School boards; authorize to vote on providing members and their dependents with health insurance paid for by local funds.

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To: Education
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) DeBar

SENATE BILL NO. 2071

AN ACT TO AMEND SECTION 37-7-301, MISSISSIPPI CODE OF 1972, 1
TO EMPOWER ALL SCHOOL BOARDS OF ALL SCHOOL DISTRICTS TO VOTE TO 2
PROVIDE SCHOOL BOARD MEMBERS AND THEIR ELIGIBLE DEPENDENTS WITH 3
HEALTH INSURANCE, PROVIDED THAT SUCH INSURANCE IS PAID FOR WITH 4
LOCAL FUNDS AND NOT STATE FUNDS; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 37-7-301, Mississippi Code of 1972, is 7
amended as follows: 8
37-7-301. The school boards of all school districts shall 9
have the following powers, authority and duties in addition to all 10
others imposed or granted by law * * *: 11
(a) To organize and operate the schools of the district 12
and to make such division between the high school grades and 13
elementary grades as, in their judgment, will serve the best 14
interests of the school; 15
(b) To introduce public school music, art, manual 16
training and other special subjects into either the elementary or 17
high school grades, as the board shall deem proper; 18
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(c) To be the custodians of real and personal school 19
property and to manage, control and care for same, both during the 20
school term and during vacation; 21
(d) To have responsibility for the erection, repairing 22
and equipping of school facilities and the making of necessary 23
school improvements; 24
(e) To suspend or to expel a pupil or to change the 25
placement of a pupil to the school district's alternative school 26
or homebound program for misconduct in the school or on school 27
property, as defined in Section 37-11-29, on the road to and from 28
school, or at any school-related activity or event, or for conduct 29
occurring on property other than school property or other than at 30
a school-related activity or event when such conduct by a pupil, 31
in the determination of the school superintendent or principal, 32
renders that pupil's presence in the classroom a disruption to the 33
educational environment of the school or a detriment to the best 34
interest and welfare of the pupils and teacher of such class as a 35
whole, and to delegate such authority to the appropriate officials 36
of the school district; 37
(f) To visit schools in the district, in their 38
discretion, in a body for the purpose of determining what can be 39
done for the improvement of the school in a general way; 40
(g) To support, within reasonable limits, the 41
superintendent, principal and teachers where necessary for the 42
proper discipline of the school; 43
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(h) To exclude from the schools students with what 44
appears to be infectious or contagious diseases; provided, 45
however, such student may be allowed to return to school upon 46
presenting a certificate from a public health officer, duly 47
licensed physician or nurse practitioner that the student is free 48
from such disease; 49
(i) To require those vaccinations specified by the 50
State Health Officer as provided in Section 41-23-37; 51
(j) To see that all necessary utilities and services 52
are provided in the schools at all times when same are needed; 53
(k) To authorize the use of the school buildings and 54
grounds for the holding of public meetings and gatherings of the 55
people under such regulations as may be prescribed by said board; 56
(l) To prescribe and enforce rules and regulations not 57
inconsistent with law or with the regulations of the State Board 58
of Education for their own government and for the government of 59
the schools, and to transact their business at regular and special 60
meetings called and held in the manner provided by law; 61
(m) To maintain and operate all of the schools under 62
their control for such length of time during the year as may be 63
required; 64
(n) To enforce in the schools the courses of study and 65
the use of the textbooks prescribed by the proper authorities; 66
(o) To make orders directed to the superintendent of 67
schools for the issuance of pay certificates for lawful purposes 68
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on any available funds of the district and to have full control of 69
the receipt, distribution, allotment and disbursement of all funds 70
provided for the support and operation of the schools of such 71
school district whether such funds be derived from state 72
appropriations, local ad valorem tax collections, or otherwise. 73
The local school board shall be authorized and empowered to 74
promulgate rules and regulations that specify the types of claims 75
and set limits of the dollar amount for payment of claims by the 76
superintendent of schools to be ratified by the board at the next 77
regularly scheduled meeting after payment has been made; 78
(p) To select all school district personnel in the 79
manner provided by law, and to provide for such employee fringe 80
benefit programs, including accident reimbursement plans, as may 81
be deemed necessary and appropriate by the board; 82
(q) To provide athletic programs and other school 83
