MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Education; Appropriations

By: Senator(s) Caughman

Senate Bill 2825

AN ACT TO AMEND SECTIONS 37-181-1, 37-181-3, 37-181-5, 37-181-7 AND 37-181-9, MISSISSIPPI CODE OF 1972, WHICH IS THE "EQUAL OPPORTUNITY FOR MISSISSIPPI STUDENTS WITH SPECIAL NEEDS ACT" PROVIDING EDUCATION SCHOLARSHIP ACCOUNT (ESA) FUNDS FOR ELIGIBLE STUDENTS, TO REVISE COMPONENTS OF THE ESA PROGRAM; TO AMEND SECTIONS 37-151-5, 37-151-7 AND 37-151-101, MISSISSIPPI CODE OF 1972, TO INCLUDE EDUCATION SCHOLARSHIP ACCOUNT (ESA) PROGRAMS AS "ADD-ON PROGRAMS" FUNDED UNDER THE MISSISSIPPI ADEQUATE EDUCATION PROGRAM AND TO PROVIDE FOR THE DISTRIBUTION FROM THE MAEP FUND TO THE SPECIAL ESA FUND; TO AMEND SECTION 12 OF CHAPTER 441, LAWS OF 2015, TO DELETE THE AUTOMATIC REPEALER ON THE EQUAL OPPORTUNITY FOR MISSISSIPPI STUDENTS ACT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 37-181-1, Mississippi Code of 1972, is amended as follows:

     37-181-1.  This chapter shall be known and may be cited as "The Equal Opportunity for Mississippi Students * * * with Special Needs Act."

     SECTION 2.  Section 37-181-3, Mississippi Code of 1972, is amended as follows:

     37-181-3.  The terms used in this chapter shall have the meanings ascribed herein, unless the context clearly indicates otherwise:

          (a)  "Program" means * * * a five‑year pilot program to implement the Education Scholarship Account (ESA) program created in this chapter.

          (b)  "Education Scholarship Account" or "ESA" means a scholarship account for parents of participating students to use for qualifying expenses pursuant to Section 37-181-5.

          ( * * *bc)  "Eligible student" means any student who * * * has had an active Individual Education Program (IEP) within the past five (5) years; is a resident of the state and meets at least one (1) of the following:

              (i)  Has received a diagnosis for or been identified as having an intellectual disability, hearing impairment, speech or language impairment, visual impairment, serious emotional disturbance, orthopedic impairment, autism, traumatic brain injury, other health impairments, specific learning disability, or any disability or condition that would qualify a student to be designated under the Individuals with Disabilities Education Act (IDEA); or

              (ii)  Has been adopted or has been in the foster care system and achieved permanency through adoption, reunification or permanent guardianship; or

              (iii)  Is the sibling of a current recipient of ESA program funds.

          ( * * *cd)  "Parent" means a resident of this state who is a parent, legal guardian, custodian or other person with the authority to act on behalf of the eligible student.

          ( * * *de)  " * * *DepartmentOffice" means the State Department of Education acting through the Office of Educational Opportunity.

          ( * * *ef)  "Home school district" means the public school district in which the student resides.

          ( * * *fg)  "Eligible school" means a nonpublic school that has enrolled a participating student.  An eligible school must be accredited by * * * a state or regional accrediting agency or possess a provisional letter of accreditation from a state * * * or, regional or national accrediting agency * * * or be approved/licensed by the State Department of Education.  An eligible school does not include a home instruction program under Section 37‑13‑91, Mississippi Code of 1972.

          ( * * *gh)  "Tutor" means * * * a person who is certified or licensed by a state, regional, or national certification or licensing organization or who has earned a valid teacher's license or who has experience teaching at an eligible postsecondary institution tutoring services provided by a tutor or tutoring facility that is accredited or certified by a state, regional, or national accrediting or certifying organization; or tutoring services provided by a person who is or has been a teacher licensed in any state, or who has taught at a postsecondary institution, or who is a subject-matter expert, or who is approved by the office.

          ( * * *hi)  "Postsecondary institution" means a community college, college, or university accredited by a state, regional or national accrediting organization.

          ( * * *ij)  "Educational service provider" means an eligible school, tutor, or other person or organization that provides education-related services and products to participating students.

