Bill Text: MS HB1237 | 2010 | Regular Session | Introduced
Bill Title: Public Charter School Act; create.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2010-02-02 - Died In Committee [HB1237 Detail]
Download: Mississippi-2010-HB1237-Introduced.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Education
By: Representative Barker
House Bill 1237
AN ACT TO BE KNOWN AS THE "PUBLIC CHARTER SCHOOLS ACT"; TO ESTABLISH THE ADMISSIONS REQUIREMENT FOR PUBLIC AND NONPUBLIC CHARTER SCHOOLS; TO PROVIDE THAT THE STATE BOARD OF EDUCATION IS THE STATE'S ONLY AUTHORIZING ENTITY; TO ESTABLISHED THE OFFICE OF CHARTER SCHOOLS WITHIN THE STATE DEPARTMENT OF EDUCATION TO IMPLEMENT BOARD POLICIES APPLICABLE TO CHARTER SCHOOLS; TO PRESCRIBE THE POWERS AND DUTIES OF THE STATE BOARD OF EDUCATION AS THEY RELATE TO THE ADMINISTRATION OF THIS ACT; TO REQUIRE THE AUTHORIZER TO SUBMIT AN ANNUAL REPORT TO THE LEGISLATURE SUMMARIZING CERTAIN VISIONS, STRATEGIES, CHARTER STATUS AND PERFORMANCE; TO REQUIRE THE STATE BOARD OF EDUCATION TO ACCESS AN OVERSIGHT FEE FOR EACH PUBLIC CHARTER SCHOOL IT AUTHORIZES; TO REQUIRE THE AUTHORIZER TO ISSUE AND PUBLICIZE A REQUEST FOR PROPOSALS FOR THE DEVELOPMENT OF A PUBLIC CHARTER SCHOOL; TO PRESCRIBE THE PERIOD OF TIME IN WHICH THE CHARTERING AUTHORITY HAS TO REVIEW AND APPROVE OR DENY AN APPLICATION FOR A CHARTER SCHOOL STATUS; TO REQUIRE THAT CERTAIN ADDITIONAL INFORMATION MUST BE INCLUDED IN CHARTER APPLICATIONS FOR VIRTUAL SCHOOLS, EDUCATION SERVICE PROVIDERS AND CONVERSION NONPUBLIC CHARTER SCHOOLS, TO PROVIDE EXCEPTIONS TO THE APPROVAL OF AN APPLICATION; TO PRESCRIBE CERTAIN PROCEDURES TO BE FOLLOWED BY THE CHARTERING AUTHORITY UPON REJECTION OF AN APPLICATION; TO STIPULATE THE CONDITIONS UNDER WHICH A CHARTER EXPIRES; TO REQUIRE THAT CERTAIN PERFORMANCE PROVISIONS BE INCLUDED IN THE CHARTER CONTRACT; TO REQUIRE THE AUTHORIZER TO CONTINUALLY MONITOR THE PERFORMANCE AND LEGAL COMPLIANCE OF PUBLIC CHARTER SCHOOLS; TO PROVIDE THAT AN APPROVED CHARTER IS VALID FOR AN INITIAL TERM OF FIVE SCHOOL YEARS; TO PROVIDE FOR THE RENEWAL, AMENDING OR REVOCATION OF CHARTERS; TO PRESCRIBE REASONS FOR REVOCATION OF A CHARTER; TO REQUIRE THE AUTHORIZER TO DEVELOP A PUBLIC CHARTER SCHOOL CLOSURE PROTOCOL; TO REQUIRE PUBLIC CHARTER SCHOOLS TO BE NONPROFIT EDUCATION ORGANIZATIONS; TO PRESCRIBE THE FEDERAL AND STATE LAWS, RULES AND REGULATIONS WHICH ARE APPLICABLE TO PUBLIC CHARTER SCHOOLS; TO REQUIRE THE MISSISSIPPI RECOVERY SCHOOL DISTRICT TO SERVE AS THE LOCAL EDUCATIONAL AGENCY FOR A PUBLIC CHARTER SCHOOL; TO PROHIBIT DISCRIMINATORY ACTS BY THE PUBLIC CHARTER SCHOOL; TO REQUIRE PUBLIC CHARTER SCHOOLS TO BE SUBJECT TO THE STUDENT ASSESSMENT AND ACCOUNTABILITY REQUIREMENTS; TO PROVIDE FOR THE EMPLOYMENT OF FACULTY AND STAFF MEMBERS AT CHARTER SCHOOLS; TO PROVIDE THAT ONLY 25% OF TEACHERS IN PUBLIC CHARTER SCHOOLS SHALL BE EXEMPT FROM STATE TEACHER LICENSURE REQUIREMENTS; TO ALLOW STUDENTS IN PUBLIC CHARTER SCHOOLS TO BE ELIGIBLE FOR PARTICIPATION IN EXTRACURRICULAR AND INTERSCHOLASTIC ACTIVITIES OF CERTAIN LOCAL PUBLIC SCHOOLS; TO REQUIRE THE STATE BOARD OF EDUCATION TO PROMULGATE RULES ESTABLISHING FEES FOR PUBLIC CHARTER SCHOOL STUDENTS' PARTICIPATION IN EXTRACURRICULAR ACTIVITIES AT NONCHARTER PUBLIC SCHOOLS; TO REQUIRE A PUBLIC CHARTER SCHOOL TO CERTIFY ITS STUDENT ENROLLMENT TO THE STATE DEPARTMENT OF EDUCATION; TO REQUIRE CHARTER SCHOOLS TO COMPLY WITH ANNUAL AUDIT AND BUDGET SUBMISSION REQUIREMENTS PRESCRIBED BY LAW IN TITLE 37, MISSISSIPPI CODE OF 1972; TO REQUIRE THE STATE TO DIRECT A PROPORTIONATE SHARE OF MONIES GENERATED UNDER FEDERAL AND STATE CATEGORICAL AID PROGRAMS TO PUBLIC CHARTER SCHOOLS SERVING ELIGIBLE STUDENTS; TO REQUIRE THE STATE TO PAY DIRECTLY TO A PUBLIC CHARTER SCHOOL ANY FEDERAL OR STATE AID ATTRIBUTABLE TO A STUDENT WITH A DISABILITY ATTENDING THE SCHOOL; TO REQUIRE THE DEPARTMENT TO DISBURSE STATE TRANSPORTATION FUNDING TO A PUBLIC CHARTER SCHOOL IN THE SAME MANNER AS IT IS PAID TO SCHOOL DISTRICTS; TO PRESCRIBE THE MANNER FOR CALCULATING THE PER-STUDENT FACILITY ALLOWANCE AND PAYMENT FOR PUBLIC CHARTER SCHOOLS; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO FINANCE SCHOOL BUILDING PROJECTS, GENERAL IMPROVEMENTS TO SCHOOL BUILDINGS AND REPAYMENT OF DEBT FOR SCHOOL BUILDING PROJECTS TO PUBLIC CHARTER SCHOOLS, TO ESTABLISH THE PUBLIC CHARTER SCHOOL FACILITY REVOLVING LOAN FUND IN THE STATE TREASURY TO PROVIDE FINANCIAL SUPPORT TO PUBLIC CHARTER SCHOOLS FOR CONSTRUCTION, PURCHASE, RENOVATION AND MAINTENANCE OF PUBLIC CHARTER SCHOOL FACILITIES; TO REQUIRE THE LOCAL SCHOOL BOARDS TO MAKE AVAILABLE ANY VACANT SCHOOL FACILITIES OR ANY FACILITY SLATED TO BE VACANT FOR LEASE BY A PUBLIC CHARTER SCHOOL; TO AUTHORIZE A PUBLIC CHARTER SCHOOL TO USE CERTAIN OTHER FACILITIES, SUBJECT TO CERTAIN CONDITIONS; TO ESTABLISH THE CREDIT ENHANCEMENT FUND IN THE STATE TREASURY TO PROVIDE GRANTS TO ELIGIBLE NONPROFIT CORPORATIONS TO ASSIST PUBLIC CHARTER SCHOOLS IN OBTAINING FINANCING FOR ACQUISITION OR CONSTRUCTION OF FACILITIES; TO PROHIBIT THE NONPROFIT CORPORATION FROM USING THOSE FUNDS TO MAKE DIRECT LOANS OR GRANTS TO PUBLIC CHARTER SCHOOLS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Public Charter Schools Act."
