MISSISSIPPI LEGISLATURE

2020 Regular Session

To: Education; Appropriations

By: Representatives Sanford, Tullos, Wallace

House Bill 852

AN ACT TO CREATE "THE CHILD HUNGER PREVENTION AND FAIR TREATMENT ACT OF 2020"; TO REQUIRE LOCAL EDUCATIONAL AGENCIES THAT PROVIDE SCHOOLS MEALS UNDER THE NATIONAL SCHOOL LUNCH PROGRAM OR SCHOOL BREAKFAST PROGRAM TO ENSURE THAT A STUDENT WHO HAS ACCRUED AND OUTSTANDING MEAL DEBT IS NOT SHAMED, TREATED DIFFERENTLY OR DENIED A REIMBURSABLE MEAL; TO PRESCRIBE PROCEDURES TO BE USED BY THE STATE DEPARTMENT OF EDUCATION AND LOCAL EDUCATIONAL AGENCIES FOR DETERMINING ELIGIBILITY AND PARTICIPATION IN THE COMMUNITY ELIGIBILITY PROVISION PROGRAM FOR PURPOSES OF ESTABLISHING AN ALTERNATIVE REIMBURSEMENT OPTION FOR ELIGIBLE HIGH POVERTY LOCAL EDUCATIONAL AGENCIES; TO REQUIRE THE STATE DEPARTMENT OF EDUCATION TO NOTIFY THE LOCAL EDUCATIONAL AGENCIES  ABOUT THEIR COMMUNITY ELIGIBILITY STATUS BY APRIL 15 ANNUALLY; TO REQUIRE THE DEPARTMENT TO PROVIDE PUBLIC NOTICE ON ITS WEBSITE OF  DATA COLLECTED AND USED IN DETERMINING ELIGIBILITY BY MAY 1 ANNUALLY; TO BRING FORWARD SECTION 37-11-7, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENTS; TO AMEND SECTIONS 37-13-137 AND 37-7-301, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; TO AUTHORIZE LOCAL SCHOOL BOARDS TO ESTABLISH A SEPARATE SPECIAL ACCOUNT FOR THE PURPOSE OF FACILITATING THE TRANSFER OF DEBTS CATEGORIZED AS UNCOLLECTIBLE OR INACTIVE ACCOUNTS; TO AUTHORIZE LOCAL SCHOOL BOARDS TO USE ANY AVAILABLE FUNDS, EXCEPT FEDERAL PROGRAMS' FUNDS, NOT APPROPRIATED OR DESIGNATED FOR ANY OTHER PURPOSE, TO REIMBURSE THE UNITED STATES DEPARTMENT OF AGRICULTURE FOOD AND NUTRITION SERVICE FOR DEBT ACCRUED BY CERTAIN STUDENTS UNABLE TO PAY THE REDUCED PRICE FOR THE SCHOOL LUNCH PROGRAM; AND FOR RELATED PURPOSES.

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

     SECTION 1.  This act shall be known, and may be cited as "The Child Hunger Prevention and Fair Treatment Act of 2020."

     SECTION 2.  (1)  For purposes of this section, the term "local educational agency" means a public school, school district or charter school.

     (2)  (a)  A local educational agency, including a local educational agency in which there is a school that is required to serve a free or reduced-price meal during the school day, and at which all students are not eligible to be served breakfast and lunch under the Community Eligibility Provision (CEP) or Provision 2 of the National School Lunch Act (42 USCS Section 1751 et seq.), shall ensure that a student whose parent or legal guardian has unpaid school meal fees is not denied a reimbursable meal of the student's choice because of the fact that the student's parent or legal guardian has unpaid meal fees and shall ensure that the student is not shamed or treated differently from other students.  This paragraph does not prohibit a school from serving an alternative reimbursable meal to a student who may need one for dietary or religious reasons, or as a regular menu item.

          (b)  If a local educational agency is required to provide, to the State Department of Education or to the United States Department of Agriculture, a copy of the meal charge policy required under memorandum SP 46-2016 issued by the United States Department of Agriculture, the local educational agency or school board for the local educational agency, as applicable, shall make the policy public.

     (3)  School personnel and volunteers at a local educational agency that serves nutritionally adequate meals to students during the instructional day shall not allow any disciplinary action that is taken against a student to result in the denial or delay of a nutritionally adequate meal.

