"SECTION 1. The purpose of this Act is to propose an amendment to Article X, section 2 and 3, of the Constitution of the State of Hawaii to provide for the creation of locally elected district school boards and to amend the function and selection of the state board of education.

SECTION 2. Article X, section 2, of the Constitution of the State of Hawaii, is amended to read as follows:

"[BOARD OF EDUCATION] STATE AND DISTRICT SCHOOL BOARDS

Section 2. There shall be a state board of education composed of [members who shall be elected in a nonpartisan manner by qualified voters, as provided by law, from two at-large school board districts] one member selected from each district school board. Each district board shall select its representative to the state board by majority vote among the district board members. Each state board member, with the exception of the member from the noncontiguous district, shall have a vote on matters before the state board of education.

There shall be district school boards composed of members who shall be elected in a nonpartisan manner by qualified voters, as provided by law, from a number of school board districts as determined by law. The [first] school board [district] districts shall be comprised of [the] areas of approximately equal populations. [island of Oahu and all other islands not specifically enumerated. The second school board district shall be comprised of the islands of Hawaii, Maui, Lanai, Molokai, Kahoolawe, Kauai and Niihau. Each at-large school board district shall be divided into departmental school districts, as may be provided by law. There shall be at least one member residing in each departmental school district.] The Hawaii State Student Council shall select a public high school student to serve as a nonvoting member on the state board of education. Local student councils shall select a public high school student to serve as a nonvoting member on each district school board of education."

SECTION 3. Article X, section 3, of the Constitution of the State of Hawaii, is amended to read as follows:

"POWER OF THE [BOARD OF EDUCATION] STATE AND DISTRICT BOARDS OF EDUCATION

Section 3. The state board of education shall have the power, as provided by law, to [formulate statewide educational policy and] appoint the state superintendent of education, [as the chief executive officer of the public school system] formulate funding formulae to fund each district board of education, create statewide education standards, and oversee equity and compliance with federal law.

District boards of education shall have the power, as provided by law, to formulate district wide educational policies not inconsistent with statewide education standards and effect budget decisions within the district. District boards of education shall have all other powers not specifically delegated to the state board of education."

SECTION 4. The question to be printed on the ballot shall be as follows:

SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.

SECTION 6. This amendment shall take effect upon compliance with Article XVII, section 3, of the Constitution of the State of Hawaii."