SECTION 2. (1) The Legislature finds and declares that the purposes of the state's public charter schools as a whole are:
(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 at risk of academic failure;
(d) To create new professional opportunities for teachers, school administrators, and other school personnel that 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, or other aspects of schooling that 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 public charter schools.
SECTION 3. (1) A public charter school in the state established under this act is a public school and is part of the state's public education system.
(2) No provision of this act shall be interpreted to allow the conversion of a private or parochial school into a public charter school.
(3) A public charter school may only be authorized in a failing district or a district with failing schools, as defined by Section 37-17-6.
SECTION 4. As used in this act, the following words, terms, and phrases shall have the meanings ascribed to them in this section, except when the context clearly indicates a different meaning:
(a) "Applicant" means any person or group that develops and submits an application for a public charter school to an authorizer.
(b) "Application" means a proposal from an applicant to an authorizer to enter into a charter contract whereby the proposed school obtains public charter school status.
(c) "At-risk student" means a student who has an economic or academic disadvantage that requires special services and assistance to succeed in educational programs. The term includes, but is not limited to, students who are members of economically disadvantaged families, students who are identified as having special educational needs, students who are limited in English proficiency, students who are at risk of dropping out of high school, and students who do not meet minimum standards of academic proficiency.
(d) "Authorizer" means an entity authorized under this act to review applications, decide whether to approve or reject applications, enter into charter contracts with applicants, oversee public charter schools and decide whether to renew, not renew or revoke charter contracts.
(e) "Board" means the State Board of Education.
(f) "Charter contract" means a fixed-term, renewable contract between a public charter school and an authorizer that outlines the roles, powers, responsibilities and performance expectations for each party to the contract.
(g) "Conversion public charter school" means a charter school that existed as a noncharter public school before becoming a public charter school.
(h) "Education service provider" means a nonprofit charter management organization, school design provider, or any other partner entity with which a public charter school intends to contract for educational design, implementation, or comprehensive management.
(i) "Governing board" means the independent board of a public charter school that is party to the charter contract with the authorizer and whose members have been elected or selected under the school's application.
(j) "Local school board" means a school board exercising management and control of a local school district under the state Constitution and state statutes.
(k) "Local school district" means a public agency that establishes and oversees one or more public schools within its geographical limits under the state's Constitution and statutes.
(l) "Noncharter public school" means a public school that is under the direct management, governance and control of a local school board or the state.
(m) "Parent" means a parent, guardian or other person or entity having legal custody of a child.
(n) "Public charter school" means a public school that:
(i) Has autonomy over decisions including, but not limited to, matters concerning finance, personnel, scheduling, curriculum and instruction;
(ii) Is governed by an independent governing board;
(iii) Is established and operating under the terms of a charter contract between the school board and its authorizer;
(iv) Is a school to which parents choose to send their children;
(v) Admits students on the basis of a lottery if more students apply for admission than can be accommodated;
(vi) Provides a program of education that includes one or more of the following:
1. Preschool;
2. Prekindergarten;
3. Any grade or grades from kindergarten through Grade 12; and
4. Adult community, continuing and vocational education programs;
(vii) Operates in pursuit of a specific set of educational objectives as defined in its charter contract; and
(viii) Operates under the oversight of its authorizer in accordance with its charter contract.
(o) "Start-up public charter school" means a public charter school that did not exist as a noncharter public school before becoming a public charter school.
(p) "Student" means any child who is eligible for attendance in public schools in the state.
(q) "Virtual public charter school" means a public charter school that offers educational services predominantly through an online program.
SECTION 5. (1) (a) A public charter school shall be open to any student residing in the state.
(b) A school district shall not require any student enrolled in the school district to attend a public charter school.
(c) A public charter school shall not limit admission based on ethnicity, national origin, religion, gender, income level, disabling condition, proficiency in the English language or academic or athletic ability.
(d) A public charter school may limit admission to students within a given age group or grade level and may be organized around a special emphasis, theme or concept as stated in the school's application.
(e) A public charter school shall 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.
(f) If capacity is insufficient to enroll all students who wish to attend the school, the public charter school shall select students through a lottery.
(2) (a) Any noncharter public school converting partially or entirely to a public charter school shall adopt and maintain a policy giving enrollment preference to students who reside in the jurisdiction of the local public school district in which the noncharter school is located.
(b) A public charter school shall give enrollment preference to students enrolled in the public charter school the previous school year and to siblings of students previously or currently enrolled in the public charter school. An enrollment preference for returning students excludes those students from entering into a lottery.
(c) A public charter school may give enrollment preference to the children of a public charter school's founders, governing board members and full-time employees, so long as they constitute no more than ten percent (10%) of the school's total student population.
