MISSISSIPPI LEGISLATURE

2025 Regular Session

To: Education

By: Senator(s) DeBar

Senate Bill 2593

AN ACT TO BRING FORWARD SECTIONS 37-28-1, 37-28-3, 37-28-5, 37-28-7, 37-28-9, 37-28-11, 37-28-13, 37-28-15, 37-28-17, 37-28-19, 37-28-21, 37-28-23, 37-28-25, 37-28-27, 37-28-29, 37-28-31, 37-28-33, 37-28-35, 37-28-37, 37-28-39, 37-28-41, 37-28-43, 37-28-45, 37-28-47, 37-28-49, 37-28-51, 37-28-53, 37-28-55, 37-28-57, 37-28-59 AND 37-28-61, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

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

     37-28-1.  This chapter shall be known and may be cited as the "Mississippi Charter Schools Act of 2013."

     SECTION 2.  Section 37-28-3, Mississippi Code of 1972, is brought forward as follows:

     37-28-3.  (1)  The Legislature finds and declares that the general purposes of the state's charter schools are as follows:

          (a)  To improve student learning by creating high-quality schools with high standards for student performance;

          (b)  To close achievement gaps between high-performing and low-performing groups of public school students;

          (c)  To increase high-quality educational opportunities within the public education system for all students, especially those with a likelihood of academic failure;

          (d)  To create new professional opportunities for teachers, school administrators and other school personnel which allow them to have a direct voice in the operation of their schools;

          (e)  To encourage the use of different, high-quality models of teaching, governing, scheduling and other aspects of schooling which meet a variety of student needs;

          (f)  To allow public schools freedom and flexibility in exchange for exceptional levels of results driven accountability;

          (g)  To provide students, parents, community members and local entities with expanded opportunities for involvement in the public education system; and

          (h)  To encourage the replication of successful charter schools.

     (2)  All charter schools in the state established under this chapter are public schools and are part of the state's public education system.

     (3)  No provision of this chapter may be interpreted to allow the conversion of private schools into charter schools.

     SECTION 3.  Section 37-28-5, Mississippi Code of 1972, is brought forward as follows:

     37-28-5.  As used in this chapter, the following words and phrases have the meanings ascribed in this section unless the context clearly indicates otherwise:

          (a)  "Applicant" means any person or group that develops and submits an application for a charter school to the authorizer.

          (b)  "Application" means a proposal from an applicant to the authorizer to enter into a charter contract whereby the proposed school obtains charter school status.

          (c)  "Authorizer" means the Mississippi Charter School Authorizer Board established under Section 37-28-7 to review applications, decide whether to approve or reject applications, enter into charter contracts with applicants, oversee charter schools, and decide whether to renew, not renew, or revoke charter contracts.

          (d)  "Charter contract" means a fixed-term, renewable contract between a charter school and the authorizer which outlines the roles, powers, responsibilities and performance expectations for each party to the contract.

          (e)  "Charter school" means a public school that is established and operating under the terms of charter contract between the school's governing board and the authorizer.  The term "charter school" includes a conversion charter school and start-up charter school.

          (f)  "Conversion charter school" means a charter school that existed as a noncharter public school before becoming a charter school.

          (g)  "Education service provider" means a charter management organization, school design provider or any other partner entity with which a charter school intends to contract for educational design, implementation or comprehensive management.

          (h)  "Governing board" means the independent board of a charter school which is party to the charter contract with the authorizer and whose members have been elected or selected pursuant to the school's application.

          (i)  "Noncharter public school" means a public school that is under the direct management, governance and control of a school board or the state.

          (j)  "Parent" means a parent, guardian or other person or entity having legal custody of a child.

          (k)  "School board" means a school board exercising management and control over a local school district and the schools of that district pursuant to the State Constitution and state statutes.

          (l)  "School district" means a governmental entity that establishes and supervises one or more public schools within its geographical limits pursuant to state statutes.

          (m)  "Start-up charter school" means a charter school that did not exist as a noncharter public school before becoming a charter school.

          (n)  "Student" means any child who is eligible for attendance in a public school in the state.

          (o)  "Underserved students" means students qualifying as low-income or qualifying for a special education program under Section 37-151-201.

     SECTION 4.  Section 37-28-7, Mississippi Code of 1972, is brought forward 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 at the time of application, 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 of the Mississippi Charter School Authorizer Board.  The executive director shall possess the qualifications established by the board which are based on national best practices, and shall possess an understanding of state and federal education law.  The executive director, 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 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 is authorized to obtain suitable office space for administrative purposes.  In acquiring a facility or office space the authorizer board shall adhere to all policies and procedures required by the Department of Finance and Administration and the Public Procurement Review Board.

     SECTION 5.  Section 37-28-9, Mississippi Code of 1972, is brought forward as follows:

     37-28-9.  (1)  The authorizer is responsible for exercising, in accordance with this chapter, the following powers and duties:

          (a)  Developing chartering policies and maintaining  practices consistent with nationally recognized principles and standards for quality charter authorizing in all major areas of authorizing responsibility, including: 

              (i)  Organizational capacity and infrastructure;

              (ii)  Solicitation and evaluation of charter applications;

              (iii)  Performance contracting;

              (iv)  Ongoing charter school oversight and evaluation; and

              (v)  Charter renewal decision-making;

          (b)  Approving quality charter applications that meet identified educational needs and promote a diversity of educational choices;

          (c)  Declining to approve weak or inadequate charter applications;

          (d)  Negotiating and executing charter contracts with approved charter schools;

          (e)  Monitoring, in accordance with charter contract terms, the performance and legal compliance of charter schools;

          (f)  Determining whether each charter contract merits renewal, nonrenewal or revocation; and

          (g)  Applying for any federal funds that may be available for the implementation of charter school programs.

     (2)  The authorizer shall carry out all its duties under this chapter in a manner consistent with nationally recognized principles and standards and with the spirit and intent of this act.

     (3)  The authorizer may delegate its duties to the executive director and general counsel.

