STAND. COM. REP. NO.707-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2662

S.D. 2




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Education, to which was referred S.B. No. 2662, S.D. 2, entitled:


begs leave to report as follows:

The purpose of this bill is to allow a nonprofit organization to operate a New Century Conversion Charter School (Charter School).

Specifically, this bill:

(1) Requires the nonprofit organization to make a minimum annual contribution of $1 per pupil toward the operation of a Charter School for every $4 per pupil allocated by the Department of Education for the operation of the Charter School;

(2) Requires the detailed implementation plan for a Charter School to be approved by a majority of the votes cast by existing administrative, support, and teaching personnel, and parents, rather than 60 per cent of the existing administrative, support, and teaching personnel, and parents;

(3) Gives the board of directors of the nonprofit organization, as the governing body for the Charter School that it operates and manages, the same protections that are afforded to the Board of Education;

(4) Allows a nonprofit organization to allocate federal and state funds among two or more of the Charter Schools that it operates and manages to the extent permitted by law;

(5) Gives the State of Hawaii first right, except as provided in the detailed implementation plan, to all the assets and facilities of a Charter School if the Charter School dissolves or is denied continuation;

(6) Requires a nonprofit organization that seeks to manage or operate a Charter School to have experience in the management and operation of public or private schools, or, to the extent necessary, agree to obtain appropriate services from another entity or entities possessing this experience; and

(7) Limits the number of Charter Schools to 25.

The Office of Hawaiian Affairs, two members of the Maui County Council, Kamehameha Schools, Chamber of Commerce of Hawaii, Hawaii Business Roundtable, Hawaii Association of Independent Schools, and Hawaii Association of Realtors submitted testimony in support of this bill. The Hawaii Government Employees Association and Hawaii State Teachers Association submitted testimony in opposition to this bill. The Department of Education submitted comments on this bill.

Your Committee finds that allowing nonprofit organizations to operate Charter Schools will expand the scope of Hawaii's public education system. Additionally, because this bill requires a nonprofit organization to make a monetary contribution to the Charter School it operates, these Charter Schools will receive more funding at no extra cost to the State.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2662, S.D. 2, and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Education,



KEN ITO, Chair