Report Title:

Education

Description:

Amends existing laws regarding the creation and administration of charter schools to come into greater compliance with federal laws to preserve federal funding of charter schools in Hawaii. Allows for other chartering entities and authorizing entities other than public schools and the Department of Education, respectively. Increases the autonomy charter schools have over hiring, retention, curriculum, budgeting, and expenditure.

HOUSE OF REPRESENTATIVES

H.B. NO.

1922

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to charter schools.

 

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

SECTION 1. The purpose of this bill is to increase the educational opportunity for all children, especially those at-risk students who "fall between the cracks." The education of our keiki impacts the quality of life in Hawaii in many immeasurable ways from the health and growth of our economy, to the level of crime within our community, to the sustaining of our environment and its unique beauty, and to the leadership and services that government can provide. We are at risk of losing a whole generation of our keiki, our future leaders and citizens, to a myriad of social problems such as drug abuse, violence, overcrowding of public schools, and an overall lack of hope. The public school system is simply not equipped to address all of these specific problems. To prepare our keiki to excel in the new millennium will require an environment conducive to excellence, not a "one size fits all" cookie cutter approach to education.

By amending the existing law on charter schools, we offer a fiscally sound model for increasing student achievement through a vehicle that reduces class size, implements a variety of educational approaches without the burden of restrictive rules and regulations, and provides an environment where students can truly excel. We stand at the crossroads of a new millennium where the status quo will equate falling behind, not simply standing still. Fear of change to a proven better will simply doom our keiki, our future, to a tomorrow where Hawaii will fall further and further behind in educational achievement and quality of life in comparison to other states. The purpose of this Act is to propose a reform to public education that will prevent that from happening.

SECTION 2. Section 302A-1182, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1182 New century charter schools; establishment. (a) Up to a total of [twenty-five] fifty schools may be established as new century charter schools. These new century charter schools may be established by:

(1) The creation of a new school pursuant to [subsection (c)]section 302A- ______;

(2) An existing public school pursuant to subsection (b); or

(3) The creation of a new school, comprising of programs or sections of existing public school populations and using existing public school facilities pursuant to [subsection (c)]section 302A- ______; or

(4) A private school or entity pursuant to section 302A- .

(b) Any public school or schools [may submit a letter of intent to the board to] form a new century charter school[, establish] by establishing a local school board as its governing body, and [develop] developing a detailed implementation plan [pursuant to subsection (d)]; provided that:

(1) The local school board as its governing body shall be composed of, at a minimum, one representative from each of the following participant groups:

(A) Principals;

(B) Instructional staff members selected by the school instructional staff;

(C) Support staff selected by the support staff of the school;

(D) Parents of students attending the school selected by the parents of the school;

(E) Student body representatives selected by the students of the school; and

(F) The community at-large. [; and

(2) The detailed implementation plan shall be approved by sixty per cent of the school's existing administrative, support, and teaching personnel, and parents; provided that the school personnel may request their bargaining unit representative to certify and conduct the elections for their respective bargaining units.

(c) As an alternative to subsection (b), any community, group of teachers, group of teachers and administrators, entity recognized as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or any program within an existing school may submit a letter of intent to the board to form a new century charter school, establish a local school board as its governing body, and develop a detailed implementation plan pursuant to subsection (d).

(d) The local school board shall, with the support and guidance of the superintendent, formulate and develop a detailed implementation plan that meets the requirements of this subsection and of section 302A-1184. The plan shall include but not be limited to the following:

(1) A description of employee rights and management issues and a framework for addressing those issues that protect the rights of employees;

(2) A plan for identifying, recruiting, and selecting students that is not exclusive, elitist, or segregationist;

(3) The curriculum and instructional framework to be used to achieve student outcomes, including an assessment plan;

(4) A comprehensive plan for the assessment of student, administrative support, and teaching personnel performance, that:

(A) Recognizes the interests of the general public;

(B) Incorporates or exceeds state educational content and performance standards;

(C) Includes a system of faculty and staff accountability that holds faculty and staff both individually and collectively accountable for their performance, and that is at least equivalent to the average system of accountability in public schools throughout the State; and

(D) Provides for program audits and annual financial audits.