     (4)  Regulation by the authorizer shall be limited to those powers and duties prescribed in this section and all others prescribed by law, consistent with the spirit and intent of this chapter.

     (5)  Except in the case of gross negligence or reckless disregard of the safety and well-being of another person, the authorizer, members of the authorizer board in their official capacity, and employees of the authorizer in their official capacity are immune from civil liability with respect to all activities related to a charter school approved by the authorizer.

     SECTION 6.  Section 37-28-11, Mississippi Code of 1972, is brought forward as follows:

     37-28-11.  (1)  To cover the costs of overseeing charter schools in accordance with this chapter, the authorizer shall receive three percent (3%) of annual per-pupil allocations received by a charter school from state and local funds for each charter school it authorizes.

     (2)  The authorizer may receive appropriate gifts, grants and donations of any kind from any public or private entity to carry out the purposes of this chapter, subject to all lawful terms and conditions under which the gifts, grants or donations are given.

     (3)  The authorizer may expend its resources, seek grant funds and establish partnerships to support its charter school authorizing activities.

     SECTION 7.  Section 37-28-13, Mississippi Code of 1972, is brought forward as follows:

     37-28-13.  (1)  Upon request, the State Department of Education shall assist the Mississippi Charter School Authorizer Board with implementing the authorizer's decisions by providing such technical assistance and information as may be necessary for the implementation of this chapter.

     (2)  Before July 1 of each year, the authorizer shall publish a pamphlet, which may be in electronic form, containing:

          (a)  All statutes in Title 37, Mississippi Code of 1972, which are applicable to the charter schools;

          (b)  Any rules, regulations and policies adopted by the State Superintendent of Public Education, the State Board of Education or the State Department of Education with which charter schools must comply by virtue of the applicability to charter schools, as well as other public schools, of the state law to which those relevant rules, regulations and policies pertain; and

          (c)  Any other state and federal laws and matters that are relevant to the establishment and operation of charter schools in the State of Mississippi.

     The Mississippi Charter School Authorizer Board shall make the pamphlet available to the public on the board's website and shall notify all prospective applicants of the pamphlet.

     SECTION 8.  Section 37-28-15, Mississippi Code of 1972, is brought forward as follows:

     37-28-15.  (1)  To solicit, encourage and guide the development of quality charter school applications, the authorizer shall issue and publicize a request for proposals before September 1 of each year; however, during 2013, the authorizer shall issue and publicize a request for proposals before December 1.  The content and dissemination of the request for proposals must be consistent with the purposes and requirements of this chapter.

     (2)  The authorizer annually shall establish and disseminate a statewide timeline for charter approval or denial decisions.

     (3)  The authorizer's request for proposals must include the following:

          (a)  A clear statement of any preferences the authorizer wishes to grant to applications intended to help underserved students;

          (b)  A description of the performance framework that the authorizer has developed for charter school oversight and evaluation in accordance with Section 37-28-29;

          (c)  The criteria that will guide the authorizer's decision to approve or deny a charter application; and

          (d)  A clear statement of appropriately detailed questions, as well as guidelines, concerning the format and content essential for applicants to demonstrate the capacities necessary to establish and operate a successful charter school.

     (4)  In addition to all other requirements, the request for proposals must require charter applications to provide or describe thoroughly all of the following mandatory elements of the proposed school plan:

          (a)  An executive summary;

          (b)  The mission and vision of the proposed charter school, including identification of the targeted student population and the community the school hopes to serve;

          (c)  The location or geographic area proposed for the school;

          (d)  The grades to be served each year for the full term of the charter contract;

          (e)  Minimum, planned and maximum enrollment per grade per year for the term of the charter contract;

          (f)  Evidence of need and community support for the proposed charter school;

          (g)  Background information, including proof of United States citizenship, on the applicants, the proposed founding governing board members and, if identified, members of the proposed school leadership and management team.  The background information must include annual student achievement data, disaggregated by subgroup, for every school under the current or prior management of each board member and leadership team member;

          (h)  The school's proposed calendar, including the proposed opening and closing dates for the school term, and a sample daily schedule.  The school must be kept in session no less than the minimum number of school days established for all public schools in Section 37-13-63;

          (i)  A description of the school's academic program, aligned with state standards;

          (j)  A description of the school's instructional design, including the type of learning environment (such as classroom-based or independent study), class size and structure, curriculum overview and teaching methods;

          (k)  The school's plan for using internal and external assessments to measure and report student progress on the performance framework developed by the authorizer in accordance with Section 37-28-29;

          (l)  The school's plan for identifying and successfully serving students with disabilities (including all of the school's proposed policies pursuant to the Individuals with Disabilities Education Improvement Act of 2004, 20 USCS Section 1400 et seq., Section 504 of the Rehabilitation Act of 1973, 29 USCS Section 794, and Title 11 of the Americans with Disabilities Act, 42 USCS Section 12101 et seq., and the school's procedures for securing and providing evaluations and related services pursuant to federal law), students who are English language learners, students who are academically behind, and gifted students, including, but not limited to, compliance with any applicable laws and regulations;

          (m)  A description of cocurricular or extracurricular programs and how those programs will be funded and delivered;

          (n)  Plans and timelines for student recruitment and enrollment, including lottery policies and procedures that ensure that every student has an equal opportunity to be considered in the lottery and that the lottery is equitable, randomized, transparent and impartial so that students are accepted in a charter school without regard to disability, income level, race, religion or national origin;

          (o)  The school's student discipline policies, including those for special education students;

          (p)  An organizational chart that clearly presents the school's organizational structure, including lines of authority and reporting between the governing board, education service provider, staff, related bodies (such as advisory bodies or parent and teacher councils), and all other external organizations that will play a role in managing the school;

          (q)  A clear description of the roles and responsibilities of the governing board, education service provider, school leadership team, management team and all other entities shown in the organizational chart;

          (r)  A staffing chart for the school's first year, and a staffing plan for the term of the charter;

