MISSISSIPPI LEGISLATURE

2014 Regular Session

To: Education

By: Senator(s) Tollison

Senate Bill 2619

AN ACT TO AMEND SECTION 37-28-7, MISSISSIPPI CODE OF 1972, TO DELETE THE REQUIREMENT THAT THE EXECUTIVE DIRECTOR OF THE MISSISSIPPI CHARTER SCHOOL AUTHORIZER BOARD SHALL BE A LICENSED ATTORNEY; TO AMEND SECTION 37-28-23, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PUBLIC CHARTER SCHOOL SHALL BE OPEN TO ENROLLMENT BY ANY STUDENT RESIDING IN THE STATE; TO AMEND SECTION 37-28-47, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT TEACHERS AT A PUBLIC CHARTER SCHOOL SHALL HAVE UP TO THREE YEARS TO MEET LICENSURE REQUIREMENTS AND TO PROVIDE THAT PUBLIC CHARTER SCHOOL TEACHERS AND EMPLOYEES ARE MEMBERS OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM; TO AMEND SECTION 25-11-103, MISSISSIPPI CODE OF 1972, TO INCLUDE PUBLIC CHARTER SCHOOLS IN THE DEFINITION OF POLITICAL SUBDIVISION FOR PURPOSES OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 37-28-7, Mississippi Code of 1972, is amended as follows:

     37-28-7.  (1)  There is created the Mississippi Charter School Authorizer Board as a state agency with exclusive chartering jurisdiction in the State of Mississippi.  Unless otherwise authorized by law, no other governmental agency or entity may assume any charter authorizing function or duty in any form.

     (2)  (a)  The mission of the Mississippi Charter School Authorizer Board is to authorize high-quality charter schools, particularly schools designed to expand opportunities for underserved students, consistent with the purposes of this chapter.  Subject to the restrictions and conditions prescribed in this subsection, the Mississippi Charter School Authorizer Board may authorize charter schools within the geographical boundaries of any school district.

          (b)  The Mississippi Charter School Authorizer Board may approve a maximum of fifteen (15) qualified charter applications during a fiscal year.

          (c)  In any school district designated as an "A," "B" or "C" school district by the State Board of Education under the accreditation rating system, the Mississippi Charter School Authorizer Board may authorize charter schools only if a majority of the members of the local school board votes at a public meeting to endorse the application or to initiate the application on its own initiative.

     (3)  The Mississippi Charter School Authorizer Board shall consist of seven (7) members, to be appointed as follows:

          (a)  Three (3) members appointed by the Governor, with one (1) member being from each of the Mississippi Supreme Court Districts.

          (b)  Three (3) members appointed by the Lieutenant Governor, with one (1) member being from each of the Mississippi Supreme Court Districts.

          (c)  One (1) member appointed by the State Superintendent of Public Education.

     All appointments must be made with the advice and consent of the Senate.  In making the appointments, the appointing authority shall ensure diversity among members of the Mississippi Charter School Authorizer Board.

     (4)  Members appointed to the Mississippi Charter School Authorizer Board collectively must possess strong experience and expertise in public and nonprofit governance, management and finance, public school leadership, assessment, curriculum and instruction, and public education law.  Each member of the Mississippi Charter School Authorizer Board must have demonstrated an understanding of and commitment to charter schooling as a strategy for strengthening public education.

     (5)  To establish staggered terms of office, the initial term of office for the three (3) Mississippi Charter School Authorizer Board members appointed by the Governor shall be four (4) years and thereafter shall be three (3) years; the initial term of office for the three (3) members appointed by the Lieutenant Governor shall be three (3) years and thereafter shall be three (3) years; and the initial term of office for the member appointed by the State Superintendent of Public Education shall be two (2) years and thereafter shall be three (3) years.  No member may serve more than two (2) consecutive terms.  The initial appointments must be made before September 1, 2013.

     (6)  The Mississippi Charter School Authorizer Board shall meet as soon as practical after September 1, 2013, upon the call of the Governor, and shall organize for business by selecting a chairman and adopting bylaws.  Subsequent meetings shall be called by the chairman.