(5) The governance structure of the school;

(6) A plan for any necessary design, construction, renovation, and management of facilities that is consistent with the state facilities plan; provided that if the facilities management plan includes use of existing school facilities, the new century charter school shall receive authorization from the administrator responsible for the facilities; provided further that the final determination of use shall fall within the board's discretion.

(e) The detailed implementation plan shall be submitted to the new century charter school review panel, which shall be composed of seven members as follows:

(1) Four of the members shall be board of education members or their designees appointed by the chairperson of the board of education;

(2) Two of the members shall be members of the new century charter school community approved by the chairperson of the board of education from a list submitted by existing new century charter schools; and

(3) One member shall be the superintendent of education or the superintendent's designee.

Panel review procedures shall be as provided in this section. The board may adopt rules pursuant to chapter 91 to further guide the panel's review process.

(f) The new century charter school review panel shall have sixty working days to review the completed implementation plan for a proposed new century charter school to ensure that it meets the requirements of subsection (d) and section 302A-1184. Within forty-five working days, the panel shall issue a report of its preliminary findings to the board of education and the local school board. If the panel subsequently determines that the implementation plan:

(1) Meets the requirements of subsection (d) and section 302A-1184, the panel shall by the sixtieth working day submit a recommendation to the board of education to issue a charter to the proposed new century charter school. Upon receipt of the panel's recommendation, the board shall issue a charter, and the implementation plan shall be converted to a written performance contract between the school and the board; or

(2) Fails to meet the requirements of subsection (d) or section 302A-1184, the panel:

(A) Shall notify the local school board of the finding in writing to enable the local school board to appropriately amend the plan to resolve the conflict; and

(B) May submit a recommendation to the board to issue a provisional approval for a charter if the panel determines that the applicant may reasonably be expected to expeditiously resolve any remaining conflict or conflicts impeding the issuance of a charter. The provisional approval shall be effective for one year. The board may extend the provisional approval beyond a period of one year. If a charter is subsequently issued, the amended implementation plan shall be converted to a written performance contract between the school and the board.

(g) An amended implementation plan shall be submitted within thirty working days of notification pursuant to subsection (f)(2)(A). The board shall deny the issuance of a charter if the local school board does not submit an amended implementation plan within the thirty working day period. The panel shall have thirty working days to review the amended implementation plan. If the amended implementation plan:

(1) Meets the requirements of subsection (d) and section 302A-1184, the panel shall by the thirtieth working day submit a recommendation to the board of education to issue a charter to the proposed new century charter school. If a charter is issued, the amended implementation plan shall be converted to a written performance contract between the school and the board; or

(2) Fails to resolve any conflicts to the panel's satisfaction or involves new and different issues of conflict with subsection (d) or section 302A-1184, the panel shall deny issuance of a charter.

(h) A local school board may file an appeal of the denial of an application for a charter with the panel. Upon filing an appeal, the panel shall forward the implementation plan and appropriate documentation of the appeal to the board of education. Within thirty working days, the board of education shall issue a report of its findings and final determination to the local school board. If the implementation plan is approved, the board of education shall issue a charter and the implementation plan shall be converted to a written performance contract between the school and the board of education.

(i) The new century charter schools shall not charge tuition. The State shall afford the local school board of any new century charter school the same protections as the State affords to the board.]