     SECTION 3.  Section 37-181-5, Mississippi Code of 1972, is amended as follows:

     37-181-5.  (1)  An eligible student shall qualify to participate in the ESA program if the parent signs an agreement promising:

          (a)  To provide an organized, appropriate educational program with measurable annual goals to their participating student and, to the extent reasonably deemed appropriate by the parent, to provide an education for the qualified student in at least the subjects of reading, grammar, mathematics, social studies and science;

 * * *  (b)  To document their participating student's disability at intervals and in a manner required under subsection (8) of this section;

          ( * * *cb)  Not to enroll their participating student full time in a public school * * * and to acknowledge as part of the agreement that the home school district has provided clear notice to the parent that the participating student has no individual entitlement to a free appropriate public education (FAPE) from their home school district, including special education and related services, for as long as the student is participating in the program while participating in the ESA program;

          ( * * *dc)  Not to file for their participating student a certificate of enrollment indicating participation in a home instruction program under Section 37-13-91, Mississippi Code of 1972; and

          ( * * *ed)  Not to participate in the Mississippi Dyslexia Therapy Scholarship for Students with Dyslexia Program or the Mississippi Speech-Language Therapy Scholarship for Students with Speech-Language Impairments Program while participating in the ESA program.

     (2)  Students with special needs meeting the definition of "eligible student" as prescribed in Section 37-181-3(c)(i) who participate in the program are parental placements under 20 USC 1412(a)(10)(A) of the Individuals with Disabilities Education Act (IDEA).  The office shall provide all parents of students with special needs with clear and understandable documentation explaining their rights under the program.

     ( * * *23)  Parents shall use the funds deposited in a participating student's ESA for any of the following qualifying expenses to educate the student using any of the below methods or combination of methods that meet the requirement in subsection (1)(a) of this section:

          (a)  A parent of any student participating in the program may use the ESA funds for:

              ( * * *ai)  Tuition and/or fees at an eligible school;

              ( * * *bii)  Textbooks;

              ( * * *ciii)  Payment to a tutor;

              ( * * *div)  Payment for purchase of curriculum, including any supplemental materials required by the curriculum;

              ( * * *ev)  Fees for transportation to and from an educational service provider paid to a fee-for-service transportation provider;

              ( * * *fvi)  Tuition and/or fees for online learning programs or courses;

              ( * * *gvii)  Fees for nationally standardized norm-referenced achievement tests, including alternate assessments; and fees for Advanced Placement examinations or similar courses and any examinations related to college or university admission;

              (viii)  Costs directly associated with obtaining a nationally recognized industry certification;

              ( * * *hix)  Educational services or therapies from a licensed or certified practitioner or provider, including licensed or certified paraprofessionals or educational aides;

              ( * * *ixContracted services provided by a public school, including individual classes and extracurricular programs;

              ( * * *jxi)  Tuition and fees at a postsecondary institution;

              ( * * *kxii)  Textbooks related to coursework at a postsecondary institution;

 * * *  (l)  Surety bond payments if required by the department;

              ( * * *mxiii)  No more than * * * Fifty Dollars ($50.00) One Hundred Dollars ($100.00) in annual consumable school supplies necessary for educational services and therapies, daily classroom activities, and tutoring;

          ( * * *nbA parent of a participating student with special needs who has qualified for the program under Section 37-181-3(c)(i) may also use ESA funds for:

     Computer hardware and software and other technological devices if an eligible school, licensed or certified tutor, licensed or certified educational service practitioner or provider, or licensed medical professional verifies in writing that these items are essential for the student to meet annual, measurable goals.  Once a student is no longer eligible for the program, computer hardware and software and other technological devices purchased with ESA funds may be donated to a library or a nonprofit organization with expertise and training in working with parents to educate children with disabilities or a nonprofit organization with expertise and training in working with disabled adults.

     ( * * *34)  Neither a participating student, nor anyone on the student's behalf, may receive cash or cash-equivalent items, such as gift cards or store credit, from any refunds or rebates from any provider of services or products in this program.  Any refunds or rebates shall be credited directly to the participating student's ESA.  The funds in an ESA may only be used for education-related purposes.  Eligible schools, postsecondary institutions and educational service providers that serve participating students shall provide parents with a receipt for all qualifying expenses.

     ( * * *45)  Payment for educational services through an ESA shall not preclude parents from paying for educational services using non-ESA funds.

