MISSISSIPPI LEGISLATURE

2013 Regular Session

To: Education; Appropriations

By: Representatives Reynolds, Bain, Horan

House Bill 669

AN ACT TO CREATE THE SCHOOL DISTRICT HOME RULE AUTHORITY TASK FORCE TO STUDY AND MAKE RECOMMENDATIONS TO THE LEGISLATURE ON MEANS OF GRANTING GREATER OPERATIONAL AND ADMINISTRATIVE AUTONOMY TO LOCAL SCHOOL DISTRICTS; TO PROVIDE FOR THE MEMBERSHIP OF THE TASK FORCE; TO PRESCRIBE THE DUTIES OF THE TASK FORCE MEMBERS; TO BRING FORWARD SECTIONS 37-7-301.1, 37-7-301, 37-1-3, 37-1-11, 37-3-5, 37-11-54, 37-11-55, 37-11-57, 37-11-66, 37-13-134, 37-13-171, 37-16-7, 37-39-15 AND 37-61-9, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENTS; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  The School District Home Rule Authority Task Force is created to study and make recommendations to the Legislature regarding how to grant greater operational and administrative autonomy to local school districts to maximize the educational aptitude of students, to organize schools under the authority of the local school board in the manner deemed best appropriate for the student population age and grade classification, to employ personnel, to manage fiscal and physical operations, selection of curriculum, student assessments and teacher performance.  Members of the task force shall be composed of the following:

          (a)  The State Superintendent of Public Education;

          (b)  Three (3) local school board members from each of the four (4) congressional districts.  The Governor, Lieutenant Governor and Speaker of the House each shall appoint one (1) superintendent from each congressional district;

          (c)  Three (3) local school superintendents, to be appointed by the State Superintendent of Education, with one (1) member representing each Supreme Court district;

          (d)  Two (2) members of the State Board of Education, one (1) of which shall be the board president;

          (e)  The Executive Director of the Mississippi Association of Educators, or his designee;

          (f)  The Executive Director of the Mississippi Association of School Superintendents, or his designee;

          (g)  The Executive Director of the Mississippi School Board Association, or his designee;

          (h)  Six (6) parents with at least one (1) child currently in a Mississippi public elementary, secondary or post-secondary school, to be appointed by the Governor, with two (2) members representing each state Supreme Court district;

          (i)  At least six (6) representatives of elementary, secondary and higher education, representing administrators, educators, counselors and security personnel, to be appointed by the Governor, with two (2) members representing each state Supreme Court district;

          (j)  Two (2) members of the Mississippi House of Representatives, to be appointed by the Speaker; and

          (k)  Two (2) members of the Mississippi Senate, to be appointed by the Lieutenant Governor.

     (2)  The task force shall:

          (a)  Evaluate the efficiency of the State Board of Education's regulation of local school districts;

          (b)  Recommend improvements to K-12 administration for the granting of increased autonomy to local school districts' authority under home rule;

          (c)  Suggest additional resources, programs or tools that the State Department of Education could make available to Mississippi's local school districts and schools;

          (d)  Recommend that a moratorium be imposed on the adoption and implementation of regulations by the State Board of Education;

          (e)  Coordinate with the other local school districts to determine efficiency and best practices;

          (f)  Examine current laws and regulations to identify gaps relating to school district operation and administration; and

          (g)  Review the recommendations set forth in previous state and national reports and studies and provide strategies for implementation of relevant, realistic recommendations.

     (3The appointed members of the task force must be appointed within thirty (30) days of the effective date of this act.  The members shall be a part of the task force for the life of the task force.  Any vacancy in the task force shall not affect its powers, but shall be filled in the same manner prescribed above.  The task force shall hold its first meeting within sixty (60) days of the effective date of this act, on the call of the Governor at a place designated by him.  At the first meeting, the task force shall elect from among its membership a chairperson and other officers, if any, determined to be necessary.  A majority of the membership of the task force shall constitute a quorum, and shall meet at the call of the chairperson, or upon an affirmative vote of a majority of the task force.  All members must be notified in writing of all meetings at least five (5) days before the date on which a meeting of the task force is scheduled.

