REPORT TITLE:
Charter Schools


DESCRIPTION:
Establishes charter schools.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           507
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.
 


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

 1      SECTION 1.  The purpose of this Act is to establish
 
 2 provisions for charter schools and to modify teacher seniority
 
 3 rights so that teacher-organized and teacher run schools will not
 
 4 have team teachers displaced by those with greater seniority.
 
 5      SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is
 
 6 amended by adding a new part to be appropriately designated and
 
 7 to read as follows:
 
 8                     "PART  .  CHARTER SCHOOLS
 
 9      § 302A-  Findings and purpose.  The legislature finds that
 
10 Hawaii's public school system has been operating as one statewide
 
11 district since statehood.  The legislature further finds that the
 
12 expansion of the public schools has outgrown the ability of the
 
13 system to provide the flexibility for individual schools to
 
14 develop and implement innovative instructional and administrative
 
15 frameworks which best serve the needs of their students.
 
16      Charter schools enable educators to do this by injecting
 
17 local control and limited competition into the public system.
 
18 Teachers, administrators, or local associations can organize to
 
19 create autonomous, performance-oriented schools.  Charter schools
 

 
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 1 offer a middle alternative between the current public education
 
 2 and private schools, making specialized education accessible to 
 
 3 more students.
 
 4      The purpose of this bill is to:
 
 5      (A)  increase learning opportunities for students;
 
 6      (B)  encourage the use of different and innovative teaching
 
 7           methods;
 
 8      (C)  increase student learning;
 
 9      (D)  establish new forms of accountability for schools;
 
10      (E)  create new professional opportunities for teachers and
 
11           educators, including the opportunity to be responsible
 
12           for the learning program at the school site; and
 
13      (F)  create a mechanism for legislative approval and funding
 
14           of charter school proposals.
 
15      §302A-  Charter schools; application; requirements;
 
16 immunity; exemptions; renewal of application; reprisal. (a)  An
 
17 applicant seeking to establish a charter school shall submit a
 
18 written application to a proposed sponsor as prescribed in
 
19 subsection (c) of this section.  The application may include a
 
20 mission statement for the charter school, a description of the
 
21 charter school's hiring policy, the name of the charter school's
 
22 applicant or applicants and requested sponsor, a description of
 
23 the charter school's facility and the location of the school, a
 

 
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 1 description of the grades being served and an outline of criteria
 
 2 designed to measure the effectiveness of the school.
 
 3      (b)  The sponsor of a charter school may contract with a
 
 4 public body, private person or private organization for the
 
 5 purpose of establishing a charter school pursuant to this
 
 6 article.
 
 7      (c)  The sponsor of a charter school may be either a school
 
 8 district governing board, University of Hawaii, or the county
 
 9 government, subject to the following requirements:
 
10      (1)  An applicant for a charter school may submit its
 
11           application to a school district governing board, which
 
12           shall either accept or reject sponsorship of the
 
13           charter school within ninety days.  An applicant may
 
14           submit a revised application for reconsideration by the
 
15           governing board.  If the governing board rejects the
 
16           application, the governing board shall notify the
 
17           applicant in writing of the reasons for the rejection.
 
18           The applicant may request, and the governing board may
 
19           provide technical assistance to improve the
 
20           application.
 
21      (2)  The applicant may submit the application to the
 
22           University of Hawaii or to the appropriate county
 
23           government.  The University of Hawaii or the
 

 
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 1           appropriate county government may approve the
 
 2           application if the application meets the requirements
 
 3           of this article and may approve the charter if the
 
 4           proposed sponsor determines, within its sole
 
 5           discretion, that the applicant is sufficiently
 
 6           qualified to operate a charter school.  The University
 
 7           of Hawaii may approve up to twenty-five, and the
 
 8           appropriate county government may each approve up to
 
 9           five, charter schools each fiscal year.  If the
 
10           University of Hawaii or the appropriate county
 
11           government rejects the preliminary application, that
 
12           body shall notify the applicant in writing of the
 
13           reasons for the rejection and of suggestions for
 
14           improving the application.  An applicant may submit a
 
15           revised application for reconsideration by the
 
16           University of Hawaii or the appropriate county
 
17           government. The applicant may request, and the
 
18           University of Hawaii or the appropriate county
 
19           government may provide, technical assistance to improve
 
20           the application.
 
21      (3)  Fingerprint checks for applicants of a charter school
 
22           shall be conducted prior to the issuance of a charter.
 