     ( * * *56)  ESA funds may not be used to attend an eligible school that maintains its primary location in a state other than Mississippi unless that school is approved for the Educable Child Program; or unless the parent * * * verifies states in writing to the Office of Educational Opportunity that their child cannot reasonably obtain appropriate * * * special education and related services in Mississippi at a location within thirty (30) miles of their legal residence.

     ( * * *67)  For purposes of continuity of educational attainment, students who enroll in the program shall remain eligible to receive quarterly ESA payments until the participating student returns to public school, completes high school, or completes the school year in which the student reaches the age of twenty-one (21), * * * or does not have eligibility verified by a parent as required under subsection (8) of this section, whichever occurs first.

     ( * * *78)  Any funds remaining in a student's Education Scholarship Account upon completion of high school shall be returned to the * * * state's General Special ESA Fund pursuant to Section 37-181-7(2)(a).

 * * * (8)  Every three (3) years after initial enrollment in the program, a parent of a participating student, except a student diagnosed as being a person with a permanent disability, shall document that the student continues to be identified by the school district, a federal or state government agency, or a licensed physician or psychometrist as a child with a disability, as defined by the federal Individuals with Disabilities Education Act (20 USCS Section 1401(3)).

     (9)  A participating student shall be allowed to return to his home school district at any time after enrolling in the program, in compliance with regulations adopted by the department providing for the least disruptive process for doing so. * * *  Upon a participating student's return to his home school district, that student's Education Scholarship Account shall be closed and any remaining funds shall be returned to the state's General Fund.

     (10)  The * * * department office shall begin accepting applications for the program on July 1, 2015.

     SECTION 4.  Section 37-181-7, Mississippi Code of 1972, is amended as follows:

     37-181-7.  (1)  The ESA program created in this chapter shall be limited to five hundred (500) students in the school year 2015-2016, with new enrollment limited to five hundred (500) additional students each year thereafter. * * *  Subject to appropriation from the General Fund,  Each student's ESA shall be funded * * * at Six Thousand Five Hundred Dollars ($6,500.00) for school year 2015‑2016.  For each subsequent year, this amount shall increase or decrease by the same proportion as the base student cost under Section 37‑151‑7(1)(b) is increased or decreased. in the following ways:

          (a)  For students with special needs meeting the definition of "eligible student" as prescribed under Section 37-181-3(c)(i), the amount shall be Six Thousand Five Hundred Dollars ($6,500.00) for school year 2015-2016.  For each subsequent year, this amount shall increase or decrease by the same proportion as the base student cost under Section 37-151-7(1)(b) is increased or decreased in the previous school year;

          (b)  For all other eligible students, the amount shall be ninety-five percent (95%) of the state share of per student spending, calculated by dividing the amount of Total State Funds expended for public schools in the previous school year by the statewide Student Daily Membership in the previous school year;

     (2)  (a)  There is created in the State Treasury a special fund, designated the Special ESA Fund, to pay for the Education Scholarship Accounts established by this chapter.  Payments made to this fund shall be an "add-on program cost" as defined in Sections 37-151-5(e) and 37-151-7(1)(e).

          (b)  It shall be the duty of the State Treasurer and the State Fiscal Officer to distribute to the Special ESA Fund, no later than July 15 of each year, the full amount appropriated to the ESA program for said fiscal year.

          (c)  In preparation each year of its budget submission to the Legislative Budget Office and State Fiscal Office, the Office of Educational Opportunity shall calculate the cost of Education Scholarship Accounts for the ensuing fiscal year by multiplying the amount for students prescribed in Section 37-181-7(1)(a) by the sum of the total number of current participating students and the five hundred (500) new students pursuant to Section 37-181-7(1).  The State Department of Education shall then include this amount as the add-on program cost for the Special ESA Fund in its annual Mississippi Adequate Education Program budget request.  The amount requested shall be reduced by any unobligated fund balance remaining in the Special ESA Fund at the end of the previous fiscal year.  The budget request shall also contain a report to the Legislature on the number of eligible applicants and funding amounts as prescribed in Section 37-181-7(1).  Funds in the Special ESA Fund shall not lapse into the General Fund at the end of a fiscal year.

     (3)  (a)  From and after the effective date of this act, there shall be an Office of Educational Opportunity (office) within the State Department of Education to administer the Education Scholarship Account (ESA) program created in Section 37-181-1 et seq.  The Office of Educational Opportunity shall administer and implement the requirements of the ESA program as prescribed in said sections and shall be authorized to expend and distribute ESA program payments from the Special ESA Fund to parents of participating students in amounts appropriated by the Legislature and specified for use for the ESA program.

