Report Title:

Education; charter schools

Description:

Comprehensive reform of charter schools

HOUSE OF REPRESENTATIVES

H.B. NO.

361

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to education.

 

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

SECTION 1. The charter school movement is growing in many states, leading to increase choices in public education and greater federal financing. The ceiling on the number of charter schools that can be created has been a long time impediment to meeting the potential demand for charter schools and increasing federal funding to our state education system. The lack of an alternative chartering authority also hampers the effort to acquire increased federal funding. The purpose of this part of this Act is to remove the artificial ceiling, to propose an alternative chartering authority, and to allow the superintendent of education to review new charter applications.

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-three schools may be established as new century charter schools.] 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; or

(2) The creation of a new school, comprising programs or

sections of existing public school populations and using existing public school facilities, pursuant to subsection (b).

(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 or the charter school commission 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 (c) or chapter 302A- , respectively.

(c) The local school board, with the support and guidance of the superintendent, shall formulate and develop a detailed implementation plan that meets the requirements of this subsection and section 302A-1184. The plan shall include 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:

(A) 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; and

(B) The final determination of use shall fall within

the board's discretion.

(d) The detailed implementation plan [shall] may be submitted to the new century charter school review panel, which shall be composed of seven members appointed by the governor 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;] from a list 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.

(e) 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 (c) 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 (c) 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 (c) or

section 302A-1184, the panel:

(A) May reject the plan and notify the local school

board in writing of its decision;

[(A) Shall] (B) May 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)] (C) 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.

(f) The superintendent 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 (c) and section 302A-1184. If the superintendent subsequently determines that the implementation plan fails to meet the requirements of subsection (c) or section 302A-1184, the superintendent, independent of the panel:

(1) May reject the plan and notify the local school board

in writing of the decision to reject; and

(2) May submit a recommendation to the board to issue a

provisional approval for a charter if the

superintendent 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.

[(f)] (g) An amended implementation plan shall be submitted within thirty working days of notification pursuant to subsection (e)(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 (c) 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 (c) or section 302A-1184, the panel shall deny issuance of a charter.

[(g)] (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.

[(h)] (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."

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

"302A- Charter school commission. (a) There is established within the office of the governor for administrative purposes the charter school commission consisting of seven members appointed by the governor as provided in section 26-34 as follows:

(1) Two of the members shall be faculty members of the University of Hawaii college of education;

(2) Two of the members shall be members of the new century charter school community from a list submitted by existing new century charters schools;

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

(4) Two members shall be members of the general public with expertise in the area of charter schools.

(b) The commission shall have forty working days to review the completed implementation plan for a proposed new century charter school to ensure that it meets the requirements of section 302A-1182(c) and section 302A-1184. Within thirty working days, the panel shall issue a report of its preliminary findings to the office of the governor and the local charter school board. If the commission subsequently determines that the implementation plan:

(1) Meets the requirements of section 302A-1182(c) and section 302A-1184, the panel shall by the fortieth working day submit a recommendation to the office of the governor to issue a charter to the proposed new century charter school. Upon receipt of the commission's recommendation, the office of the governor shall issue a charter, and the implementation plan shall be converted to a written performance contract between the school and the office of the governor; or

(2) Fails to meet the requirements of section 302A-1182(c) or section 302A-1184, the commission:

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

(B) May submit a recommendation to the office of the governor to issue a provisional approval for a charter if the commission 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 office of the governor 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 office of the governor.

(f) An amended implementation plan shall be submitted within forty working days of notification pursuant to section 302A-1182(e)(2)(A). The office of the governor shall deny the issuance of a charter if the local charter school board does not submit an amended implementation plan within the forty working day period. The commission shall have twenty-five working days to review the amended implementation plan. If the amended implementation plan:

(1) Meets the requirements of section 302A-1182(c) and section 302A-1184, the commission shall by the twenty-fifth 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 office of the governor; or

(2) Fails to resolve any conflicts to the commission's satisfaction or involves new and different issues of conflict with section 302A-1182(c) or section 302A-1184, the commission shall deny issuance of a charter.

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

SECTION 4. Section 302A-1191, Hawaii Revised Statutes, is amended to read as follows:

"302A-1191 New century conversion charter schools; conversion schools. (a) As used in this section:

"New century conversion charter school" means:

(1) Any existing department school that is managed and

operated in accordance with subsection (d); or

(2) Any existing department school that is managed and

operated by a nonprofit organization in accordance with this section, excluding subsection (d).

