dropout for purposes of accreditation and evaluating performance by school districts and schools under this section.

     (10)  The State Board of Education shall adopt rules to evaluate school district and school performance and, not later than August 8, of each year, assign each district and school a performance rating that reflects acceptable performance or unacceptable performance.  If a district or school received a performance rating of unacceptable performance for the preceding school year, the State Board of Education shall notify the district of a subsequent such designation on or before June 15.

     (11)  In evaluating performance, the State Board of Education shall evaluate against state standards and consider the performance of each school in a school district on the basis of the school's performance on the student achievement indicators.

     (12)  In evaluating school district and school performance on the student achievement indicators adopted under subsection (3)(a) and (b) of this section, the State Board of Education shall define acceptable performance as meeting the state standard determined by the State Board of Education for the current school year based on:

          (a)  Student performance in the current school year; or

          (b)  Student performance as averaged over the current school year and the preceding two (2) school years.

     (13)  In evaluating performance under subsection (12) of this section, the State Board of Education:

          (a)  May assign an acceptable performance rating if the school or district:

               (i)  Performs satisfactorily on eighty-five percent (85%) of the measures the State Board of Education determines appropriate with respect to the student achievement indicators adopted under subsection (3)(a) and (b) of this section; and

               (ii)  Does not fail to perform satisfactorily on the same measure described by subparagraph (i) of this paragraph (a) for two (2) consecutive school years;

          (b)  May grant an exception under this subsection to a district or school only if the performance of the district or school is within a certain percentage, as determined by the State Board of Education, of the minimum performance standard established by the State Board of Education for the measure of evaluation; or

          (c)  May establish other performance criteria for a district or school to obtain an exception under this subsection.

     (14)  Each annual performance review under this section shall include an analysis of the student achievement indicators adopted under subsection (3) of this section to determine school district and school performance in relation to:

          (a)  Standards established for each indicator; and

          (b)  Required improvement.

     (15)  The State Board of Education shall authorize special accreditation investigations to be conducted:

          (a)  When excessive numbers of absences of students eligible to be tested on state assessment instruments are determined;

          (b)  When excessive numbers of allowable exemptions

from the required state assessment instruments are determined;

          (c)  In response to complaints submitted to the State Department of Education with respect to alleged violations of civil rights or other requirements imposed on the state by federal law or court order;

          (d)  In response to established compliance reviews of the district's financial accounting practices and state and federal program requirements;

          (e)  When extraordinary numbers of student placements in disciplinary alternative education programs are determined;

          (f)  In response to an allegation involving a conflict between members of the local school board or between the board and the district administration if it appears that the conflict involves a violation of a role or duty of the board members or the administration clearly defined by law;

          (g)  When excessive numbers of students in special education programs, are assessed through improper assessment instruments;

          (h)  When a significant pattern of decreased academic performance has developed as a result of the promotion in the preceding two (2) school years of students who did not perform satisfactorily as determined by the State Board of Education;

          (i)  When excessive numbers of students graduate under the minimum high school program;

          (j)  When excessive numbers of students eligible to enroll fail to complete an Algebra II course or any other course determined by the State Board of Education as distinguishing between students participating in the recommended high school program from students participating in the minimum high school program; or

          (k)  When resource allocation practices as evaluated under Section 37-17-14 indicate a potential for significant improvement in resource allocation.

     SECTION 3.  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 noncharter 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                   1/2 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 certified 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 the 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 that 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 millage 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.