     (7)  An individual member of the Mississippi Charter School Authorizer Board may be removed by the board if the member's personal incapacity renders the member incapable or unfit to discharge the duties of the office or if the member is absent from a number of meetings of the board, as determined and specified by the board in its bylaws.  Whenever a vacancy on the Mississippi Charter School Authorizer Board exists, the original appointing authority shall appoint a member for the remaining portion of the term.

     (8)  No member of the Mississippi Charter School Authorizer Board or employee, agent or representative of the board may serve simultaneously as an employee, trustee, agent, representative, vendor or contractor of a charter school authorized by the board.

     (9)  The Mississippi Charter School Authorizer Board shall appoint an individual to serve as the Executive Director * * *and general counsel of the Mississippi Charter School Authorizer Board. * * *In addition to possessing  The executive director shall possess the qualifications established by the board which are based on national best practices, * * * the executive director and general counsel must be licensed to practice law in the State of Mississippi and * * * must shall possess an understanding of state and federal education law.  The executive director * * *and general counsel, who shall serve at the will and pleasure of the board, shall devote his full time to the proper administration of the board and the duties assigned to him by the board and shall be paid a salary established by the board, subject to the approval of the State Personnel Board.  Subject to the availability of funding, the executive director * * *and general counsel may employ such administrative staff as may be necessary to assist the director and board in carrying out the duties and directives of the Mississippi Charter School Authorizer Board.

     (10)  The Mississippi Charter School Authorizer Board shall be located, for administrative purposes, within the offices of the State Institutions of Higher Learning, which shall provide meeting space and clerical support for the board.

     SECTION 2.  Section 37-28-23, Mississippi Code of 1972, is amended as follows:

     37-28-23.  (1)  A charter school must be open to any student residing in the * * * geographical boundaries of the school district in which the charter school is located State of Mississippi.

     (2)  A school district may not require any student enrolled in the school district to attend a charter school.

     (3)  Except as otherwise provided under subsection (8)(d) of this section, a charter school may not limit admission based on ethnicity, national origin, religion, gender, income level, disabling condition, proficiency in the English language, or academic or athletic ability.

     (4)  A charter school may limit admission to students within a given age group or grade level, including pre-kindergarten students, and may be organized around a special emphasis, theme or concept as stated in the school's application.

     (5)  The underserved student composition of a charter school's enrollment collectively must reflect that of students of all ages attending the school district in which the charter school is located, to be defined for the purposes of this chapter as being at least eighty percent (80%) of that population.  If the underserved student composition of an applicant's or charter school's enrollment is less than eighty percent (80%) of the enrollment of students of all ages in the school district in which the charter school is located, despite the school's best efforts, the authorizer must consider the applicant's or charter school's recruitment efforts and the underserved student composition of the applicant pool in determining whether the applicant or charter school is operating in a nondiscriminatory manner.  A finding by the authorizer that a charter school is operating in a discriminatory manner justifies the revocation of a charter.

     (6)  A charter school must enroll all students who wish to attend the school unless the number of students exceeds the capacity of a program, class, grade level or building.

     (7)  If capacity is insufficient to enroll all students who wish to attend the school based on initial application, the charter school must select students through a lottery.

     (8)  (a)  Any noncharter public school or part of a noncharter public school converting to a charter school shall adopt and maintain a policy giving an enrollment preference to students who reside within the former attendance area of that public school.  If the charter school has excess capacity after enrolling students residing within the former attendance area of the school, students outside of the former attendance area of the school * * *, but within the geographical boundaries of the school district in which the charter school is located, are eligible for enrollment.  If the number of students applying for admission exceeds the capacity of a program, class, grade level or building of the charter school, the charter school must admit students on the basis of a lottery.

          (b)  A charter school must give an enrollment preference to students enrolled in the charter school during the preceding school year and to siblings of students already enrolled in the charter school.  An enrollment preference for returning students excludes those students from entering into a lottery.