"Nonprofit organization" means a private, nonprofit, tax-

exempt entity that:

(1) Is recognized as a tax exempt organization under

section 501(c)(3) of the Internal Revenue Code of 1986, as amended;

(2) Is domiciled in this State; and

(3) Makes a minimum annual contribution of $1 per pupil

toward the operation of a new century conversion

charter school for every $4 per pupil allocated by the

department for the operation of the charter school.

(b) A nonprofit organization may submit a letter of intent to the board of education to operate and manage an existing public school as a new century conversion charter school, establish a local school board as its governing body, and develop a detailed implementation plan pursuant to section 302A-1182(c); provided that:

(1) The local school board as the governing body of the new century conversion charter school shall be composed of the board of directors of the nonprofit organization and not the participants specified in subsection (d)(1). The nonprofit organization may also appoint advisory panels of community representatives for each school managed by the organization, with whom the organization may consult; provided that these panels shall not have governing authority over the school and shall serve only in an advisory capacity to the nonprofit organization;

(2) The detailed implementation plan for each new century

conversion charter school to be operated by the nonprofit organization shall be formulated, developed, and submitted by the local school board. The detailed implementation plan shall be approved by a majority of the votes cast by 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;

(3) After the detailed implementation plan for a new century conversion charter school operated and managed by the nonprofit organization has been approved by the new century charter school review panel and the board of education as provided in section 302A-1182(d) to (g), the board of education shall issue a charter, and the implementation plan shall be converted to a written performance contract between the nonprofit organization and the board of education, under which the new century conversion charter school shall be managed and operated as a division of the nonprofit organization;

(4) The board of directors of the nonprofit organization,

as the governing body for the new century conversion charter school that it operates and manages, shall have the same protections that are afforded to the state board of education;

(5) Any new century conversion charter school that is managed and operated by a nonprofit organization shall be eligible for the same federal and state funding as allowed to other department schools; provided that the nonprofit organization may allocate federal and state funds among two or more of the new century conversion charter schools that it operates and manages to the extent permitted by law; and

(6) If, at any time, the new century conversion charter

school dissolves or is denied continuation, the State of Hawaii shall have first right, at no cost to the State, to all the assets and facilities of the new century conversion charter school, except as provided in the detailed implementation plan.

(c) Any nonprofit organization that seeks to manage or operate a new century conversion charter school as provided in subsection (b) shall comply with the following at the time of application:

(1) Have bylaws or policies that describe the manner in

which business is conducted and policies that relate to the management of potential conflict of interest situations;

(2) 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 such experience;

(3) Comply with all applicable federal, state, and county

laws, including being licensed and accredited, as applicable, in accordance with the requirements of federal, state, and county governments; and

(4) Comply with any other requirements prescribed by the

department to ensure adherence with applicable federal, state, and county laws and the purposes of this chapter.

(d) As an alternative to subsection (b), any public school or schools may submit a letter of intent to the board of education to form a new century conversion charter school, establish a local school board as its governing body, and develop a detailed implementation plan pursuant to section 302A-1182(c); 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 a majority of the votes cast by 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.

[(e) Up to a total of twenty-five schools may be established as new century conversion charter schools.]

[(f)] (e) This section does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before April 4, 2002.

[(g)] (f) Unless otherwise provided in this section, the provisions in this subpart, as they relate to new century charter schools, shall apply to new century conversion charter schools. In the event of a conflict between the provisions in this section, as they relate to new century conversion charter schools, and the provisions in this subpart, this section shall control.

SECTION 5. Funding of charters schools has been another controversial issue within the education community and in the legislature. Current law requires the auditor to determine the funding allocation for charter schools. This arrangement further blurs already murky lines of authority within our education system The purpose of this part of this Act is to have the budget director of the department of education determine the appropriate funding allocation for charter schools as opposed to the legislative auditor.

SECTION 6. Section 302A-1185, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) New century charter schools shall receive an allocation of state funds based upon the operational and educational funding requirements of the schools; provided that:

(1) Beginning in fiscal year [2001-2002,] 2003-2004, and every year thereafter, the [auditor] department's budget director shall determine the appropriate allocation based on the total department general fund allocation for EDN 100, 200, 300, and 400 and projected per pupil allocation for the current fiscal year;

(2) Small schools with fewer than one hundred twenty students may 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] department's budget director 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] department's budget director to a charter school upon the issuance of its charter; provided further that the department shall provide appropriate transitional resources to a conversion charter school for its first year of operation as a charter school based on the department's allocation to the school for the year prior to conversion;

(4) The [auditor] department's budget director shall take into consideration any changes to the department's budget made by the legislature, the governor, department-imposed restrictions, or any applicable collective bargaining negotiated amounts; provided that the [auditor] department's budget director shall exclude five per cent from the per pupil allocation funds [for:

(A) Services that must be provided at the state level;

(B) Specific programs or projects that target individual schools, complexes, or districts;

(C) Grants in aid; and

(D) Resources of new facilities that target specific, new construction projects].