          (b)  The office shall distribute ESA program payments to participating students on a quarterly basis not later than July, October, January and April each year.

     ( * * *24) * * *  Subject to appropriation,  Eligible students shall be approved for participation in the program as follows:

          (a) * * *  Until participation in the program reaches fifty percent (50%) of the annual enrollment limits in subsection (1) of this section,  Participating students * * * shall be are automatically approved * * * on a first‑come, first‑served basis, with applications being reviewed on a rolling basis for participation for the following year;

          (b) * * *  After participation reaches fifty percent (50%) of the annual enrollment limits in subsection (1) of this section,  For new applications, the * * * department office shall set an annual application * * * deadlines for the remaining number of available ESAs and begin to maintain a waiting list of eligible students.  If the number of eligible students who apply for the program exceeds the remaining number of ESAs available, the department shall fill the available spaces using a random selection process that gives preference to students with an active Individualized Education Program (IEP) deadline not later than March 15 each year and notify up to five hundred (500) new eligible applicants as prescribed in subsection (1) of this section of approval for participation in the program, in addition to the number of ESAs made available through participating students leaving the program.  The office shall require parents of newly approved applicants to confirm their student's participation; * * * and

          (c) * * *  Participating students who remain eligible for the program are automatically approved for participation for the following year and are not subject to the random selection process.  The office shall set a date before the annual application deadline by which parents of participating students must confirm or deny their student's continued participation in the program for the following school year;

          (d)  The office shall review applications in the order received and notify applicants of eligibility determinations not later than twenty-one (21) days after the submission of an application; and

          (e)  If the office receives more applications than are available ESAs, the office shall maintain a waiting list of eligible students in the order of applications received and approve students from the waiting list for participation in the program on a rolling basis not later than twenty-one (21) days after an ESA is denied by a participating student.

     ( * * *35)  No * * * funds for an ESA may be expended from the Mississippi Adequate Education Program, nor shall any school district shall be required to provide funding for an ESA.

     (6)  Any funds remaining unused in a participating student's Education Scholarship Account may roll over to be used the next year.

     (7)  The office shall require parents of participating students to confirm or deny their student's participation when no scholarship funds are spent in two (2) consecutive quarters.

     SECTION 5.  Section 37-181-9, Mississippi Code of 1972, is amended as follows:

     37-181-9.  (1)  The * * * department office shall create a standard form that parents of students submit to establish their student's eligibility for an Education Scholarship Account.  The * * * department office shall ensure that the application is readily available to interested families through various sources * * *, including the department's website and the copy of procedural safeguards annually given to parents.

     (2)  The * * * department office shall provide parents of participating students with a written explanation of the allowable uses of Education Scholarship Accounts, the responsibilities of parents * * * and, the duties of the * * * department office, and a list of eligible schools in the state as defined in Section 37-181-3(g). * * *  This information shall also be made available on the department's website.

     (3)  The * * * department office shall annually notify all students with an IEP of the existence of the program and shall ensure that lower-income families are made aware of their potential eligibility.

     (4)  The * * * department office may deduct an amount up to a limit of six percent (6%) from * * * appropriations used to funds for Education Scholarship Accounts to cover the costs of overseeing the funds and administering the program in the first five (5) years of the program's operationThe office may deduct an amount up to a limit of four percent (4%) in ensuing years.

     (5)  The office shall require only one (1) of the following to determine eligibility for applicants under Section 37-181-3(c)(i):

          (a) * * *  The department shall make a determination of eligibility, and shall approve the application, within twenty‑one (21) business days of receiving an application for participation in the program, subject to the provisions of Section 37‑181‑3(b).  A diagnosis from a licensed physician or clinical psychologist; or

          (b) * * *  The department shall provide for a procedure that children with a ruling of hearing impairment or children suspected of a hearing loss shall receive a comprehensive educational assessment which may include the areas of cognitive development, language/speech, audiological and academic achievement from the state‑funded Mississippi Assistance Center for Hearing Loss.  Children with a ruling of visual impairment or children suspected of a visual impairment shall receive a comprehensive low vision evaluation from the state‑funded Low Vision Clinic.  An Individualized Education Program (IEP) written in the past five (5) years.