          (s)  Plans for recruiting and developing school leadership and staff, which may not include utilization of nonimmigrant foreign worker visa programs;

          (t)  The school's leadership and teacher employment policies, including performance evaluation plans;

          (u)  Proposed governing bylaws;

          (v)  Explanations of any partnerships or contractual relationships central to the school's operations or mission;

          (w)  The school's plans for providing transportation, food service and all other significant operational or ancillary services;

          (x)  Opportunities and expectations for parent involvement;

          (y)  A detailed school start-up plan, identifying tasks, timelines and responsible individuals;

          (z)  A description of the school's financial plans and policies, including financial controls and audit requirements;

          (aa)  A description of the insurance coverage the school will obtain;

          (bb)  Start-up and five-year budgets with clearly stated assumptions;

          (cc)  Start-up and first-year cash flow projections with clearly stated assumptions;

          (dd)  A disclosure of all sources of private funding and all funds from foreign sources, including gifts from foreign governments, foreign legal entities and domestic entities affiliated with either foreign governments or foreign legal entities.  For the purposes of this paragraph, the term "foreign" means a country or jurisdiction outside of any state or territory of the United States;

          (ee)  Evidence of anticipated fundraising contributions, if claimed in the application; and

          (ff)  A sound facilities plan, including backup or contingency plans if appropriate.

     (5)  In the case of an application to establish a charter school by converting an existing noncharter public school to charter school status, the request for proposals additionally shall require the applicant to demonstrate support for the proposed charter school conversion by a petition signed by a majority of teachers or a majority of parents of students in the existing noncharter public school, or by a majority vote of the local school board or, in the case of schools in districts under state conservatorship, by the State Board of Education.

     (6)  In the case of a proposed charter school that intends to contract with an education service provider for substantial educational services, management services or both types of services, the request for proposals additionally shall require the applicant to:

          (a)  Provide evidence of the education service provider's success in serving student populations similar to the targeted population, including demonstrated academic achievement as well as successful management of nonacademic school functions, if applicable;

          (b)  Provide a term sheet setting forth:  the proposed duration of the service contract; roles and responsibilities of the governing board, the school staff and the education service provider; the scope of services and resources to be provided by the education service provider; performance evaluation measures and timelines; the compensation structure, including clear identification of all fees to be paid to the education service provider; methods of contract oversight and enforcement; investment disclosure; and conditions for renewal and termination of the contract;

          (c)  Disclose and explain any existing or potential conflicts of interest between the school governing board and proposed service provider or any affiliated business entities; and

          (d)  Background information, including proof of United States citizenship, on the principal individuals affiliated with the education service provider.

     (7)  In the case of a charter school proposal from an applicant that currently operates one or more schools in any state or nation, the request for proposals additionally shall require the applicant to provide evidence of past performance and current capacity for growth.  The applicant shall be required to submit clear evidence that it has produced statistically significant gains in student achievement or consistently produced proficiency levels as measured on state achievement tests.

     SECTION 9.  Section 37-28-17, Mississippi Code of 1972, is brought forward as follows:

     37-28-17.  (1)  The following are the purposes of a charter application:

          (a)  To present the proposed charter school's academic and operational vision and plans;

          (b)  To demonstrate the applicant's capacities to execute the proposed vision and plans; and

          (c)  To provide the authorizer a clear basis for assessing the applicant's plans and capacities. 

     (2)  An approved charter application may not serve as the school's charter contract.

     SECTION 10.  Section 37-28-19, Mississippi Code of 1972, is brought forward as follows:

     37-28-19.  (1)  In reviewing and evaluating charter applications, the authorizer shall employ procedures, practices and criteria consistent with nationally recognized principles and standards for quality charter authorizing.  The application review process must include thorough evaluation of each written charter application and in-person interview with the applicant group.

     (2)  In deciding whether to approve charter applications, the authorizer must:

          (a)  Grant charters only to applicants that have provided evidence of competence in each element of the authorizer's published approval criteria, and in the case of an applicant that currently operates one or more schools in any state or nation, clear evidence that the management or leadership team of the charter school or schools currently operated by the applicant has produced statistically significant gains in student achievement or consistently produced proficiency levels as measured on state achievement test;

          (b)  Base decisions on documented evidence collected through the application review process; and

          (c)  Follow charter-granting policies and practices that are transparent, based on merit and avoid conflicts of interest or any appearance thereof.

     (3)  Before the expiration of one hundred eighty (180) days after the filing of a charter application, the authorizer must approve or deny the charter application; however, an application submitted by a public historically black college or university (HBCU), in partnership with a national nonprofit public HBCU support organization, for a charter school to be operated on or near the campus of the HBCU must be considered for expedited approval by the authorizer.  The authorizer shall adopt by resolution all charter approval or denial decisions in an open meeting of the authorizer board.

     (4)  An approval decision may include, if appropriate, reasonable conditions that the charter applicant must meet before a charter contract may be executed pursuant to Section 37-28-21.

     (5)  For a charter denial, the authorizer shall state clearly, for public record, its reasons for denial.  A denied applicant may reapply subsequently with the authorizer.

     (6)  Before the expiration of ten (10) days after taking action to approve or deny a charter application, the authorizer shall provide a report to the applicant.  The report must include a copy of the authorizer's resolution setting forth the action taken and reasons for the decision and assurances as to compliance with all of the procedural requirements and application elements set forth in this chapter.

     SECTION 11.  Section 37-28-21, Mississippi Code of 1972, is brought forward as follows:

     37-28-21.  (1)  The authorizer shall grant an initial charter to each qualified applicant for a term of five (5) operating years.  The term of the charter shall commence on the charter school's first day of operation.  An approved charter school may delay its opening for one (1) school year in order to plan and prepare for the school's opening.  If the school requires an opening delay of more than one (1) school year, the school must request an extension from the authorizer.  The authorizer may grant or deny the extension depending on the particular school's circumstances.

