SB 581 – This act modifies provisions relating to school districts. ADJUSTMENT AND APPORTIONMENT OF SCHOOL PROPERTY RELATING TO A BOUNDARY LINE CHANGE: Current law requires the school boards of school districts for which a boundary line change occurs to make a just and proper adjustment and apportionment of all school property. When an election is to occur to decide whether to change school district boundary lines under Section 162.431, this act requires the affected school districts to make a preliminary adjustment and apportionment of the districts' property at least sixty days prior to the election. If the districts cannot agree on a preliminary adjustment and apportionment, the State Board of Education must appoint a three person board of arbitration to determine the preliminary apportionment and adjustment. If the boundary line change occurs and the districts cannot agree when making the apportionment and adjustment and a board of arbitration is appointed, the board must follow the preliminary apportionment and adjustment unless new and significant circumstances exist. In such a situation, the board of arbitration must state in writing why it is deviating from the preliminary adjustment and apportionment. (Sections 162.041 and 162.431) KANSAS CITY SCHOOL DISTRICT: This act allows the State Board of Education to assume responsibility and general supervision of the Kansas City School District after classifying it as unaccredited. The State Board may enter into contracts with other school districts or education providers, in order of preference as described in the act, to deliver education programs to residents of the Kansas City School District. Contracts will be for a period of five years and may be renewed. The State Board will create attendance boundaries for contracted portions of the district. Any district or education service provider that contracts with the State Board will have the right to employ teachers and set their compensation. The State Board must grant waivers from the Missouri School Improvement Program to contracting school districts for the students they serve from the Kansas City School District. Local tax revenues of the district will be distributed to contracted portions of the district in the same ratio as the pupil count of the contracted portions to the pupil count of the entire district. In addition, state aid, as described in the act, will be distributed to contracted portions of the district in a manner consistent with the current year weighted average daily attendance of each contracted area. This act contains requirements for lease purchase of school facilities, district fund balances, and unallocated qualified school construction bonds. This act exempts the Kansas City School District from the provisions of Section 167.131 at any time when the State Board of Education has entered into contracts with other school districts or education service providers. (Sections 162.081, 162.082 & 167.131) RETIREMENT SYSTEMS AND RETIRED TEACHERS: Current members of the Kansas City Public School Retirement System who become employed in a contracted portion of the Kansas City School District will remain members of the system. In addition, any employee currently a member of the Public School Retirement System of Missouri who becomes employed in a contract portion of the district will remain a member of that system. Retired members of either the Kansas City Public School Retirement System or the Public School Retirement System of Missouri may be employed in a contracted portion of the district and will not be subject to the existing limits on hours and compensation for retired teachers who return to work. The Joint Committee on Public Employee Retirement must contract with an actuary to conduct an actuarial audit of the Kansas City Public School Retirement System, as described in the act. (Section 162.082) SCHOOL DISTRICT BOUNDARY LINE CHANGES: This act modifies the effective date of a boundary line change. Instead of the change being effective from the date of the election, the change would be effective at the beginning date of the next school year. When one district votes in favor of the boundary line change and one district votes against the change and a board of arbitration is appointed by the State Board of Education to determine whether to make the change, the board of arbitration must base its decision on the current accreditation status of each affected district. The board of arbitration would determine the boundary line change in a manner that moves students out of unaccredited and provisionally accredited districts and into accredited districts. If each district is accredited, the board of arbitration must use the existing factors in the statute to make its decision. After a boundary line change occurs, for the next three school years, the receiving district may, but will not be required to, include the statewide assessment scores for any students it receives in the district's scores. If a boundary line change results in a charter school being located in a district other than Kansas City or St. Louis, the local school district and charter school's governing board may enter into an agreement to incorporate the charter school into the district and operate it as a regular school building of the district. If such an agreement occurs, the district must make arrangements for the charter school's students to continue attending school at that building until they graduate. The Department of Elementary and Secondary Education may grant a waiver for such a school to continue operating like a charter school while functioning as part of the district. (Section 162.431) WEIGHTED AVERAGE DAILY ATTENDANCE FOR DISTRICTS AFFECTED BY A BOUNDARY LINE CHANGE: When a school district gains enrollment because of a boundary line change, during the two school years following the change, its weighted average daily attendance figure will be adjusted so that it receives twice the weighted average daily attendance for any students it received as a result of the boundary line change. When a school district loses student enrollment because of a boundary line change, during the school year following the line change, it may only submit an estimate of the weighted average daily attendance for the current year. During the second year following the line change, it may submit an estimate of the weighted average daily attendance for the current year or the weighted average daily attendance for the immediately preceding year, whichever is greater. During the third year following the line change, it may submit an estimate of the weighted average daily attendance for the current year or the weighted average daily attendance for the immediately preceding year, or the weighted average daily attendance for the second preceding school year, whichever is greater. (Section 162.431) SCHOOL DISTRICT TRUST FUND (PROP C FUNDS): When a change in school district boundary lines occurs under Section 162.431, the Department of Elementary and Secondary Education must modify the school district trust fund payments to the affected school districts during the first academic year in which the boundaries are changed to reflect the current weighted average daily attendance count. In subsequent years, districts' payments will be determined by the first preceding weighted average daily attendance count. (Section 163.087) This act contains an emergency clause. This act contains provisions identical to SB 434 (2011). MICHAEL RUFF