     (4)  A local educational agency shall not take any action directed at a student to collect unpaid school meal fees.  A local educational agency may attempt to collect unpaid school meal fees from a parent or legal guardian, but shall not use a debt collector, as defined in Section 803 of the Consumer Credit Protection Act (15 USCS Section 1692a).

     (5)  A local educational agency shall notify a parent or legal guardian of the negative balance of a student's school meal account no later than ten (10) days after the student's school meal account has reached a negative balance.  Before sending the notification to the parent or legal guardian, the local educational agency shall exhaust all options and methods to directly certify the student for free or reduced-priced meals.  If the local educational agency is not able to directly certify the student, the local educational agency shall provide the parent or legal guardian with a paper copy of, or an electronic link to, an application with the notification and contact the parent or legal guardian to encourage application submission.

     (6)  To the extent that the expense is reimbursable under the federal National School Lunch Program, a local educational agency shall reimburse school meal fees paid by a student's parent or legal guardian when fees were paid or unpaid fees debt accrued during any time that the student would have been determined, as identified by the local educational agency's review under subsection (5) of this section, to be eligible for free or reduced-priced school meals.

     (7)  This section shall only apply to a local educational agency that provides school meals through the Richard B. Russell National School Lunch Act - National School Lunch Program (42 USCS Section 1751 et seq.) or the Child Nutrition Act of 1966 - School Breakfast Program (42 USCS Section 1773).  Nothing in this section shall be construed to allow for the indefinite accrual of unpaid school meal fees.

     SECTION 3.  (1)  Community Eligibility.  The Community Eligibility Provision (CEP) is an alternative reimbursement option for eligible high poverty local educational agencies.  Each CEP cycle lasts up to four (4) years before the local educational agency or school is required to recalculate their reimbursement rate.  Local educational agencies and schools have the option to recalculate sooner, if desired.  A local educational agency may elect this provision for all of its schools, a group of schools, or an individual school.  Participating local educational agencies must offer free breakfasts and lunches for the length of their CEP cycle, not to exceed four (4) successive years, to all children attending participating schools and receive meal reimbursement based on claiming percentages, as described in subsection (4)(e) of this section.  As used in this section, the following terms shall have the meaning ascribed in this subsection, unless context clearly indicates otherwise:

          (a)  "Enrolled students" means students who are enrolled in and attending schools participating in the Community Eligibility Provision (CEP) and who have access to at least one (1) meal service, breakfast or lunch, daily.

          (b)  "Identified students" means students with access to at least one (1) meal service who are not subject to verification. Identified students are students approved for free meals based on documentation of their receipt of benefits from the Supplemental Nutrition Assistance Program (SNAP), the Temporary Assistance for Needy Families (TANF), the Food Distribution Program on Indian Reservations, or Medicaid where applicable (where approved by the United State Department of Agriculture (USDA) to conduct matching with Medicaid data to identify children eligible for free meals).  The term identified students also includes homeless children, migrant children, runaway children or Head Start children (approved for free school meals without application and not subject to verification).  In addition, the term includes foster children certified for free meals through means other than an application for free and reduced-price school meals.  The term does not include students who are categorically eligible based on submission of an application for free and reduced-price school meals.

          (c) "Identified student percentage" means a percentage determined by dividing the number of identified students as of a specified period of time by the number of enrolled students as defined in paragraph (a) of this section as of the same period of time and multiplying the quotient by one hundred (100).  The identified student percentage may be determined by an individual participating school, a group of participating schools in the local educational agency, or in the aggregate for the entire local educational agency if all schools participate, following procedures established in Food and Nutrition Service(FNS) guidance.

     (2) Implementation.  A local educational agency may elect the Community Eligibility Provision for all schools, a group of schools, or an individual school.  Community eligibility may be implemented for one or more four-year cycles.

     (3) Eligibility Criteria.  To be eligible to participate in the Community Eligibility Provision, a local educational agency (except a residential child care institution), group of schools, or school must meet the following eligibility criteria:

          (a)  A local educational agency, group of schools, or school must have an identified student percentage of at least forty percent (40%), as of April 1 of the school year prior to participating in the Community Eligibility Provision (CEP), unless otherwise specified by the Food and Nutrition Service.  Individual schools participating in a group may have less than forty percent (40%) identified students, provided that the average identified student percentage for the group is at least forty percent (40%);

          (b)  A local educational agency, group of schools, or school must participate in the National School Lunch Program and School Breakfast Program for the duration of the four-year cycle.  Schools that operate on a limited schedule, where it is not operationally feasible to offer both lunch and breakfast, may elect CEP with Food and Nutrition Service approval.