(d) This section does not preclude the formation of a public charter school whose mission is focused on serving students with disabilities, students of the same gender, students who pose severe disciplinary problems so as to 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 such school, the public charter school shall select students through a lottery.
(3) If a student who was previously enrolled in a public charter school enrolls in another public school in this state, the new school of enrollment must accept the credits earned by the student in courses or instructional programs at the public charter school in a uniform manner that is consistent and in accordance with criteria used to accept academic credits from other public schools.
(4) A school district shall provide reasonable public notice to parents and the community of the existence, nature and enrollment process of public charter schools authorized by the district as an enrollment option within the district in the same manner that the district provides public notice of the existence, nature and enrollment process of noncharter public schools in the district.
SECTION 6. (1) The State Board of Education shall serve as the state's only authorizing entity. The board shall have statewide chartering authority.
(2) There is established an Office of Charter Schools within the State Department of Education to implement the board's policies that are applicable to charter schools. The mission of the Office of Charter Schools shall be to support the board in executing the powers and duties prescribed in subsection (3) of this section. The office shall be funded initially by a one-time appropriation of Two Hundred Fifty Thousand Dollars ($250,000.00), and is authorized to accept and expend gifts, grants and donations of any kind from any public or private source to carry out the purposes of this act, except religious or sectarian organizations, subject to the terms and conditions under which they are given, provided that all the terms and conditions are permissible under law.
(3) (a) The authorizer is responsible for executing, in accordance with this act, the following essential powers and duties:
(i) Soliciting and evaluating charter applications;
(ii) Approving quality charter applications that meet identified educational needs and promote a diversity of educational choices;
(iii) Declining to approve insufficient charter applications, as determined by criteria established by the authorizer;
(iv) Negotiating and executing charter contracts with each approved public charter school;
(v) Monitoring, in accordance with charter contract terms, the performance and legal compliance of public charter schools; and
(vi) Determining whether each charter contract merits renewal, nonrenewal or revocation.
(b) The authorizer may delegate its duties to offices, employees and contractors.
(c) Regulation by the authorizer shall be limited to the powers and duties enumerated in this section which are consistent with the intent of this act.
(d) The authorizing entity, members of its board in their official capacity and employees of the authorizer are immune from civil and criminal liability with respect to all activities related to a public charter school it authorizes.
(4) (a) The authorizer shall be required to develop and maintain chartering policies and practices consistent with national standards for charter authorities with respect to its authorizing responsibilities, including:
(i) Organizational capacity and infrastructure;
(ii) Soliciting and evaluating charter applications;
(iii) Performance contracting;
(iv) Ongoing public charter school oversight and evaluation; and
(v) Charter renewal decision making.
(b) The authorizer shall carry out all its duties prescribed under the provisions of this act in a manner consistent with national standards to effectuate the intent of this act. Evidence of a material or persistent failure to do so shall constitute grounds for revocation of charter authorizing powers.
(5) The authorizer shall submit an annual report to the Legislature summarizing:
(a) The authorizer's strategic vision for chartering and progress toward achieving that vision;
(b) The academic and financial performance of all operating public charter schools under the direction and control of the authorizer, according to the performance expectations for public charter schools set forth in this act;
(c) The status of the authorizer's public charter school portfolio, identifying all public charter schools in each of the following categories:
(i) Approved, but not yet open;
(ii) Operating;
(iii) Renewed;
(iv) Transferred;
(v) Revoked;
(vi) Not renewed;
(vii) Voluntarily closed; and
(viii) Never opened;
(d) The authorizing functions provided by the authorizer to the public charter schools under its purview, including the authorizer's operating costs and expenses detailed in annual audited financial statements that conform with generally accepted accounting principles as promulgated by nationally recognized professional organizations; and
(e) The services purchased from the authorizer by the public charter schools under its purview, including an itemized accounting of the actual costs of these services, as required in subsection (9) of this section.
(6) (a) To cover costs for overseeing public charter schools in accordance with this act, the State Board of Education shall remit to the Office of Charter Schools an oversight fee for each public charter school it authorizes. The oversight fee shall be drawn from and calculated as a uniform percentage of the per-student operational funding allocated to each public charter school under Section 10(2) of this act, not to exceed three percent (3%) of each public charter school's per-student funding in a single school year. The board shall establish a formula for authorizer funding. The board may establish a sliding scale for authorizer funding, with the funding percentage decreasing after the authorizer has achieved a certain threshold, contingent upon factors determined by the board, including but not limited to, the number of years of authorizing authority or the number of schools authorized.
(b) The authorizer's oversight fee shall not include any costs incurred in delivering services that a public charter school may purchase at its discretion from the authorizer. The authorizer shall use its funding provided under this section exclusively for the purpose of complying with obligations in accordance with this act.
(c) The State Board of Education shall annually review the effectiveness of the state formula for authorizer funding, and shall adjust the formula if necessary to maximize public benefit and strengthen the implementation of this act.
(7) No employee, trustee, agent or representative of an authorizer may simultaneously serve as an employee, trustee, agent, representative, vendor or contractor of a public charter school authorized by that entity.
(8) No governmental or other entity, other than those expressly granted chartering authority as set forth in this act, may assume any charter authorizing function or duty in any form, unless expressly allowed by law.
(9) (a) With the exception of oversight services as required by subsection (6) of this section, no public charter school shall be required to purchase services from its authorizer as a condition of charter approval or of executing a charter contract, nor may any such condition be implied.
(b) A public charter school, at its discretion, may choose to purchase services from its authorizer. In that event, the public charter school and authorizer shall execute an annual service contract, separate from the charter contract, stating the parties' mutual agreement concerning any services to be provided by the authorizer and any service fees to be charged to the public charter school. An authorizer may not charge more than market rates for services provided to a public charter school.
(c) Within ninety (90) days after the end of each fiscal year, the authorizer shall provide to each public charter school it oversees an itemized accounting of the actual costs of services purchased by the public charter school from the authorizer. Any difference between the amount initially charged to the public charter school and the actual cost shall be reconciled and paid to the owed party. If either party disputes the itemized accounting, any charges included in the accounting or charges to either party, the disputing party is entitled to request a third-party review at its own expense. The review shall be conducted by the State Auditor's Office whose determination shall be final.
(10) In accordance with subsection (5) of this section, the Office of Charter Schools, on behalf of the State Board of Education, shall be required to submit to the Legislature an annual report. The state board shall define the requirements for the format, content and submission of the annual report by September 30 of each year.