activities and to regulate the establishment and operation of such 84
programs and activities; 85
(r) To join, in their discretion, any association of 86
school boards and other public school-related organizations, and 87
to pay from local funds other than total funding formula funds, 88
any membership dues; 89
(s) To expend local school activity funds, or other 90
available school district funds, other than total funding formula 91
funds, for the purposes prescribed under this paragraph. 92
"Activity funds" shall mean all funds received by school officials 93
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in all school districts paid or collected to participate in any 94
school activity, such activity being part of the school program 95
and partially financed with public funds or supplemented by public 96
funds. The term "activity funds" shall not include any funds 97
raised and/or expended by any organization unless commingled in a 98
bank account with existing activity funds, regardless of whether 99
the funds were raised by school employees or received by school 100
employees during school hours or using school facilities, and 101
regardless of whether a school employee exercises influence over 102
the expenditure or disposition of such funds. Organizations shall 103
not be required to make any payment to any school for the use of 104
any school facility if, in the discretion of the local school 105
governing board, the organization's function shall be deemed to be 106
beneficial to the official or extracurricular programs of the 107
school. For the purposes of this provision, the term 108
"organization" shall not include any organization subject to the 109
control of the local school governing board. Activity funds may 110
only be expended for any necessary expenses or travel costs, 111
including advances, incurred by students and their chaperons in 112
attending any in-state or out-of-state school-related programs, 113
conventions or seminars and/or any commodities, equipment, travel 114
expenses, purchased services or school supplies which the local 115
school governing board, in its discretion, shall deem beneficial 116
to the official or extracurricular programs of the district, 117
including items which may subsequently become the personal 118
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property of individuals, including yearbooks, athletic apparel, 119
book covers and trophies. Activity funds may be used to pay 120
travel expenses of school district personnel. The local school 121
governing board shall be authorized and empowered to promulgate 122
rules and regulations specifically designating for what purposes 123
school activity funds may be expended. The local school governing 124
board shall provide (i) that such school activity funds shall be 125
maintained and expended by the principal of the school generating 126
the funds in individual bank accounts, or (ii) that such school 127
activity funds shall be maintained and expended by the 128
superintendent of schools in a central depository approved by the 129
board. The local school governing board shall provide that such 130
school activity funds be audited as part of the annual audit 131
required in Section 37-9-18. The State Department of Education 132
shall prescribe a uniform system of accounting and financial 133
reporting for all school activity fund transactions; 134
(t) To enter into an energy performance contract, 135
energy services contract, on a shared-savings, lease or 136
lease-purchase basis, for energy efficiency services and/or 137
equipment as provided for in Section 31-7-14; 138
(u) To maintain accounts and issue pay certificates on 139
school food service bank accounts; 140
(v) (i) To lease a school building from an individual, 141
partnership, nonprofit corporation or a private for-profit 142
corporation for the use of such school district, and to expend 143
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funds therefor as may be available from any sources other than 144
total funding formula funds as set by Sections 37-151-200 through 145
37-151-215. The school board of the school district desiring to 146
lease a school building shall declare by resolution that a need 147
exists for a school building and that the school district cannot 148
provide the necessary funds to pay the cost or its proportionate 149
share of the cost of a school building required to meet the 150
present needs. The resolution so adopted by the school board 151
shall be published once each week for three (3) consecutive weeks 152
in a newspaper having a general circulation in the school district 153
involved, with the first publication thereof to be made not less 154
than thirty (30) days prior to the date upon which the school 155
board is to act on the question of leasing a school building. If 156
no petition requesting an election is filed prior to such meeting 157
as hereinafter provided, then the school board may, by resolution 158
spread upon its minutes, proceed to lease a school building. If 159
at any time prior to said meeting a petition signed by not less 160
than twenty percent (20%) or fifteen hundred (1500), whichever is 161
less, of the qualified electors of the school district involved 162
shall be filed with the school board requesting that an election 163