          (c)  A local educational agency, group of schools, or school must comply with the procedures and requirements specified in subsection (4)(e) of this section to participate in the Community Eligibility Provision.

     (4)  (a)  Community Eligibility Provision Procedures.  A local educational agency, group of schools, or school that intends to elect the Community Eligibility Provision for the following year for one (1) or more schools must submit to the State Department of Education documentation demonstrating the local educational agency, group of schools, or school meets the identified student percentage, as specified under subsection (3)(a) of this section.  Such documentation must be submitted no later than June 30 and must include, at a minimum, the counts of identified students and enrolled students as of April 1 of the school year prior to CEP implementation.

          (b)  The State Department of Education must review the identified student percentage documentation submitted by the local educational agency to confirm that the local educational agency, group of schools, or school meets the minimum identified student percentage, participates in the National School Lunch Program and School Breakfast Program, and has a record of administering the meal program in accordance with program regulations, as indicated by the most recent administrative review.

          (c)  A local educational agency must ensure participating schools offer reimbursable breakfasts and lunches at no cost to all students attending participating schools during the four-year cycle, and count the number of reimbursable breakfasts and lunches served to students daily.

          (d)  A local educational agency, group of schools, or school must not collect applications for free and reduced-price school meals on behalf of children in schools participating in the Community Eligibility Provision.  Any local educational agency seeking to obtain socioeconomic data from children receiving free meals under this section must develop, conduct, and fund this effort entirely separate from, and not under the auspices of, the National School Lunch Program or School Breakfast Program.

          (e)  Reimbursement is based on free and paid claiming percentages applied to the total number of reimbursable lunches and breakfasts served each month, respectively.  Reduced-price school meal students are accounted for in the free claiming percentage, eliminating the need for a separate percentage, as follows:

              (i)  To determine the free claiming percentage, multiply the applicable identified student percentage by a factor of one and six tenths (1.6).  The product of this calculation may not exceed one hundred percent (100%).  The difference between the free claiming percentage and one hundred percent (100%) represents the paid claiming percentage.  The applicable identified student percentage means:

                   1.  In the first year of participation in the Community Eligibility Provision, the identified student percentage as of April 1 of the prior school year.

                   2.  In the second, third and fourth year of the four-year cycle, local educational agencies may choose the higher of the identified student percentage as of April 1 of the prior school year or the identified student percentage as of April 1 of the year prior to the current four-year cycle.  Local educational agencies and schools may begin a new four-year cycle with a higher identified student percentage based on data as of the most recent April 1, as specified in paragraph (h) of this subsection.

              (ii)  To determine the number of lunches to claim for reimbursement, multiply the free claiming percentage as described in this paragraph by the total number of reimbursable lunches served to determine the number of free lunches to claim for reimbursement.  The paid claiming percentage is multiplied by the total number of reimbursable lunches served to determine the number of paid lunches to claim for reimbursement.  In the breakfast meal service, the free and paid claiming percentages are multiplied by the total number of reimbursable breakfasts served to determine the number of free and paid breakfasts to claim for reimbursement.  For any claim, if the total number of meals claimed for free and paid reimbursement does not equal the total number of meals served, the paid category must be adjusted so that all served meals are claimed for reimbursement.

          (f)  A one and six tenths (1.6) multiplier must be used for an entire four-year cycle to calculate the percentage of lunches and breakfasts to be claimed at the federal free rate.

          (g)  If there is a difference between the cost of serving lunches and breakfasts at no cost to all participating children and the Federal assistance provided, the local educational agency must pay such difference with nonfederal sources of funds.  Expenditure of additional nonfederal funds is not required if all operating costs are covered by the federal assistance provided.

          (h)  To begin a new four-year cycle, local educational agencies or schools must establish a new identified student percentage as of April 1 prior to the four-year cycle.  If the local educational agency, group of schools or school meet the eligibility criteria set forth in subsection (3) of this section, a new four-year cycle may begin.