SECTION 7. (1) (a) The authorizer shall issue and publicize a request for proposals by January 1 to solicit, encourage and guide the development of quality public charter schools. The content and dissemination of the request for proposals shall be consistent with the purposes and requirements of this act.
(b) The State Board of Education shall annually establish and disseminate a statewide timeline for charter approval or denial decisions.
(c) The authorizer's request for proposals shall present the authorizer's strategic vision for chartering, including a clear statement of any preferences granted to applications that are accommodating to at-risk students.
(d) The request for proposals shall include or otherwise direct applicants to the performance framework that the authorizer has developed for public charter school oversight and evaluation in accordance with Section 8(1) of this act.
(e) The request for proposals shall include criteria that will guide the authorizer's decision in approving or denying a charter application.
(f) The request for proposals shall state clear, 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 public charter school.
(g) The request for proposals shall require applicants in their charter applications to provide or describe thoroughly, the following essential elements of the proposed school plan:
(i) An executive summary;
(ii) The mission and vision of the proposed public charter school, including identification of the targeted student population and the community the school hopes to serve;
(iii) The location or geographic area proposed for the school;
(iv) The grades to be served each year for the full term of the charter contract;
(v) Minimum, planned and maximum enrollment per grade per year for the term of the charter contract;
(vi) Evidence of need and community support for the proposed public charter school;
(vii) Background information on the proposed founding governing board members and, if identified, the proposed school leadership and management team;
(viii) The school's proposed calendar and sample daily schedule;
(ix) A description of the academic program aligned with state standards;
(x) A description of the school's instructional design, including the type of learning environment, class size and structure, curriculum overview and teaching methods;
(xi) 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 8(1) of this act;
(xii) The school's plans for identifying and successfully serving students with disabilities, students who are English language learners, students who are behind academically and gifted students, including, but not limited to, compliance with applicable laws and regulations;
(xiii) A description of cocurricular or extracurricular programs and how they will be funded and delivered;
(xiv) Plans and timelines for student recruitment and enrollment, including lottery procedures;
(xv) The school's student discipline policies, including those for special education students;
(xvi) An organization chart that clearly presents the school's organizational structure, including lines of authority and reporting between the governing board, staff, any related bodies and any external organizations that will play a role in managing the school;
(xvii) A clear description of the roles and responsibilities for the governing board, the school's leadership and management team and any other entities shown in the organization chart;
(xviii) A staffing chart for the school's first year, and a staffing plan for the term of the charter;
(xix) Plans for recruiting and developing school leadership and staff;
(xx) The school's leadership and teacher employment policies, including performance evaluation plans;
(xxi) Proposed governing bylaws;
(xxii) Explanations of any partnerships or contractual relationships central to the school's operations or mission;
(xxiii) The school's plans for providing transportation, food service, and all other significant operational or ancillary services;
(xxiv) Opportunities and expectations for parent involvement;
(xxv) A detailed school start-up plan, identifying tasks, timelines and responsible individuals;
(xxvi) Description of the school's financial plan and policies, including financial controls and audit requirements;
(xxvii) A description of the insurance coverage the school will obtain;
(xxviii) Start-up and five-year budgets with clearly stated assumptions;
(xxix) Start-up and first-year cash-flow projections with clearly stated assumptions;
(xxx) Evidence of anticipated fund raising contributions, if claimed in the application; and
(xxxi) A sound facilities plan, including backup or contingency plans if appropriate.
(h) In the case of an application to establish a public charter school by converting an existing noncharter public school to public charter school status, the request for proposals shall additionally require the applicants to demonstrate support for
the proposed public charter school conversion by a petition signed by a majority of teachers and a petition signed by a majority of parents of students in the existing noncharter public school.
(i) In the case of a proposal to establish a virtual public charter school, the request for proposals shall additionally require the applicants to describe the proposed school's system of course credits and how the school will:
(i) Monitor and verify full-time student enrollment, student participation in a full course load, credit accrual and course completion;
(ii) Monitor and verify student progress and performance in each course through regular, proctored assessments and submissions of coursework;
(iii) Conduct parent-teacher conferences; and
(iv) Administer state-required assessments to all students in a monitored setting.
(j) In the case of a proposed public 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 shall additionally require the applicants to:
(i) Provide evidence of the education service provider's success in serving student populations similar to the targeted population, including proven academic achievement as well as successful management of nonacademic school functions if applicable;
(ii) 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 service provider; scope of services and resources to be provided by the service provider; performance evaluation measures and timelines; compensation structure, including clear identification of all fees to be paid to the service provider; methods of contract oversight and enforcement; investment disclosure; and conditions for renewal and termination of the contract; and
(iii) Disclose and explain any existing or potential conflicts of interest between the school governing board and proposed service provider or any affiliated business entities.
(k) In the case of a public charter school proposal from an applicant that currently operates one or more schools in any state or nation, the request for proposals shall additionally require the applicant to provide evidence of past performance and current capacity for growth.
(2) (a) In reviewing and evaluating charter applications, authorizers shall employ procedures, practices and criteria consistent with national standards for charter authorities. The application review process shall include thorough evaluation of each written charter application, an in-person interview with the applicant group and an opportunity in a public forum for local residents to learn about and provide input on each application.
(b) In deciding whether to approve charter applications, the authorizer shall:
(i) Grant charters only to applicants that have demonstrated competence in each element of the authorizer's published approval criteria and that are likely to open and operate a successful public charter school;
(ii) Base decisions on documented evidence collected through the application review process;
(iii) Follow charter-granting policies and practices that are transparent, based on merit and avoid conflicts of interest or any appearance thereof.
(c) No later than one hundred eighty (180) days after the filing of a charter application, the authorizer shall decide to approve or deny the charter application. The authorizer shall adopt by resolution all charter approval or denial decisions in an open meeting of the authorizer's governing board.
(d) An approval decision may include, if appropriate, reasonable conditions that the charter applicant must meet before a charter contract may be executed under subsection (6) of this section.
(e) For any charter denial, the authorizer shall clearly state, for public record, its reasons for denial. A denied applicant may later reapply to that authorizer.
(f) Within ten (10) days of taking action to approve or deny a charter application, the authorizer shall provide a report to the charter applicant. The report shall 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 section.
(3) The purposes of the charter application are to present the proposed public charter school's academic and operational vision and plans, demonstrate the applicant's capacities to execute the proposed vision and plans and provide the authorizer a clear basis for assessing the applicant's plans and capacities. An approved charter application shall not serve as the school's charter contract.
(4) An initial charter shall be granted for a term of five (5) operating years. The charter term shall begin on the public charter school's first day of operation. An approved public 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.