(c) The local school board shall formulate and develop a detailed implementation plan, which shall include but not be limited to the following:

(1) A description of the administrative and educational framework, and which provides for the basic protection of employees and their reasonable academic freedoms;

(2) A plan for identifying, recruiting, and selecting students to make certain that student participation is not exclusive, elitist, or segregationist;

(3) A plan for a comprehensive assessment and accountability system that meets or exceeds the established state educational content and performance standards as well as any other specific student outcomes to be achieved, and making this plan accountable to the general public;

(4) The curriculum, instructional framework, and assessment mechanisms to be used to achieve student outcomes;

(5) A plan to hold the school, its faculty, and staff (collectively and individually) accountable in an least an equivalent manner as are other public schools throughout the State;

(6) A governance structure of the school;

(7) A facilities management plan that is consistent with the state facilities plan; provided that if the facilities management plan includes use of existing school facilities, the new century charter school shall receive authorization from the administrator responsible for the facilities; provided further that the final determination of use shall be under the discretion of the board; and

(8) A system of financial accountability that include annual financial and program audits.

The detailed implementation plan shall be approved by a majority of the school's existing administrative, support, and teaching personnel, and parents; provided that the school personnel may request their bargaining unit representative to certify and conduct the elections for their respective bargaining units.

(d) The board shall have sixty days to review the completed implementation plan for the proposed new century charter school to assure its compliance with subsection (c) and section 302A- . Unless the board finds that the plan conflicts with subsection (c) and section 302A- , the governor, the superintendent, and the board shall issue a charter designating the proposed new century charter school as a new century charter school within thirty days, and the proposed implementation plan shall be converted into a written performance contract between the school and the board. If, within thirty days after the submission of the plan, the board finds a conflict with subsection (c) or section 302A- , it shall notify the local school board of the finding in writing to enable the local school board to appropriately amend the plan to resolve the conflict.

(e) The new century charter schools shall not charge tuition. The State shall afford the local school board of any new century charter school the same protections as the State affords to the board."

SECTION 3. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- New century charter schools; request for establishment and designation. (a) As an alternative to section 302A-1182(b), any community, group of teachers, or any program within an existing school may submit a letter of intent to the board for the establishment of a new century charter school.

(b) The authors of the letter of intent shall then develop a detailed implementation plan, pursuant to section 302A-1182(c); provided that the plan shall also include the appointment of an interim school board, address issues of personnel management, and align any funding for the design and construction costs of building or renovating the new century charter school with the state facilities plan. The superintendent shall provide support and guidance to the community in formulating a detailed implementation plan which is compliant with sections 302A-1182(c) and 302A-1184. Once completed, the detailed implementation plan shall be submitted to the board for review.

(c) The board shall have sixty days to review the completed implementation plan for the proposed new century charter school to ensure its compliance with sections 302A-1182(c) and 302A-1184. Unless the board finds that the plan conflicts with section 302A-1182(c) or 302A-1184, the governor, the superintendent, and the board shall issue a charter designating the proposed new century charter school as a new century charter school within sixty days, and the proposed implementation plan shall be converted into a written performance contract between the school and the board. The interim local school board shall establish the local school board pursuant to section 302A-1182(b) no later than ninety days after the governor, the superintendent, and the board have designated the school a new century charter school by charter. If, within sixty days after the submission of the plan, the board finds a conflict with subsection (c) or section 302A- , it shall notify the local school board of the finding in writing to enable the local school board to appropriately amend the plan to resolve the conflict."

SECTION 4. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

302A- Charter schools; application; requirements; immunity; exemptions; renewal of application; reprisal. a. An applicant seeking to establish a charter school shall submit a written application to a proposed sponsor as prescribed in subsection c of this section. The application may include a mission statement for the charter school, a description of the charter school's hiring policy, the name of the charter school's applicant or applicants and requested sponsor, a description of the charter school's facility and the location of the school, a description of the grades being served and an outline of criteria designed to measure the effectiveness of the school.

b. The sponsor of a charter school may contract with a public body, private person or private organization for the purpose of establishing a charter school pursuant to this article.

c. The sponsor of a charter school may be either a school district governing board, the University of Hawaii, the county government, any public school, any private school, or any private entity or individual, subject to the following requirements:

(1) An applicant for a charter school may submit its application to a school district governing board, which shall either accept or reject sponsorship of the charter school within ninety days. An applicant may submit a revised application for reconsideration by the governing board. If the governing board rejects the application, the governing board shall notify the applicant in writing of the reasons for the rejection. The applicant may request, and the governing board may provide technical assistance to improve the application.