     (4)  On or before * * * December 31, 2002 July 1, 2014, the State Board of Education shall implement the performance-based accreditation system for school districts and for individual noncharter public 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 those 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.  A failing district is a district that fails to meet both the absolute student achievement standards and the rate of annual growth expectation standards as set by the State Board of Education for two (2) consecutive years.  The State Board of Education shall establish the level of benchmarks by which absolute student achievement and growth expectations shall be assessed.  In setting the benchmarks for school districts, the State Board of Education may also take into account such factors as graduation rates, dropout rates, completion rates, the extent to which the school or district employs qualified teachers in every classroom, and any other factors deemed appropriate by the State Board of Education.  The State Board of Education, acting through the State Department of Education, shall apply a simple "A," "B," "C," "D" and "F" designation to the current school and school district statewide accountability performance classification labels beginning with the State Accountability Results for the 2011-2012 school year and following, and in the school, district and state report cards required under state and federal law.  Under the new designations, a school or school district that has earned a "Star" rating shall be designated an "A" school or school district; a school or school district that has earned a "High-Performing" rating shall be designated a "B" school or school district; a school or school district that has earned a "Successful" rating shall be designated a "C" school or school district; a school or school district that has earned an "Academic Watch" rating shall be designated a "D" school or school district; a school or school district that has earned a "Low-Performing," "At-Risk of Failing" or "Failing" rating shall be designated an "F" school or school district.  Effective with the implementation of any new curriculum and assessment standards, the State Board of Education, acting through the State Department of Education, is further authorized and directed to change the school and school district accreditation rating system to a simple "A," "B," "C," "D," and "F" designation based on a combination of student achievement scores and student growth as measured by the statewide testing programs developed by the State Board of Education pursuant to Chapter 16, Title 37, Mississippi Code of 1972.  In any statute or regulation containing the former accreditation designations, the new designations shall be applicable;

          (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 * * *.;

          (j)  A determination of which schools and school districts meet the financial accountability standards adopted and implemented by the State Board of Education as prescribed in Section 37-17-4; and

          (k)  A determination of which schools and school districts meet the student achievement performance indicators adopted and implemented by the State Board of Education as prescribed in Section 37-17-15.

     (5)  (a)  Effective with the 2013-2014 school year, the State Department of Education, acting through the Mississippi Commission on School Accreditation, shall revise and implement a single "A" through "F" school and school district accountability system complying with applicable federal and state requirements in order to reach the following educational goals:

               (i)  To mobilize resources and supplies to ensure that all students exit third grade reading on grade level by 2015;

               (ii)  To reduce the student dropout rate to thirteen percent (13%) by 2015; and

               (iii)  To have sixty percent (60%) of students scoring proficient and advanced on the assessments of the Common Core State Standards by 2016 with incremental increases of three percent (3%) each year thereafter.

          (b)  The State Department of Education shall combine the state school and school district accountability system with the federal system in order to have a single system.

          (c)  The State Department of Education shall establish five (5) performance categories ("A," "B," "C," "D" and "F") for the accountability system based on the following criteria:

               (i)  Student Achievement:  the percent of students proficient and advanced on the current state assessments;

               (ii)  Individual student growth:  the percent of students making one (1) year's progress in one (1) year's time on the state assessment, with an emphasis on the progress of the lowest twenty-five percent (25%) of students in the school or district;

               (iii)  Four-year graduation rate:  the percent of students graduating with a standard high school diploma in four (4) years, as defined by federal regulations;

               (iv)  Categories shall identify schools as Reward ("A" schools), Focus ("D" schools) and Priority ("F" schools).  If at least five percent (5%) of schools in the state are not graded as "F" schools, the lowest five percent (5%) of school grade point designees will be identified as Priority schools.  If at least ten percent (10%) of schools in the state are not graded as "D" schools, the lowest ten percent (10%) of school grade point designees will be identified as Focus schools;

               (v)  The State Department of Education shall discontinue the use of Star School, High-Performing, Successful, Academic Watch, Low-Performing, At-Risk of Failing and Failing school accountability designations;

               (vi)  The system shall include the federally compliant four-year graduation rate in school and school district accountability system calculations.  Graduation rate will apply to high school and school district accountability ratings as a compensatory component.  The system shall discontinue the use of the High School Completer Index (HSCI);