(5) (a) Within ninety (90) days of approval of a charter application, the authorizer and the governing board of the approved public charter school shall execute a charter contract that clearly sets forth the academic and operational performance expectations and measures by which the public charter school will be measured and the administrative relationship between the authorizer and public charter school, including each party's rights and duties. The performance expectations and measures set forth in the charter contract shall include, but need not be limited to, applicable federal and state accountability requirements. The performance provisions may be amended by mutual agreement after the public charter school is operating and has collected baseline achievement data for its enrolled students.
(b) The charter contract for a virtual public charter school shall include a description and agreement regarding the methods by which the school will:
(i) Monitor and verify full-time student enrollment, student participation in a full course load, credit accrual and course completion;
(ii) Monitor and verify student progress and performance in each course through regular, proctored assessments and submissions of coursework;
(iii) Conduct parent-teacher conferences; and
(iv) Administer state-required assessments to all students in a monitored setting.
(c) The charter contract shall be signed by the president of the authorizer's governing board and the president of the public charter school's governing body.
(d) No public charter school may begin operations without a charter contract executed in accordance with this subsection and approved in an open meeting of the authorizer's governing board.
(6) The authorizer may establish reasonable preopening requirements or conditions to monitor the start-up progress of a newly approved public charter school and ensure that it is prepared to open without incident on the date agreed, and to ensure that each school meets all building, health, safety, insurance and other legal requirements for school opening.
SECTION 8. (1) (a) The performance provisions within the charter contract shall 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 each public charter school. The performance framework shall include indicators, measures and metrics, at a minimum, for the following:
(i) Student academic proficiency;
(ii) Student academic growth;
(iii) Achievement gaps in both proficiency and growth between major student subgroups;
(iv) Attendance;
(v) Recurrent enrollment from year to year;
(vi) Postsecondary readiness;
(vii) Financial performance and sustainability; and
(viii) Board performance and stewardship, including compliance with all applicable laws, regulations and terms of the charter contract.
(b) Annual performance targets shall be set by each public charter school in conjunction with the authorizer, and shall be designed to help each school meet applicable federal, state and authorizer expectations. These performance targets must include a requirement that charter schools not miss adequate yearly progress for any two (2) consecutive years, as defined by the No Child Left Behind Act of 2001, or other future federal school accountability requirements. These performance targets must also require that charter schools outperform, to a statistically significant degree, similar students in the local district in which the charter is located after two (2) years of enrollment.
(c) The performance framework shall allow the inclusion of additional rigorous, valid, and reliable indicators proposed by a public charter school to augment external evaluations of its performance, provided that the authorizer approves the quality and rigor of the school-proposed indicators, and they are consistent with the purposes of this act.
(d) The performance framework shall require the desegregation of all student performance data by major student subgroups (gender, race, poverty status, special education status, English Learner status and gifted status).
(e) For each public charter school it oversees, the authorizer shall be responsible for collecting, analyzing and reporting all data from state assessments in accordance with the performance framework.
(f) Multiple schools overseen by a single governing board shall be required to report their performance as separate, individual schools, and each school shall be held independently accountable for its performance.
(2) (a) The authorizer shall continually monitor the performance and legal compliance of the public charter schools it oversees, including collecting and analyzing data to support ongoing evaluation according to the charter contract. The authorizer shall have the authority to conduct or require oversight activities that enable the authorizer to fulfill its responsibilities under this act, 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 public charter schools.
(b) Each authorizer shall annually publish and provide, as part of its annual report to the Legislature, a performance report for each public charter school it oversees, in accordance with the performance framework set forth in the charter contract and Section 6(5) of this act. This report shall be made available to the public at the same time as it is submitted to the Legislature. The authorizer may require each public 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.
(c) If a public charter school's performance or legal compliance appears unsatisfactory, the authorizer shall promptly notify the public charter school of the perceived problem and provide reasonable opportunity for the school to remedy the problem, unless the problem warrants revocation, in which case the revocation time frames will apply.
(d) Every authorizer shall have the authority to take appropriate corrective actions or exercise sanctions preliminary to revocation in response to deficiencies in public charter school performance or legal compliance. These actions or sanctions may include, if warranted, requiring a school to develop and execute a corrective action plan within a specified time frame.
(3) (a) A charter may be renewed for successive five-year terms, although the authorizer may lessen the renewal term based on the performance, demonstrated capacities and particular circumstances of each public charter school. The authorizer may grant renewal with specific conditions for necessary improvements to a public charter school.
(b) No later than September 30, the authorizer shall issue a public charter school performance report and charter renewal application guidance to any public charter school whose charter will expire the following year. The performance report shall summarize the public charter school's performance record to date, based on the data required by this act and the charter contract, and shall provide notice of any inefficiencies or concerns perceived by the authorizer concerning the public charter school that may jeopardize its position in seeking renewal if not timely rectified. The public charter school shall have ninety (90) days to respond to the performance report and submit any corrections or clarifications for the report.
(c) The renewal application guidance shall, at a minimum, provide an opportunity for the public charter school to:
(i) Present additional evidence, beyond the data contained in the performance report, supporting its case for charter renewal;
(ii) Describe improvements undertaken or planned for the school; and
(iii) Detail the school's plans for the next charter term.
(d) The renewal application guidance shall include or refer explicitly to the criteria that will guide the authorizer's renewal decisions, which shall be based on the performance framework set forth in the charter contract and consistent with this act.
(e) No later than February 1, the governing board of a public charter school seeking renewal shall submit a renewal application to the charter authorizer under the renewal application guidance issued by the authorizer. The authorizer shall rule by resolution on the renewal application no later than ninety (90) days after the filing of the renewal application.
(f) In making charter renewal decisions, the authorizer shall:
(i) Premise its decisions 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;
(ii) Ensure that data used in making renewal decisions are available to the school and the public; and
(iii) Provide a public report summarizing the evidence basis for each decision.
(g) A charter contract may be revoked at anytime or not renewed if the authorizer determines that the public charter school did any of the following or otherwise failed to comply with the provisions of this act:
(i) Commits a material and substantial violation of any of the terms, conditions, standards or procedures required under this act or the charter contract;
(ii) Fails to meet or make sufficient progress toward the performance expectations set forth in the charter contract;
(iii) Fails to meet generally accepted standards of fiscal management; or
(iv) Substantially violates any material provision of law from which the public charter school was not exempted.