     (4)  Subject to the appropriation of funds specifically for such purpose, members of the task force, other than the legislative members, shall receive reimbursement for travel expenses incurred while engaged in official business of the task force in accordance with Section 25-3-41.  Legislative members of the task force shall receive the compensation authorized for attending meetings when the Legislature is not in session.  Payment of these expenses may be made from funds made available specifically for such purpose by the Legislature or from any other public or private source.

     (5)  Not later than twelve (12) months after the first meeting of the task force, the task force shall prepare and submit a final report that contains a detailed statement of findings, conclusions and recommendations of the task force to the Legislature, the Governor, state, local and tribal governments. The report submitted under this subsection shall be made available to the public.  The task force shall be abolished upon submission of the report to the Governor and the Legislature.

     SECTION 2.  Section 37-7-301.1, Mississippi Code of 1972, is brought forward as follows:

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

     SECTION 3.  Section 37-7-301, Mississippi Code of 1972, is brought forward 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 and set limits of the dollar amount for payment of claims by the superintendent of schools to be ratified by the board at the next regularly scheduled meeting after payment has been made;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              (iii)  An assessment of revenue levels and sources;

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

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

               (vi)  An assessment of instructional and administrative technology;

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

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

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

          (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;

          (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, Mississippi Code of 1972;

          (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 2007;

          (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.

     SECTION 4.  Section 37-1-3, Mississippi Code of 1972, is brought forward as follows:

     37-1-3.  (1)  The State Board of Education shall adopt rules and regulations and set standards and policies for the organization, operation, management, planning, budgeting and programs of the State Department of Education.

          (a)  The board is directed to identify all functions of the department that contribute to or comprise a part of the state system of educational accountability and to establish and maintain within the department the necessary organizational structure, policies and procedures for effectively coordinating such functions.  Such policies and procedures shall clearly fix and delineate responsibilities for various aspects of the system and for overall coordination of the total system and its effective management.

          (b)  The board shall establish and maintain a system-wide plan of performance, policy and directions of public education not otherwise provided for.

          (c)  The board shall effectively use the personnel and resources of the department to enhance technical assistance to school districts in instruction and management therein.

          (d)  The board shall establish and maintain a central budget policy.

          (e)  The board shall establish and maintain within the State Department of Education a central management capacity under the direction of the State Superintendent of Public Education.

          (f)  The board, with recommendations from the superintendent, shall design and maintain a five-year plan and program for educational improvement that shall set forth objectives for system performance and development and be the basis for budget requests and legislative initiatives.

     (2)  (a)  The State Board of Education shall adopt and maintain a curriculum and a course of study to be used in the public schools that is designed to prepare the state's children and youth to be productive, informed, creative citizens, workers and leaders, and it shall regulate all matters arising in the practical administration of the school system not otherwise provided for.

          (b)  Before the 1999-2000 school year, the State Board of Education shall develop personal living and finances objectives that focus on money management skills for individuals and families for appropriate, existing courses at the secondary level.  The objectives must require the teaching of those skills necessary to handle personal business and finances and must include instruction in the following:

              (i)  Opening a bank account and assessing the quality of a bank's services;

              (ii)  Balancing a checkbook;

              (iii)  Managing debt, including retail and credit card debt;

              (iv)  Completing a loan application;

              (v)  The implications of an inheritance;

              (vi)  The basics of personal insurance policies;

              (vii)  Consumer rights and responsibilities;

              (viii)  Dealing with salesmen and merchants;

              (ix)  Computing state and federal income taxes;

              (x)  Local tax assessments;

              (xi)  Computing interest rates by various mechanisms;

              (xii)  Understanding simple contracts; and

              (xiii)  Contesting an incorrect billing statement.

     (3)  The State Board of Education shall have authority to expend any available federal funds, or any other funds expressly designated, to pay training, educational expenses, salary incentives and salary supplements to licensed teachers employed in local school districts or schools administered by the State Board of Education.  Such incentive payments shall not be considered part of a school district's local supplement as defined in Section 37-151-5(o), nor shall the incentives be considered part of the local supplement paid to an individual teacher for the purposes of Section 37-19-7(1).  MAEP funds or any other state funds shall not be used to provide such incentives unless specifically authorized by law.

