Bill Text: MS SB2691 | 2013 | Regular Session | Introduced

Mississippi Senate Bill 2691 (Prior Session Legislation)

Introduced

Bill Title: Opportunity scholarships for low-income students to attend nonpublic schools; create and allow tax credits.

Spectrum: Bipartisan Bill

Status: (Failed) 2013-02-05 - Died In Committee [SB2691 Detail]

Download: Mississippi-2013-SB2691-Introduced.html

MISSISSIPPI LEGISLATURE

2013 Regular Session

To: Education; Finance

By: Senator(s) Carmichael, Tollison

Senate Bill 2691

AN ACT TO CREATE AN OPPORTUNITY SCHOLARSHIP FOR LOW-INCOME STUDENTS TO ATTEND AN APPROVED NONPUBLIC SCHOOL; TO PROVIDE AN INCOME TAX CREDIT FOR CONTRIBUTORS TO THE PROGRAM; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) Effective with the 2014-2015 school year, there is created an opportunity scholarship program to give low-income public school students the opportunity to enroll and attend an approved nonpublic school. The program shall be administered by a Scholarship Granting Organization (SGO) selected by the State Board of Education as hereinafter provided.

(2) A public school student's parent may request and receive from the SGO an opportunity scholarship for the student to enroll in an approved nonpublic school in accordance with the provisions of this section if:

(a) The student has spent the prior school year in attendance at a public school graded "D" or "F" and that has had two (2) school years in a four-year period of such low performance, and the student's attendance occurred during a school year in which such designation was in effect; or

(b) The student is entering Kindergarten or First Grade and lives within the attendance zone of such a school for the next school year;

(d) The parent has obtained acceptance for admission of the student to an approved nonpublic school and has notified the SGO and the school district of the request for an opportunity scholarship no later than July 1 of the first year in which the student intends to use the scholarship.

(3) The provisions of this section shall not apply to students enrolled in a school operating for providing educational services to youth juvenile justice system commitment programs.

SECTION 2. (1) A school district shall, for each student enrolled in or assigned to a school that has been graded "D" or "F" for two (2) school years in a four-year period, timely notify the parent of the student as soon as such designation is made of all options available pursuant to this act.

(2) Transportation costs to an approved nonpublic school shall be the responsibility of the family.

SECTION 3. (1) To be eligible to participate in the Opportunity Scholarship Program, a school must be a school operating in Mississippi, may be sectarian or nonsectarian, and must:

(a) Demonstrate fiscal soundness by being in operation for one (1) school year or provide the Department of Education with a statement by a certified public accountant confirming that the school desiring to participate is insured. In addition, the owner or owners must have sufficient capital or credit to operate the school for the upcoming year serving the number of students anticipated with expected revenues from tuition and other sources that may be reasonably expected. In lieu of such a statement, a surety bond or letter of credit for the amount equal to the opportunity scholarship funds available for any quarter may be filed with the department.

(b) Notify the Department of Education of its intent to participate in the program under this section by May 1 of the school year preceding the school year in which it intends to participate. The notice shall specify the grade levels and services that the school has available for the Opportunity Scholarship Program.

(d) Meet state and local health and safety laws and codes.

(e) Accept scholarship students on an entirely random and religious-neutral basis without regard to the student's past academic history; however, the school may give preference in accepting applications to siblings of students who have already been accepted on a random and religious-neutral basis.

(f) Be academically accountable to the parent for meeting the educational needs of the student. The school must furnish a school profile that includes student performance.

(g) Employ or contract with teachers who hold a baccalaureate or higher degree, or have at least three (3) years of teaching experience in public or private schools, or have special skills, knowledge or expertise that qualifies them to provide instruction in subjects taught.

(h) Comply with all state statutes relating to nonpublic schools.

(i) Adhere to the tenets of its published disciplinary procedures prior to the expulsion of any opportunity scholarship student.

(2) The State Board of Education shall determine eligible nonpublic schools based upon the criteria set froth in subsection (1) of this section and shall maintain a list of approved nonpublic schools.

SECTION 4. (1) Any student participating in the Opportunity Scholarship Program must remain in attendance throughout the school year, unless excused by the school for illness or other good cause, and must comply fully with the school's code of conduct.

(2) The parent of each student participating in the Opportunity Scholarship Program must comply fully with the school's parental involvement requirements, unless excused by the school for illness or other good cause.

SECTION 5. (1) The maximum opportunity scholarship granted for an eligible student shall be a calculated amount equivalent to ninety percent (90%) of base student cost, or the amount of the approved nonpublic school's cost of educating the child, whichever is less. Fees eligible for reimbursement from the scholarship shall include textbook fees, lab fees and other fees related to instruction, including transportation.

(2) No liability shall arise on the part of the state based on any grant or use of an opportunity scholarship.