be called on the question, then the school board shall, not later 164
than the next regular meeting, adopt a resolution calling an 165
election to be held within such school district upon the question 166
of authorizing the school board to lease a school building. Such 167
election shall be called and held, and notice thereof shall be 168
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given, in the same manner for elections upon the questions of the 169
issuance of the bonds of school districts, and the results thereof 170
shall be certified to the school board. If at least three-fifths 171
(3/5) of the qualified electors of the school district who voted 172
in such election shall vote in favor of the leasing of a school 173
building, then the school board shall proceed to lease a school 174
building. The term of the lease contract shall not exceed twenty 175
(20) years, and the total cost of such lease shall be either the 176
amount of the lowest and best bid accepted by the school board 177
after advertisement for bids or an amount not to exceed the 178
current fair market value of the lease as determined by the 179
averaging of at least two (2) appraisals by certified general 180
appraisers licensed by the State of Mississippi. The term "school 181
building" as used in this paragraph (v)(i) shall be construed to 182
mean any building or buildings used for classroom purposes in 183
connection with the operation of schools and shall include the 184
site therefor, necessary support facilities, and the equipment 185
thereof and appurtenances thereto such as heating facilities, 186
water supply, sewage disposal, landscaping, walks, drives and 187
playgrounds. The term "lease" as used in this paragraph (v)(i) 188
may include a lease-purchase contract; 189
(ii) If two (2) or more school districts propose 190
to enter into a lease contract jointly, then joint meetings of the 191
school boards having control may be held but no action taken shall 192
be binding on any such school district unless the question of 193
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leasing a school building is approved in each participating school 194
district under the procedure hereinabove set forth in paragraph 195
(v)(i). All of the provisions of paragraph (v)(i) regarding the 196
term and amount of the lease contract shall apply to the school 197
boards of school districts acting jointly. Any lease contract 198
executed by two (2) or more school districts as joint lessees 199
shall set out the amount of the aggregate lease rental to be paid 200
by each, which may be agreed upon, but there shall be no right of 201
occupancy by any lessee unless the aggregate rental is paid as 202
stipulated in the lease contract. All rights of joint lessees 203
under the lease contract shall be in proportion to the amount of 204
lease rental paid by each; 205
(w) To employ all noninstructional and noncertificated 206
employees and fix the duties and compensation of such personnel 207
deemed necessary pursuant to the recommendation of the 208
superintendent of schools; 209
(x) To employ and fix the duties and compensation of 210
such legal counsel as deemed necessary; 211
(y) Subject to rules and regulations of the State Board 212
of Education, to purchase, own and operate trucks, vans and other 213
motor vehicles, which shall bear the proper identification 214
required by law; 215
(z) To expend funds for the payment of substitute 216
teachers and to adopt reasonable regulations for the employment 217
and compensation of such substitute teachers; 218
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(aa) To acquire in its own name by purchase all real 219
property which shall be necessary and desirable in connection with 220
the construction, renovation or improvement of any public school 221
building or structure. Whenever the purchase price for such real 222
property is greater than Fifty Thousand Dollars ($50,000.00), the 223
school board shall not purchase the property for an amount 224
exceeding the fair market value of such property as determined by 225
the average of at least two (2) independent appraisals by 226
certified general appraisers licensed by the State of Mississippi. 227
If the board shall be unable to agree with the owner of any such 228
real property in connection with any such project, the board shall 229
have the power and authority to acquire any such real property by 230
condemnation proceedings pursuant to Section 11-27-1 et seq., 231
Mississippi Code of 1972, and for such purpose, the right of 232
eminent domain is hereby conferred upon and vested in said board. 233
Provided further, that the local school board is authorized to 234
grant an easement for ingress and egress over sixteenth section 235
land or lieu land in exchange for a similar easement upon 236
adjoining land where the exchange of easements affords substantial 237
benefit to the sixteenth section land; provided, however, the 238
exchange must be based upon values as determined by a competent 239
appraiser, with any differential in value to be adjusted by cash 240
payment. Any easement rights granted over sixteenth section land 241
under such authority shall terminate when the easement ceases to 242
be used for its stated purpose. No sixteenth section or lieu land 243
