MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Education; Appropriations
By: Senator(s) Watson, Sojourner
AN ACT TO ESTABLISH A MISSISSIPPI EDUCATION SAVINGS SCHOLARSHIP ACCOUNTS PROGRAM TO BE ADMINISTERED BY THE STATE DEPARTMENT OF EDUCATION; TO DEFINE ELIGIBILITY FOR THE PROGRAM; TO PROVIDE THAT PARTICIPATING FAMILIES RECEIVE 90% OF THE BASE STUDENT COST ALLOCATION UNDER THE MISSISSIPPI ADEQUATE EDUCATION FORMULA; TO PRESCRIBE THE AUTHORIZED EDUCATIONAL EXPENDITURES FOR EDUCATION SAVINGS SCHOLARSHIP ACCOUNT FUNDS WHICH SHALL INCLUDE PRIVATE SCHOOL TUITION, BOOKS ONLINE LEARNING PROGRAMS AND POSTSECONDARY EXPENSES; TO PROVIDE FOR THE TRANSFER OF ADEQUATE EDUCATION FUNDS BY THE STATE DEPARTMENT OF EDUCATION TO THE STATE TREASURER TO BE DEPOSITED INTO INDIVIDUAL STUDENT EDUCATION SAVINGS SCHOLARSHIP ACCOUNTS AND TO ESTABLISH FUNDS FOR THAT PURPOSE; TO PROVIDE FOR THE TRANSFER OF A PRO RATA AMOUNT OF LOCAL SCHOOL DISTRICT TAXES INTO INDIVIDUAL STUDENT EDUCATION SAVINGS SCHOLARSHIP ACCOUNTS BY THE LOCAL SCHOOL DISTRICT; TO AMEND SECTIONS 37-13-91 AND 27-7-18, MISSISSIPPI CODE OF 1972, IN CONFORMITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Definitions. In Sections 1 through 3 of this act, unless the context otherwise requires:
(a) "Curriculum" means a complete course of study for a particular content area or grade level, including any supplemental materials required by the curriculum.
(b) "Department" means the State Department of Education.
(c) "Eligible postsecondary institution" means a community college, a university under the jurisdiction of the Board of Trustees of State Institutions of Higher Learning or an accredited private postsecondary institution.
(d) "Parent" means a resident of this state who is the parent or legal guardian of a qualified student.
(e) "Qualified school" means a nonpublic elementary or secondary school or a preschool for qualified students that is located in this state and that does not discriminate on the basis of race, color or national origin, or a legitimate homeschool program as determined under Section 37-13-91(3).
(f) "Qualified student" means a resident of this state who is any of the following:
(i) The student attended a public elementary or secondary school as a full-time student as defined in Section 37-151-5 for at least the first one hundred (100) days of the prior fiscal year and who transferred from a public elementary or secondary school under a contract to participate in an education savings scholarship account.
(ii) The student registered to attend a public elementary or secondary school as a first-time student at least thirty (30) days before the beginning of the school year and who transferred from that school under a contract to participate in an education savings scholarship account.
(iii) The student previously participated in the Mississippi Education Savings Scholarship Accounts Program.
(iv) The student received a scholarship under Section 2 of this act and who continues to attend a qualified school.
(g) "Treasurer" means the Office of the State Treasurer.
SECTION 2. Mississippi Education Savings Scholarship Accounts Program. (1) The Mississippi Education Savings Scholarship Accounts Program is established to provide options for the education of students in this state.
(2) To enroll a qualified student for an education savings scholarship account, the parent of the qualified student must sign an agreement to do all of the following:
(a) Provide an education for the qualified student in at least the subjects of reading, grammar, mathematics, social studies and science.
(b) Not enroll the qualified student in a school district or charter school and release the school district from all obligations to educate the qualified student.
(c) Use the money deposited in the qualified student's Mississippi Education Savings Scholarship Account only for the following expenses of the qualified student:
(i) Tuition or fees at a qualified school.
(ii) Textbooks required by a qualified school.
(iii) Educational therapies or services for the qualified student from a licensed or accredited practitioner or provider.
(iv) Tutoring services provided by a tutor accredited by a state, regional or national accrediting organization.
(v) Curriculum at a qualified school.
(vi) Tuition or fees for a nonpublic online learning program.
(vii) Fees for a nationally standardized norm-referenced achievement test, advanced placement examinations or any exams related to college or university admission.
(viii) Contributions to a qualified tuition program established pursuant to 26 United States Code Section 529 for the benefit of the qualified student.