     (2)  (a)  The authorizer and the governing board of the approved charter school shall execute a charter contract that clearly sets forth the academic and operational performance expectations and measures by which the charter school will be judged and the administrative relationship between the authorizer and charter school, including each party's rights and duties.  The performance expectations and measures set forth in the charter contract must include, but need not be limited to, applicable federal and state accountability requirements.  The performance provisions may be refined or amended by mutual agreement after the charter school is operating and has collected baseline achievement data for its enrolled students.

          (b)  The charter contract must be signed by the chairman of the authorizer board and the president of the charter school's governing board.

          (c)  A charter school may not commence operations without a charter contract executed in accordance with this section and approved in an open meeting of the authorizer board.

     (3)  The authorizer may establish reasonable preopening requirements or conditions to monitor the start-up progress of a newly approved charter school and to ensure that the school is prepared to open smoothly on the date agreed and that the school meets all building, health, safety, insurance and other legal requirements before the school's opening.

     SECTION 12.  Section 37-28-23, Mississippi Code of 1972, is brought forward as follows:

     37-28-23.  (1)  A charter school must be open to:

          (a)  Any student residing in the geographical boundaries of the school district in which the charter school is located; and

          (b)  Any student who resides in the geographical boundaries of a school district that was rated "C," "D" or "F" at the time the charter school was approved by the authorizer board, or who resides in the geographical boundaries of a school district rated "C," or "D" or "F" at the time the student enrolls.

     (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)  A charter school shall give an enrollment preference to underserved children as defined in Section 37-28-5 to ensure the charter school meets its required underserved student composition.

          (e)  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.

     SECTION 13.  Section 37-28-25, Mississippi Code of 1972, is brought forward as follows:

     37-28-25.  If a student previously enrolled in a charter school enrolls in another public school in this state, the student's new school must accept credits earned by the student in courses or instructional programs at the 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.

     SECTION 14.  Section 37-28-27, Mississippi Code of 1972, is brought forward as follows:

     37-28-27.  A school district must provide or publicize to parents and the general public information about 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 15.  Section 37-28-29, Mississippi Code of 1972, is brought forward as follows:

     37-28-29.  (1)  The performance provisions within a charter contract must be based on a performance framework that clearly sets forth the academic and operational performance indicators, measures and metrics that will guide the authorizer's evaluations of the charter school.  The performance framework must include indicators, measures and metrics, at a minimum, for the following:

          (a)  Student academic proficiency;

          (b)  Student academic growth;

          (c)  Achievement gaps in both proficiency and growth between major student subgroups;

          (d)  Attendance;

          (e)  Recurrent enrollment from year to year;

          (f)  In-school and out-of-school suspension rates and expulsion rates;

          (g)  For charter high schools, postsecondary readiness, including the percentage of graduates submitting applications to postsecondary institutions, high school completion, postsecondary admission and postsecondary enrollment or employment;

          (h)  Financial performance and sustainability; and

          (i)  Board performance and stewardship, including compliance with all applicable laws, regulations and terms of the charter contract.

     (2)  The charter contract of each charter school serving Grades 9-12 must include a provision ensuring that graduation requirements meet or exceed those set by the Mississippi Department of Education for a regular high school diploma.  Nothing in this section shall preclude competency-based satisfaction of graduation requirements.

     (3)  Annual performance targets must be set by each charter school in conjunction with the authorizer and must be designed to help each school meet applicable federal, state and authorizer expectations.

     (4)  The performance framework must allow the inclusion of additional rigorous, valid and reliable indicators proposed by a charter school to augment external evaluations of its performance; however, the authorizer must approve the quality and rigor of any indicators proposed by a charter school, which indicators must be consistent with the purposes of this chapter.

     (5)  The performance framework must require the disaggregation of all student performance data by major student subgroups (gender, race, poverty status, special education status, English learner status and gifted status).

     (6)  The authorizer shall collect, analyze and report all data from state assessments in accordance with the performance framework for each charter school.  Multiple schools overseen by a single governing board must report their performance as separate, individual schools, and each school must be held independently accountable for its performance.

     (7)  Information needed by the authorizer from the charter school governing board for the authorizer's reports must be required and included as a material part of the charter contract.

     SECTION 16.  Section 37-28-31, Mississippi Code of 1972, is brought forward as follows:

     37-28-31.  (1)  The authorizer shall monitor annually the performance and legal compliance of each charter school it oversees, including collecting and analyzing data to support the school's evaluation according to the charter contract.  The authorizer may conduct or require oversight activities that enable the authorizer to fulfill its responsibilities under this chapter, including conducting appropriate inquiries and investigations, so long as those activities are consistent with the intent of this act, adhere to the terms of the charter contract and do not unduly inhibit the autonomy granted to charter schools.

     (2)  As part of its annual report to the Legislature, the authorizer shall publish and provide a performance report for each charter school it oversees in accordance with the performance framework set forth in the charter contract.  The report must be made available to the public at the same time as it is submitted to the Legislature.  The authorizer may require each charter school it oversees to submit an annual report to assist the authorizer in gathering complete information about each school, consistent with the performance framework.

     (3)  If a charter school's performance or legal compliance is unsatisfactory, the authorizer shall notify promptly the charter school of the problem and provide reasonable opportunity for the school to remedy the problem unless the problem warrants revocation, in which case the revocation timeframes will apply.

     (4)  The authorizer may take appropriate corrective actions or exercise sanctions in response to apparent deficiencies in a charter school's performance or legal compliance.  If warranted, the actions or sanctions may include requiring a charter school to develop and execute a corrective action plan within a specified timeframe.

     SECTION 17.  Section 37-28-33, Mississippi Code of 1972, is brought forward as follows:

     37-28-33.  (1)  A charter may be renewed for successive five-year terms of duration.  The authorizer may grant renewal with specific conditions for necessary improvements to a charter school and may lessen the renewal term based on the performance, demonstrated capacities and particular circumstances of each charter school.