(A) If the charter application for a charter school targets exceptional children, the school district governing board shall expedite consideration of the application and shall either accept or reject sponsorship of the charter school within forty five days. If the governing board rejects the expedited application, the governing board shall notify the applicant in writing of the reasons for the rejection. An applicant may submit a revised application for reconsideration by the governing board. The applicant may request, and the governing board may provide technical assistance to improve the application.

(2) The applicant may submit the application to the governor or the appropriate county government. The governor or the appropriate county government may approve the application if the application meets the requirements of this article and may approve the charter if the proposed sponsor determines, within its sole discretion, that the applicant is sufficiently qualified to operate a charter school. The governor may approve up to twenty-five, and the appropriate county government may each approve up to five, charter schools each fiscal year. If the governor or the appropriate county government rejects the preliminary application, that body shall notify the applicant in writing of the reasons for the rejection and of suggestions for improving the application. An applicant may submit a revised application for reconsideration by the governor or the appropriate county government. The applicant may request, and the governor or the appropriate county government may provide, technical assistance to improve the application.

(A) If the charter application for a charter school targets exceptional children the governor or the appropriate county government shall expedite consideration of the application and shall either accept or reject sponsorship of the charter school within forty five days. If the governor or the appropriate county government rejects the expedited application, that body shall notify the applicant in writing of the reasons for the rejection and of suggestions for improving the application. An applicant may submit a revised application for reconsideration by the governor or the appropriate county government. The applicant may request, and the governor or the appropriate county government may provide, technical assistance to improve the application.

(3) Fingerprint checks for applicants of a charter school shall be conducted prior to the issuance of a charter.

(4) All noncertificated personnel shall be fingerprint checked.

d. A district governing board has no legal authority over or responsibility for a charter school sponsored by the University of Hawaii, the appropriate county government.

e. The charter of a charter school shall ensure the following:

(1) Compliance with federal, state and local rules, regulations and statutes relating to health, safety, civil rights and insurance. The department of education shall publish a list of relevant rules, regulations and statutes to notify charter schools of their responsibilities under this paragraph.

(2) That it is nonsectarian in its programs, admission policies and employment practices and all other operations.

(3) That it provides a comprehensive program of instruction for at least a kindergarten program or any grade between grades one and twelve, except that a school may offer this curriculum with an emphasis on a specific learning philosophy or style or certain subject areas such as mathematics, science, fine arts performance arts or language arts.

(4) That it designs a method to measure pupil progress toward the pupil outcomes adopted by the state board of education.

(5) That, except as provided in this article and in its charter, it is exempt from all statutes and rules relating to schools, governing boards and school districts.

(6) That it is subject to the same financial requirements as a school district. A school's charter may include exceptions to the requirements of this paragraph that are necessary as determined by the district governing board, the board of education or University of Hawaii or appropriate county government. The auditor may conduct financial, program or compliance audits.

(7) Compliance with all federal and state laws relating to the education of children with disabilities in the same manner as a school district.

