Report Title:

Education; Charter Schools; Per Pupil Allocation

Description:

Allows but does not require the annual contribution from a nonprofit organization that manages and operates a charter school to exceed $1,500 per pupil. (HB2550 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2550

TWENTY-THIRD LEGISLATURE, 2006

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. The legislature finds that with the enactment of Act 2, Session Laws of Hawaii 2002, two existing public schools in high need communities have converted to new century conversion charter schools. The conversion of these schools has promoted student learning and achievement through additional financial resources, greater accountability, and increased community and family involvement in school community activities.

As the legislature increases its financial support to our educational system, the nonprofit organizations managing and operating the new century conversion charter schools will be faced with an increasing financial burden, because they must match every $4 per pupil allocated by the department of education with a minimum contribution of $1 per pupil. Because of this, nonprofit organizations may be reluctant to support the creation of additional new century conversion charter schools without knowing what financial burdens they will face as the legislature increases its funding level. It is not the intent of the legislature to discourage nonprofit organizations from supporting our educational system with additional financial resources.

The purpose of this Act is to set forth a financial limit on the total maximum contribution per pupil that a nonprofit organization will be required to contribute in advance, should it decide to undertake the creation of a new century conversion charter school.

SECTION 2. Section 302A-1191, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) As used in this section:

"New century conversion charter school" means:

(1) Any existing department school that converts to a charter school and is managed and operated in accordance with subsection (d); or

(2) Any existing department school that converts to a charter school and 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] 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 charter school administrative office for the operation of the charter school[.]; provided that the maximum annual contribution from the nonprofit organization shall not be required to exceed $1,500 per pupil per year."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.