     (6)  The home school district shall provide the parent of a participating student with a complete copy of the student's school records, while complying with the Family Educational Rights and Privacy Act of 1974 (20 USCS Section 1232(g)).  The record shall be provided no later than thirty (30) days after a parent signs an agreement to participate in the program.

     (7)  The State Board of Education may contract with a * * * qualified nonprofit organization * * * with expertise and training in working with parents to educate children with disabilities to administer the program and perform the duties of the office.

     (8)  The office shall invite and meet with at least three (3) parent volunteers and at least one (1) representative of a nonprofit organization that works with participating students and their parents to review office rules and practices once each year and report on findings and solutions to parents.

     (9)  The office shall develop and publish procedures for parents to appeal any determination of ineligibility for the program.

     (10)  The office shall enter into a competitively bid contract with a third-party vendor to develop and administer a system for parents of participating students to access ESA program payments, submit applications, renewals and denials, and find information pertaining to ESA program participation.  The system shall make it an option for parents to access payments and submit applications, renewals and denials online via a smart device application or online portal and shall allow educational service providers to invoice the office for qualified expenses consistent with Section 37-181-5(3) and parents to seek preapproval or reimbursement for qualified expenses consistent with Section 37-181-5(3) using the online portal or smart device application.

     (11)  The office shall allow parents to electronically submit ESA applications, renewals, and denials year-round as part of the same system in subsection (10) of this section.

     SECTION 6.  Section 37-151-5, Mississippi Code of 1972, is amended as follows:

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

          (a)  "Adequate program" or "adequate education program" or "Mississippi Adequate Education Program (MAEP)" shall mean the program to establish adequate current operation funding levels necessary for the programs of such school district to meet at least a successful Level III rating of the accreditation system as established by the State Board of Education using current statistically relevant state assessment data.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              (ix)  "Education Scholarship Account (ESA)" program shall mean the ESA program established by Sections 37-181-1 through 37-181-21.

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

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

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

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

          (j)  "Minimum school term" shall mean a term of at least one hundred eighty (180) days of school in which both teachers and pupils are in regular attendance for scheduled classroom instruction for not less than sixty-three percent (63%) of the instructional day, as fixed by the local school board for each school in the school district.  It is the intent of the Legislature that any tax levies generated to produce additional local funds required by any school district to operate school terms in excess of one hundred seventy-five (175) days shall not be construed to constitute a new program for the purposes of exemption from the limitation on tax revenues as allowed under Sections 27-39-321 and 37-57-107 for new programs mandated by the Legislature.

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

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

          (m)  The term "year of teaching experience" shall mean nine (9) months of actual teaching in the public or private elementary and secondary schools and shall also include nine (9) months of actual teaching at postsecondary institutions accredited by the Southern Association of Colleges and Schools (SACS) or equivalent regional accrediting body for degree-granting postsecondary institutions.  In no case shall more than one (1) year of teaching experience be given for all services in one (1) calendar or school year.  In determining a teacher's experience, no deduction shall be made because of the temporary absence of the teacher because of illness or other good cause, and the teacher shall be given credit therefor.  Beginning with the 2003-2004 school year, the State Board of Education shall fix a number of days, not to exceed forty-five (45) consecutive school days, during which a teacher may not be under contract of employment during any school year and still be considered to have been in full-time employment for a regular scholastic term.  If a teacher exceeds the number of days established by the State Board of Education that a teacher may not be under contract but may still be employed, that teacher shall not be credited with a year of teaching experience.  In determining the experience of school librarians, each complete year of continuous, full-time employment as a professional librarian in a public library in this or some other state shall be considered a year of teaching experience.  If a full-time school administrator returns to actual teaching in the public schools, the term "year of teaching experience" shall include the period of time he or she served as a school administrator.  In determining the salaries of teachers who have experience in any branch of the military, the term "year of teaching experience" shall include each complete year of actual classroom instruction while serving in the military.  In determining the experience of speech-language pathologists and audiologists, each complete year of continuous full-time post master's degree employment in an educational setting in this or some other state shall be considered a year of teaching experience.  Provided, however, that school districts are authorized, in their discretion, to negotiate the salary levels applicable to certificated employees employed after July 1, 2009, who are receiving retirement benefits from the retirement system of another state, and the annual experience increment provided in Section 37-19-7 shall not be applicable to any such retired certificated employee.

