MS HB861

Authorizes the State Board of Education to approve up to five districts of innovation per year, with initial approval and renewals limited to five-year periods.

Districts of innovation receive exemptions from selected state board regulations, Title 37 provisions, and local school board policies to improve student educational performance and meet diverse student needs.

Requires the State Board to promulgate administrative rules by December 31, 2015, establishing application procedures, evaluation criteria, support documentation requirements, and oversight responsibilities for districts seeking innovation designation.

Schools of innovation within approved districts must maintain compliance with health and safety standards, compulsory attendance, minimum course offerings, state performance standards, financial audits, background checks, open records laws, and equivalent instructional time.

Allows approved districts of innovation to use capital outlay funds for operations, hire classified staff with bachelor's degrees, employ teachers on alternative contracts with flexible compensation, use flexible school calendars, establish online classes, and modify funding formulas for nontraditional programming.