(5) Any new century charter school may enter into an annual memorandum of agreement for centralized services to be provided by the department prior to the beginning of each school year, provided that:

(A) The allocation of the new century charter school shall be reduced in an amount based upon the per pupil amount expended by the department for such services; and

(B) The department may not retain new century charter school funds in excess of the actual cost of the service.

(6) The department shall determine and provide the appropriate level of special education staff and services necessary to ensure that the student's educational needs as indicated in the individualized educational plans are met; and

(7) The [auditor] department's budget director 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[;], by basing the allocation on the charter school per pupil allocation amount identified by the Federal Government in its publication, less five per cent for department oversight and administrative costs; and

(8) The [auditor] department's budget director shall develop a methodology for allocating funds for newly converted conversion charter schools, by basing the allocation [for each newly converted school] on the EDN 100 and 200 program budgets, and upon written agreement between the conversion charter school's local school board and the department, specified sections of the EDN 300 and 400 program budgets the school received in the year prior to conversion; provided that the allocation may be adjusted to account for any changes that may be made by the legislature, the governor, department-imposed restrictions, or applicable collective bargaining negotiated amounts."

SECTION 7. The purpose of this part of this Act is to clarify the authority and responsibility of the superintendent of education with respect to charter school operations. This reform, in addition to the reforms proposed in the part immediately above, will help ensure greater accountability in our education system.

SECTION 8. Section 302A-1187, Hawaii Revised Statutes, is amended to read as follows:

"302A-1187 New century charter schools; administrative supervision. Whenever any new century charter school is established under section 302A-1182, the following provisions shall apply except as otherwise specifically provided by this chapter:

(1) Following consultation with the new century charter school, the board shall represent the new century charter school in communications with the governor and with the legislature;

(2) The financial requirements for state funds of the new century charter school shall be submitted through the board and included in the budget for the department;

(3) The approval of all policies and rules adopted by the new century charter school shall be preceded by an open public meeting and shall not be subject to chapter 91;

(4) The employment, appointment, promotion, transfer, demotion, discharge, and job descriptions of all officers and employees of or under the jurisdiction of the new century charter school shall be determined by the new century charter school and applicable personnel laws and collective bargaining agreements;

(5) Except as set forth in this section, the board or the superintendent of education shall not have the power to supervise or control the new century charter school in the exercise of its functions, duties, and powers; [and]

(6) Local school boards may enter into an annual business contract for centralized services to be provided by the department prior to the beginning of each school year[.]; and

(7) The superintendent of education shall have authority over and responsibility for the charter school office, which coordinates all charter school procedures."

SECTION 9. As much as current law blurs the lines of authority with regards to charter schools and the department of education, events of the past two years have brought into question the lines of authority with regards to charter school employees. Although current law sets the local charter school board as the governing body of a charter school, the employees of the charter school negotiate a statewide contract along with other public school employees. This perceived dichotomy can lead to misunderstanding and conflict, as occurred during the last teacher's strike. The purpose of this part of the Act is to clarify that charter school employees should be employees of the charter school local board and not state employees. This Act also allows the charter school employees to participate in state benefits and to collectively bargain.

SECTION 10. Section 89-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) All employees throughout the State within any of the following categories shall constitute an appropriate bargaining unit:

(1) Nonsupervisory employees in blue collar positions;

(2) Supervisory employees in blue collar positions;

(3) Nonsupervisory employees in white collar positions;

(4) Supervisory employees in white collar positions;

(5) Teachers and other personnel of the department of

education under the same pay schedule, including part-time employees working less than twenty hours a week who are equal to one-half of a full-time equivalent[;], except for charter school employees who shall be exempt from coverage under this chapter;

(6) Educational officers and other personnel of the

department of education under the same pay schedule[;], except for charter school employees who shall be exempt from coverage under this chapter;

(7) Faculty of the University of Hawaii and the community

college system;

(8) Personnel of the University of Hawaii and the

community college system, other than faculty;

(9) Registered professional nurses;

(10) Institutional, health, and correctional workers;

(11) Firefighters;

(12) Police officers; and

(13) Professional and scientific employees, who cannot be

included in any of the other bargaining units."