(8) That it provides for a governing body for the charter school that is responsible for the policy and operational decisions of the charter school.

f. The charter of a charter school shall include a description of the charter school's personnel policies, personnel qualifications and method of school governance and the specific role and duties of the sponsor of the charter school.

g. The charter of a charter school may be amended at the request of the governing body of the charter school and on the approval of the sponsor.

h. An approved plan to establish a charter school is effective for five years from the first day of operation. At the conclusion of the first four years of operation, the charter school may apply for renewal. The sponsor may deny the request for renewal if, in its judgment, the charter school has failed to complete the obligations of the application or has failed to comply with this article. A sponsor shall give written notice of its intent not to renew the charter school's request for renewal to the charter school at least twelve months before the expiration of the approved plan to allow the charter school an opportunity to apply to another sponsor to transfer the operation of the charter school. If the operation of the charter school is transferred to another sponsor, the five year period shall be repeated. A sponsor may revoke a charter at any time if the charter school breaches one or more provisions of its charter.

i. After renewal of the charter at the end of the five year period described in subsection I of this section, the charter may be renewed for successive periods of seven years if the charter school and its sponsor deem that the school is in compliance with its own charter and the provisions of this article.

j. A charter school that is sponsored by the University of Hawaii or appropriate county government may not be located on the property of a school district unless the district governing board grants this authority.

k. A governing board or a school district employee who has control over personnel actions shall not take unlawful reprisal against another employee of the school district because the employee is directly or indirectly involved in an application to establish a charter school. A governing board or a school district employee shall not take unlawful reprisal against an educational program of the school or the school district because an application to establish a charter school proposes the conversion of all or a portion of the educational program to a charter school. As used in this subsection, "unlawful reprisal" means an action that is taken by a governing board or a school district employee as a direct result of a lawful application to establish a charter school and that is adverse to another employee or an education program and:

(l) With respect to a school district employee, results in one or more of the following:

(A) Disciplinary or corrective action.

(B) Detail, transfer or reassignment.

(C) Suspension, demotion or dismissal.

(D) An unfavorable performance evaluation.

(E) A reduction in pay, benefits or awards.

(F) Elimination of the employee's position without reduction in force by reason of lack of monies or work.

(G) Other significant changes in duties or responsibilities that are inconsistent with the employee's salary or employment classification.

(2) With respect to an educational program, results in one or more of the following:

(A) Suspension or termination of the program.

(B) Transfer or reassignment of the program to a less favorable department.

(C) Relocation of the program to a less favorable site within the school or school district.

(D) Significant reduction or termination of funding for the program.

l. Charter schools do not have the authority to acquire property by eminent domain.

m. A school district governing board and its agents and employees are not liable for any acts or omissions of a charter school that is sponsored by the school district, including acts or omissions relating to the application submitted by the charter school, the charter of the charter school, the operation of the charter school and the performance of the charter school.

n. A sponsor other than a school district governing board, including members, officers and employees of the sponsor, are immune from personal liability for all acts done and actions taken in good faith within the scope of their authority during duly constituted regular and special meetings.

o. The sponsor of a charter school shall establish procedures to conduct administrative hearings upon determination by the sponsor that grounds exist to revoke a charter. Final decisions of a sponsor other than a school district governing board from hearings conducted pursuant to this subsection are subject to judicial review."

SECTION 5. Section 302A-1185, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"§302A-1185 New century charter schools; funding. (a) New century charter schools shall receive an allocation of state general funds based upon the operational and educational funding requirements of the schools; provided that:

(1) Beginning in fiscal year 1999-2000, and every year thereafter, the auditor shall determine the appropriate allocation based on the total department general fund appropriation and per pupil expenditure for the previous fiscal year; [provided that the per pupil allocation to any new century charter school shall not exceed the department’s average per pupil expenditure based upon the inclusion of similar cost items, in the previous fiscal year; and] provided [further] that in setting the allocation, the auditor shall explicitly consider the advice of the superintendent and representatives of local school boards and indicate in the final determination the manner in which that advice was accommodated;

(2) Small schools with fewer than one hundred twenty students [may] shall be given a state subsidy or small school allotment, as determined by the department, to augment the per pupil allocation given; provided that if additional federal grant moneys are received, the auditor shall determine the appropriate portion of the federal grant moneys to be used to offset the small school allotment; provided further that the federal grant moneys shall not include federal impact aid;

(3) The department may provide a limited start-up and planning grant formulated by the auditor to a charter school upon the issuance of its charter;

(4) The auditor shall take into consideration any changes to the department's budget made by the legislature or the governor and any applicable collective bargaining negotiated amounts;

(5) The allocation for self-contained special education students and for other special education students shall be adjusted appropriately to reflect the additional expenses incurred for students in these programs; provided that any increment to the per pupil allocation made in this paragraph shall not exceed the increment available to all other public schools; and

(6) The auditor shall develop a methodology for allocating funds that can be applied to alternative forms of public schools, including but not limited to new century charter schools.

