Report Title:

DOE, Political Subdivision of the State; Education Governance

Description:

Establishes an educational restructuring and transition committee to review the structure of the DOE and make recommendations to the BOE and the legislature on the implementation and transition of the DOE to a political subdivision (HB714 HD1).

HOUSE OF REPRESENTATIVES

H.B. NO.

714

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO EDUCATION.

 

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

SECTION 1. Section 26-4, Hawaii Revised Statutes, is amended to read as follows:

"26-4 Structure of government. Under the supervision of the governor, all executive and administrative offices, departments, and instrumentalities of the state government and their respective functions, powers, and duties shall be allocated among and within the following principal departments that are hereby established:

(1) Department of human resources development (Section 26-5)

(2) Department of accounting and general services (Section 26-6)

(3) Department of the attorney general (Section 26-7)

(4) Department of budget and finance (Section 26-8)

(5) Department of commerce and consumer affairs (Section 26-9)

(6) Department of taxation (Section 26-10)

(7) University of Hawaii (Section 26-11)

[(8) Department of education (Section 26-12)

(9)] (8) Department of health (Section 26-13)

[(10)] (9) Department of human services (Section 26-14)

[(11)] (10) Department of land and natural resources (Section 26-15)

[(12)] (11) Department of agriculture (Section 26-16)

[(13)] (12) Department of Hawaiian home lands (Section 26-17)

[(14)] (13) Department of business, economic development, and tourism (Section 26-18)

[(15)] (14) Department of transportation (Section 26-19)

[(16)] (15) Department of labor and industrial relations (Section 26-20)

[(17)] (16) Department of defense (Section 26-21)

[(18)] (17) Department of public safety (Section 26-14.6)"

SECTION 2. Section 237-31, Hawaii Revised Statutes, is amended to read as follows:

"237-31 Remittances. All remittances of taxes imposed by this chapter shall be made by money, bank draft, check, cashier's check, money order, or certificate of deposit to the office of the department of taxation to which the return was transmitted. The department shall issue its receipts therefor to the taxpayer and shall pay the moneys into the state treasury as a state realization, to be kept and accounted for as provided by law; provided that:

[(1) The sum from all general excise tax revenues realized by the State that represents the difference between $45,000,000 and the proceeds from the sale of any general obligation bonds authorized for that fiscal year for the purposes of the state educational facilities improvement special fund shall be deposited in the state treasury in each fiscal year to the credit of the state educational facilities improvement special fund;

(2)] (1) A sum, not to exceed $5,000,000, from all general excise tax revenues realized by the State shall be deposited in the state treasury in each fiscal year to the credit of the compound interest bond reserve fund; and

[(3)] (2) A sum, not to exceed the amount necessary to meet the obligations of the integrated tax information management systems performance-based contract may be retained and deposited in the state treasury to the credit of the integrated tax information management systems special fund. The sum retained by the director of taxation for deposit to the integrated tax information [[]management[]] systems special fund for each fiscal year shall be limited to amounts appropriated by the legislature. This paragraph shall be repealed on July 1, 2004."

SECTION 3. Section 26-12, Hawaii Revised Statutes, is repealed.

["26-12 Department of education. The department of education shall be headed by an executive board to be known as the board of education.

Under policies established by the board, the superintendent shall administer programs of education and public instruction throughout the State, including education at the preschool, primary, and secondary school levels, adult education, school library services, health education and instruction (not including dental health treatment transferred to the department of health), and such other programs as may be established by law. The state librarian, under policies established by the board of education, shall be responsible for the administration of programs relating to public library services and transcribing services for the blind.

The functions and authority heretofore exercised by the department of education (except dental health treatment transferred to the department of health), library of Hawaii, Hawaii county library, Maui county library, and the transcribing services program of the bureau of sight conservation and work with the blind, as heretofore constituted are transferred to the public library system established by this chapter.

The management contract between the board of supervisors of the county of Kauai and the Kauai public library association shall be terminated at the earliest time after November 25, 1959, permissible under the terms of the contract and the provisions of this paragraph shall constitute notice of termination, and the functions and authority heretofore exercised by the Kauai county library as heretofore constituted and the Kauai public library association over the public libraries in the county of Kauai shall thereupon be transferred to the public library system established by this chapter.

The management contracts between the trustees of the library of Hawaii and the Friends of the Library of Hawaii, and between the library of Hawaii and the Hilo library and reading room association, shall be terminated at the earliest time after November 25, 1959, permissible under the terms of the contracts, and the provisions of this paragraph shall constitute notice of termination.

Upon the termination of the contracts, the State or the counties shall not enter into any library management contracts with any private association; provided that in providing library services the board of education may enter into contracts approved by the governor for the use of lands, buildings, equipment, and facilities owned by any private association.

Notwithstanding any law to the contrary, the board of education may establish, specify the membership number and quorum requirements for, appoint members to, and disestablish a commission in each county to be known as the library advisory commission, which shall in each case sit in an advisory capacity to the board of education on matters relating to public library services in their respective county."]

SECTION 4. Section 36-32, Hawaii Revised Statutes, is repealed.

["36-32 State educational facilities improvement special fund. (a) There is created in the treasury of the State the state educational facilities improvement special fund, into which shall be deposited a portion of all general excise tax revenues collected by the department of taxation under section 237-31. The special fund shall be used solely to plan, design, acquire lands for and to construct public school facilities and to provide equipment and technology infrastructure to improve public schools and other facilities under the jurisdiction of the department of education, except public libraries. In addition, activities of the department of education intended to eliminate the gap between the facility needs of schools and available resources shall be eligible for funding from the special fund. Expenditures from the special fund shall be limited to projects authorized by the legislature and shall be subject to sections 37-31, and 37-33 through 37-40. Appropriations or authorizations from the special fund shall be expended by the comptroller.