     (2)  Before September 30, the authorizer shall issue a charter school performance report and charter renewal application guidance to any charter school whose charter will expire the following year.  The performance report must summarize the charter school's performance record to date, based on the data required by this chapter and the charter contract, and must provide notice of any weaknesses or concerns perceived by the authorizer which may jeopardize the charter school's position in seeking renewal if not timely rectified.  The charter school must respond and submit any corrections or clarifications for the performance report within ninety (90) days after receiving the report.

     (3)  The charter renewal application guidance must provide, at a minimum, an opportunity for the charter school to:

          (a)  Present additional evidence, beyond the data contained in the performance report, supporting its case for charter renewal;

          (b)  Describe improvements undertaken or planned for the school; and

          (c)  Detail the school's plans for the next charter term.

     (4)  The charter renewal application guidance must include or refer explicitly to the criteria that will guide the authorizer's renewal decision, which must be based on the performance framework set forth in the charter contract and consistent with this chapter.

     (5)  Before February 1, the governing board of a charter school seeking renewal shall submit a renewal application to the authorizer pursuant to the charter renewal application guidance issued by the authorizer.  The authorizer shall adopt a resolution ruling on the renewal application no later than ninety (90) days after the filing of the renewal application.

     (6)  In making each charter renewal decision, the authorizer must:

          (a)  Ground its decision in evidence of the school's performance over the term of the charter contract in accordance with the performance framework set forth in the charter contract;

          (b)  Ensure that data used in making the renewal decision is available to the school and the public; and

          (c)  Provide a public report summarizing the evidence that is the basis for the renewal decision.

     (7)  A charter contract must be revoked at any time or not renewed if the authorizer determines that the charter school has done any of the following or otherwise failed to comply with the provisions of this chapter:

          (a)  Committed a material and substantial violation of any of the terms, conditions, standards or procedures required under this chapter or the charter contract;

          (b)  Failed to meet or make sufficient progress toward the performance expectations set forth in the charter contract;

          (c)  Failed to meet generally accepted standards of fiscal management; or

          (d)  Substantially violated any material provision of law which is applicable to the charter school.

     (8)  The authorizer shall develop revocation and nonrenewal processes that:

          (a)  Provide the governing board of a charter school with a timely notification of the prospect of revocation or nonrenewal and of the reasons for such possible closure;

          (b)  Allow the governing board a reasonable amount of time in which to prepare a response;

          (c)  Provide the governing board with an opportunity to submit documents and give testimony challenging the rationale for closure and in support of the continuation of the school at an orderly proceeding held for that purpose;

          (d)  Allow the governing board access to representation by counsel and to call witnesses on the school's behalf;

          (e)  Permit the recording of such proceedings; and

          (f)  After a reasonable period for deliberation, require a final determination to be made and conveyed in writing to the governing board.

     (9)  Notwithstanding any provision to the contrary, the authorizer may not renew the charter of any charter school that, during the school's final operating year under the term of the charter contract, is designated an "F" school under the school accreditation rating system.

     (10)  If the authorizer revokes or does not renew a charter, the authorizer must state clearly, in a resolution of adopted by the authorizer board, the reasons for the revocation or nonrenewal.

     (11)  Within ten (10) days after taking action to renew, not renew or revoke a charter, the authorizer shall provide a report to the charter school.  The report must include a copy of the authorizer board's resolution setting forth the action taken, reasons for the board's decision and assurances as to compliance with all of the requirements set forth in this chapter.

     SECTION 18.  Section 37-28-35, Mississippi Code of 1972, is brought forward as follows:

     37-28-35.  (1)  Before implementing a charter school closure decision, the authorizer must develop a charter school closure protocol to ensure timely notification to parents, orderly transition of students and student records to new schools, and proper disposition of school funds, property and assets in accordance with the requirements of this chapter.  The protocol must specify tasks, timelines and responsible parties, including delineating the respective duties of the school and the authorizer.  If a charter school is to be closed for any reason, the authorizer shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students and parents, as guided by the closure protocol.

     (2)  If a charter school closes, all unspent government funds, unspent earnings from those funds and assets purchased with government funds must revert to the local school district in which the charter school is located.  Unless otherwise provided for in the charter or a debt instrument, unspent funds from nongovernmental sources, unspent earnings from those funds, assets purchased with those funds and debts of the school must revert to the nonprofit entity created to operate the school and may be disposed of according to applicable laws for nonprofit corporations.

     SECTION 19.  Section 37-28-37, Mississippi Code of 1972, is brought forward as follows:

     37-28-37.  (1)  Before October 1 of each year, beginning in the year that the state has had at least one (1) charter school operating for a full school year, the Mississippi Charter School Authorizer Board shall issue to the Governor, Legislature, State Board of Education and the public an annual report on the state's charter schools for the preceding school year.  The report must include a comparison of the performance of charter school students with the performance of academically, ethnically and economically comparable groups of students in the school district in which a charter school is located.  In addition, the report must include the authorizer's assessment of the successes, challenges and areas for improvement in meeting the purposes of this chapter.  The report also must include an assessment on whether the number and size of operating charter schools are sufficient to meet demand, as calculated according to admissions data and the number of students denied enrollment based on lottery results.  The report due from the authorizer under this section must be coordinated with reports due from charter school governing boards, as near as possible, to decrease or eliminate duplication.

     (2)  The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) shall prepare an annual report assessing the sufficiency of funding for charter schools, the efficacy of the state formula for authorizer funding, and any suggested changes in state law or policy necessary to strengthen the state's charter schools. 

     SECTION 20.  Section 37-28-39, Mississippi Code of 1972, is brought forward as follows:

     37-28-39.  (1)  Notwithstanding any provision of law to the contrary, to the extent that any provision of this chapter is inconsistent with any other state or local law, rule or regulation, the provisions of this act govern and are controlling.

     (2)  A charter school and any education service provider which provides comprehensive management for a charter school must be a nonprofit education organization.