          (n)  (i)  The term "average daily attendance" shall be the figure which results when the total aggregate full-day attendance during the period or months counted is divided by the number of days during the period or months counted upon which both teachers and pupils are in regular attendance for scheduled classroom instruction, * * * unless a pupil's absence is excused due to participation in an activity authorized by the State Board of Education under subparagraph (ii) of this paragraph, less the average daily attendance for self-contained special education classes.  For purposes of determining and reporting attendance, a pupil must be present for at least sixty-three percent (63%) of the instructional day, as fixed by the local school board for each school in the school district, in order to be considered in full-day attendance.  Prior to full implementation of the adequate education program the department shall deduct the average daily attendance for the alternative school program provided for in Section 37-19-22.

              (ii)  [Repealed]

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

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

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

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

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

          (t)  The term "successful school district" shall mean a Level III school district as designated by the State Board of Education using current statistically relevant state assessment data.

          (u)  "Dual enrollment-dual credit programs" shall mean programs for potential or recent high school student dropouts to dually enroll in their home high school and a local community college in a dual credit program consisting of high school completion coursework and a credential, certificate or degree program at the community college, as provided in Section 37-15-38(19).

          (v)  "Charter school" means a public school that is established and operating under the terms of a charter contract between the school's governing board and the Mississippi Charter School Authorizer Board.

     SECTION 7.  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.  The district's average daily attendance shall include any student enrolled in a Dual Enrollment-Dual Credit Program as defined and provided in Section 37-15-38(19).  The State Department of Education shall make payments for Dual Enrollment-Dual Credit Programs to the home school in which the student is enrolled, in accordance with regulations promulgated by the State Board of Education.  The community college providing services to students in a Dual Enrollment-Dual Credit Program shall require payment from the home school district for services provided to such students at a rate of one hundred percent (100%) of ADA.  All MAEP/state funding shall cease upon completion of high school graduation requirements.

          (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 and to the Special ESA Fund in addition to the adequate education program cost for add-on programs for each school district and the Special ESA Fund 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.

              (ix)  The Education Scholarship Account (ESA) program shall be the amount provided for those education scholarship accounts for eligible students as provided for in Sections 37-181-1 through 37-181-21, 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, and (ix) Education Scholarship Account (ESA) program, shall yield the add-on cost for each school district and the Special ESA Fund.

          (f)  Total projected adequate education program cost.  The total Mississippi Adequate Education Program cost shall be the sum of the total basic adequate education program cost (paragraph (c)), and the adjustment to the base student cost for at-risk pupils (paragraph (d)) for each school district.  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.

          (g)  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.  The local contribution amount for school districts in which there is located one or more charter schools will be calculated using the following methodology:  using the adequate education program twenty-eight (28) mill value, or the twenty-seven percent (27%) cap amount (whichever is less) for each school district in which a charter school is located, an average per pupil amount will be calculated.  This average per pupil amount will be multiplied times the number of students attending the charter school in that school district.  The sum becomes the charter school's local contribution to the adequate education program.

          (b)  The State Department of Education shall determine the following from the annual assessment information submitted to the department by the tax assessors of the various counties:  (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 2015, any increase in the said state contribution to any district calculated under this section shall be not less than six percent (6%) in excess of the amount received by said district from state funds for fiscal year 2002; in fiscal year 2016, any increase in the said state contribution to any district calculated under this section shall be not less than four percent (4%) in excess of the amount received by said district from state funds for fiscal year 2002; in fiscal year 2017, any increase in the said state contribution to any district calculated under this section shall be not less than two percent (2%) in excess of the amount received by said district from state funds for fiscal year 2002; and in fiscal year 2018 and thereafter, any increase in the said state contribution to any district calculated under this section shall be zero percent (0%).  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.

     (5)  The State Department of Education shall make payments to charter schools for each student in average daily attendance at the charter school equal to the state share of the adequate education program payments for each student in average daily attendance at the school district in which the public charter school is located.  In calculating the local contribution for purposes of determining the state share of the adequate education program payments, the department shall deduct the pro rata local contribution of the school district in which the student resides as determined in subsection (2)(a) of this section.

     SECTION 8.  Section 37-151-101, Mississippi Code of 1972, is amended as follows:

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

     SECTION 9.  Section 12 of Chapter 441, Laws of 2015, is amended as follows:

     Section 12.  This act shall take effect and be in force from and after its passage * * * [April 16, 2015] and shall stand repealed as of June 30, 2020.

     SECTION 10.  This act shall take effect and be in force from and after its passage.