23      (4)  All noncertificated personnel shall be fingerprint
 

 
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 1           checked.
 
 2      (d)  A district governing board has no legal authority over
 
 3 or responsibility for a charter school sponsored by the
 
 4 University of Hawaii or the appropriate county government.
 
 5      (e)  The charter of a charter school shall ensure the
 
 6 following:
 
 7      (1)  Compliance with federal, state and local rules,
 
 8           regulations and statutes relating to health, safety,
 
 9           civil rights and insurance.  The department of
 
10           education shall publish a list of relevant rules,
 
11           regulations and statutes to notify charter schools of
 
12           their responsibilities under this paragraph.
 
13      (2)  That it is nonsectarian in its programs, admission
 
14           policies and employment practices and all other
 
15           operations.
 
16      (3)  That it provides a comprehensive program of instruction
 
17           for at least a kindergarten program or any grade
 
18           between grades one and twelve, except that a school may
 
19           offer this curriculum with an emphasis on a specific
 
20           learning philosophy or style or certain subject areas
 
21           such as mathematics, science, fine arts performance
 
22           arts or language arts.
 
23      (4)  That it designs a method to measure pupil progress
 

 
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 1           toward the pupil outcomes adopted by the state board of
 
 2           education.
 
 3      (5)  That, except as provided in this article and in its
 
 4           charter, it is exempt from all statutes and rules
 
 5           relating to schools, governing boards and school
 
 6           districts.
 
 7      (6)  That it is subject to the same financial requirements
 
 8           as a school district.  A school's charter may include
 
 9           exceptions to the requirements of this paragraph that
 
10           are necessary as determined by the district governing
 
11           board, the board of education or University of Hawaii
 
12           or appropriate county government.  The auditor may
 
13           conduct financial, program or compliance audits.
 
14      (7)  Compliance with all federal and state laws relating to
 
15           the education of children with disabilities in the same
 
16           manner as a school district.
 
17      (8)  That it provides for a governing body for the charter
 
18           school that is responsible for the policy and
 
19           operational decisions of the charter school.
 
20      (f)  The charter of a charter school shall include a
 
21 description of the charter school's personnel policies, personnel
 
22 qualifications and method of school governance and the specific
 
23 role and duties of the sponsor of the charter school.
 

 
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 1      (g)  The charter of a charter school may be amended at the
 
 2 request of the governing body of the charter school and on the
 
 3 approval of the sponsor.
 
 4      (h)  An approved plan to establish a charter school is
 
 5 effective for five years from the first day of operation.  At the
 
 6 conclusion of the first four years of operation, the charter
 
 7 school may apply for renewal.  The sponsor may deny the request
 
 8 for renewal if, in its judgment, the charter school has failed to
 
 9 complete the obligations of the application or has failed to
 
10 comply with this article.  A sponsor shall give written notice of
 
11 its intent not to renew the charter school's request for renewal
 
12 to the charter school at least twelve months before the
 
13 expiration of the approved plan to allow the charter school an
 
14 opportunity to apply to another sponsor to transfer the operation
 
15 of the charter school.  If the operation of the charter school is
 
16 transferred to another sponsor, the five year period shall be
 
17 repeated.  A sponsor may revoke a charter at any time if the
 
18 charter school breaches one or more provisions of its charter.
 
19      (i)  After renewal of the charter at the end of the five
 
20 year period described in subsection I of this section, the
 
21 charter may be renewed for successive periods of seven years if
 
22 the charter school and its sponsor deem that the school is in
 
23 compliance with its own charter and the provisions of this
 
24 article.
 

 
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 1      (j)  A charter school that is sponsored by the University of
 
 2 Hawaii or appropriate county government may not be located on the
 
 3 property of a school district unless the district governing board
 
 4 grants this authority.
 
 5      (k)  A governing board or a school district employee who has
 
 6 control over personnel actions shall not take unlawful reprisal
 
 7 against another employee of the school district because the
 
 8 employee is directly or indirectly involved in an application to
 
 9 establish a charter school.  A governing board or a school
 
10 district employee shall not take unlawful reprisal against an
 
11 educational program of the school or the school district because
 
12 an application to establish a charter school proposes the
 
13 conversion of all or a portion of the educational program to a
 
14 charter school.  As used in this subsection, "unlawful reprisal"
 
15 means an action that is taken by a governing board or a school
 
16 district employee as a direct result of a lawful application to
 
17 establish a charter school and that is adverse to another
 
18 employee or an education program and:
 
19      (1)  With respect to a school district employee, results in
 
20           one or more of the following:
 
21           (A)  Disciplinary or corrective action.
 