          (i)  A local educational agency, group of schools or school with an identified student percentage of less than forty percent (40%) but equal to or greater than thirty percent (30%) as of April 1 of the fourth year of a community eligibility cycle may continue using community eligibility for a grace year that continues the four-year cycle for one (1) additional, or fifth, year.  If the local educational agency, group of schools, or school regains the forty percent (40%) threshold as of April 1 of the grace year, the State Department of Education may authorize a new four-year cycle for the following school year.  If the local educational agency, group of schools, or school does not regain the required threshold as of April 1 of the grace year, they must return to collecting household applications in the following school year in accordance with subsection (13) of this section.  Reimbursement in a grace year is determined by multiplying the identified student percentage at the local educational agency, group of schools or school as of April 1 of the fourth year of the four-year CEP cycle by the one and six tenths (1.6) multiplier.

     (5)  Identification of Potential Community Eligibility Schools.  No later than April 15 of each school year, each local educational agency must submit to the State Department of Education a list of schools as described in this subsection.  The department may exempt local educational agencies from this requirement if the department already collects the required information. The list must include:

          (a)  Schools with an identified student percentage of at least forty percent (40%);

          (b)  Schools with an identified student percentage that is less than forty percent (40%) but greater than or equal to thirty percent (30%); and

          (c)  Schools currently in year four (4) of the Community Eligibility Provision with an identified student percentage that is less than forty percent (40%) but greater than or equal to thirty percent (30%).

     (6)  State Agency Notification Requirements.  No later than April 15 of each school year, the State Department of Education must notify the local educational agencies described in this paragraph about their community eligibility status.  The department must notify:

          (a) Local educational agencies with an identified student percentage of at least forty percent (40%) district wide, of:

              (i)  The potential to participate in community eligibility in the subsequent year;

              (ii)  The estimated cash assistance the local educational agency would receive; and

              (iii)  The procedures to participate in community eligibility;

          (b)  Local educational agencies with an identified student percentage that is less than forty percent (40%) district wide but greater than or equal to thirty percent (30%), that they may be eligible to participate in community eligibility in the subsequent year if they meet the eligibility requirements set forth in subsection (3) of this section as of April 1;

          (c)  Local educational agencies currently using community eligibility district wide, of the options available in establishing claiming percentages for next school year; and

          (d)  Local educational agencies currently in year four (4) with an identified student percentage district wide that is less than forty percent (40%) but greater than or equal to thirty percent (30%), of the grace year eligibility.

     (7)  Public Notification Requirements.  By May 1 of each school year, the State Department of Education must make the following information readily accessible on its website in a format prescribed by Food and Nutrition Service (FNS):

          (a)  The names of schools identified in subsection (5) of this section, grouped as follows:

              (i)  Schools with an identified student percentage of least forty percent (40%);

              (ii)  Schools with an identified student percentage of less than forty percent (40%) but greater than or equal to thirty percent (30%); and

              (iii)  Schools currently in year four (4) of the Community Eligibility Provision with an identified student percentage that is less than forty percent (40%) but greater than or equal to thirty percent (30%);

          (b)  The names of local educational agencies receiving department notification as required under subsection (6) of this section, grouped as follows:

              (i)  Local educational agencies with an identified student percentage of at least forty percent (40%) district wide;

              (ii)  Local educational agencies with an identified student percentage that is less than forty percent (40%) district wide but greater than or equal to thirty percent (30%);

              (iii)  Local educational agencies currently using community eligibility district wide; and

              (iv)  Local educational agencies currently in year four (4) with an identified student percentage district wide that is less than forty percent (40%) but greater than or equal to thirty percent (30%); and

          (c)  The department must maintain eligibility lists as described in paragraphs (a) and (b) of this section until such time as new lists are made available annually by May 1.

     (8)  Notification Data.  For purposes of fulfilling the requirements in subsections (5) and (6) of this section, the State Department of Education must:

          (a)  Obtain data representative of the current school year;

          (b)  Use the identified student percentage as defined in subsection (1) of this section.  If school-specific identified student percentage data is not readily available by school, use direct certifications as a percentage of enrolled students, i.e., the percentage derived by dividing the number of students directly certified by the number of enrolled students as defined in subsection (1) as an indicator of potential eligibility.  If direct certification data is used, the department must clearly indicate that the data provided does not fully reflect the number of identified students; and

          (c)  If data is not readily available as of April 1 of the current school year, ensure the data includes a notation that the data are intended for informational purposes and do not confer eligibility for community eligibility.  Local educational agencies must meet the eligibility requirements specified in subsection (3) of this section to participate in community eligibility.