     (4)  The State Board of Education shall through its actions seek to implement the policies set forth in Section 37-1-2.

     SECTION 5.  Section 37-1-11, Mississippi Code of 1972, is brought forward as follows:

     37-1-11.  (1)  The school day shall be preserved for the purpose of teaching.  It is the intent of the Legislature that every effort be made by the State Department of Education and the local school boards to protect the instructional time in the classroom and to reduce the amount of paperwork which must be completed by teachers.

     (2)  The State Board of Education shall adopt rules that provide for simplifying and reducing the number and length of written reports and other written documents that the State Department of Education requires from school districts and school district employees.  The board shall conduct a comprehensive review of its rules to simplify and to reduce the number and length of reports required from school districts and school district employees.  The State Department of Education shall provide nonmandatory models to school districts of lesson plans, curriculum guides and other required reports that comply with department reporting requirements.

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

     SECTION 6.  Section 37-3-5, Mississippi Code of 1972, is brought forward as follows:

     37-3-5.  The State Department of Education is hereby charged with the execution of all laws relating to the administrative, supervisory and consultative services to the public schools and agricultural high schools of the State of Mississippi.  The State Department of Education is also authorized to grant property to public schools and agricultural high schools of the State of Mississippi.

     Subject to the direction of the State Board of Education as provided by law, the administration, management and control of the department is hereby vested in the State Superintendent of Public Education, who shall be directly responsible for the rightful functioning thereof.

     SECTION 7.  Section 37-11-54, Mississippi Code of 1972, is brought forward as follows:

     37-11-54.  The State Board of Education shall develop a list of recommended conflict resolution and mediation materials, models and curricula that are developed from evidence-based practices and positive behavioral intervention supports to address responsible decision making, the causes and effects of school violence and harassment, cultural diversity, and nonviolent methods for resolving conflict, including peer mediation, and shall make the list available to local school administrative units and school buildings before the beginning of the 2007-2008 school year.  In addition, local school boards shall incorporate evidence-based practices and positive behavioral intervention supports into individual school district policies and Codes of Conduct.  In developing this list, the board shall emphasize materials, models and curricula that currently are being used in Mississippi and that the board determines to be effective.  The board shall include at least one (1) model that includes instruction and guidance for the voluntary implementation of peer mediation programs and one (1) model that provides instruction and guidance for teachers concerning the integration of conflict resolution and mediation lessons into the existing classroom curriculum.

     SECTION 8.  Section 37-11-55, Mississippi Code of 1972, is brought forward as follows:

     37-11-55.  The local school board shall adopt and make available to all teachers, school personnel, students and parents or guardians, at the beginning of each school year, a code of student conduct developed in consultation with teachers, school personnel, students and parents or guardians.  The code shall be based on the rules governing student conduct and discipline adopted by the school board and shall be made available at the school level in the student handbook or similar publication.  The code shall include, but not be limited to:

          (a)  Specific grounds for disciplinary action under the school district's discipline plan;

          (b)  Procedures to be followed for acts requiring discipline, including suspensions and expulsion, which comply with due process requirements;

          (c)  An explanation of the responsibilities and rights of students with regard to:  attendance; respect for persons and property; knowledge and observation of rules of conduct; free speech and student publications; assembly; privacy; and participation in school programs and activities;

          (d)  Policies and procedures recognizing the teacher as the authority in classroom matters, and supporting that teacher in any decision in compliance with the written discipline code of conduct.  Such recognition shall include the right of the teacher to remove from the classroom any student who, in the professional judgment of the teacher, is disrupting the learning environment, to the office of the principal or assistant principal.  The principal or assistant principal shall determine the proper placement for the student, who may not be returned to the classroom until a conference of some kind has been held with the parent, guardian or custodian during which the disrupting behavior is discussed and agreements are reached that no further disruption will be tolerated.  If the principal does not approve of the determination of the teacher to remove the student from the classroom, the student may not be removed from the classroom, and the principal, upon request from the teacher, must provide justification for his disapproval;