22           (B)  Detail, transfer or reassignment.
 
23           (C)  Suspension, demotion or dismissal.
 

 
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 1           (D)  An unfavorable performance evaluation.
 
 2           (E)  A reduction in pay, benefits or awards.
 
 3           (F)  Elimination of the employee's position without
 
 4                reduction in force by reason of lack of monies or
 
 5                work.
 
 6           (G)  Other significant changes in duties or
 
 7                responsibilities that are inconsistent with the
 
 8                employee's salary or employment classification.
 
 9      (2)  With respect to an educational program, results in one
 
10           or more of the following:
 
11           (A)  Suspension or termination of the program.
 
12           (B)  Transfer or reassignment of the program to a less
 
13                favorable department.
 
14           (C)  Relocation of the program to a less favorable site
 
15                within the school or school district.
 
16           (D)  Significant reduction or termination of funding
 
17                for the program.
 
18      (l)  Charter schools do not have the authority to acquire
 
19 property by eminent domain.
 
20      (m)  A school district governing board and its agents and
 
21 employees are not liable for any acts or omissions of a charter
 
22 school that is sponsored by the school district, including acts
 
23 or omissions relating to the application submitted by the charter
 

 
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 1 school, the charter of the charter school, the operation of the
 
 2 charter school and the performance of the charter school.
 
 3      (n)  A sponsor other than a school district governing board,
 
 4 including members, officers and employees of the sponsor, are
 
 5 immune from personal liability for all acts done and actions
 
 6 taken in good faith within the scope of their authority during
 
 7 duly constituted regular and special meetings.
 
 8      (o)  The sponsor of a charter school shall establish
 
 9 procedures to conduct administrative hearings upon determination
 
10 by the sponsor that grounds exist to revoke a charter.  Final
 
11 decisions of the University of Hawaii, or the appropriate county
 
12 government from hearings conducted pursuant to this subsection
 
13 are subject to judicial review.
 
14      §302A-  Charter schools:  financing. (a)  A charter school
 
15 that is sponsored by the school district governing board shall
 
16 receive per pupil expenditures equal to at least the average cost
 
17 per pupil for the district as a whole.  The uniform system of
 
18 financial records shall include guidelines for determining the
 
19 average cost per pupil for the district for the purposes of this
 
20 section.  A school district is not financially responsible for
 
21 any charter school that is sponsored by the University of Hawaii
 
22 or appropriate county government.
 
23      (b)  A charter school that is sponsored by the University of
 

 
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 1 Hawaii or the appropriate county government shall calculate a
 
 2 base support level, a transportation support level, a capital
 
 3 outlay revenue limit, and a capital levy revenue limit.
 
 4      (c)  Notwithstanding subsections a and b of this section,
 
 5 the student count for the first year of operation of a charter
 
 6 school shall be determined initially using an estimated student
 
 7 count based on actual registration of pupils before the beginning
 
 8 of the school year.  After the first one hundred days in session
 
 9 for the first year of operation, the charter school shall revise
 
10 the student count to be equal to the actual average daily
 
11 membership, or the adjusted average daily membership.  Before the
 
12 one hundredth day in session, the University of Hawaii or the
 
13 appropriate county government may require a charter school to
 
14 report periodically regarding pupil enrollment and attendance.  A
 
15 charter school shall revise its student count, base support
 
16 level, transportation support level and capital outlay revenue
 
17 limit.  A charter school that overestimated its student count
 
18 shall revise its budget.  A charter school that underestimated
 
19 its student count may revise its budget.
 
20      (d)  Notwithstanding subsections (a) and (b) of this
 
21 section, the transportation support level for the first year of
 
22 operation of a charter school shall be determined using an
 
23 estimated transportation support level before the beginning of
 
24 the school year.  After the first one hundred days in session for
 
25 the first year of operation, the charter school shall revise the
 

 
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 1 transportation support level to be equal to the actual
 
 2 transportation support level of the charter school.  Before the
 
 3 one hundredth day in session, the University of Hawaii or the
 
 4 appropriate county government may require a charter school to
 
 5 report periodically regarding the daily route mileage and the
 
 6 number of eligible students transported.  A charter school that
 
 7 overestimated its transportation support level shall revise its
 
 8 budget.  A charter school that underestimated its transportation
 
 9 support level may revise its budget.
 
10      (e)  The charter school and the department of education
 
11 shall prescribe procedures for determining average daily
 
12 attendance and average daily membership.
 