     (9)  Other Uses of the Free Claiming Percentage.  For purposes of determining a school's or site's eligibility to participate in a Child Nutrition Program, a Community Eligibility Provision school's free claiming percentage, i.e., the product of the school's identified student percentage multiplied by one and six tenths (1.6), serves as a proxy for free and reduced-price certification data.

     (10)  Policy Statement Requirement.  A local educational agency that elects to participate in the special assistance provisions or the Community Eligibility Provision set forth in this section must:

          (a)  Amend its Free and Reduced-Price Policy Statement to include a list of all schools participating in each of the special assistance provisions specified in this section.  The following information must also be included for each school:

              (i)  The initial school year of implementing the special assistance provision;

              (ii)  The school years the cycle is expected to remain in effect;

              (iii)  The school year the special assistance provision must be reconsidered; and

              (iv)  The available and approved data that will be used in reconsideration, as applicable; and

          (b) Certify that the schools meet the criteria for participating in each of the special assistance provisions for certification and reimbursement alternatives, as specified under Provision 1, Provision 2, Extension of Provision 2, Provision 3, Extension of Provision 3 or the Community Eligibility Provision of the National School Lunch Act, as appropriate.

     (11)  Recordkeeping.  Local educational agencies that elect to participate in the special assistance provisions set forth in this section must retain implementation records for each of the participating schools.  Failure to maintain sufficient records will result in the State Department of Education requiring the school to return to standard meal counting and claiming procedures and/or fiscal action.  Recordkeeping requirements include, as applicable:

          (a)  A local educational agency shall ensure that records which support subsequent year earnings are retained for the base year for schools under Provision 2 and Provision 3 of the National School Lunch Act.  In addition, records of enrollment data for the base year must be retained for schools under Provision 3.  Base year records must be retained during the period the provision is in effect, including all extensions, plus three (3) fiscal years after the submission of the last Claim for Reimbursement which employed the base year data.  Local educational agencies that conduct a streamlined base year must retain all records related to the statistical methodology and the determination of claiming percentages.  The records shall be retained during the period the provision is in effect, including all extensions, plus three (3) fiscal years after the submission of the last Claim for Reimbursement which employed the streamlined base year data.  In either case, if audit findings have not been resolved, base year records must be retained beyond the three-year period as long as required for the resolution of the issues raised by the audit;

          (b)  Local educational agencies that are granted an extension of a provision must retain records of the available and approved socioeconomic data which is used to determine the income level of the school's population for the base year and year(s) in which extensions are made.  In addition, the State Department of Education must also retain records of the available and approved socioeconomic data which is used to determine the income level of the school's population for the base year and years in which extensions are made.  The records must be retained at both the local educational agency level and at the department during the period the provision is in effect, including all extensions, plus three (3) fiscal years after the submission of the last monthly Claim for Reimbursement which employed base year data.  If audit findings have not been resolved, records must be retained beyond the three-year period as long as required for the resolution of the issues raised by the audit.  In addition, for schools operating under Provision 2, a local educational agency must retain nonbase year records pertaining to total daily meal count information, edit checks and on-site review documentation.  For schools operating under Provision 3, a local educational agency must retain nonbase year records pertaining to total daily meal count information, the system of oversight or edit checks, on-site review documentation, annual enrollment data and the number of operating days, which are used to adjust the level of assistance. The records shall be retained for three (3) years after submission of the final monthly Claim for Reimbursement for the fiscal year;

          (c)  Local educational agencies must ensure records are maintained, including:

              (i)  Data used to calculate the identified student percentage;

              (ii)  Annual selection of the identified student percentage;

              (iii)  Total number of breakfasts and lunches served daily;

              (iv)  Percentages used to claim meal reimbursement;

              (v)  Nonfederal funding sources used to cover any excess meal costs; and

              (iv)  School-level information provided to the State Department of Education for publication, if applicable.

      Documentation must be made available at any reasonable time for review and audit purposes.  The records shall be retained during the period the Community Eligibility Provision is in effect, including all extensions, plus three (3) fiscal years after the submission of the last Claim for Reimbursement which was based on the data.  In any case, if audit findings have not been resolved, these records must be retained beyond the three-year period as long as required for the resolution of the issues raised by the audit.

     (12)  Availability of Documentation.  (a)  Upon request, the local educational agency must make documentation available for review or audit to document compliance with the requirements of this section.  Depending on the certification or reimbursement alternative used, such documentation includes, but is not limited to:

              (i)  Enrollment data;

              (ii)  Participation data;

              (iii)  Identified student percentages;

              (iv)  Available and approved socioeconomic data that was used to grant an extension, if applicable; or

              (v)  Other data.