          (e)  Policies and procedures for dealing with a student who causes a disruption in the classroom, on school property or vehicles, or at school-related activities;

          (f)  Procedures for the development of behavior modification plans by the school principal, reporting teacher and student's parent for a student who causes a disruption in the classroom, on school property or vehicles, or at school-related activities for a second time during the school year; and

          (g)  Policies and procedures specifically concerning gang-related activities in the school, on school property or vehicles, or at school-related activities.

     SECTION 9.  Section 37-11-57, Mississippi Code of 1972, is brought forward as follows:

     37-11-57.  (1)  Except in the case of excessive force or cruel and unusual punishment, a teacher, assistant teacher, principal, or an assistant principal acting within the course and scope of his employment shall not be liable for any action carried out in conformity with state or federal law or rules or regulations of the State Board of Education or the local school board regarding the control, discipline, suspension and expulsion of students.  The local school board shall provide any necessary legal defense to a teacher, assistant teacher, principal, or assistant principal acting within the course and scope of his employment in any action which may be filed against such school personnel.  A school district shall be entitled to reimbursement for legal fees and expenses from its employee if a court finds that the act of the employee was outside the course and scope of his employment, or that the employee was acting with criminal intent.  Any action by a school district against its employee and any action by the employee against the school district for necessary legal fees and expenses shall be tried to the court in the same suit brought against the school employee.

     (2)  Corporal punishment administered in a reasonable manner, or any reasonable action to maintain control and discipline of students taken by a teacher, assistant teacher, principal or assistant principal acting within the scope of his employment or function and in accordance with any state or federal laws or rules or regulations of the State Board of Education or the local school board does not constitute negligence or child abuse.  No teacher, assistant teacher, principal or assistant principal so acting shall be held liable in a suit for civil damages alleged to have been suffered by a student as a result of the administration of corporal punishment, or the taking of action to maintain control and discipline of a student, unless the court determines that the teacher, assistant teacher, principal or assistant principal acted in bad faith or with malicious purpose or in a manner exhibiting a wanton and willful disregard of human rights or safety.  For the purposes of this subsection, "corporal punishment" means the reasonable use of physical force or physical contact by a teacher, assistant teacher, principal or assistant principal, as may be necessary to maintain discipline, to enforce a school rule, for self-protection or for the protection of other students from disruptive students.

     SECTION 10.  Section 37-11-66, Mississippi Code of 1972, is brought forward as follows:

     37-11-66.  Each local school board shall adopt and implement a written policy with regard to the school district's mandate or requirement for the awarding of a minimum grade which is in compliance with the grading policy requirement established by the State Board of Education Policy 403.

     SECTION 11.  Section 37-13-134, Mississippi Code of 1972, is brought forward as follows:

     37-13-134.  (1)  The Legislature recognizes that there is a problem with Mississippi student inactivity and obesity, and therefore requires the following guidelines for school district physical education, health education and physical activity and fitness classes:

     Kindergarten through Grade 8:  One hundred fifty (150) minutes per week of physical activity-based instruction and forty-five (45) minutes per week of health education instruction, as defined by the State Board of Education.

     Grades 9 through 12:  1/2 Carnegie unit requirement in physical education or physical activity for graduation.

     All instruction in physical education, health education and physical activity must be based on the most current state standards provided by the State Department of Education.

     (2)  Beginning with the 2006-2007 school year, each local school board shall, consistent with regulations adopted by the State Board of Education, adopt a school wellness plan which shall promote a healthy lifestyle for Mississippi's school children and staff.  Beginning with the 2008-2009 school year, the school wellness plan shall also promote increased physical activity, healthy eating habits and abstinence from the use of tobacco and illegal drugs through programs that incorporate healthy lifestyle choices into core subject areas which may be developed in partnership with the Institute for America's Health.