(ix) Tuition or fees at an eligible postsecondary institution.
(x) Textbooks required by an eligible postsecondary institution.
(xi) Fees for management of the education savings scholarship account by firms selected by the State Treasurer.
(xii) Services provided by a public school, including individual classes and extracurricular programs.
(3) In exchange for the parent's agreement pursuant to subsection (2) of this section, the department shall transfer from the monies that would otherwise be allocated to a recipient's prior school district under the Mississippi Adequate Education Program to the State Treasurer for deposit into a Mississippi Education Savings Scholarship Account an amount that is equivalent to ninety percent (90%) of the base support level prescribed in Section 37-151-7(1)(b) for that particular student. The department may retain up to five percent (5%) of the base support level prescribed in Section 37-151-7(1)(b) for each student with an education savings scholarship account for deposit in the State Department of Education Education Savings Scholarship Account Fund established in subsection (4) of this section, out of which the department shall transfer one percent (1%) of the base support level prescribed in Section 37-151-7(1)(b) for each student with an education savings scholarship account to the State Treasurer for deposit in the State Treasurer Education Savings Scholarship Account Fund established in subsection (5) of this section.
(4) In exchange for the parent's agreement pursuant to subsection (2) of this section, in addition to the monies transferred by the State Department of Education under subsection (3), the school district in which the student recipient resides shall pay directly to the State Treasurer for deposit into a Mississippi Education Savings Scholarship Account an amount equal to ninety percent (90%) of the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student recipient resides. The pro rata ad valorem receipts and in-lieu receipts to be transferred to the Mississippi Education Savings Scholarship Account shall include all levies for the support of the local school district under Sections 37-57-1 (local contribution to the Adequate Education Program) and 37-57-105 (school district operational levy) and may not include any taxes levied for the retirement of the local school district's bonded indebtedness or short-term notes or any taxes levied for the support of vocation-technical education programs. Payments made under this section by a school district must be made before the expiration of three (3) business days after the funds are distributed to the school district by the tax collector.
(5) The State Department of Education Education Savings Scholarship Account Fund is established consisting of monies retained by the department pursuant to subsection (3) of this section. The department shall administer the fund. Monies in the fund are subject to legislative appropriation. Monies in the fund shall be used for the department's costs in administering education savings scholarship accounts under Sections 1 through 3 of this act. Monies in the fund are exempt from lapsing of appropriations.
(6) The State Treasurer Education Savings Scholarship Account Fund is established consisting of monies transferred by the State Department of Education to the State Treasurer pursuant to subsection (3) of this section. The State Treasurer shall administer the fund. Monies in the fund shall be used for the State Treasurer's costs in administering the education savings scholarship accounts under Sections 1 through 3 of this act. Monies in the fund are subject to legislative appropriation. Monies in the fund are exempt from lapsing of appropriations.
(7) A parent must renew the qualified student's education savings scholarship account on an annual basis. A student who has previously qualified for an education savings scholarship account shall remain eligible to apply for renewal until the student finishes high school.
(8) A signed agreement under this section constitutes school attendance required by Section 37-13-91.
(9) A qualified school or a provider of services purchased pursuant to subsection (2) of this section may not share, refund or rebate any Mississippi Education Savings Scholarship Account monies with the parent or qualified student in any manner.
(10) On the qualified student's graduation from a postsecondary institution or after any period of four (4) consecutive years after high school graduation in which the student is not enrolled in an eligible postsecondary institution, the qualified student's Mississippi Education Savings Scholarship Account shall be closed and any remaining funds shall be returned to the state.
(11) Monies received pursuant to Sections 1 through 3 of this act do not constitute taxable income to the parent of the qualified student under the Mississippi Income Tax Law.
SECTION 3. Education savings scholarship accounts; administration; audit; rules. (1) The State Treasurer may contract with private financial management firms to manage Mississippi Education Savings Scholarship Accounts with the supervision of the State Treasurer.
(2) The State Department of Education shall conduct or contract for annual audits of education savings scholarship accounts to ensure compliance with Section 2(2)(c) of this act.
(3) The department may remove any parent or qualified student from eligibility for a Mississippi Education Savings Scholarship Account as a result of an unsatisfactory audit opinion and shall notify the State Treasurer. A parent may appeal the department's decision.
(4) The department may refer cases of substantial misuse of monies to the Attorney General for investigation if the department obtains evidence of fraudulent use of an account.