          (b)  In addition, upon request from the Food and Nutrition Service (FNS), local educational agencies under Provision 2 or Provision 3 of the National School Lunch Act, or the State Department of Education must submit to FNS, all data and documentation used in granting extensions including documentation.  Data used to establish a new cycle for the Community Eligibility Provision must also be available for review.

     (13)  Restoring Standard Meal Counting and Claiming.  Under Provisions 1, 2, or 3 or the Community Eligibility Provision of the National School Lunch Act, a local educational agency may restore a school to standard notification, certification, and counting and claiming procedures at any time during the school year or for the following school year if standard procedures better suit the school's program needs.  If standard procedures are restored during a school year, the local educational agency must offer all students reimbursable, free meals for a period of at least thirty (30) operating days following the date of restoration of standard procedures or until a new eligibility determination is made, whichever comes first.  Before the change takes place, but no later than June 30, the local educational agency must:

          (a)  Notify the State Department of Education of the intention to stop participating in a special assistance certification and reimbursement alternative under this section and seek department guidance and review regarding the restoration of standard operating procedures; and

          (b)  Notify the public and meet the certification and verification requirements in affected schools.

     (14)  Transferring Eligibility for Free Meals During the School Year.  For student transfers during the school year within a local educational agency, a student's access to free, reimbursable meals under the special assistance certification and reimbursement alternatives specified in this section must be extended by a receiving school using standard counting and claiming procedures for up to ten (10) operating school days or until a new eligibility determination for the current school year is made, whichever comes first.  At the State Department of Education's discretion, students who transfer within or between local educational agencies may be offered free reimbursable meals for up to thirty (30) operating days or until a new eligibility determination for the current school year is made, whichever comes first.

     SECTION 4.  Section 37-11-7, Mississippi Code of 1972, is brought forward as follows:

     37-11-7.  (1)  The State of Mississippi does hereby accept and avail itself of all the provisions and benefits of acts passed by the Senate and House of Representatives of the United States of America in Congress assembled on June 4, 1946, known as the "National School Lunch Act," Chapter 281, 60 Stat 230, and on October 11, 1966, known as the "Child Nutrition Act," 80 Stat 885.

     (2)  The State Department of Education is hereby designated and appointed as the state agency in Mississippi to carry out and execute the functions and duties required of a state agency under the terms and provisions of said acts and to administer the funds made available by the federal government for the school lunch and other child nutrition programs for and in the State of Mississippi under the provisions of said acts.  For such purpose, the State Superintendent of Public Education is hereby authorized and empowered to do any and all things which may be required under the terms of said acts to enable the State of Mississippi to receive the benefits thereof, to enter into any and all agreements and contracts with any officer or agency of the United States of America, or any other person, agency or political subdivision, that may be necessary, expedient or advisable in administering said acts, and to appoint and employ a state supervisor of the child nutrition programs and such other administrative, supervisory, stenographic and clerical personnel as may be necessary in the administration of said acts.

     (3)  The school boards of any combination of school districts may authorize by resolution the organization and operation of, or the participation in, a group purchase program with other participating child nutrition operators for the purchase of commodities, supplies, equipment and services provided under the school lunch and child nutrition programs, when it appears to said participating child nutrition operators that a group purchase program shall effect economy or efficiency in such operation.  The State Department of Education may administer such group purchase program to provide commodities, supplies, equipment and services under the school lunch and child nutrition programs and may charge and collect reasonable fees from participating operators for the actual cost of administering such group purchase program. Purchases by participating operators in such group purchasing programs shall not be exempt from public bid requirements as prescribed in Sections 31-7-12 and 31-7-13, Mississippi Code of 1972.

     (4)  The State Treasurer is hereby designated and appointed custodian of all monies received by the state from appropriations made to carry out the provisions of said acts of Congress, and he is authorized to receive and to provide for the proper custody of same, and to make disbursements thereof in the manner provided for in said acts and for the purposes therein specified.