          (c)  A charter school may give an enrollment preference to children of the charter school's applicant, governing board members and full-time employees, so long as those children constitute no more than ten percent (10%) of the charter school's total student population.

          (d)  This section does not preclude the formation of a charter school whose mission is focused on serving students with disabilities, students of the same gender, students who pose such severe disciplinary problems that they warrant a specific educational program, or students who are at risk of academic failure.  If capacity is insufficient to enroll all students who wish to attend the school, the charter school must select students through a lottery.

     (9)  Credit transferability.  If a student who was previously enrolled in a public charter school enrolls in another public school in this state, the student's new school shall accept credits earned by the student in courses or instructional programs at the public charter school in a uniform and consistent manner and according to the same criteria that are used to accept academic credits from other public schools.

     (10)  Information to parents and the general public.  A school district shall provide or publicize to parents and the general public information about public charter schools as an enrollment option within the district to the same extent and through the same means that the district provides and publicizes information about noncharter public schools in the district.

     SECTION 3.  Section 37-28-47, Mississippi Code of 1972, is amended as follows:

     37-28-47.  (1)  (a)  Charter schools must comply with applicable federal laws, rules and regulations regarding the qualification of teachers and other instructional staff.  No more than twenty-five percent (25%) of teachers in a charter school may be exempt from state teacher licensure requirements at the time the initial charter application is approved by the authorizer.  Administrators of charter schools are exempt from state administrator licensure requirements.  However, teachers and administrators must have a bachelor's degree as a minimum requirement, and teachers must have demonstrated subject-matter competency.  Within three (3) years of the date of initial * * *application approval by the authorizer employment with the charter school, all teachers must have, at a minimum, alternative licensure approved by the Commission on Teacher and Administrator Education, Certification and Licensure and Development.

          (b)  A charter school may not staff positions for teachers, administrators, ancillary support personnel or other employees by utilizing or otherwise relying on nonimmigrant foreign worker visa programs.  However, a charter school may submit a request to the authorizer for an exception allowing the employment of a nonimmigrant foreign worker before the worker is employed.  The authorizer may grant permission for the employment of the nonimmigrant foreign worker only if the charter school makes a satisfactory showing of efforts to recruit lawful permanent residents of the United States to fill the position and a lack of qualified applicants to fill the position.

     (2)  Employees in charter schools must have the same general rights and privileges as other public school employees, except such employees are not:

          (a)  Covered under the Education Employment Procedures Law (Section 37-9-103); and

          (b)  Subject to the state salary requirements prescribed in Section 37-19-7 * * *; and.

 * * *  (c)  Members of the Public Employees' Retirement System.

     (3)  Teachers and other employees in charter schools are eligible to participate in the Public Employees' Retirement System.  For the purpose of eligibility for participation in the Public Employees' Retirement System, a public charter school is considered to be a political subdivision of the state.  Employees in charter schools are eligible for participation in other retirement and other benefits programs in which the charter school chooses to make available to its employees.

     SECTION 4.  Section 25-11-103, Mississippi Code of 1972, is amended as follows:

     25-11-103.  (1)  The following words and phrases as used in Articles 1 and 3, unless a different meaning is plainly required by the context, have the following meanings:

          (a)  "Accumulated contributions" means the sum of all the amounts deducted from the compensation of a member and credited to his or her individual account in the annuity savings account, together with regular interest as provided in Section 25-11-123.

          (b)  "Actuarial cost" means the amount of funds presently required to provide future benefits as determined by the board based on applicable tables and formulas provided by the actuary.

          (c)  "Actuarial equivalent" means a benefit of equal value to the accumulated contributions, annuity or benefit, as the case may be, when computed upon the basis of such mortality tables as adopted by the board of trustees, and regular interest.

          (d)  "Actuarial tables" means such tables of mortality and rates of interest as adopted by the board in accordance with the recommendation of the actuary.

          (e)  "Agency" means any governmental body employing persons in the state service.