     (3)  A charter school is subject to all federal laws and authorities specified in this chapter or agreed upon with the authorizer in the charter contract, where such contracting is consistent with applicable laws, rules and regulations.

     (4)  To the extent approved by the authorizer, a charter contract may consist of one or more schools.  Each charter school that is part of a charter contract must be separate and distinct from any other charter school.

     (5)  A single governing board may hold one or more charter contracts.

     (6)  A charter school must function as a local educational agency, and as such, a charter school is responsible for meeting the requirements of local educational agencies under applicable federal laws, including those relating to special education, receipt of funds and compliance with funding requirements.  Status as a local educational agency, however, does not preclude a charter school from developing, by mutual agreement or formal contract, links with the local school district for services, resources and programs.

     SECTION 21.  Section 37-28-41, Mississippi Code of 1972, is brought forward as follows:

     37-28-41.  A charter school may exercise those powers necessary for carrying out the terms of its charter contract, including the following powers:

          (a)  To receive and disburse funds authorized by law for school purposes;

          (b)  To secure appropriate insurance and to enter into contracts and leases;

          (c)  To contract with an education service provider for the management and operation of the charter school so long as the school's governing board retains oversight authority over the school;

          (d)  To solicit and accept any gifts or grants for school purposes subject to applicable laws and the terms of its charter contract;

          (e)  To acquire real property for use as its facility or facilities, from public or private sources; and

          (f)  To sue and be sued in its own name.

     SECTION 22.  Section 37-28-43, Mississippi Code of 1972, is brought forward as follows:

     37-28-43.  (1)  A charter school may not discriminate against any person on the basis of race, creed, color, sex, disability, national origin or any other category that would be unlawful if done by a noncharter public school.

     (2)  A charter school may not engage in any sectarian practices in its educational program, admissions or employment policies or operations.

     (3)  A charter school may not discriminate against any student on the basis of national origin, minority status or limited proficiency in English.  Consistent with federal civil rights laws, charter schools must provide limited English proficient students with appropriate services designed to teach them English and the general curriculum.

     (4)  A charter school may not charge tuition.         

     (5)  The terms of each charter school must include a transportation plan for students attending the charter school.

     (6)  Subject to the approval of the authorizer, a charter school may contract with an accredited online course provider for the delivery of virtual courses to students enrolled in the charter school.

     (7)  Except to the extent authorized under paragraph (c) of Section 37-28-41, the powers, obligations and responsibilities set forth in the charter contract may not be delegated or assigned by either party.

     SECTION 23.  Section 37-28-45, Mississippi Code of 1972, is brought forward as follows:

     37-28-45.  (1)  Charter schools are subject to the same civil rights, health and safety requirements applicable to noncharter public schools in the state, except as otherwise specifically provided in this chapter.

     (2)  Charter schools are subject to the student assessment and accountability requirements applicable to noncharter public schools in the state; however, this requirement does not preclude a charter school from establishing additional student assessment measures that go beyond state requirements if the authorizer approves those measures.

     (3)  Although a charter school is geographically located within the boundaries of a particular school district and enrolls students who reside within the school district, the charter school may not be considered a school within that district under the purview of the school district's school board.  The rules, regulations, policies and procedures established by the school board for the noncharter public schools that are in the school district in which the charter school is geographically located do not apply to the charter school unless otherwise required under the charter contract or any contract entered into between the charter school governing board and the local school board.

     (4)  Whenever the provisions of Title 37, Mississippi Code of 1972, relating to the elementary and secondary education of public school students establish a requirement for or grant authority to local school districts, their school boards and the schools within the respective school districts, the language "school districts," "school boards," "boards of trustees," "the schools within a school district," or any other similar phraseology does not include a charter school and the governing board of a charter school unless the statute specifically is made applicable to charter schools as well as noncharter public schools.

     (5)  A charter school is not subject to any rule, regulation, policy or procedure adopted by the State Board of Education or the State Department of Education unless otherwise required by the authorizer or in the charter contract.

     (6)  Charter schools are not exempt from the following statutes:

          (a)  Chapter 41, Title 25, Mississippi Code of 1972, which relate to open meetings of public bodies.

          (b)  Chapter 61, Title 25, Mississippi Code of 1972, which relate to public access to public records.

          (c)  Section 37-3-51, which requires notice by the district attorney of licensed school employees who are convicted of certain sex offenses.

          (d)  Section 37-3-53, which requires publication of the Mississippi Report Card by the State Board of Education.

          (e)  Section 37-11-18, which requires the automatic expulsion of a student possessing a weapon or controlled substance on educational property.

          (f)  Section 37-11-18.1, which requires expulsion of certain habitually disruptive students.

          (g)  Section 37-11-19, which requires suspension or expulsion of a student who damages school property.

          (h)  Section 37-11-20, which prohibits acts of intimidation intended to keep a student from attending school.

          (i)  Section 37-11-21, which prohibits parental abuse of school staff.

          (j)  Section 37-11-23, which prohibits the willful disruption of school and school meetings.

          (k)  Sections 37-11-29 and 37-11-31, which relate to reporting requirements regarding unlawful or violent acts on school property.

          (l)  Section 37-11-67, which prohibits bullying or harassing behavior in public schools.

          (m)  Section 37-13-3, which prohibits doctrinal, sectarian or denominational teaching in public schools.

          (n)  Sections 37-13-5 and 37-13-6, which require the flags of the United States and the State of Mississippi to be displayed near the school building.

          (o)  Section 37-13-63(1), which prescribes the minimum number of days which public schools must be kept in session during a scholastic year.

          (p)  Section 37-13-91, which is the Mississippi Compulsory School Attendance Law.

          (q)  Section 37-13-171(2) and (4), which requires any course containing sex-related education to include instruction in abstinence-only or abstinence-plus education.

          (r)  Section 37-13-173, which requires notice to parents before instruction on human sexuality is provided in public classrooms.

          (s)  Section 37-13-193, which relates to civil rights and human rights education in the public schools.