     SECTION 5.  Section 37-13-137, Mississippi Code of 1972, is amended as follows:

     37-13-137.  (1)  The State Board of Education shall adopt regulations as provided in this section * * *not later than March 1, 2008, which shall be effective for compliance by school districts beginning with the 2008‑2009 school year, for the Child Nutrition School Breakfast and Lunch Programs that are not in conflict with Sections 2 and 3 of this act and the regulations of the United States Department of Agriculture (USDA).  The regulations shall take into account the most recent and advanced scientific principles regarding good human health and fitness, and the effect of the regulations must be that the good health, well-being and fitness of Mississippi school children shall be advanced.  The regulations shall include, but not be limited to, the following areas:

          (a)  Healthy food and beverage choices;

          (b)  Healthy food preparation;

          (c)  Marketing of healthy food choices to students and staff;

          (d)  Food preparation ingredients and products;

          (e)  Minimum and maximum time allotment for students and staff lunch and breakfast periods;

          (f)  The availability of food items during the lunch and breakfast periods of the Child Nutrition School Breakfast and Lunch Programs; * * *and

          (g)  Methods to increase participation in the Child Nutrition School Breakfast and Lunch Programs * * *.; and

          (h)  The procedures to be implemented in the administration of the Community Eligibility Provisions Program, to encourage participation by school districts.

     (2)  The Office of Healthy Schools of the State Department of Education shall provide comprehensive training for superintendents, business managers, food service directors and food service managers of a local school district, or the designees appointed by those individuals for training purposes, as required by the department on marketing healthy foods, creating a healthy cafeteria environment, effective and efficient food service operations, the standards and expectations of food service staff, and other topics as identified by the department.  The department may determine the time and location of the trainings and the frequency with which they are held.  Persons employed by a local school district having the certification as a Food Service Administrator III or IV shall be exempt from the training requirements of this subsection.

     (3)  Local school districts may adopt rules and regulations that may be more stringent but not in conflict with those adopted by the State Board of Education under this section.

     SECTION 6.  Section 37-7-301, Mississippi Code of 1972, is amended as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          (t)  To enter into an energy performance contract, energy services contract, on a shared-savings, lease or lease-purchase basis, for energy efficiency services and/or equipment as provided for in Section 31-7-14;

          (u)  To maintain accounts and issue pay certificates on school food service bank accounts.  Additionally, each school board, shall establish a separate special account for the purpose of facilitating the accounting procedure to transfer debts categorized as uncollectible or inactive accounts, which may be reconciled at the conclusion of the scholastic year with payment or reimbursement from any available funds, except any federal program funds, which are not appropriated or designated for any other purpose as provided in this section or other provisions of law;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              (iii)  An assessment of revenue levels and sources;

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

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

              (vi)  An assessment of instructional and administrative technology;

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

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

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

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

          (ss)  To collaborate with the State Board of Education, Community Action Agencies or the Department of Human Services to develop and implement a voluntary program to provide services for a prekindergarten program that addresses the cognitive, social, and emotional needs of four-year-old and three-year-old children.  The school board may utilize any source of available revenue to fund the voluntary program.  Effective with the 2013-2014 school year, to implement voluntary prekindergarten programs under the Early Learning Collaborative Act of 2013 pursuant to state funds awarded by the State Department of Education on a matching basis;

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

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

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

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

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

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

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

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

          (xx)  To partner with entities, organizations and corporations for the purpose of benefiting the school district;

          (yy)  To borrow funds from the Rural Economic Development Authority for the maintenance of school buildings;

          (zz)  To fund and operate voluntary early childhood education programs, defined as programs for children less than five (5) years of age on or before September 1, and to use any source of revenue for such early childhood education programs.  Such programs shall not conflict with the Early Learning Collaborative Act of 2013;

          (aaa)  To issue and provide for the use of procurement cards by school board members, superintendents and licensed school personnel consistent with the rules and regulations of the Mississippi Department of Finance and Administration under Section 31-7-9;  * * *and

          (bbb)  To conduct an annual comprehensive evaluation of the superintendent of schools consistent with the assessment components of paragraph (pp) of this section and the assessment benchmarks established by the Mississippi School Board Association to evaluate the success the superintendent has attained in meeting district goals and objectives, the superintendent's leadership skill and whether or not the superintendent has established appropriate standards for performance, is monitoring success and is using data for improvement * * *.; and

          (ccc)  To use any available funds, except federal programs funds, not appropriated or designated for any other purpose, to reimburse the United States Department of Agriculture Food and Nutrition Service for debt accrued by certain students unable to pay the reduced price for the school lunch program which has been transferred to a separate special account for  uncollectible or inactive accounts.

     SECTION 7.  This act shall take effect and be in force from and after July 1, 2020.