13      (f)  A charter school that calculated its budget during its
 
14 initial year of operation pursuant to subsections c and d of this
 
15 section may continue to utilize the provisions of subsections c
 
16 and d of this section in each subsequent fiscal year that both of
 
17 the following conditions exist:
 
18      (1)  After its first year of operation, the charter school
 
19           increases the number of grade levels in which
 
20           instruction is offered or the number of programs that
 
21           are offered.
 
22      (2)  The number of pupils accepted for enrollment in the
 

 
 
 
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 1           charter school increases by five or more per cent over
 
 2           the previous school year.
 
 3      (g)  Equalization assistance for the charter school for the
 
 4 budget year shall be determined by adding the amount of the base
 
 5 support level, the transportation support level, the capital levy
 
 6 revenue limit and the capital outlay revenue limit for the budget
 
 7 year as calculated pursuant to this section.
 
 8      (h)  The state board of education shall apportion state aid
 
 9 from the appropriations made for such purposes to the state
 
10 treasurer for disbursement to the counties for the charter school
 
11 in each county that is sponsored by the University of Hawaii or
 
12 the appropriate county government in an amount as determined by
 
13 this subsection.  The apportionments shall be as follows:
 
14      (1)  On July 1, one-third of the total amount to be
 
15           apportioned during the fiscal year.
 
16      (2)  On October 15, one-twelfth of the total amount to be
 
17           apportioned during the fiscal year.
 
18      (3)  On December 15, one-twelfth of the total amount to be
 
19           apportioned during the fiscal year.
 
20      (4)  On January 15, one-twelfth of the total amount to be
 
21           apportioned during the fiscal year.
 
22      (5)  On February 15, one-twelfth of the total amount to be
 
23           apportioned during the fiscal year.
 

 
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 1      (6)  On March 15, one-twelfth of the total amount to be
 
 2           apportioned during the fiscal year.
 
 3      (7)  On April 15, one-twelfth of the total amount to be
 
 4           apportioned.
 
 5      (8)  On May 15, one-twelfth of the total amount to be
 
 6           apportioned during the fiscal year.
 
 7      (9)  On June 15, one-twelfth of the total amount to be
 
 8           apportioned during the fiscal year.
 
 9      (i)  Charter schools that are sponsored by the University of
 
10 Hawaii or the appropriate county government shall not charge
 
11 tuition, levy taxes or issue bonds.
 
12      (j)  The superintendent of public instruction shall furnish
 
13 to the county treasurer an abstract of the apportionment and
 
14 shall certify the apportionment to the department of
 
15 administration, which shall draw its warrant in favor of the
 
16 county treasurer of each county for the amount apportioned.
 
17      §302A-  Charter schools:  teachers:  employment benefits.  
 
18           (a)  A teacher who is employed by or teaching at a
 
19           charter school and who was previously employed as a
 
20           teacher at a school district shall not lose any right
 
21           of certification, retirement or salary status or any
 
22           other benefit provided by law, by the rules of the
 
23           governing board of the school district or by the rules
 
24           of the board of directors of the charter school due to
 
25           teaching at a charter school on the teacher's return to
 

 
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 1           the school district.
 
 2      (b)  A teacher who is employed by or teaching at a charter
 
 3 school and who submits an employment application to the school
 
 4 district where the teacher was employed immediately before
 
 5 employment by or at a charter school shall be given employment
 
 6 preference by the school district if the following condition is
 
 7 met:
 
 8      (1)  The teacher submits an employment application to the
 
 9           school district no later than three years after ceasing
 
10           employment with the school district.
 
11      (c)  A charter school that is sponsored by a school district
 
12 governing board, the University of Hawaii or appropriate county
 
13 government is eligible to participate in the state retirement
 
14 system.  The charter school is a political subdivision of the
 
15 state.
 
16      §302A-  Collective bargaining:  teacher seniority rights.
 
17 The employees of the charter school shall be subject to the
 
18 collective bargaining process except that teachers at charter
 
19 schools shall not be subject to the collective bargaining feature
 
20 of transfer rights into schools by seniority.
 