SECTION 6. (1) The State Board of Education shall select a Scholarship Granting Organization to serve as administrator of the Opportunity Scholarship Program and establishing compensation for services performed. The SGO shall demonstrate to the board that it has been granted exemption from the federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code.

(2) The SGO shall:

(a) Create a fund to be designated the "Opportunity Scholarship Fund" which shall consist of money designated for deposit therein from gifts, donations or contributions from individuals, corporations or any other source, public or private. Unexpended monies in the fund and interest earned thereon shall not be used or expended for any purpose except as authorized in this act.

(b) Notify the department of scholarships awarded to students attending approved nonpublic schools.

(c) Distribute periodic scholarship payments as checks made out to a student's parent or guardian and mailed to the qualifying school where the student is enrolled. The parent or guardian must endorse the check before it can be deposited.

(d) Provide a department-approved receipt to taxpayers for contributions made to the SGO.

(e) Ensure that at least ninety-three percent (93%) of its revenue from donations is spent on scholarships, and that all revenue from interest or investments is spent on scholarships.

(f) Ensure that scholarships are portable during the school year and can be used at any approved nonpublic school that accepts the eligible student according to a parent's wishes. If a student moves to a new qualifying school during a school year, the scholarship amount may be prorated.

(g) Publicly report to the department by June 1 of each year the following information prepared by a certified public accountant regarding its grants in the previous calendar year:

(i) The total number and total dollar amount of contributions received during the previous calendar year; and

(ii) The total number and total dollar amount of scholarships awarded during the previous calendar year, the total number and total dollar amount of scholarships awarded during the previous year to students qualifying for the federal free and reduced-price lunch program, and the percentage of first-time recipients of scholarships who were enrolled in a public school during the previous year.

(h) Ensure scholarships are not provided for students to attend a school with paid staff or board members, or relatives thereof, in common with the SGO.

(i) Annually submit to the department a financial information report for the organization that complies with uniform financial accounting standards established by the department and conducted by a certified public accountant, certifying that the report is free of material misstatements.

(3) All participating schools shall demonstrate financial viability, if they are to receive donations of Fifty Thousand Dollars ($50,000.00) or more during the school year, by:

(a) Filing with the SGO prior to the start of the school year a surety bond payable to the SGO in an amount equal to the aggregate amount of contributions expected to be received during the school year; or

(b) Filing with the SGO prior to the start of the school year financial information that demonstrates the financial viability of the participating school.

(4) (a) The SGO shall ensure that participating schools that accept its scholarship shall:

(i) Annually administer either the state achievement tests or nationally recognized norm-referenced tests that measure learning gains in math and language arts to all participating students in grades that require testing under the state's accountability testing laws for public schools;

(ii) Allow costs of the testing requirements to be covered by the scholarships distributed by the SGO;

(iii) Provide the parents of each student who was tested with a copy of the results of the tests on an annual basis, beginning with the first year of testing;

(iv) Provide the test results to the department on an annual basis, beginning with the first year of testing;

(v) Report student information that would allow the state to aggregate data by grade level, gender, family income level and race; and

(vi) Provide graduation rates of participating students to the department in a manner consistent with nationally recognized standards.

(b) The department shall:

(i) Ensure compliance with all student privacy laws;

(ii) Collect all test result; and

(iii) Provide the test results and associated learning gains to the public via a website after the third year of test and test-related data collection. The findings shall be aggregated by the students' grade level, gender, family income level, number of years of participation in the scholarship program and race.

(5) Individuals and corporations contributing to the Opportunity Scholarship Fund shall be eligible to a tax credit pursuant to Section 7 of this act. Donations accepted by the SGO in any one (1) calendar year shall not exceed Ten Million Dollars ($10,000,000.00).

(6) The SGO shall promulgate rules necessary to effectuate the purposes of this act. Such rules shall include a means informing the public of the extent of the Opportunity Scholarship Program and the application process for scholarship candidates.

SECTION 7. This section shall be codified in Title 27, Chapter 7, of the Mississippi Code of 1972, as follows:

(1) Any individual, corporation or other entity having taxable income in this state is allowed an annual tax credit for taxes imposed by Section 27-7-5 for donations made to the "Opportunity Scholarship Fund" created by Section 6 of this act. Any unused portion of the credit may be carried forward for three (3) tax years.

(2) Any donation to the fund must be verified by submission to the Department of Revenue with a copy of the receipt provided to the donor taxpayer by the Scholarship Granting Organization or such other written verification as may be required by the Department of Revenue.

(3) The maximum amount of donations accepted by the administrator of the Opportunity Scholarship Program created by this act in any one (1) calendar year shall not exceed Ten Million Dollars ($10,000,000.00).

SECTION 8. This act shall take effect and be in force from and after July 1, 2013.