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which is subject to an existing lease shall be burdened by any 244
such easement except by consent of the lessee or unless the school 245
district shall acquire the unexpired leasehold interest affected 246
by the easement; 247
(bb) To charge reasonable fees related to the 248
educational programs of the district, in the manner prescribed in 249
Section 37-7-335; 250
(cc) Subject to rules and regulations of the State 251
Board of Education, to purchase relocatable classrooms for the use 252
of such school district, in the manner prescribed in Section 253
37-1-13; 254
(dd) Enter into contracts or agreements with other 255
school districts, political subdivisions or governmental entities 256
to carry out one or more of the powers or duties of the school 257
board, or to allow more efficient utilization of limited resources 258
for providing services to the public; 259
(ee) To provide for in-service training for employees 260
of the district; 261
(ff) As part of their duties to prescribe the use of 262
textbooks, to provide that parents and legal guardians shall be 263
responsible for the textbooks and for the compensation to the 264
school district for any books which are not returned to the proper 265
schools upon the withdrawal of their dependent child. If a 266
textbook is lost or not returned by any student who drops out of 267
the public school district, the parent or legal guardian shall 268
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also compensate the school district for the fair market value of 269
the textbooks; 270
(gg) To conduct fund-raising activities on behalf of 271
the school district that the local school board, in its 272
discretion, deems appropriate or beneficial to the official or 273
extracurricular programs of the district; provided that: 274
(i) Any proceeds of the fund-raising activities 275
shall be treated as "activity funds" and shall be accounted for as 276
are other activity funds under this section; and 277
(ii) Fund-raising activities conducted or 278
authorized by the board for the sale of school pictures, the 279
rental of caps and gowns or the sale of graduation invitations for 280
which the school board receives a commission, rebate or fee shall 281
contain a disclosure statement advising that a portion of the 282
proceeds of the sales or rentals shall be contributed to the 283
student activity fund; 284
(hh) To allow individual lessons for music, art and 285
other curriculum-related activities for academic credit or 286
nonacademic credit during school hours and using school equipment 287
and facilities, subject to uniform rules and regulations adopted 288
by the school board; 289
(ii) To charge reasonable fees for participating in an 290
extracurricular activity for academic or nonacademic credit for 291
necessary and required equipment such as safety equipment, band 292
instruments and uniforms; 293
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(jj) To conduct or participate in any fund-raising 294
activities on behalf of or in connection with a tax-exempt 295
charitable organization; 296
(kk) To exercise such powers as may be reasonably 297
necessary to carry out the provisions of this section; 298
(ll) To expend funds for the services of nonprofit arts 299
organizations or other such nonprofit organizations who provide 300
performances or other services for the students of the school 301
district; 302
(mm) To expend federal No Child Left Behind Act funds, 303
or any other available funds that are expressly designated and 304
authorized for that use, to pay training, educational expenses, 305
salary incentives and salary supplements to employees of local 306
school districts; except that incentives shall not be considered 307
part of the local supplement, nor shall incentives be considered 308
part of the local supplement paid to an individual teacher for the 309
purposes of Section 37-19-7(1); 310
(nn) To use any available funds, not appropriated or 311
designated for any other purpose, for reimbursement to the 312
state-licensed employees from both in state and out of state, who 313
enter into a contract for employment in a school district, for the 314
expense of moving when the employment necessitates the relocation 315
of the licensed employee to a different geographical area than 316
that in which the licensed employee resides before entering into 317
the contract. The reimbursement shall not exceed One Thousand 318
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Dollars ($1,000.00) for the documented actual expenses incurred in 319
the course of relocating, including the expense of any 320
professional moving company or persons employed to assist with the 321
move, rented moving vehicles or equipment, mileage in the amount 322
authorized for county and municipal employees under Section 323
25-3-41 if the licensed employee used his personal vehicle or 324
vehicles for the move, meals and such other expenses associated 325
with the relocation. No licensed employee may be reimbursed for 326
moving expenses under this section on more than one (1) occasion 327
by the same school district. Nothing in this section shall be 328
construed to require the actual residence to which the licensed 329