               (vii)  The school and school district accountability system shall incorporate a standards-based growth model, in order to support improvement of individual student learning;

               (viii)  The State Department of Education shall discontinue the use of the Quality Distribution Index (QDI);

               (ix)  The State Department of Education shall determine feeder patterns of schools that do not earn a school grade because the grades and subjects taught at the school do not have statewide standardized assessments needed to calculate a school grade.  Upon determination of the feeder pattern, the department shall notify schools and school districts prior to the release of the school grades beginning in 2013.  Feeder schools will be assigned the accountability designation of the school to which they provide students;

               (x)  Standards for student, school and school district performance will be increased when student proficiency is at a seventy-five percent (75%) and/or when sixty-five percent (65%) of the schools and/or school districts are earning a grade of "B" or higher, in order to raise the standard on performance after targets are met.

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

     (7)  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.

     (8)  The State Board of Education shall be specifically authorized and empowered to withhold 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.

     (9)  Deleted.

     (10)  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 (15) 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 (15) of this section have been invoked.

     (11)  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 dropout 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:  (i) instruction; (ii) curriculum; (iii) professional development; (iv) personnel and classroom organization; (v) student incentives for performance; (vi) process deficiencies; and (vii) 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)  Assign department personnel or contract, in its discretion, with the institutions of higher learning or other appropriate private entities with experience in the academic, finance and other operational functions of schools to assist school districts;

          (e)  Provide for publication of public notice at least one 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.

     (12)  (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 the affected school district to present evidence or other reasons why its accreditation should not be withdrawn.  Additionally, if the local school district violates accreditation standards that have been determined by the policies and procedures of the State Board of Education to be a basis for withdrawal of school district's accreditation without a probationary period, the Commission on School Accreditation shall conduct a hearing to allow the affected school district to present evidence or other reasons why its accreditation should not be withdrawn.  After its consideration of the results of the 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 that jeopardizes the safety, security or educational interests of the children enrolled in the schools in that district and that emergency situation is believed to be related to a serious violation or violations of accreditation standards or state or federal law, or when a school district meets the State Board of Education's definition of a failing school district for two (2) consecutive full school years, or if more than fifty percent (50%) of the schools within the school district are designated as Schools At-Risk in any one (1) year, the State Board of Education may request the Governor to declare a state of emergency in that school district.  For purposes of this paragraph, the 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.  The 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, or in its discretion, contract with a private entity with experience in the academic, finance and other operational functions of schools and school districts, who will have those powers and duties prescribed in subsection (15) 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 that 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 the 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 that 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 may take any action as prescribed in Section 37-17-13.

          (d)  At the time that 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)  The parent or legal guardian of a school-age child who is enrolled in a school district whose accreditation has been withdrawn by the Commission on School Accreditation and without approval of that school district may file a petition in writing to a school district accredited by the Commission on School Accreditation for a legal transfer.  The school district accredited by the Commission on School Accreditation may grant the transfer according to the procedures of Section 37-15-31(1)(b).  In the event the accreditation of the student's home district is restored after a transfer has been approved, the student may continue to attend the transferee school district.  The per-pupil amount of the adequate education program allotment, including the collective "add-on program" costs for the student's home school district shall be transferred monthly to the school district accredited by the Commission on School Accreditation that has granted the transfer of the school-age child.

          (f)  Upon the declaration of a state of emergency for any school district in which the Governor has previously declared a state of emergency, the State Board of Education may either (i) establish a conservatorship or (ii) abolish the school district and administratively consolidate the school district with one or more existing school districts or (iii) reduce the size of the district and administratively consolidate parts of the district, as determined by the State Board of Education; provided, however, that no school district which is not under conservatorship shall be required to accept additional territory over the objection of the district.