(h) The authorizer must develop revocation and nonrenewal processes that:
(i) Provide the charter holders with a timely notification of the prospect of revocation or nonrenewal and of the reasons for such possible closure;
(ii) Allow the charter holders a reasonable amount of time in which to prepare a response;
(iii) Provide the charter holders 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;
(iv) Allow the charter holders access to representation by counsel and to call witnesses on their behalf;
(v) Permit the recording of the proceedings; and
(vi) After a reasonable period for deliberation, require a final determination be made and conveyed in writing to the charter holders.
(i) If the authorizer revokes or does not renew a charter, the authorizer shall clearly state, in a resolution of its governing board, the reasons for the revocation or nonrenewal.
(j) Within ten (10) days of taking action to renew, not renew or revoke a charter, the authorizer shall provide a copy of a report to the public charter school. The report shall include a copy of the authorizer governing board's resolution setting forth the action taken and reasons for the decision and assurances as to compliance with all of the requirements set forth in this act.
(4) (a) Before any public charter school closure decision, an authorizer shall have developed a public 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 act. The protocol shall specify tasks, timelines and responsible parties, including delineating the respective duties of the school and the authorizer. If a public charter school closes for any reason, the authorizer shall oversee and work with the closing school to ensure an orderly closure and transition for students and parents, as guided by the closure protocol.
(b) If a public charter school closes for any reason, the assets of the school shall be distributed first to satisfy outstanding payroll obligations for employees of the school, then to creditors of the school, and then to the State Treasury to the credit of the State General Fund. If the assets of the school are insufficient to pay all parties to whom the school owes compensation, the prioritization of the distribution of assets may be determined by decree of a court of law.
(5) On or before September 30 of each year beginning in the first year after the state has public charter schools operating for a full school year, the State Board of Education shall issue to the Governor, the Legislature, and the public at large, an annual report on the state's public charter schools, drawing from the annual reports submitted by the Office of Charter Schools as well as any additional relevant data compiled by the Office of Charter Schools, for the school year ending in the preceding calendar year. The annual report shall include a comparison of the performance of public charter school students with the performance of academically, ethnically and economically comparable groups of students in noncharter public schools. In addition, the annual report shall include the State Board of Education's assessment of the successes, challenges and areas for improvement in meeting the purposes of this act, including the board's assessment of the sufficiency of funding for public charter schools, the efficiency of the state formula for authorizer funding, and any recommended changes to state law or policy necessary to strengthen the state's public charter schools.
SECTION 9. (1) (a) Notwithstanding any provision of law to the contrary, to the extent that any provision of this act is inconsistent with any other state or local law, rule or regulation, the provisions of this act shall govern and be controlling.
(b) A public charter school shall be a nonprofit education organization.
(c) A public charter school shall be subject to all federal laws and authorities enumerated in this act or arranged by charter contract with the school's authorizer, where the contracting is consistent with applicable laws, rules and regulations.
(d) Except as otherwise provided in this act, a public charter school shall not be subject to the state's education statutes or any state or local rule, regulation, policy or procedure relating to noncharter public schools within an applicable local school district regardless of whether the rule, regulation, policy, or procedure is established by the local school board, the State Board of Education or the State Department of Education.
(e) A charter contract may consist of only one (1) school. Each public charter school shall be separate and distinct from any others.
(f) A single governing board may hold one (1) or more charter contracts.
(2) (a) The Mississippi Recovery School District shall serve as the public charter school's local educational agency. A public charter school is a school with that local educational agency.
(b) The Mississippi Recovery School District retains responsibility for special education and shall serve students in public charter schools in a manner consistent with the local educational agency's obligations under applicable federal, state and local law.
(3) (a) A public charter school shall have all the powers necessary for carrying out the terms of its charter contract including the following:
(i) To receive, expend and disburse funds for school purposes;
(ii) To secure appropriate insurance and to enter into contracts and leases, free from prevailing wage laws;
(iii) To contract with an education service provider for the management and operation of the public charter school as long as the school's governing board retains oversight authority over the school;
(iv) To incur debt in reasonable anticipation of the receipt of public or private funds;
(v) To pledge, assign or encumber its assets to be used as collateral for loans or extensions of credit;
(vi) To solicit and accept any gifts or grants for school purposes, subject to applicable laws and the terms of its charter contract;
(vii) To acquire real property for use as its facility or facilities, from public or private sources; and
(viii) To sue and be sued in its own name.
(4) (a) A public charter school shall not discriminate against any person on the basis of race, creed, color, sex, disability or national origin, or any other category that would be unlawful if done by a noncharter public school.
(b) No public charter school may engage in any sectarian practices in its educational program, admissions or employment policies or operations.
(c) A public charter school shall not discriminate against any student on the basis of national origin, minority status, or limited proficiency in English. Consistent with federal civil rights laws, public charter schools shall provide limited English proficient students with appropriate services designed to teach them English and the general curriculum.
(d) A public charter school shall not charge tuition and may only charge such fees as may be imposed on other public schools in the state.
(e) The powers, obligations, and responsibilities set forth in the charter contract cannot be delegated or assigned by either party.
(5) (a) Public charter schools shall be subject to the same civil rights, health, and safety requirements applicable to other public schools in the state, except as otherwise provided in this act.
(b) Public charter schools shall be subject to the student assessment and accountability requirements applicable to other public schools in the state, but nothing in this act shall preclude a public charter school from establishing additional student assessment measures that go beyond state requirements if the school's authorizer approves those measures.
(c) Public charter school governing boards shall be subject to and comply with state open meetings and freedom of information laws under Section 25-41-5.
(6) (a) Public charter schools shall comply with applicable federal laws, rules and regulations regarding the qualification of teachers and other instructional staff. Only twenty-five percent (25%) of teachers in public charter schools shall be exempt from state teacher licensure requirements.
(b) Employees in public charter schools shall have the same rights and privileges as other public school employees except as otherwise stated in this act.
(c) Employees in public charter schools are eligible for participation in retirement and other state-funded benefits programs, if the public charter school chooses to participate.
(d) Teachers and other school personnel, as well as governing board trustees, shall be subject to criminal history record checks and fingerprinting requirements applicable to other public schools under Section 37-9-17(2) and (3).
(7) (a) A public charter school shall be eligible for state-sponsored or district-sponsored interscholastic leagues, competitions, awards, scholarships and recognition programs for students, educators, administrators and schools to the same extent as noncharter public schools.
(b) A public charter school student is eligible to participate in extracurricular activities not offered by the student's school, at:
(i) The school within whose attendance boundaries the student's custodial parent or legal guardian resides; or
(ii) The noncharter public school from which the student withdrew for the purpose of attending a public charter school.