SECTION 11. Section 89-6, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) For the purpose of negotiating a collective bargaining agreement, the public employer of an appropriate bargaining unit shall mean the governor together with the following employers:

(1) For bargaining units (1), (2), (3), (4), (9), (10), and

(13), the governor shall have six votes and the mayors, the chief justice, and the Hawaii health systems corporation board shall each have one vote if they have employees in the particular bargaining unit;

(2) For bargaining units (11) and (12), the governor shall

have four votes and the mayors shall each have one vote;

(3) For bargaining units (5) and (6), the governor shall

have three votes, the board of education shall have two votes, and the superintendent of education shall have one vote[;], except that members of units (5) and (6) who are employees of charter schools, are exempted from collective bargaining, as their employer is the charter school local school board;

(4) For bargaining units (7) and (8), the governor shall

have three votes, the board of regents of the University of Hawaii shall have two votes, and the president of the University of Hawaii shall have one vote.

Any decision to be reached by the applicable employer group shall be on the basis of simple majority, except when a bargaining unit includes county employees from more than one county. In such case, the simple majority shall include at least one county."

SECTION 12. Section 302A-1182, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The local school board, with the support and guidance of the superintendent, shall formulate and develop a detailed implementation plan that meets the requirements of this subsection and section 302A-1184. The plan shall include the following:

(1) A description of employee rights and management issues and a framework for addressing those issues that protect the rights of employees[;], fully understanding that all charter school employees are employees of the charter school's local school board and are not employees of the State, though charter school employees may elect to participate in all state benefits;

(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:

(A) 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; and

(B) The final determination of use shall fall within

the board's discretion."

SECTION 13. Section 302A-1184, Hawaii Revised Statutes, is amended to read as follows:

"302A-1184 New century charter schools; exemptions. Schools designated as new century charter schools shall be exempt from all applicable state laws, except those regarding:

[(1) Collective bargaining under chapter 89; provided that:

(A) The exclusive representatives defined in chapter 89 may enter into agreements that contain cost and noncost items to facilitate decentralized decisionmaking;

(B) The exclusive representatives and the local school board of the new century charter school may enter into agreements that contain cost and noncost items;

(C) The agreements shall be funded from the current allocation or other sources of revenue received by the new century charter school; and

(D) These agreements may differ from the master contracts;]

[(2)] (1) Discriminatory practices under section 378-2; and

[(3)] (2) Health and safety requirements.

New century charter schools shall be exempt from the state procurement code, chapter 103D, but shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices. However, where possible, the new century charter school is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption of chapter 103D and shall not subject the new century charter school to any other provision of chapter 103D. New century charter schools shall account for funds expended for the procurement of goods and services, and this accounting shall be available to the public. In addition, notwithstanding any law to the contrary, as public schools and entities of the State, new century public charter schools shall not bring suit against any other entity or agency of the State of Hawaii."

SECTION 14. Section 302A-1185, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) New century charter schools shall receive an allocation of state funds based upon the operational and educational funding requirements of the schools; provided that:

(1) Beginning in fiscal year 2001-2002, and every year thereafter, the auditor shall determine the appropriate allocation based on the total department general fund allocation for EDN 100, 200, 300, and 400 and projected per pupil allocation for the current fiscal year;

(2) Small schools with fewer than one hundred twenty students may 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; provided further that the department shall provide appropriate transitional resources to a conversion charter school for its first year of operation as a charter school based on the department's allocation to the school for the year prior to conversion;

(4) The auditor shall take into consideration any changes to the department's budget made by the legislature, the governor, or department-imposed restrictions[,or any applicable collective bargaining negotiated amounts]; provided that the auditor shall exclude from the per pupil allocation funds for:

(A) Services that must be provided at the state level;

(B) Specific programs or projects that target individual schools, complexes, or districts;

(C) Grants in aid; and

(D) Resources of new facilities that target specific, new construction projects.

(5) Any new century charter school may enter into an annual memorandum of agreement for centralized services to be provided by the department prior to the beginning of each school year, provided that:

(A) The allocation of the new century charter school shall be reduced in an amount based upon the per pupil amount expended by the department for such services; and

(B) The department may not retain new century charter school funds in excess of the actual cost of the service.