(5) The department shall make quarterly transfers of the amount calculated pursuant to Section 37-151-7(1)(b) to the State Treasurer for deposit into the education savings scholarship account of each qualified student.
(6) The department shall determine a period that is between July 1 and May 1 of each year during which it will accept applications for the following fiscal year. On or before May 30 of each year, the department shall furnish to the Joint Legislative Budget Committee an estimate of the amount required to fund the education savings scholarship accounts for the following fiscal year. The department shall include in its budget request for the following fiscal year the amount estimated for each qualified student.
(7) The department may adopt rules and policies necessary for the administration of the Mississippi Education Savings Scholarship Accounts Program.
SECTION 4. Section 37-13-91, Mississippi Code of 1972, is amended as follows:
37-13-91. (1) This section shall be referred to as the "Mississippi Compulsory School Attendance Law."
(2) The following terms as used in this section are defined as follows:
(a) "Parent" means the father or mother to whom a child has been born, or the father or mother by whom a child has been legally adopted.
(b) "Guardian" means a guardian of the person of a child, other than a parent, who is legally appointed by a court of competent jurisdiction.
(c) "Custodian" means any person having the present care or custody of a child, other than a parent or guardian of the child.
(d) "School day" means not less than five (5) and not more than eight (8) hours of actual teaching in which both teachers and pupils are in regular attendance for scheduled schoolwork.
(e) "School" means any public school, including a charter school, in this state or any nonpublic school in this state which is in session each school year for at least one hundred eighty (180) school days, except that the "nonpublic" school term shall be the number of days that each school shall require for promotion from grade to grade.
(f) "Compulsory-school-age child" means a child who has attained or will attain the age of six (6) years on or before September 1 of the calendar year and who has not attained the age of seventeen (17) years on or before September 1 of the calendar year; and shall include any child who has attained or will attain the age of five (5) years on or before September 1 and has enrolled in a full-day public school kindergarten program.
(g) "School attendance officer" means a person employed by the State Department of Education pursuant to Section 37-13-89.
(h) "Appropriate school official" means the superintendent of the school district, or his designee, or, in the case of a nonpublic school, the principal or the headmaster.
(i) "Nonpublic school" means an institution for the teaching of children, consisting of a physical plant, whether owned or leased, including a home, instructional staff members and students, and which is in session each school year. This definition shall include, but not be limited to, private, church, parochial and home instruction programs.
(3) A parent, guardian or custodian of a compulsory-school-age child in this state shall cause the child to enroll in and attend a public school or legitimate nonpublic school for the period of time that the child is of compulsory school age, except under the following circumstances:
(a) When a compulsory-school-age child is physically, mentally or emotionally incapable of attending school as determined by the appropriate school official based upon sufficient medical documentation.
(b) When a compulsory-school-age child is enrolled in and pursuing a course of special education, remedial education or education for handicapped or physically or mentally disadvantaged children.
(c) When a compulsory-school-age child is being educated in a legitimate home instruction program.
The parent, guardian or custodian of a compulsory-school-age child described in this subsection, or the parent, guardian or custodian of a compulsory-school-age child attending any charter school or nonpublic school, or the appropriate school official for any or all children attending a charter school or nonpublic school shall complete a "certificate of enrollment" or shall sign a contract to participate in the Mississippi Education Savings Scholarship Accounts Program pursuant to Sections 1 through 3 of this act, in order to facilitate the administration of this section.
The form of the certificate of enrollment shall be prepared by the Office of Compulsory School Attendance Enforcement of the State Department of Education and shall be designed to obtain the following information only:
(i) The name, address, telephone number and date of birth of the compulsory-school-age child;
(ii) The name, address and telephone number of the parent, guardian or custodian of the compulsory-school-age child;
(iii) A simple description of the type of education the compulsory-school-age child is receiving and, if the child is enrolled in a nonpublic school, the name and address of the school; and
(iv) The signature of the parent, guardian or custodian of the compulsory-school-age child or, for any or all compulsory-school-age child or children attending a charter school or nonpublic school, the signature of the appropriate school official and the date signed.
The certificate of enrollment shall be returned to the school attendance officer where the child resides on or before September 15 of each year. Any parent, guardian or custodian found by the school attendance officer to be in noncompliance with this section shall comply, after written notice of the noncompliance by the school attendance officer, with this subsection within ten (10) days after the notice or be in violation of this section. However, in the event the child has been enrolled in a public school within fifteen (15) calendar days after the first day of the school year as required in subsection (6), the parent or custodian may, at a later date, enroll the child in a legitimate nonpublic school or legitimate home instruction program and send the certificate of enrollment to the school attendance officer and be in compliance with this subsection.
