CONFERENCE COMMITTEE REPORT NO. 119

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 1501
                                  S.D. 3
                                  H.D. 3
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 1501, S.D. 3, H.D. 3, entitled:  

     "A BILL FOR AN ACT RELATING TO EDUCATION," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to define "New Century
Charter Schools" as schools that utilize an alternate educational
framework and are governed by an independent governing board.  In
addition, this measure creates a process whereby New Century
Charter Schools may be established.

     Your Committee acknowledges the growing national and state
interest in charter schools because they provide a truly
flexible, self-defining alternative for public school reform, and
allow students, teachers, and administrators the opportunity for
innovation and increased autonomy to achieve their academic
goals.  Hawaii currently has a process whereby existing schools

 
a                                                     SB1501 CD1
                            CONFERENCE COMMITTEE REPORT NO. 119
                            Page 2



may become student-centered schools (sections 302A-1123, 302A-
1123.5, and 302A-1123.6, Hawaii Revised Statutes), but this
process is difficult to follow and the provisions of the school
are not adequately identified.  Hawaii is in need of a
comprehensive charter school measure which will explicitly detail
a process that will enable and allow both existing schools and
new schools to meet the educational demands of the twenty-first
century -- to become New Century Charter Schools.

     This measure is intended to be comprehensive charter school
legislation that establishes the process for the creation of a
charter school, either from a new school, an existing school, a
school-within-a-school, or a new school comprised of parts and
programs of existing schools.  Your Committee has diligently
worked to formulate a measure which not only facilitates the
process to create New Century Charter Schools, but also ensures
that the New Century Charter Schools will be held accountable for
the academic performance of their students.  By working with
current charter school officials, the Department of Education,
the Office of the Governor, and employee representatives, your
Committee has created a measure that it strongly believes is
groundbreaking in its definitive step towards complete
educational reform in this State.

     Your Committee has amended this measure by:

     (1)  Clarifying the process for the Board of Education to
          designate a school as a New Century Charter School
          (sections 302A-B and 302A-C);

     (2)  Charging the Auditor with the responsibility to
          determine the appropriate Department of Education
          funding allocation to the New Century Charter Schools,
          taking into consideration the advice of the
          Superintendent of Education, and including, if
          necessary, an appropriate small school allotment;

     (3)  Clarifying the entire funding section (section 302A-E)
          to distinguish the supplemental funds which can be
          spent at the discretion of the local school board of
          the New Century Charter School;

     (4)  Making fiscal accountability a factor in the evaluation
          of New Century Charter Schools (section 302A-F); and

     (5)  Making technical nonsubstantive amendments for the
          purposes of style and clarity.


 
a                                                     SB1501 CD1
                            CONFERENCE COMMITTEE REPORT NO. 119
                            Page 3



     Your Committee expressly notes that anyone in the community
can initiate a request to establish a New Century Charter School,
including the University of Hawaii, the counties, or the Chamber
of Commerce.  New Century Charter Schools will also have the
flexibility to negotiate entirely new contracts, establish new
procedures for selection of personnel, and the authority to
define and establish new positions.  In addition, this measure
includes a mandate for the Board of Education and the Department
of Education to support the formation of New Century Charter
Schools.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 1501, S.D. 3, H.D. 3, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 1501, S.D. 3, H.D. 3, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
KEN ITO, Co-Chair                  DAVID Y. IGE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
DENNIS A. ARAKAKI, Co-Chair        CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ALEXANDER C. SANTIAGO, Co-Chair    ANDREW LEVIN, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Co-Chair      AVERY B. CHUMBLEY, Member
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Co-Chair       SUZANNE CHUN OAKLAND, Member

 
a                                                     SB1501 CD1
 
                            CONFERENCE COMMITTEE REPORT NO. 119
                            Page 4



                                   
                                   
                                   
______________________________     ______________________________
BERTHA F.K. LEONG, Member          NORMAN SAKAMOTO, Member
                                   
                                   
                                   
                                   ______________________________
                                   SAM SLOM, Member

 
a                                                     SB1501 CD1