          (t)  Sections 37-15-1 and 37-15-3, which relate to the maintenance and transfer of permanent student records in public schools.

          (u)  Section 37-15-6, which requires the State Department of Education to maintain a record of expulsions from the public schools.

          (v)  Section 37-15-9, which establishes minimum age requirements for kindergarten and first grade enrollment in public schools.

          (w)  Section 37-15-11, which requires a parent, legal guardian or custodian to accompany a child seeking enrollment in a public school.

          (x)  Sections 37-16-1, 37-16-3, 37-16-4 and 37-16-9, which relate to the statewide assessment testing program.

          (y)  Section 37-18-1, which establishes the Superior-Performing Schools Program and Exemplary Schools Program to recognize public schools that improve.

     SECTION 24.  Section 37-28-47, Mississippi Code of 1972, is brought forward 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.  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 a teacher's employment by a charter school, the teacher 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.

     (3)  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 public charter schools are eligible for participation in other benefits programs if the public charter school governing board chooses to participate.

     SECTION 25.  Section 37-28-49, Mississippi Code of 1972, is brought forward as follows:

     37-28-49.  (1)  Charter school teachers and other school personnel, as well as members of the governing board and any education service provider with whom a charter school contracts, are subject to criminal history record checks and fingerprinting requirements applicable to employees of other public schools.  The authorizer shall require that current criminal records background checks and current child abuse registry checks are obtained, and that the criminal record information and registry checks are on file at the charter school for any new hires applying for employment.  In order to determine an applicant's suitability for employment, the applicant must be fingerprinted.  If no disqualifying record is identified at the state level, the fingerprints must be forwarded by the Department of Public Safety to the Federal Bureau of Investigation for a national criminal history record check.  Under no circumstances may a member of the Mississippi Charter School Authorizer Board, member of the charter school governing board or any individual other than the subject of the criminal history record checks disseminate information received through the checks except as may be required to fulfill the purposes of this section.  The determination whether the applicant has a disqualifying crime, as set forth in subsection (2) of this section, must be made by the appropriate state or federal governmental authority, which must notify the charter school whether a disqualifying crime exists.

     (2)  If the fingerprinting or criminal record checks disclose a felony conviction, guilty plea or plea of nolo contendere to a felony of possession or sale of drugs, murder, manslaughter, armed robbery, rape, sexual battery, sex offense listed in Section 45-33-23(g), child abuse, arson, grand larceny, burglary, gratification of lust or aggravated assault which has not been reversed on appeal or for which a pardon has not been granted, the new hire is not eligible to be employed at the charter school.  However, the charter school, in its discretion, may allow any applicant aggrieved by the employment decision under this section to show mitigating circumstances that exist and may allow, subject to the approval of the Mississippi Charter School Authorizer Board, the new hire to be employed at the school.  The authorizer may approve the employment depending on the mitigating circumstances, which may include, but need not be limited to:  (a) age at which the crime was committed; (b) circumstances surrounding the crime; (c) length of time since the conviction and criminal history since the conviction; (d) work history; (e) current employment and character references; and (f) other evidence demonstrating the ability of the person to perform the employment responsibilities competently and that the person does not pose a threat to the health or safety of children.

     (3)  No charter school, charter school employee, member of the charter school governing board, the Mississippi Charter School Authorizer Board or member or employee of the Mississippi Charter School Authorizer Board employee may be held liable in any employment discrimination suit in which an allegation of discrimination is made regarding an employment decision authorized under this section.

     (4)  A charter school shall terminate any teacher or administrator for committing one or more of the following acts:

          (a)  Engaging in unethical conduct relating to an educator-student relationship as identified by the Mississippi Charter School Authorizer Board;

          (b)  Fondling a student as described in Section 97-5-23 or engaging in any type of sexual involvement with a student as described in Section 97-3-95; or

          (c)  Failure to report sexual involvement of a charter school employee with a student as required by Section 97-5-24.

     SECTION 26.  Section 37-28-51, Mississippi Code of 1972, is brought forward as follows:

     37-28-51.  A charter school is eligible to participate in state-sponsored or district-sponsored athletic and academic interscholastic leagues, competitions, awards, scholarships and recognition programs for students, educators, administrators and schools to the same extent as noncharter public schools.

     SECTION 27.  Section 37-28-53, Mississippi Code of 1972, is brought forward as follows:

     37-28-53.  (1)  Each charter school shall certify annually to the State Department of Education its student enrollment, net enrollment and student participation in federal programs.

     (2)  Each charter school shall certify annually to the school board of the school district in which the charter school is located the number of enrolled charter school students residing in the school district.

     SECTION 28.  Section 37-28-55, Mississippi Code of 1972, is brought forward as follows:

     37-28-55.  (1)  (a)  The State Department of Education shall make payments to charter schools for each student in net enrollment at the charter school, as determined under Section 37-151-207, equal to the state share of total funding formula payments for each student, as determined under Section 37-151-211.

          (b)  Payments made pursuant to this subsection by the State Department of Education must be made at the same time and in the same manner as total funding formula payments are made to school districts under Sections 37-151-101 and 37-151-103.  Amounts payable to a charter school must be determined by the State Department of Education pursuant to this section and the total funding formula.  Enrollment projections made under Section 37-151-207 to determine the net enrollment of a charter school for calculating the state share payment must be reconciled with a charter school's net enrollment using months two (2) and three (3) for the year for which total funding formula funds are being appropriated, and any necessary adjustments must be made to payments during the school's following year of operation.  Any necessary adjustment must be based on the state share of the per pupil amount in effect for the year for which net membership did not meet enrollment projections and not any new amount appropriated for the year in which the adjustment will be made.  If a charter school is closed by the authorizer before the following year, it must pay to the state any amounts due before completion of the closure.