          (f)  "Average compensation" means the average of the four (4) highest years of earned compensation reported for an employee in a fiscal or calendar year period, or combination thereof that do not overlap, or the last forty-eight (48) consecutive months of earned compensation reported for an employee.  The four (4) years need not be successive or joined years of service.  In computing the average compensation for retirement, disability or survivor benefits, any amount lawfully paid in a lump sum for personal leave or major medical leave shall be included in the calculation to the extent that the amount does not exceed an amount that is equal to thirty (30) days of earned compensation and to the extent that it does not cause the employee's earned compensation to exceed the maximum reportable amount specified in paragraph (k) of this section; however, this thirty-day limitation shall not prevent the inclusion in the calculation of leave earned under federal regulations before July 1, 1976, and frozen as of that date as referred to in Section 25-3-99.  In computing the average compensation, no amounts shall be used that are in excess of the amount on which contributions were required and paid, and no nontaxable amounts paid by the employer for health or life insurance premiums for the employee shall be used.  If any member who is or has been granted any increase in annual salary or compensation of more than eight percent (8%) retires within twenty-four (24) months from the date that the increase becomes effective, then the board shall exclude that part of the increase in salary or compensation that exceeds eight percent (8%) in calculating that member's average compensation for retirement purposes.  The board may enforce this provision by rule or regulation.  However, increases in compensation in excess of eight percent (8%) per year granted within twenty-four (24) months of the date of retirement may be included in the calculation of average compensation if satisfactory proof is presented to the board showing that the increase in compensation was the result of an actual change in the position held or services rendered, or that the compensation increase was authorized by the State Personnel Board or was increased as a result of statutory enactment, and the employer furnishes an affidavit stating that the increase granted within the last twenty-four (24) months was not contingent on a promise or agreement of the employee to retire.  Nothing in Section 25-3-31 shall affect the calculation of the average compensation of any member for the purposes of this article.  The average compensation of any member who retires before July 1, 1992, shall not exceed the annual salary of the Governor.

          (g)  "Beneficiary" means any person entitled to receive a retirement allowance, an annuity or other benefit as provided by Articles 1 and 3.  The term "beneficiary" may also include an organization, estate, trust or entity; however, a beneficiary designated or entitled to receive monthly payments under an optional settlement based on life contingency or under a statutory monthly benefit may only be a natural person.  In the event of the death before retirement of any member who became a member of the system before July 1, 2007, and whose spouse and/or children are not entitled to a retirement allowance on the basis that the member has less than four (4) years of service credit, or who became a member of the system on or after July 1, 2007, and whose spouse and/or children are not entitled to a retirement allowance on the basis that the member has less than eight (8) years of service credit, and/or has not been married for a minimum of one (1) year or the spouse has waived his or her entitlement to a retirement allowance under Section 25-11-114, the lawful spouse of a member at the time of the death of the member shall be the beneficiary of the member unless the member has designated another beneficiary after the date of marriage in writing, and filed that writing in the office of the executive director of the board of trustees.  No designation or change of beneficiary shall be made in any other manner.

          (h)  "Board" means the board of trustees provided in Section 25-11-15 to administer the retirement system created under this article.

          (i)  "Creditable service" means "prior service," "retroactive service" and all lawfully credited unused leave not exceeding the accrual rates and limitations provided in Section 25-3-91 et seq., as of the date of withdrawal from service plus "membership service" and other service for which credit is allowable as provided in Section 25-11-109.  Except to limit creditable service reported to the system for the purpose of computing an employee's retirement allowance or annuity or benefits provided in this article, nothing in this paragraph shall limit or otherwise restrict the power of the governing authority of a municipality or other political subdivision of the state to adopt such vacation and sick leave policies as it deems necessary.

          (j)  "Child" means either a natural child of the member, a child that has been made a child of the member by applicable court action before the death of the member, or a child under the permanent care of the member at the time of the latter's death, which permanent care status shall be determined by evidence satisfactory to the board.