          (g)  There is established a Mississippi Recovery School District within the State Department of Education under the supervision of a deputy superintendent appointed by the State Superintendent of Public Education, who is subject to the approval by the State Board of Education.  The Mississippi Recovery School District shall provide leadership and oversight of all school districts that are subject to state conservatorship, as defined in Chapters 17 and 18, Title 37, Mississippi Code of 1972, and shall have all the authority granted under these two (2) chapters.  The Mississippi Department of Education, with the approval of the State Board of Education, shall develop policies for the operation and management of the Mississippi Recovery School District.  The deputy state superintendent is responsible for the Mississippi Recovery School District and shall be authorized to oversee the administration of the Mississippi Recovery School District, oversee conservators assigned by the State Board of Education to a local school district, hear appeals from school districts under conservatorship that would normally be filed by students, parents or employees and heard by a local school board, which hearings on appeal shall be conducted in a prompt and timely manner in the school district from which the appeal originated in order to ensure the ability of appellants, other parties and witnesses to appeal without undue burden of travel costs or loss of time from work, and perform other related duties as assigned by the State Superintendent of Public Education.  The deputy state superintendent is responsible for the Mississippi Recovery School District and shall determine, based on rigorous professional qualifications set by the State Board of Education, the appropriate individuals to be engaged to be conservators and financial advisors, if applicable, of all school districts subject to state conservatorship.  After State Board of Education approval, these individuals shall be deemed independent contractors.

     (13)  Upon the declaration of a state of emergency in a school district under subsection (12) 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 the 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, the 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 that resulted in the termination of the state of emergency.

     (14)  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.

     (15)  (a)  Whenever the Governor declares a state of emergency in a school district in response to a request made under subsection (12) of this section, the State Board of Education, in its discretion, may assign an interim conservator to the school district, or in its discretion, may contract with an appropriate private entity with experience in the academic, finance and other operational functions of schools and school districts, 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 licensed and nonlicensed 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 that 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 funds other than adequate education 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 adequate education program funds.

     At the time that the Governor, in accordance with 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 the district shall cease.

          (b)  In order to provide loans to school districts under a state of emergency or under conservatorship that 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.  Funds in the School District Emergency Assistance Fund up to a maximum balance of Three Million Dollars ($3,000,000.00) annually shall not lapse but shall be available for expenditure in subsequent years subject to approval of the State Board of Education.  Any amount in the fund in excess of Three Million Dollars ($3,000,000.00) at the end of the fiscal year shall lapse into the State General Fund or the Education Enhancement Fund, depending on the source of the fund.

     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 or under conservatorship, in those amounts, as determined by the board, that 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 School District Emergency Assistance Fund 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 adequate education program funds in an amount and manner that will effectuate repayment consistent with the terms of the agreement; the funds withheld by the department shall be deposited into the School District Emergency Assistance Fund.

     The State Board of Education shall develop a protocol that will outline the performance standards and requisite time line deemed necessary for extreme emergency measures.  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.  The 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.

     (16)  If 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 the time as new board members are selected or the Governor declares a state of emergency in that school district under subsection (12), whichever occurs first.  In that 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 any action as prescribed in Section 37-17-13 and/or one or more of the actions authorized in this section.

     (17)  (a)  If the Governor declares a state of emergency in a school district, the State Board of Education may take all such action pertaining to that school district as is authorized under subsection (12) or (15) of this section, including the appointment of an interim conservator.  The State Board of Education shall also have the authority to issue a written request with documentation to the Governor asking that the office of the superintendent of the school district be subject to recall.  If the Governor declares that the office of the superintendent of the school district is subject to recall, the local school board or the county election commission, as the case may be, shall take the following action:

               (i)  If the office of superintendent is an elected office, in those years in which there is no general election, the name shall be submitted by the State Board of Education to the county election commission, and the county election commission shall submit the question at a special election to the voters eligible to vote for the office of superintendent within the county, and the special election shall be held within sixty (60) days from notification by the State Board of Education.  The ballot shall read substantially as follows:

     "Shall County Superintendent of Education ________ (here the name of the superintendent shall be inserted) of the ____________ (here the title of the school district shall be inserted) be retained in office?  Yes _______  No _______"

     If a majority of those voting on the question votes against retaining the superintendent in office, a vacancy shall exist which shall be filled in the manner provided by law; otherwise, the superintendent shall remain in office for the term of that office, and at the expiration of the term shall be eligible for qualification and election to another term or terms.