     (2)  (a)  For students attending a charter school located in the school district in which the student resides, the school district in which the charter school is located shall pay directly to the charter school an amount as follows:  the sum of the local pro rata amount, as calculated by the State Department of Education in accordance with Section 37-151-211(2)(b) (local contribution), and the local pro rata amount, as calculated by the State Department of Education in accordance with Section 37-57-105 (school district operational levy), multiplied by the number of resident students enrolled in the charter school, based on the charter school's months two (2) and three (3) net enrollment of resident students for the current school year.  However, the amount to the charter school 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 vocational-technical education programs.

          (b)  The amount must be paid by the school district to the charter school before January 16 of the current fiscal year.  If the local school district does not pay the required amount to the charter school before January 16, the State Department of Education shall reduce the local school district's January transfer of total funding formula funds by the amount owed to the charter school and shall redirect that amount to the charter school.  Any such payments made under this paragraph by the State Department of Education to a charter school must be made at the same time and in the same manner as total funding formula payments are made to school districts under Sections 37-151-101 and 37-151-103.

     (3)  (a)  For students attending a charter school located in a school district in which the student does not reside, the State Department of Education shall pay to the charter school in which the students are enrolled an amount as follows:  the sum of the local pro rata amount, as calculated by the State Department of Education in accordance with Section 37-151-211(2)(b) (local contribution), and the local pro rata amount, as calculated by the State Department of Education in accordance with Section 37-57-105 (school district operational levy), multiplied by the number of students enrolled in the charter school but residing in that district, based on the charter school's months two (2) and three (3) net enrollment of these students for the current school year.  However, the amount to the charter school 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 vocational-technical education programs.

          (b)  The State Department of Education shall reduce the school district's January transfer of total funding formula funds by the amount owed to the charter school and shall redirect that amount to the charter school.  Any such payments made under this subsection (3) by the State Department of Education to a charter school must be made at the same time and in the same manner as total funding formula payments are made to school districts under Sections 37-151-101 and 37-151-103.

     (4)  (a)  The State Department of Education shall direct the proportionate share of monies generated under federal programs, including, but not limited to, special education, vocational, English Language Learner, and other programs, to charter schools serving students eligible for such funding.  The department shall ensure that charter schools with rapidly expanding enrollments are treated equitably in the calculation and disbursement of all federal program dollars.  Each charter school that serves students who may be eligible to receive services provided through such programs shall comply with all reporting requirements to receive the aid.

          (b)  A charter school shall pay to a local school district any federal or state aid attributable to a student with a disability attending the charter school in proportion to the level of services for that student which the local school district provides directly or indirectly.

          (c)  Subject to the approval of the authorizer, a charter school and a local school district may negotiate and enter into a contract for the provision of and payment for special education services, including, but not necessarily limited to, a reasonable reserve not to exceed five percent (5%) of the local school district's total budget for providing special education services.  The reserve may be used by the local school district only to offset excess costs of providing services to students with disabilities enrolled in the charter school.

     (5)  (a)  The State Department of Education shall disburse state transportation funding to a charter school on the same basis and in the same manner as it is paid to school districts.

          (b)  A charter school may enter into a contract with a school district or private provider to provide transportation to the school's students.

     (6)  The State Department of Education shall disburse Education Enhancement Funds for classroom supplies, instructional materials and equipment, including computers and computer software to all eligible charter school teachers on the same basis and in the same manner as it is paid to school districts under Section 37-61-33(3)(a)(iii) for the purpose of issuing procurement cards or credentials for a digital solution to eligible teachers.

     SECTION 29.  Section 37-28-57, Mississippi Code of 1972, is brought forward as follows:

     37-28-57.  (1)  A charter school must adhere to generally accepted accounting principles.

     (2)  A charter school shall have its financial records audited annually, at the end of each fiscal year, either by the State Auditor or by a certified public accountant approved by the State Auditor.  However, a certified public accountant may not be selected to perform the annual audit of a charter school if that accountant previously has audited the charter school for more than three (3) consecutive years.  Certified public accountants must be selected in a manner determined by the State Auditor.  The charter school shall file a copy of each audit report and accompanying management letter with the authorizer before October 1.

     SECTION 30.  Section 37-28-59, Mississippi Code of 1972, is brought forward as follows:

     37-28-59.  (1)  Any monies received by a charter school from any source remaining in the charter school's accounts at the end of a budget year must remain in the charter school's accounts for use by the charter school during subsequent budget years.

     (2)  Nothing in this chapter may be construed to prohibit any person or organization from providing funding or other assistance to the establishment or operation of a charter school.  The governing board of a charter school may accept gifts, donations and grants of any kind made to the charter school and may expend or use such gifts, donations and grants in accordance with the conditions prescribed by the donor; however, a gift, donation or grant may not be accepted if it is subject to a condition that is contrary to any provision of law or term of the charter contract. 

     (3)  A charter school must disclose publicly all sources of private funding and all funds received from foreign sources, including gifts from foreign governments, foreign legal entities and domestic entities affiliated with either foreign governments or foreign legal entities.  For the purposes of this subsection, the term "foreign" means a country or jurisdiction outside of any state or territory of the United States.

     SECTION 31.  Section 37-28-61, Mississippi Code of 1972, is brought forward as follows:

     37-28-61.  (1)  A charter school has a right of first refusal to purchase or lease at or below fair market value a closed public school facility or property or unused portions of a public school facility or property in the school district in which the charter school is located if the school district decides to sell or lease the public school facility or property.  If a conversion charter school application is successful, the local school district owning the conversion charter school's facility must offer to lease or sell the building to the conversion charter school at or below fair market value.

     (2)  A charter school may negotiate and contract at or below fair market value with a school district, state institution of higher learning, public community or junior college, or any other public or for-profit or nonprofit private entity for the use of a facility for a school building.

     (3)  Public entities, including, but not limited to, libraries, community service organizations, museums, performing arts venues, theatres, cinemas, churches, community and junior colleges, colleges and universities, may provide space to charter schools within their facilities under their preexisting zoning and land use designations.

     SECTION 32.  This act shall take effect and be in force from and after July 1, 2025.