     (3)  Beginning with the 2012-2013 school year, the State Board of Education, in consultation with the State Department of Health, shall have the authority to establish a school health pilot program to improve student health so that all students can fully participate and be successful in school.  The school health pilot program shall be implemented in local school districts, as provided in Section 37-13-134.1.

     (4)  The Legislature shall appropriate sufficient state-source funds for the State Department of Education to employ a physical activity coordinator to assist districts on current and effective practices and on implementation of physical education and physical activity programs.

     (5)  The physical activity coordinator employed under Section 37-13-133 must have the qualifications prescribed in any of the following paragraphs, which are listed in the order of preference:

          (a)  A doctorate in physical education, exercise science or a highly related field, and at least three (3) years of experience in teaching physical education in Grades K-12 or in physical activity promotion/fitness leadership; or

          (b)  A master's degree in physical education, exercise science or a highly related field, and at least five (5) years of experience in teaching physical education in Grades K-12 or in physical activity promotion/fitness leadership; or

          (c)  A bachelor's degree in physical education, a teacher's license, and at least seven (7) years of experience in teaching physical education in Grades K-12 or in physical activity promotion/fitness leadership.

     (6)  The Governor's Commission on Physical Fitness and Sports created under Section 7-1-551 et seq., the Mississippi Council on Obesity Prevention and Management created under Section 41-101-1 et seq., the Task Force on Heart Disease and Stroke Prevention created under Section 41-103-1 et seq., the Mississippi Alliance for Health, Physical Education, Recreation and Dance, and the Mississippi Alliance for School Health shall provide recommendations to the State Department of Education regarding the employment of the physical activity coordinator.  The department shall consider the recommendations of those entities in employing the physical activity coordinator.

     (7)  The physical activity coordinator shall present a state physical activity plan each year to the Governor's Commission on Physical Fitness and Sports, the Mississippi Council on Obesity Prevention and Management, the Task Force on Heart Disease and Stroke Prevention, the Mississippi Alliance for Health, Physical Education, Recreation and Dance, and the Mississippi Alliance for School Health.

     (8)  The physical activity coordinator shall monitor the districts for adherence to current Mississippi school accountability standards and for implementation of the physical education curriculum on file with the State Department of Education.  The State Department of Education shall monitor and act as a clearinghouse for the activities of the local school health councils established pursuant to subsection (8) of this section.

     (9)  (a)  The local school board of each school district shall establish a local school health council for each school which shall ensure that local community values are reflected in the local school's wellness plan to address school health.  Such councils shall be established no later than November 1, 2006.

          (b)  The local school health council's duties shall include, but not be limited to, the following:

              (i)  Recommend age appropriate curriculum and the number of hours of instruction to be provided in health and physical activity-based education, provided that the number of hours shall not be less than that required by Section 37-13-134;

              (ii)  Recommend appropriate practices that include a coordinated approach to school health designed to prevent obesity, cardiovascular disease, Type II diabetes and other health risks, through coordination of:

                   1.  Health education;

                   2.  Physical education;

                   3.  Nutritional services;

                   4.  Parental/Community involvement;

                   5.  Instruction to prevent the use of tobacco, drugs and alcohol;

                   6.  Physical activity;

                   7.  Health services;

                   8.  Healthy environment;

                   9.  Counseling and psychological services;

                   10.  Healthy lifestyles; and

                   11.  Staff wellness.

              (iii)  Provide guidance on the development and implementation of the local school wellness plan. 

          (c)  The local school board shall appoint members to the local school health council.  At a minimum, the school board shall appoint one (1) person from each of the following groups:

              (i)  Parents who are not employed by the school district;

              (ii)  The director of local school food services;

              (iii)  Public schoolteachers;

              (iv)  Public school administrators;

              (v)  District students;

              (vi)  Health care professionals;

              (vii)  The business community;

              (viii)  Law enforcement;

              (ix)  Senior citizens;

              (x)  The clergy;

              (xi)  Nonprofit health organizations; and

              (xii)  Faith-based organizations.