(b) The department of accounting and general services shall submit an annual report to the legislature, which shall include a financial statement of the special fund and the status of projects undertaken pursuant to this section, no later than twenty days prior to the convening of each regular session."]

SECTION 5. The comptroller shall transfer to the credit of the state general fund, the unexpended or unencumbered balance remaining in the state educational facilities improvement special fund prior to November 7, 2006.

SECTION 6. The legislature recognizes that while it currently bears the constitutional authority for raising revenues and allocating resources, the successful implementation of school programs that bring about enhanced student outcomes requires unambiguous accountability and authority in taxation, budgeting, expenditure control, and determination of educational needs by the board of education. The legislature also recognizes that providing increased flexibility requires increased accountability. The legislature believes that achieving enhanced assessment and greater accountability requires a fundamental change in the assumptions that govern the educational system. The legislature also believes that consolidating and reorganizing education programs and supporting programs while the department of education transitions to a political subdivision will bring greater efficiencies and responsiveness to the educational system. To achieve these objectives, restructuring the governance and processes of the educational system is undertaken by this Act.

The legislature intends that there be an orderly transition period, wherein the board of education, superintendent of education, and state librarian begin to implement this restructuring. The interest of the State and its people requires that the transition be accomplished so as to ensure continuity and quality in education programs. Accordingly, it is the intent of the legislature that appropriate planning and actions be authorized and taken to avoid or minimize any disruptions to the educational system and process.

To facilitate the restructuring of the department of education and the educational system, there is established an educational restructuring and transition advisory committee, consisting of eleven members. Three members shall be members of the board of education, one of whom shall serve as the chairperson. Two members shall be appointed by the governor in accordance with section 26-41, Hawaii Revised Statutes. Two members each shall be appointed by the president of the senate and the speaker of the house of representatives. The superintendent of education and state librarian shall serve as ex officio members. Any vacancy shall be filled by the respective appointing authority.

The committee shall review the structure of the department of education and make recommendations to the board of education and the legislature on the implementation and transition in governance of the educational system as provided in this Act. Such related functions, programs, and issues as public libraries, school health services, administration, personnel and personnel costs, facilities repair and maintenance, risk management, retirement, health insurance, and collective bargaining, among others, shall be addressed. The committee shall facilitate the implementation of this Act by performing the following functions:

(1) Make recommendations on the implementation of this Act, including:

(A) How the authority under chapter 38, Hawaii Revised Statutes, concerning deposits of public funds, should be transferred to the board of education so that the board has all the rights, powers, obligations, and duties with respect to the moneys of the department of education as the State, director of finance, and governor, respectively, have with respect to moneys of the State under chapter 38, Hawaii Revised Statutes;

(B) Whether title to lands and real property should be transferred to the department of education with authority vested in the board of education to sell or otherwise dispose of the lands and real property;

(C) Transfer of the functions of insurance management, central purchasing, funds custody, cash management, and debt management with respect to the educational system to the board of education;

(D) Transfer of responsibility for the payment of principal and interest on bonds issued by the State for the direct benefit of the public school system; and

(E) Revisions and amendments, as needed, to the Hawaii Revised Statutes;

(2) Make inquiries to elicit descriptions of programs, recommendations, and justifications for reorganizing and consolidating educational programs and supporting programs, projections of future developments or needs within educational programs, recommendations for administrative changes, and elaboration of procedural details;

(3) Evaluate and make recommendations concerning the transfer of employees whose duties affect educational systems or are in functional areas covered by this Act;

(4) Make recommendations on the timing and sequence of personnel transfers;

(5) Evaluate and make recommendations concerning the transfer of records, equipment, machinery, supplies, contracts, and other personal property used in the performance of functional areas covered by this Act;

(6) Evaluate and make recommendations on the timing and sequence of programmatic transfers;

(7) Evaluate and make recommendations on the schedule of consolidation of services and programs provided by other departments to the educational system and the ability of the board of education to contract for those services;

(8) Receive public input in preparing legislation to implement the objectives and policies of this Act;

(9) Devise and recommend legislative and administrative action for an orderly transition;

(10) Evaluate and make recommendations concerning accounting, auditing, and accountability processes and protocols;

(11) Evaluate and make recommendations on the regularity with which the auditor should conduct audits of the department of education and submit reports and recommendations to the board of education;

(12) Make recommendations regarding legislation to provide immunity from legal process for the department of education and members of the board of education in a manner similar to the counties;

(13) Evaluate and make recommendations concerning any other matters pertinent to the implementation of the objectives of this Act; and

(14) Prepare and submit a report no later than nine months following ratification of the constitutional amendments in H.B. No. , which report shall include recommendations for the enactment of any legislation necessary to achieve the objectives and policies of this Act.

The committee members shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary to perform their duties. The committee shall submit to the governor, the legislature, and the board of education a report and an evaluation of the structure and organization of the department of education, recommend changes, and then dissolve.

The board of education shall receive the committee's report, and shall prepare and submit a report to the governor and the legislature, and prepare legislation to implement the restructuring, reorganization, objectives, and policies of this Act, to be submitted twenty days prior to the convening of the regular session of 2006 for review, modification, or enactment by the legislature.

SECTION 7. Statutory material to be repealed is bracketed. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval; provided that sections 1 through 5 shall take effect two years after the ratification of constitutional amendments making the department of education a political subdivision headed by the board of education, and authorizing the board to impose an education excise tax.