(6) The department shall determine and provide the appropriate level of special education staff and services necessary to ensure that the student's educational needs as indicated in the individualized educational plans are met; and

(7) 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; and

(8) The auditor shall develop a methodology for allocating funds for conversion charter schools, by basing the allocation for each newly converted school on the EDN 100 and 200 program budgets, and upon written agreement between the conversion charter school's local school board and the department, specified sections of the EDN 300 and 400 program budgets the school received in the year prior to conversion; provided that the allocation may be adjusted to account for any changes that may be made by the legislature, the governor, or department-imposed restrictions[, or applicable collective bargaining negotiated amounts]."

SECTION 15. Section 302A-1187, Hawaii Revised Statutes, is amended to read as follows:

"302A-1187 New century charter schools; administrative supervision. Whenever any new century charter school is established under section 302A-1182, the following provisions shall apply except as otherwise specifically provided by this chapter:

(1) Following consultation with the new century charter school, the board shall represent the new century charter school in communications with the governor and with the legislature;

(2) The financial requirements for state funds of the new century charter school shall be submitted through the board and included in the budget for the department;

(3) The approval of all policies and rules adopted by the new century charter school shall be preceded by an open public meeting and shall not be subject to chapter 91;

(4) The employment, appointment, promotion, transfer, demotion, discharge, and job descriptions of all officers and employees of or under the jurisdiction of the new century charter school shall be determined by the new century charter school and applicable personnel laws [and collective bargaining agreements];

(5) Except as set forth in this section, the board or the superintendent of education shall not have the power to supervise or control the new century charter school in the exercise of its functions, duties, and powers; and

(6) Local school boards may enter into an annual business contract for centralized services to be provided by the department prior to the beginning of each school year."

SECTION 16. Section 302A-1188, Hawaii Revised Statutes, is amended to read as follows:

"[[]302A-1188[]] New century charter schools; mandate to support. The department, together with key representatives of the major divisions in the department, [representatives from the unions,] as well as individuals from the new century charter schools shall collaborate together on a system of technical assistance that will provide a baseline for success of each new century charter school. In addition, the department, through the board and its superintendent, shall provide any other information and technical assistance upon request necessary to support the establishment and expansion of new century charter schools."

SECTION 17. Section 302A-1191, Hawaii Revised Statutes, is amended by amending subsections (b) to read as follows:

"(b) A nonprofit organization may submit a letter of intent to the board of education to operate and manage an existing public school as a new century conversion charter school, establish a local school board as its governing body, and develop a detailed implementation plan pursuant to section 302A-1182(c); provided that:

(1) The local school board as the governing body of the new century conversion charter school shall be composed of the board of directors of the nonprofit organization and not the participants specified in subsection (d)(1). The nonprofit organization may also appoint advisory panels of community representatives for each school managed by the organization, with whom the organization may consult; provided that these panels shall not have governing authority over the school and shall serve only in an advisory capacity to the nonprofit organization;

(2) The detailed implementation plan for each new century conversion charter school to be operated by the nonprofit organization shall be formulated, developed, and submitted by the local school board. The detailed implementation plan shall be approved by a majority of the votes cast by 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];

(3) After the detailed implementation plan for a new century conversion charter school operated and managed by the nonprofit organization has been approved by the new century charter school review panel and the board of education as provided in section 302A-1182(d) to (g), the board of education shall issue a charter, and the implementation plan shall be converted to a written performance contract between the nonprofit organization and the board of education, under which the new century conversion charter school shall be managed and operated as a division of the nonprofit organization;

(4) The board of directors of the nonprofit organization, as the governing body for the new century conversion charter school that it operates and manages, shall have the same protections that are afforded to the state board of education;

(5) Any new century conversion charter school that is managed and operated by a nonprofit organization shall be eligible for the same federal and state funding as allowed to other department schools; provided that the nonprofit organization may allocate federal and state funds among two or more of the new century conversion charter schools that it operates and manages to the extent permitted by law; and

(6) If, at any time, the new century conversion charter school dissolves or is denied continuation, the State of Hawaii shall have first right, at no cost to the State, to all the assets and facilities of the new century conversion charter school, except as provided in the detailed implementation plan."

SECTION 18. Section 302A-1191, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) As an alternative to subsection (b), any public school or schools may submit a letter of intent to the board of education to form a new century conversion charter school, establish a local school board as its governing body, and develop a detailed implementation plan pursuant to section 302A-1182(c); 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 a majority of the votes cast by 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]."

SECTION 19. For purposes of this Act, unless the text clearly otherwise indicates, "new century charter schools" shall include new century conversion charter schools.

SECTION 20. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 21. This Act shall take effect on July 1, 2003.

 

INTRODUCED BY:

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