          (k)  "Earned compensation" means the full amount earned during a fiscal year by an employee including any maintenance furnished not to exceed the employee compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code for the calendar year in which the fiscal year begins and proportionately for less than one (1) year of service.  The value of that maintenance when not paid in money shall be fixed by the employing state agency, and, in case of doubt, by the board of trustees as defined in Section 25-11-15.  Earned compensation shall not include any nontaxable amounts paid by the employer for health or life insurance premiums for an employee.  In any case, earned compensation shall be limited to the regular periodic compensation paid, exclusive of litigation fees, bond fees, and other similar extraordinary nonrecurring payments.  In addition, any member in a covered position, as defined by Public Employees' Retirement System laws and regulations, who is also employed by another covered agency or political subdivision shall have the earnings of that additional employment reported to the Public Employees' Retirement System regardless of whether the additional employment is sufficient in itself to be a covered position.  In addition, computation of earned compensation shall be governed by the following:

               (i)  In the case of constables, the net earnings from their office after deduction of expenses shall apply, except that in no case shall earned compensation be less than the total direct payments made by the state or governmental subdivisions to the official.

               (ii)  In the case of chancery or circuit clerks, the net earnings from their office after deduction of expenses shall apply as expressed in Section 25-11-123(f)(4).

               (iii)  In the case of members of the State Legislature, all remuneration or amounts paid, except mileage allowance, shall apply.

               (iv)  The amount by which an eligible employee's salary is reduced under a salary reduction agreement authorized under Section 25-17-5 shall be included as earned compensation under this paragraph, provided this inclusion does not conflict with federal law, including federal regulations and federal administrative interpretations under the federal law, pertaining to the Federal Insurance Contributions Act or to Internal Revenue Code Section 125 cafeteria plans.

               (v)  Compensation in addition to an employee's base salary that is paid to the employee under the vacation and sick leave policies of a municipality or other political subdivision of the state that employs him or her that exceeds the maximums authorized by Section 25-3-91 et seq. shall be excluded from the calculation of earned compensation under this article.

               (vi)  The maximum salary applicable for retirement purposes before July 1, 1992, shall be the salary of the Governor.

               (vii)  Nothing in Section 25-3-31 shall affect the determination of the earned compensation of any member for the purposes of this article.

          (l)  "Employee" means any person legally occupying a position in the state service, and shall include the employees of the retirement system created under this article.

          (m)  "Employer" means the State of Mississippi or any of its departments, agencies or subdivisions from which any employee receives his or her compensation.

          (n)  "Executive director" means the secretary to the board of trustees, as provided in Section 25-11-15(9), and the administrator of the Public Employees' Retirement System and all systems under the management of the board of trustees.  Wherever the term "Executive Secretary of the Public Employees' Retirement System" or "executive secretary" appears in this article or in any other provision of law, it shall be construed to mean the Executive Director of the Public Employees' Retirement System.

          (o)  "Fiscal year" means the period beginning on July 1 of any year and ending on June 30 of the next succeeding year.

          (p)  "Medical board" means the board of physicians or any governmental or nongovernmental disability determination service designated by the board of trustees that is qualified to make disability determinations as provided for in Section 25-11-119.

          (q)  "Member" means any person included in the membership of the system as provided in Section 25-11-105.  For purposes of Sections 25-11-103, 25-11-105, 25-11-109, 25-11-111, 25-11-113, 25-11-114, 25-11-115 and 25-11-117, if a member of the system withdrew from state service and received a refund of the amount of the accumulated contributions to the credit of the member in the annuity savings account before July 1, 2007, and the person reenters state service and becomes a member of the system again on or after July 1, 2007, and repays all or part of the amount received as a refund and interest in order to receive creditable service for service rendered before July 1, 2007, the member shall be considered to have become a member of the system on or after July 1, 2007, subject to the eight-year membership service requirement, as applicable in those sections.  For purposes of Sections 25-11-103, 25-11-111, 25-11-114 and 25-11-115, if a member of the system withdrew from state service and received a refund of the amount of the accumulated contributions to the credit of the member in the annuity savings account before July 1, 2011, and the person reenters state service and becomes a member of the system again on or after July 1, 2011, and repays all or part of the amount received as a refund and interest in order to receive creditable service for service rendered before July 1, 2011, the member shall be considered to have become a member of the system on or after July 1, 2011.