     (10)  Nothing in this section shall be construed to prohibit or limit the sale or distribution of any food or beverage item through fund-raisers conducted by students, teachers, school groups, or parent groups when the items are intended for sale off the school campus.

     SECTION 12.  Section 37-13-171, Mississippi Code of 1972, is brought forward as follows:

     37-13-171.  (1)  The local school board of every public school district shall adopt a policy to implement abstinence-only or abstinence-plus education into its curriculum by June 30, 2012, which instruction in those subjects shall be implemented not later than the start of the 2012-2013 school year or the local school board shall adopt the program which has been developed by the Mississippi Department of Human Services and the Mississippi Department of Health.  The State Department of Education shall approve each district's curriculum for sex-related education and shall establish a protocol to be used by districts to provide continuity in teaching the approved curriculum in a manner that is age, grade and developmentally appropriate.

     (2)  Abstinence-only education shall remain the state standard for any sex-related education taught in the public schools.  For purposes of this section, abstinence-only education includes any type of instruction or program which, at an appropriate age and grade:

          (a)  Teaches the social, psychological and health gains to be realized by abstaining from sexual activity, and the likely negative psychological and physical effects of not abstaining;

          (b)  Teaches the harmful consequences to the child, the child's parents and society that bearing children out of wedlock is likely to produce, including the health, educational, financial and other difficulties the child and his or her parents are likely to face, as well as the inappropriateness of the social and economic burden placed on others;

          (c)  Teaches that unwanted sexual advances are irresponsible and teaches how to reject sexual advances and how alcohol and drug use increases vulnerability to sexual advances;

          (d)  Teaches that abstinence from sexual activity before marriage, and fidelity within marriage, is the only certain way to avoid out-of-wedlock pregnancy, sexually transmitted diseases and related health problems.  The instruction or program may include a discussion on condoms or contraceptives, but only if that discussion includes a factual presentation of the risks and failure rates of those contraceptives.  In no case shall the instruction or program include any demonstration of how condoms or other contraceptives are applied;

          (e)  Teaches the current state law related to sexual conduct, including forcible rape, statutory rape, paternity establishment, child support and homosexual activity; and

          (f)  Teaches that a mutually faithful, monogamous relationship in the context of marriage is the only appropriate setting for sexual intercourse.

     (3)  A program or instruction on sex-related education need not include every component listed in subsection (2) of this section for abstinence-only education.  However, no program or instruction under an abstinence-only curriculum may include anything that contradicts the excluded components.  For purposes of this section, abstinence-plus education includes every component listed under subsection (2) of this section that is age and grade appropriate, in addition to any other programmatic or instructional component approved by the department, which shall not include instruction and demonstrations on the application and use of condoms.  Abstinence-plus education may discuss other contraceptives, the nature, causes and effects of sexually transmitted diseases, or the prevention of sexually transmitted diseases, including HIV/AIDS, along with a factual presentation of the risks and failure rates.

     (4)  Any course containing sex-related education offered in the public schools shall include instruction in either abstinence-only or abstinence-plus education.

     (5)  Local school districts, in their discretion, may host programs designed to teach parents how to discuss abstinence with their children.

     (6)  There shall be no effort in either an abstinence-only or an abstinence-plus curriculum to teach that abortion can be used to prevent the birth of a baby.

     (7)  At all times when sex-related education is discussed or taught, boys and girls shall be separated according to gender into different classrooms, sex-related education instruction may not be conducted when boys and girls are in the company of any students of the opposite gender.

     (8)  This section shall stand repealed on July 1, 2016.

     SECTION 13.  Section 37-16-7, Mississippi Code of 1972, is brought forward as follows:

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

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

          (b)  Completion of a minimum number of academic credits, and all other applicable requirements prescribed by the district school board.

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

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

     SECTION 14.  Section 37-39-15, Mississippi Code of 1972, is brought forward as follows:

     37-39-15.  (1)  In connection with the purchase of necessary supplies or equipment for the conduct of regular school operations, school boards may, in their discretion, designate as their purchasing agent or agents such school official or officials as they see fit and may authorize such agent or agents to make purchases of supplies and equipment subject to competitive bid requirements in Sections 31-7-1 et seq., Mississippi Code of 1972.