(c) A public charter school student is eligible for extracurricular activities at a noncharter public school consistent with eligibility standards as applied to full-time students of the noncharter public school.
(d) A school district or noncharter public school may not impose additional requirements on a public charter school student to participate in extracurricular activities which are not imposed on full-time students of the noncharter public school.
(e) When selection to participate in an extracurricular activity at a noncharter public school is made on a competitive basis, a public charter school student is eligible to try out for and participate in the activity as provided in this section.
(f) The State Board of Education shall make rules establishing fees for public charter school students' participation in extracurricular activities at noncharter public schools. The rules shall provide that:
(i) Public charter school students are assessed the same fees as other students to participate in extracurricular activities;
(ii) Public charter school students are eligible for fee waivers similar to other students;
(iii) For each public charter school student who participates in an extracurricular activity at a noncharter public school, the public charter school shall pay a share of the noncharter public school's costs for the extracurricular activity; and
(iv) A public charter school's share of the costs of having one or more students participate in an extracurricular activity at noncharter public schools shall reflect state and local tax revenues expended, except capital facilities expenditures, for the extracurricular activities in a noncharter public school divided by total student enrollment of the noncharter public school.
(g) In determining a public charter school's share of the costs of an extracurricular activity under subparagraphs (iii) and (iv) of paragraph (f) of this subsection, the State Board of Education may establish uniform fees statewide based on average costs statewide or average costs within a sample of school districts.
SECTION 10. (1) Each public charter school shall certify to the State Department of Education its student enrollment in the same manner as local school districts.
(2) The department shall withhold from the state equalization payments for each school district with students residing in the school district and attending the public charter school an amount equal to one hundred percent (100%) of the amount calculated under the state's funding formula for each student in the resident school district multiplied by the number of students enrolled in the public charter school from the resident school district. The State Department of Education shall send the sum of these with holdings to the public charter school, notwithstanding the oversight fee reductions under Section 6(6) of this Act.
(3) Payments made under this section shall be made by the state in twelve (12) substantially equal installments each year beginning on the first business day of July and every month thereafter. Amounts payable under this section shall be determined by the department. Amounts payable to a public charter school in its first year of operation shall be based on the projections of initial-year enrollment set forth in the charter contract. The projections shall be reconciled with the actual enrollment at the end of the school's first year of operation, and any necessary adjustments shall be made to payments during the school's second year of operation.
(4) The state shall direct the proportionate share of monies generated under federal and state categorical aid programs to public charter schools serving students eligible for the aid. The state shall ensure that public charter schools with rapidly expanding enrollments are treated equitably in the calculation and disbursement of all federal and state categorical aid program dollars. Each public charter school that serves students who may be eligible to receive services provided through those programs shall comply with all reporting requirements to receive the aid.
(5) (a) The state shall pay directly to a public charter school any federal or state aid attributable to a student with a disability attending the school.
(b) A public charter school shall pay to the Recovery School District any federal or state aid attributable to a student with a disability attending a public charter school in proportion to the level of services for the student that the Recovery School District provides directly or indirectly.
(c) At either party's request, a public charter school and the Recovery School District may negotiate and include in the charter contract alternate arrangements for the provision of and payment for special education services, including, but not limited to, a reasonable reserve not to exceed five percent (5%) of the Recovery School District's total budget for providing special education services. The reserve shall only be used by the Recovery School District to offset excess costs of providing services to students with disabilities enrolled in one (1) of its public charter schools.
(6) (a) A public charter school shall adhere to generally accepted accounting principles as promulgated by nationally recognized professional organizations.
(b) A public 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. A public charter school shall file a
copy of each audit report and accompanying management letter with the authorizer by July 30.
(7) (a) The State Department of Education shall disburse state transportation funding to a public charter school on the same basis and in the same manner as it is paid to school districts.
(b) A public charter school may enter into a contract with a school district or private provider to provide transportation to the school's students.
(8) Any monies received by a public charter school from any source and remaining in the public charter school's accounts at the end of any budget year shall remain in the public charter school's accounts for use by the public charter school during later budget years.
(9) Nothing in this act shall be construed to prohibit any person or organization from providing funding or other assistance to the establishment or operation of a public charter school, except religious or sectarian organizations. The governing board of a public charter school is authorized to accept gifts, donations, and grants of any kind made to the public charter school and to expend or use such gifts, donations, and grants in accordance with the conditions prescribed by the donor; however, no gift, donation, or grant may be accepted if subject to a condition that is contrary to any provision of law or term of the charter contract.
SECTION 11. (1) (a) The per-student facility allowance for public charter schools shall be determined based on the total capital costs for public schools in the state over the past five (5) years divided by the total student count in the state over the past five (5) years.
(b) The actual facility allowance payments to be received by each public charter school shall be determined based on the per-student facility allowance multiplied by the number of students estimated to be attending each public charter school.
SECTION 12. (1) As used in this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Accreted value" of any bond means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.
(b) "State" means the State of Mississippi.
(c) "Commission" means the State Bond Commission.
(2) (a) (i) A special fund, to be designated as the "2009 Public School Capital Improvements Fund" is created within the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund.
(ii) Monies deposited into the fund shall be disbursed, in the discretion of the State Board of Education, to provide funds to finance school building projects, general improvements to school buildings and repayment of debt for school building projects to public charter schools in the state upon submission of applications to the board for those purposes, subject to the conditions established by the board for approval. The board shall give preference to applications that provide for matching funds from nonstate sources.
(b) Amounts deposited into such special fund shall be disbursed to pay the costs of the projects described in paragraph (a) of this subsection. Promptly after the commission has certified, by resolution duly adopted, that the projects described in paragraph (a) of this subsection shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under this section, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.
(3) (a) The commission, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for all costs incurred or to be incurred for the purposes described in subsection (2) of this section. Upon the adoption of a resolution by the Department of Finance and Administration, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this subsection, the department shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the commission, in its discretion, may act as issuing agent, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate the sale of the bonds, issue and sell the bonds so authorized to be sold and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The total amount of bonds issued under this section shall not exceed One Million Dollars ($1,000,000.00). The amount of bonds authorized to be issued under this section shall be reduced by the amount of any federal funds made available for the purposes described in subsection (2) of this section. No bonds shall be issued under this section after July 1, 2013.
(b) Any investment earnings on amounts deposited into the special fund created in subsection (2) of this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.
(4) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this subsection. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.
(5) The bonds authorized by this section shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.