          (r)  "Membership service" means service as an employee in a covered position rendered while a contributing member of the retirement system.

          (s)  "Position" means any office or any employment in the state service, or two (2) or more of them, the duties of which call for services to be rendered by one (1) person, including positions jointly employed by federal and state agencies administering federal and state funds.  The employer shall determine upon initial employment and during the course of employment of an employee who does not meet the criteria for coverage in the Public Employees' Retirement System based on the position held, whether the employee is or becomes eligible for coverage in the Public Employees' Retirement System based upon any other employment in a covered agency or political subdivision.  If or when the employee meets the eligibility criteria for coverage in the other position, then the employer must withhold contributions and report wages from the noncovered position in accordance with the provisions for reporting of earned compensation.  Failure to deduct and report those contributions shall not relieve the employee or employer of liability thereof. The board shall adopt such rules and regulations as necessary to implement and enforce this provision.

          (t)  "Prior service" means:

               (i)  For persons who became members of the system before July 1, 2007, service rendered before February 1, 1953, for which credit is allowable under Sections 25-11-105 and 25-11-109, and which shall allow prior service for any person who is now or becomes a member of the Public Employees' Retirement System and who does contribute to the system for a minimum period of four (4) years.

               (ii)  For persons who became members of the system on or after July 1, 2007, service rendered before February 1, 1953, for which credit is allowable under Sections 25-11-105 and 25-11-109, and which shall allow prior service for any person who is now or becomes a member of the Public Employees' Retirement System and who does contribute to the system for a minimum period of eight (8) years.

          (u)  "Regular interest" means interest compounded annually at such a rate as determined by the board in accordance with Section 25-11-121.

          (v)  "Retirement allowance" means an annuity for life as provided in this article, payable each year in twelve (12) equal monthly installments beginning as of the date fixed by the board.  The retirement allowance shall be calculated in accordance with Section 25-11-111.  However, any spouse who received a spouse retirement benefit in accordance with Section 25-11-111(d) before March 31, 1971, and those benefits were terminated because of eligibility for a social security benefit, may again receive his or her spouse retirement benefit from and after making application with the board of trustees to reinstate the spouse retirement benefit.

          (w)  "Retroactive service" means service rendered after February 1, 1953, for which credit is allowable under Section 25-11-105(b) and Section 25-11-105(k).

          (x)  "System" means the Public Employees' Retirement System of Mississippi established and described in Section 25-11-101.

          (y)  "State" means the State of Mississippi or any political subdivision thereof or instrumentality of the state.

          (z)  "State service" means all offices and positions of trust or employment in the employ of the state, or any political subdivision or instrumentality of the state, that elect to participate as provided by Section 25-11-105(f), including the position of elected or fee officials of the counties and their deputies and employees performing public services or any department, independent agency, board or commission thereof, and also includes all offices and positions of trust or employment in the employ of joint state and federal agencies administering state and federal funds and service rendered by employees of the public schools.  Effective July 1, 1973, all nonprofessional public school employees, such as bus drivers, janitors, maids, maintenance workers and cafeteria employees, shall have the option to become members in accordance with Section 25-11-105(b), and shall be eligible to receive credit for services before July 1, 1973, provided that the contributions and interest are paid by the employee in accordance with that section; in addition, the county or municipal separate school district may pay the employer contribution and pro rata share of interest of the retroactive service from available funds.  From and after July 1, 1998, retroactive service credit shall be purchased at the actuarial cost in accordance with Section 25-11-105(b).

          (aa)  "Withdrawal from service" or "termination from service" means complete severance of employment in the state service of any member by resignation, dismissal or discharge.

          (bb)  The masculine pronoun, wherever used, includes the feminine pronoun.

     (2)  For purposes of this article, the term "political subdivision" shall have the meaning ascribed to such term in Section 25-11-5 and shall also include public charter schools.

     SECTION 5.  This act shall take effect and be in force from and after July 1, 2014.