For the purposes of this subsection, a legitimate nonpublic school or legitimate home instruction program shall be those not operated or instituted for the purpose of avoiding or circumventing the compulsory attendance law.
(4) An "unlawful absence" is an absence for an entire school day or during part of a school day by a compulsory-school-age child, which absence is not due to a valid excuse for temporary nonattendance. For purposes of reporting absenteeism under subsection (6) of this section, if a compulsory-school-age child has an absence that is more than thirty-seven percent (37%) of the instructional day, as fixed by the school board for the school at which the compulsory-school-age child is enrolled, the child must be considered absent the entire school day. Days missed from school due to disciplinary suspension shall not be considered an "excused" absence under this section. This subsection shall not apply to children enrolled in a nonpublic school.
Each of the following shall constitute a valid excuse for temporary nonattendance of a compulsory-school-age child enrolled in a noncharter public school, provided satisfactory evidence of the excuse is provided to the superintendent of the school district, or his designee:
(a) An absence is excused when the absence results from the compulsory-school-age child's attendance at an authorized school activity with the prior approval of the superintendent of the school district, or his designee. These activities may include field trips, athletic contests, student conventions, musical festivals and any similar activity.
(b) An absence is excused when the absence results from illness or injury which prevents the compulsory-school-age child from being physically able to attend school.
(c) An absence is excused when isolation of a compulsory-school-age child is ordered by the county health officer, by the State Board of Health or appropriate school official.
(d) An absence is excused when it results from the death or serious illness of a member of the immediate family of a compulsory-school-age child. The immediate family members of a compulsory-school-age child shall include children, spouse, grandparents, parents, brothers and sisters, including stepbrothers and stepsisters.
(e) An absence is excused when it results from a medical or dental appointment of a compulsory-school-age child.
(f) An absence is excused when it results from the attendance of a compulsory-school-age child at the proceedings of a court or an administrative tribunal if the child is a party to the action or under subpoena as a witness.
(g) An absence may be excused if the religion to which the compulsory-school-age child or the child's parents adheres, requires or suggests the observance of a religious event. The approval of the absence is within the discretion of the superintendent of the school district, or his designee, but approval should be granted unless the religion's observance is of such duration as to interfere with the education of the child.
(h) An absence may be excused when it is demonstrated to the satisfaction of the superintendent of the school district, or his designee, that the purpose of the absence is to take advantage of a valid educational opportunity such as travel, including vacations or other family travel. Approval of the absence must be gained from the superintendent of the school district, or his designee, before the absence, but the approval shall not be unreasonably withheld.
(i) An absence may be excused when it is demonstrated to the satisfaction of the superintendent of the school district, or his designee, that conditions are sufficient to warrant the compulsory-school-age child's nonattendance. However, no absences shall be excused by the school district superintendent, or his designee, when any student suspensions or expulsions circumvent the intent and spirit of the compulsory attendance law.
(j) An absence is excused when it results from the attendance of a compulsory-school-age child participating in official organized events sponsored by the 4-H or Future Farmers of America (FFA). The excuse for the 4-H or FFA event must be provided in writing to the appropriate school superintendent by the Extension Agent or High School Agricultural Instructor/FFA Advisor.
(k) An absence is excused when it results from the compulsory-school-age child officially being employed to serve as a page at the State Capitol for the Mississippi House of Representatives or Senate.
(5) Any parent, guardian or custodian of a compulsory-school-age child subject to this section who refuses or willfully fails to perform any of the duties imposed upon him or her under this section or who intentionally falsifies any information required to be contained in a certificate of enrollment, shall be guilty of contributing to the neglect of a child and, upon conviction, shall be punished in accordance with Section 97-5-39.
Upon prosecution of a parent, guardian or custodian of a compulsory-school-age child for violation of this section, the presentation of evidence by the prosecutor that shows that the child has not been enrolled in school within eighteen (18) calendar days after the first day of the school year of the public school which the child is eligible to attend, or that the child has accumulated twelve (12) unlawful absences during the school year at the public school in which the child has been enrolled, shall establish a prima facie case that the child's parent, guardian or custodian is responsible for the absences and has refused or willfully failed to perform the duties imposed upon him or her under this section. However, no proceedings under this section shall be brought against a parent, guardian or custodian of a compulsory-school-age child unless the school attendance officer has contacted promptly the home of the child and has provided written notice to the parent, guardian or custodian of the requirement for the child's enrollment or attendance.