employee relocates to be within the boundaries of the school 330
district that has executed a contract for employment in order for 331
the licensed employee to be eligible for reimbursement for the 332
moving expenses. However, the licensed employee must relocate 333
within the boundaries of the State of Mississippi. Any individual 334
receiving relocation assistance through the Critical Teacher 335
Shortage Act as provided in Section 37-159-5 shall not be eligible 336
to receive additional relocation funds as authorized in this 337
paragraph; 338
(oo) To use any available funds, not appropriated or 339
designated for any other purpose, to reimburse persons who 340
interview for employment as a licensed employee with the district 341
for the mileage and other actual expenses incurred in the course 342
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of travel to and from the interview at the rate authorized for 343
county and municipal employees under Section 25-3-41; 344
(pp) Consistent with the report of the Task Force to 345
Conduct a Best Financial Management Practices Review, to improve 346
school district management and use of resources and identify cost 347
savings as established in Section 8 of Chapter 610, Laws of 2002, 348
local school boards are encouraged to conduct independent reviews 349
of the management and efficiency of schools and school districts. 350
Such management and efficiency reviews shall provide state and 351
local officials and the public with the following: 352
(i) An assessment of a school district's 353
governance and organizational structure; 354
(ii) An assessment of the school district's 355
financial and personnel management; 356
(iii) An assessment of revenue levels and sources; 357
(iv) An assessment of facilities utilization, 358
planning and maintenance; 359
(v) An assessment of food services, transportation 360
and safety/security systems; 361
(vi) An assessment of instructional and 362
administrative technology; 363
(vii) A review of the instructional management and 364
the efficiency and effectiveness of existing instructional 365
programs; and 366
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(viii) Recommended methods for increasing 367
efficiency and effectiveness in providing educational services to 368
the public; 369
(qq) To enter into agreements with other local school 370
boards for the establishment of an educational service agency 371
(ESA) to provide for the cooperative needs of the region in which 372
the school district is located, as provided in Section 37-7-345; 373
(rr) To implement a financial literacy program for 374
students in Grades 10 and 11. The board may review the national 375
programs and obtain free literature from various nationally 376
recognized programs. After review of the different programs, the 377
board may certify a program that is most appropriate for the 378
school districts' needs. If a district implements a financial 379
literacy program, then any student in Grade 10 or 11 may 380
participate in the program. The financial literacy program shall 381
include, but is not limited to, instruction in the same areas of 382
personal business and finance as required under Section 383
37-1-3(2)(b). The school board may coordinate with volunteer 384
teachers from local community organizations, including, but not 385
limited to, the following: United States Department of 386
Agriculture Rural Development, United States Department of Housing 387
and Urban Development, Junior Achievement, bankers and other 388
nonprofit organizations. Nothing in this paragraph shall be 389
construed as to require school boards to implement a financial 390
literacy program; 391
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(ss) To collaborate with the State Board of Education, 392
Community Action Agencies or the Department of Human Services to 393
develop and implement a voluntary program to provide services for 394
a prekindergarten program that addresses the cognitive, social, 395
and emotional needs of four-year-old and three-year-old children. 396
The school board may utilize any source of available revenue to 397
fund the voluntary program. Effective with the 2013-2014 school 398
year, to implement voluntary prekindergarten programs under the 399
Early Learning Collaborative Act of 2013 pursuant to state funds 400
awarded by the State Department of Education on a matching basis; 401
(tt) With respect to any lawful, written obligation of 402
a school district, including, but not limited to, leases 403
(excluding leases of sixteenth section public school trust land), 404
bonds, notes, or other agreement, to agree in writing with the 405
obligee that the Department of Revenue or any state agency, 406
department or commission created under state law may: 407
(i) Withhold all or any part (as agreed by the 408
school board) of any monies which such local school board is 409
entitled to receive from time to time under any law and which is 410
in the possession of the Department of Revenue, or any state 411
agency, department or commission created under state law; and 412
(ii) Pay the same over to any financial 413
institution, trustee or other obligee, as directed in writing by 414
the school board, to satisfy all or part of such obligation of the 415