(b) All federal and other financial support for new century charter schools shall be no less than all other public schools; provided that if administrative services are provided to the charter school by the department, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that does not exceed six and one-half per cent of the charter school's allocation.

Any new century charter school shall be eligible to receive any supplementary financial grant or award for which any other public school may submit a proposal, or any supplemental federal grants limited to new century charter schools; provided that if department administrative services, including funds management, budgetary, fiscal accounting, or other related services, are provided with respect to these supplementary grants, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that does not exceed six and one-half per cent of the supplementary grant for which the services are used.

All additional funds that are generated by the local school boards, not from a supplementary grant, shall be separate and apart from allotted funds and may be expended at the discretion of the local school boards."

SECTION 6. Section 302A-1186, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1186 New century charter schools; accountability. (a) Every new century charter school shall conduct self-evaluations annually. The self-evaluation process shall include but not be limited to:

(1) The identification and adoption of benchmarks to measure and evaluate administrative and instructional programs as provided in this section;

(2) The identification of any administrative and legal barriers to meeting the benchmarks, as adopted, and recommendations for improvements and modifications to address the barriers;

(3) The impact of any changes made upon the students of the new century charter school; and

(4) A profile of the charter school's enrollment and community it serves.

Every new century charter school shall submit a report of its self-evaluation to the board within sixty working days after the completion of the school year; provided that the department shall have thirty working days to respond to any recommendation regarding improvements and modifications that would directly impact the department.

(b) The board shall initiate an independent evaluation of each new century charter school [annually for the first two years] four years after its establishment and every four years thereafter to assure compliance with statewide student content and performance standards and fiscal accountability; provided that each new century charter school established prior to July 1, 1998, shall be evaluated four years after July 1, 1998, and every four years thereafter. Upon a determination by the board that student achievement within a new century charter school does not meet the student performance standards, or that the new century charter school is not fiscally responsible, a new century charter school shall be placed on probationary status and shall have [one year] two years to bring student performance into compliance with statewide standards and improve the school's fiscal accountability. If a new century charter school fails to meet its probationary requirements, or fails to comply with any of the requirements of this section, the board, upon a two-thirds majority vote, may then deny the continuation of the new century charter school.

(c) The board of education may adopt guidelines to supplement accountability measures incorporated in the written performance contracts required under section 302A-1182. The board of education may adopt guidelines under which new century charter schools shall be reviewed on an annual basis by the board for the first two years upon their formation under section 302A-1182. The review guidelines may include:

(1) Minimum school size;

(2) Assurance that each school will be able to account for the funds allocated;

(3) Assurance that each school will be held accountable for student performance;

(4) Assurance that each school will meet legal standards for the expenditure of state and federal funds; and

(5) Assurance that each school will be in compliance with applicable state and federal laws."

SECTION 7. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Charter schools review guidelines. The board of education shall adopt guidelines under which new charter schools shall be reviewed by the board, upon their formation under section 302A-1182 or 302A-1183. The guidelines shall include such elements as:

(1) Minimum school size;

(2) Assurance that each school will be able to account for the funds allocated;

(3) Assurance that each school will be held accountable for student performance; and

(4) Assurance that each school will meet legal standards for the expenditure of state funds;

provided that the guidelines provide clear responsibilities for the expenditure of federal and any other non-state funds."

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect upon its approval.

INTRODUCED BY:

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