(6) If a compulsory-school-age child has not been enrolled in a school within fifteen (15) calendar days after the first day of the school year of the school which the child is eligible to attend or the child has accumulated five (5) unlawful absences during the school year of the public school in which the child is enrolled, the school district superintendent or his designee shall report, within two (2) school days or within five (5) calendar days, whichever is less, the absences to the school attendance officer. The State Department of Education shall prescribe a uniform method for schools to utilize in reporting the unlawful absences to the school attendance officer. The superintendent or his designee, also shall report any student suspensions or student expulsions to the school attendance officer when they occur.
(7) When a school attendance officer has made all attempts to secure enrollment and/or attendance of a compulsory-school-age child and is unable to effect the enrollment and/or attendance, the attendance officer shall file a petition with the youth court under Section 43-21-451 or shall file a petition in a court of competent jurisdiction as it pertains to parent or child. Sheriffs, deputy sheriffs and municipal law enforcement officers shall be fully authorized to investigate all cases of nonattendance and unlawful absences by compulsory-school-age children, and shall be authorized to file a petition with the youth court under Section 43-21-451 or file a petition or information in the court of competent jurisdiction as it pertains to parent or child for violation of this section. The youth court shall expedite a hearing to make an appropriate adjudication and a disposition to ensure compliance with the Compulsory School Attendance Law, and may order the child to enroll or re-enroll in school. The superintendent of the school district to which the child is ordered may assign, in his discretion, the child to the alternative school program of the school established pursuant to Section 37-13-92.
(8) The State Board of Education shall adopt rules and regulations for the purpose of reprimanding any school superintendents who fail to timely report unexcused absences under the provisions of this section.
(9) Notwithstanding any provision or implication herein to the contrary, it is not the intention of this section to impair the primary right and the obligation of the parent or parents, or person or persons in loco parentis to a child, to choose the proper education and training for such child, and nothing in this section shall ever be construed to grant, by implication or otherwise, to the State of Mississippi, any of its officers, agencies or subdivisions any right or authority to control, manage, supervise or make any suggestion as to the control, management or supervision of any private or parochial school or institution for the education or training of children, of any kind whatsoever that is not a public school according to the laws of this state; and this section shall never be construed so as to grant, by implication or otherwise, any right or authority to any state agency or other entity to control, manage, supervise, provide for or affect the operation, management, program, curriculum, admissions policy or discipline of any such school or home instruction program.
(10) If a pupil will be educated pursuant to a Mississippi Education Savings Scholarship Account under Sections 1 through 3 of this act, the State Department of Education shall provide a copy of the contract to participate in the Mississippi Education Savings Scholarship Accounts Program to the school superintendent of the school district where the pupil resides.
SECTION 5. Section 27-7-18, Mississippi Code of 1972, is amended as follows:
27-7-18. (1) Alimony payments. In the case of a person described in Section 27-7-15(2)(e), there shall be allowed as a deduction from gross income amounts paid as periodic payments to the extent of such amounts as are includible in the gross income of the spouse as provided in Section 27-7-15(2)(e), payment of which is made within the person's taxable year.
(2) Unreimbursed moving expenses incurred after December 31, 1994, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to moving expenses, not in direct conflict with the provisions of the Mississippi Income Tax Law.
(3) Amounts paid after December 31, 1998, by a self-employed individual for insurance which constitute medical care for the taxpayer, his spouse and dependents, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to such payments, not in direct conflict with the provisions of the Mississippi Income Tax Law.
(4) Contributions or payments to a Mississippi Affordable College Savings (MACS) Program account are deductible from gross income as provided in Section 37-155-113. Payments made under a prepaid tuition contract entered into under the Mississippi Prepaid Affordable College Tuition Program are deductible as provided in Section 37-155-17.
(5) (a) Unreimbursed travel expenses, lodging expenses and lost wages an individual incurred as a result of, and related to, the donation, while living, of one or more of his or her organs for human organ transplantation, are deductible from gross income. The deduction from gross income authorized by this subsection may be claimed for only once and may not exceed Ten Thousand Dollars ($10,000.00).
(b) As used in this subsection, "organ" means all or part of a liver, pancreas, kidney, intestine, lung or bone marrow.
(6) Payments received from Mississippi Education Savings Scholarship Accounts by an eligible student or parent, as defined in Section 2 of this act, are deductible as an adjustment to gross income.
SECTION 6. This act shall take effect and be in force from and after July 1, 2014.