school district. 416
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The school board may make such written agreement to withhold 417
and transfer funds irrevocable for the term of the written 418
obligation and may include in the written agreement any other 419
terms and provisions acceptable to the school board. If the 420
school board files a copy of such written agreement with the 421
Department of Revenue, or any state agency, department or 422
commission created under state law then the Department of Revenue 423
or any state agency, department or commission created under state 424
law shall immediately make the withholdings provided in such 425
agreement from the amounts due the local school board and shall 426
continue to pay the same over to such financial institution, 427
trustee or obligee for the term of the agreement. 428
This paragraph (tt) shall not grant any extra authority to a 429
school board to issue debt in any amount exceeding statutory 430
limitations on assessed value of taxable property within such 431
school district or the statutory limitations on debt maturities, 432
and shall not grant any extra authority to impose, levy or collect 433
a tax which is not otherwise expressly provided for, and shall not 434
be construed to apply to sixteenth section public school trust 435
land; 436
(uu) With respect to any matter or transaction that is 437
competitively bid by a school district, to accept from any bidder 438
as a good-faith deposit or bid bond or bid surety, the same type 439
of good-faith deposit or bid bond or bid surety that may be 440
accepted by the state or any other political subdivision on 441
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similar competitively bid matters or transactions. This paragraph 442
(uu) shall not be construed to apply to sixteenth section public 443
school trust land. The school board may authorize the investment 444
of any school district funds in the same kind and manner of 445
investments, including pooled investments, as any other political 446
subdivision, including community hospitals; 447
(vv) To utilize the alternate method for the conveyance 448
or exchange of unused school buildings and/or land, reserving a 449
partial or other undivided interest in the property, as 450
specifically authorized and provided in Section 37-7-485; 451
(ww) To delegate, privatize or otherwise enter into a 452
contract with private entities for the operation of any and all 453
functions of nonacademic school process, procedures and operations 454
including, but not limited to, cafeteria workers, janitorial 455
services, transportation, professional development, achievement 456
and instructional consulting services materials and products, 457
purchasing cooperatives, insurance, business manager services, 458
auditing and accounting services, school safety/risk prevention, 459
data processing and student records, and other staff services; 460
however, the authority under this paragraph does not apply to the 461
leasing, management or operation of sixteenth section lands. 462
Local school districts, working through their regional education 463
service agency, are encouraged to enter into buying consortia with 464
other member districts for the purposes of more efficient use of 465
state resources as described in Section 37-7-345; 466
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(xx) To partner with entities, organizations and 467
corporations for the purpose of benefiting the school district; 468
(yy) To borrow funds from the Rural Economic 469
Development Authority for the maintenance of school buildings; 470
(zz) To fund and operate voluntary early childhood 471
education programs, defined as programs for children less than 472
five (5) years of age on or before September 1, and to use any 473
source of revenue for such early childhood education programs. 474
Such programs shall not conflict with the Early Learning 475
Collaborative Act of 2013; 476
(aaa) To issue and provide for the use of procurement 477
cards by school board members, superintendents and licensed school 478
personnel consistent with the rules and regulations of the 479
Mississippi Department of Finance and Administration under Section 480
31-7-9; * * * 481
( * * *aab) To conduct an annual comprehensive 482
evaluation of the superintendent of schools consistent with the 483
assessment components of paragraph (pp) of this section and the 484
assessment benchmarks established by the Mississippi School Board 485
Association to evaluate the success the superintendent has 486
attained in meeting district goals and objectives, the 487
superintendent's leadership skill and whether or not the 488
superintendent has established appropriate standards for 489
performance, is monitoring success and is using data for 490
improvement * * *; and 491
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ST: School boards; authorize to vote on
providing members and their dependents with
health insurance paid for by local funds.
(aac) To vote to provide school board members and their 492
eligible dependents with health insurance, provided that such 493
insurance is paid for with local funds and not state funds. 494
SECTION 2. This act shall take effect and be in force from 495
and after July 1, 2026. 496