     (2)  Supplies that are perishable or foods purchased for use in connection with the school lunch and homemaking programs shall be exempted from competitive bid requirements.  However, each school board shall adopt and place in its minutes definite policies for guidance of agents of such boards in connection with purchases of perishable supplies or foods which are unstable or variable in price.  Such policies shall have the effect of law and any violations shall be subject to the penalties as provided by law.

     SECTION 15.  Section 37-61-9, Mississippi Code of 1972, is brought forward as follows:

     37-61-9.  (1)  On or before the fifteenth day of August of each year, the local school board of each school district, with the assistance of the superintendent of schools, shall prepare and file with the levying authority for the school district, as defined in Section 37-57-1, at least two (2) copies of a budget of estimated expenditures for the support, maintenance and operation of the public schools of the school district for the fiscal year commencing on July 1 of such year.  Such budget shall be prepared on forms prescribed and provided by the State Auditor and shall contain such information as the State Auditor may require.

     (2)  In addition, on or before the fifteenth day of August of each year, the local school board of each school district, with the assistance of the superintendent of schools, shall prepare and file with the State Department of Education such budgetary information as the State Board of Education may require.  The State Board of Education shall prescribe and provide forms to each school district for this purpose.

     (3)  Prior to the adoption of a budget pursuant to this section, the school board of each school district shall hold at least one (1) public hearing to provide the general public with an opportunity to comment on the taxing and spending plan incorporated in the proposed budget.  The public hearing shall be held at least one (1) week prior to the adoption of the budget with advance notice.  After final adoption of the budget, a synopsis of such budget in a form prescribed by the State Department of Audit shall be published in a newspaper having general circulation in the school district on a date different from the date on which the county or any municipality therein may publish its budget.

     (4)  There shall be imposed limitations on budgeted expenditures for certain administration costs, as defined hereinafter, in an amount not greater than One Hundred Fifty Thousand Dollars ($150,000.00) plus four percent (4%) of the expenditures of all school districts each year.  For purposes of this subsection, "administration costs" shall be defined as expenditures for salaries and fringe benefits paid for central administration costs from all sources of revenue in the following expenditure functions as defined in the MISSISSIPPI PUBLIC SCHOOL DISTRICT FINANCIAL ACCOUNTING MANUAL:

          2300 =    Support Services - General Administration

          2310 =    Board of Education Services

          2320 =    Executive Administration Services

          2330 =    Special Area Administration Services

          2500 =    Business Services

          2510 =    Fiscal Services

          2520 =    Purchasing Services

          2530 =    Warehousing and Distributing Services

          2540 =    Printing, Publishing and Duplicating Services

          2590 =    Other Support Services - Business

     Any costs classified as "administration costs" for purposes of this subsection which can be demonstrated by the local school district to be an expenditure that results in a net cost savings to the district that may otherwise require budget expenditures for functions not covered under the definition of administration costs herein may be excluded from the limitations imposed herein.  The local school board shall make a specific finding of such costs and spread such finding upon its minutes, which shall be subject to the approval of the Office of Educational Accountability of the State Department of Education.  Any school district required to make expenditure cuts, as a result of application of this subsection, shall not be required to reduce such expenditures more than twenty-five percent (25%) in any year in order to comply with this mandate.

     The State Auditor shall ensure that functions in all expenditure categories to which this administrative limitation applies shall be properly classified.

     This section shall not apply to central administration with five (5) or less full-time employees, or to those school districts which can substantiate that comparable reductions have occurred in administrative costs for the five-year period immediately prior to school year 1993-1994.  In the event the application of this section may jeopardize the fiscal integrity or operations of the school district, have an adverse impact on the ability of the district to deliver educational services, or otherwise restrict the district from achieving or maintaining a quality education program, the State Board of Education shall be authorized to exempt the application of this section to such school district pursuant to rules and regulations of the State Board of Education consistent with the intent of this section.

     SECTION 16.  This act shall take effect and be in force from and after its passage.