               (ii)  If the office of superintendent is an appointive office, the name of the superintendent shall be submitted by the president of the local school board at the next regular meeting of the school board for retention in office or dismissal from office.  If a majority of the school board voting on the question vote against retaining the superintendent in office, a vacancy shall exist which shall be filled as provided by law, otherwise the superintendent shall remain in office for the duration of his employment contract.

          (b)  The State Board of Education may issue a written request with documentation to the Governor asking that the membership of the school board of the school district shall be subject to recall.  Whenever the Governor declares that the membership of the school board is subject to recall, the county election commission or the local governing authorities, as the case may be, shall take the following action:

               (i)  If the members of the local school board are elected to office, in those years in which the specific member's office is not up for election, the name of the school board member shall be submitted by the State Board of Education to the county election commission, and the county election commission at a special election shall submit the question to the voters eligible to vote for the particular member's office within the county or school district, as the case may be, and the special election shall be held within sixty (60) days from notification by the State Board of Education.  The ballot shall read substantially as follows:

     "Members of the ______________ (here the title of the school district shall be inserted) School Board who are not up for election this year are subject to recall because of the school district's failure to meet critical accountability standards as defined in the letter of notification to the Governor from the State Board of Education.  Shall the member of the school board representing this area, ____________ (here the name of the school board member holding the office shall be inserted), be retained in office?  Yes _______  No _______"

     If a majority of those voting on the question vote against retaining the member of the school board in office, a vacancy in that board member's office shall exist, which shall be filled in the manner provided by law; otherwise, the school board member shall remain in office for the term of that office, and at the expiration of the term of office, the member shall be eligible for qualification and election to another term or terms of office.  However, if a majority of the school board members are recalled in the special election, the Governor shall authorize the board of supervisors of the county in which the school district is situated to appoint members to fill the offices of the members recalled.  The board of supervisors shall make those appointments in the manner provided by law for filling vacancies on the school board, and the appointed members shall serve until the office is filled at the next regular special election or general election.

               (ii)  If the local school board is an appointed school board, the name of all school board members shall be submitted as a collective board by the president of the municipal or county governing authority, as the case may be, at the next regular meeting of the governing authority for retention in office or dismissal from office.  If a majority of the governing authority voting on the question vote against retaining the board in office, a vacancy shall exist in each school board member's office, which shall be filled as provided by law; otherwise, the members of the appointed school board shall remain in office for the duration of their term of appointment, and those members may be reappointed.

               (iii)  If the local school board is comprised of both elected and appointed members, the elected members shall be subject to recall in the manner provided in subparagraph (i) of this * * * subsection paragraph (b), and the appointed members shall be subject to recall in the manner provided in subparagraph (ii).

     (18)  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.

     (19)  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 Public 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.

     (20)  Before January 1, 2008, the State Board of Education shall evaluate and submit a recommendation to the Education Committees of the House of Representatives and the Senate on inclusion of graduation rate and dropout rate in the school level accountability system.

     (21)  If a local school district is determined as failing and placed into conservatorship for reasons authorized by the provisions of this section, the conservator appointed to the district shall, within forty-five (45) days after being appointed, present a detailed and structured corrective action plan to move the local school district out of conservatorship status to the local school board and local superintendent of education if they have not been removed by the conservator, or if the board and superintendent have been removed, to the local governing authority of the municipality or county in which the school district under conservatorship is located.  A copy of the conservator's corrective action plan shall also be filed with the State Board of Education.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2014.