(6) All bonds and interest coupons issued under the provisions of this section have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
(7) The commission shall act as issuing agent for the bonds authorized under this section, prescribe the form of the bonds, determine the appropriate method for sale of the bonds, advertise for and accept bids or negotiate sale of the bonds, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this section from the proceeds derived from the sale of such bonds. The commission may sell such bonds on sealed bids at public sale or may negotiate the sale of the bonds for such price as it may determine to be for the best interest of the State of Mississippi. All interest accruing on such bonds so issued shall be payable semiannually or annually.
If such bonds are sold by sealed bids at public sale, notice of the sale shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, selected by the commission.
The commission, when issuing any bonds under the authority of this section, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.
(8) The bonds issued under the provisions of this section are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this subsection.
(9) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer the proceeds of any such sale or sales to the special fund created in subsection (2) of this section. The proceeds of such bonds shall be disbursed solely upon the order of the Department of Finance and Administration under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.
(10) The bonds authorized under this section may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by this section. Any resolution providing for the issuance of bonds under the provisions of this section shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.
(11) The bonds authorized under the authority of this section may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.
(12) Any holder of bonds issued under the provisions of this section or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.
(13) All bonds issued under the provisions of this section shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.
(14) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
(15) The proceeds of the bonds issued under this section shall be used solely for the purposes herein provided, including the costs incident to the issuance and sale of such bonds.
(16) The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under this section; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.
(17) This section shall be deemed to be full and complete authority for the exercise of the powers herein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 13. (1) (a) There is established in the State Treasury a fund to be known as the "Public Charter School Facility Revolving Loan Fund." The fund shall be comprised of federal funds obtained by the state for public charter schools and any other funds appropriated by the Legislature or transferred to the loan fund by the state. Monies appropriated to the loan fund remaining in the fund at the end of the fiscal year shall remain available for the purposes of the program and shall not lapse into the State General Fund.
(b) Loans may be made from monies in the Public Charter School Facility Revolving Loan Fund to a public charter school, upon application by a public charter school and approval by the State Board of Education or its designee. The purpose of the fund is to provide financial support to public charter schools for construction, purchase, renovation and maintenance of public charter school facilities. The fund shall consist of monies obtained from grants from the federal government, funds appropriated by the Legislature, repaid loans from borrowers and grants, gifts, devises and donations from any public or private source, except religious or sectarian organizations. The State Board of Education shall administer the fund and may apply for any grants from the federal government or private sources.
(2) The State Board of Education shall adopt rules and regulations necessary for the implementation of this section, including application and notification requirements. If sufficient funds are available for this purpose, monies from the Public Charter School Facility Revolving Loan Fund will be distributed to qualifying public charter school applicants.
(3) No loan to a public charter school shall exceed One Hundred Thousand Dollars ($100,000.00) over a five-year period. A public charter school may receive multiple loans from the loan fund, as long as the total amount received from the program over two (2) years does not exceed Seventy-five Thousand Dollars ($75,000.00).
(c) The board or its designee, when making a determination as to the approval of a public charter school's loan application, may consider the following:
(i) The soundness of the financial business plans of the applicant public charter school;
(ii) The availability to the public charter school of other sources of funding;
(iii) The geographic distribution of loans made from the Public Charter School Facility Revolving Loan Fund;
(iv) The impact that loans received under this section will have on the public charter school's receipt of other private and public financing;
(v) Any plans for innovatively enhancing or leveraging funds received under this section, such as loan guarantees or other types of credit enhancements; and
(vi) The financial needs of the public charter school.
(4) Beginning with the first fiscal year following the fiscal year the public charter school receives the loan, the State Board of Education shall deduct from allocations made to the public charter school, as appropriate, an amount equal to the annual repayment of the amount loaned to the public charter school under this section and pay the same amount into the Public Charter School Facility Revolving Loan Program. Repayment of the full amount loaned to the public charter school shall be deducted by the State Board of Education in equal annual amounts over a number of years agreed upon between the public charter school and the board or its designee, not to exceed ten (10) years for any loan.
(5) Notwithstanding other provisions of law, a loan may be made to a public charter school under this section only in the case of a public charter school that is incorporated.
(6) Notwithstanding other provisions of law, in the case of default of a loan made directly to a public charter school under this section, the public charter school shall be solely liable for repayment of the loan.
SECTION 14. (1) Local school boards shall make available to public charter schools, which shall have a right of first refusal, any vacant school facilities or any facility slated to be vacant for lease or purchase at fair market value as determined by the average of at least two (2) appraisals by qualified appraisers who shall be selected by the State Board of Education, which costs shall be paid, one (1) by the charter school and one (1) by the local school board leasing the facilities. All property within the existing school shall also be made available to the charter school under similar terms. If the facilities were constructed at no cost to the local school board, then the facilities including all equipment, books, instructional materials, and furniture within the facilities shall be provided to the charter school at no cost. The provisions of this subsection do not prohibit a charter school from purchasing or leasing new facilities.
(2) A public charter school may negotiate and contract at or below fair market value with a school district, the governing body of a state institution of higher learning or public community college or any other public or for-profit or nonprofit private entity for the use of a facility for a school building.
(3) A Library, community service, museum, performing arts theatre, cinema, church, community college, college and university facilities may provide space to public charter schools within their facilities under their preexisting zoning and land use designations.
(4) (a) Any facility, or portion thereof, used to house a public charter school shall be exempt from ad valorem taxes.
(b) Public charter school facilities are exempt from assessments of fees for building permits, fees for building and occupational licenses, impact fees, service availability fees and assessments for special benefits.
SECTION 15. (1) There is established in the State Treasury a fund to be known as the "Credit Enhancement Fund." The purpose of the fund is to provide grants to eligible nonprofit corporations to carry out the purposes of subsection (2) of this section. The fund shall consist of monies appropriated by the Legislature. Monies appropriated to the fund remaining in the fund at the end of the fiscal year shall remain available for the purposes of the program and shall not lapse into the State General Fund.
(2) The recipient of a grant under this section shall use the monies provided to carry out activities to assist public charter schools in:
(a) Obtaining financing to acquire interests in real property (including by purchase, lease, or donation), including financing to cover planning, development, and other incidental costs;
(b) Obtaining financing for construction of facilities or the renovation, repair, or alteration of existing property or facilities, including financing to cover planning, development and other incidental costs;
(c) Enhancing the availability of loans and bonds; and
(d) Obtaining lease guarantees.
(3) Funds provided under a grant under this section may not be used by a recipient to make direct loans or grants to public charter schools.
SECTION 16. This act shall take effect and be in force from and after July 1, 2010.