21      SECTION 3.  Section 89-9, Hawaii Revised Statutes, is
 
22 amended by adding a new subsection to read as follows:
 
23      "§89-9 Scope of negotiations.(a)  The employer and the
 

 
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 1 exclusive representative shall meet at reasonable times,
 
 2 including meetings in advance of the employer's budget-making
 
 3 process, and shall negotiate in good faith with respect to wages,
 
 4 hours, the number of incremental and longevity steps and movement
 
 5 between steps within the salary range, the amounts of
 
 6 contributions by the State and respective counties to the Hawaii
 
 7 public employees health fund to the extent allowed in subsection
 
 8 (e), and other terms and conditions of employment which are
 
 9 subject to negotiations under this chapter and which are to be
 
10 embodied in a written agreement, or any question arising
 
11 thereunder, but such obligation does not compel either party to
 
12 agree to a proposal or make a concession.
 
13      (b)  The employer or the exclusive representative desiring
 
14 to initiate negotiations shall notify the other in writing,
 
15 setting forth the time and place of the meeting desired and
 
16 generally the nature of the business to be discussed, and shall
 
17 mail the notice by certified mail to the last known address of
 
18 the other party sufficiently in advance of the meeting.
 
19      (c)  Except as otherwise provided herein, all matters
 
20 affecting employee relations, including those that are, or may
 
21 be, the subject of a regulation promulgated by the employer or
 
22 any personnel director, are subject to consultation with the
 
23 exclusive representatives of the employees concerned.  The
 

 
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 1 employer shall make every reasonable effort to consult with the
 
 2 exclusive representatives prior to effecting changes in any major
 
 3 policy affecting employee relations.
 
 4      (d)  Excluded from the subjects of negotiations are matters
 
 5 of classification and reclassification, benefits of but not
 
 6 contributions to the Hawaii public employees health fund,
 
 7 retirement benefits, except as provided in section 88-8(h), and
 
 8 the salary ranges now provided by law; provided that the number
 
 9 of incremental and longevity steps, the amount of wages to be
 
10 paid in each range and step, and movement between steps within
 
11 the salary range shall be negotiable.  The employer and the
 
12 exclusive representative shall not agree to any proposal which
 
13 would be inconsistent with merit principles or the principle of
 
14 equal pay for equal work pursuant to sections 76-1, 76-2, 77-31,
 
15 and 77-33, or which would interfere with the rights of a public
 
16 employer to (1) direct employees; (2) determine qualification,
 
17 standards for work, the nature and contents of examinations,
 
18 hire, promote, transfer, assign, and retain employees in
 
19 positions and suspend, demote, discharge, or take other
 
20 disciplinary action against employees for proper cause; (3)
 
21 relieve an employee from duties because of lack of work or other
 
22 legitimate reason; (4) maintain efficiency of government
 
23 operations; (5) determine methods, means, and personnel by which
 
24 the employer's operations are to be conducted; and take such
 
25 actions as may be necessary to carry out the missions of the
 

 
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 1 employer in cases of emergencies; provided that the employer and
 
 2 the exclusive representative may negotiate procedures governing
 
 3 the promotion and transfer of employees to positions within a
 
 4 bargaining unit, procedures governing the suspension, demotion,
 
 5 discharge or other disciplinary actions taken against employees,
 
 6 and procedures governing the layoff of employees; provided
 
 7 further that violations of the procedures so negotiated may be
 
 8 the subject of a grievance process agreed to by the employer and
 
 9 the exclusive representative.
 
10      (e)  Negotiations relating to contributions to the Hawaii
 
11 public employees health fund shall be for the purpose of agreeing
 
12 upon the amounts which the State and counties shall contribute
 
13 under section 87-4, toward the payment of the costs for a health
 
14 benefits plan, as defined in section 87-1(8), and group life
 
15 insurance benefits, and the parties shall not be bound by the
 
16 amounts contributed under prior agreements; provided that section
 
17 89-11 for the resolution of disputes by way of fact-finding or
 
18 arbitration shall not be available to resolve impasses or
 
19 disputes relating to the amounts the State and counties shall
 
20 contribute to the Hawaii public employees health fund.
 
21      (f)  Teachers at charter schools shall not be subject to the
 
22 collective bargaining feature of transfer rights into schools by
 

 
 
 
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 1 seniority."
 
 2      SECTION 4.  If any provision of this Act, or the application
 
 3 thereof to any person or circumstance is held invalid, the
 
 4 invalidity does not affect other provisions or applications of
 
 5 the Act which can be given effect without the invalid provision
 
 6 or application, and to this end the provisions of this Act are
 
 7 severable.
 
 8      SECTION 5.  New statutory material is underscored.
 
 9      SECTION 6.  This Act shall take effect upon its approval.
 
10 
 
11                           INTRODUCED BY:  _______________________
 
12 
 
13                                           _______________________