Establishes the charter school education agency to be administratively attached to the DOE; provides for an executive director and staff for the office; requires funds for charter schools to be appropriated through EDN 110 -- charter schools. (SD1)

A BILL FOR AN ACT

SECTION 1. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart D, to be appropriately designated and to read as follows:

"§302A-B New century charter schools, new century conversion charter schools; funding. (a) Beginning with the fiscal biennium 2003-2005, and every fiscal biennium thereafter, all funds for new century charter schools and new century conversion charter schools shall be appropriated by the legislature under the program identification code, EDN 110. This program designation shall be assigned to the charter schools education agency established under section 302A-1187.

(b) In making the appropriation, the legislature shall consider the biennial budget request and supplemental budget request submitted by the charter schools education agency through the board of education and the governor, which shall include the projected total number of enrolled students for each school and a breakdown of the total number of general education and special education students enrolled in each school. Based upon the projected enrollment, the legislature shall appropriate for each charter school an amount based upon the average per pupil cost reported in the department of education's consolidated annual financial report for the previous fiscal year; provided that:

(c) Beginning with the fiscal biennium 2003-2005, the allocations of state general funds from the charter school education agency to new century charter schools and new century conversion charter schools shall be based upon legislative appropriations to EDN 110 and the projected enrollment figures reported to the agency by each school; provided that the governor or the board of education may impose restrictions or reductions, pursuant to chapter 37, on charter schools to the same extent as such are imposed on department of education schools."

SECTION 2. 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:

(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.] administration; charter school education agency. (a) There is established a charter school education agency, which shall be attached to the department of education for administrative purposes only. The charter school education agency shall provide administrative oversight of the new century charter schools and the new century conversion charter schools. The agency shall be governed by a nine member board of directors, who shall be appointed as follows: four members comprised of one member from each county representing a charter school established in that county, and five members who shall be selected by a statewide association of charter schools. The agency shall be administered by an executive director, who shall be appointed without regard to chapters 76 and 89 by the charter school board of directors. The executive director may hire necessary staff without regard to chapters 76 and 89 to assist in the administration of the agency.

(b) The executive director shall report to the board of directors and, following consultation with the board of directors and the local school boards of charter schools, shall provide administrative support to and oversight of the charter schools as follows:

SECTION 3. Section 302A-1302, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1302 School-based budget flexibility. (a) Beginning with the 1995-1997 fiscal biennium, the department shall implement school-based budget flexibility for schools, complexes, and learning support centers. The flexibility shall be limited to the school-based budgeting program EDN 100 of the department for all schools except new century charter schools defined in section 302A-101 and new century conversion charter schools defined in section 302A-1191[; provided that beginning].

(b) Beginning in fiscal year [1998-1999,] 2003-2004, and every year thereafter, the [department] charter school education agency shall distribute the [full appropriation] allocations due to a new century charter school or new century conversion charter school pursuant to [sections 302A-1185 and 302A-1191,] section 302A-B, directly to the new century charter school or new century conversion charter school."

SECTION 4. Section 302A-1188, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1188[]] New century charter schools; [mandate to support] responsibilities of department of education. (a) The department[, together with key representatives of the major divisions in the department, representatives from the unions, [as well as individuals] and representatives 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[.]; including the development of a system of technical assistance to be offered by the department of education during the first two years of operation of a new century charter school. The department and representatives of the new century charter schools shall collaborate to develop a list of central services that the department of education may offer for purchase by a new century charter school at an annual cost to be negotiated between an individual charter school and the department. The department shall enter into a contract with a new century charter school to provide these services, which shall be re-negotiated on an annual basis.

(c) Any new century charter school that admits special education students or identifies one of their students as eligible for special education shall be responsible for developing and providing the educational and related services within a student's individual education plan; provided that if the charter school is unable to provide all of the required services after exhausting all means within its jurisdiction, then placement of the student shall be determined by the department of education.

(d) If, at any time, a new century 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 charter school, except as otherwise provided by law."

SECTION 5. Section 302A-1185, Hawaii Revised Statutes, is repealed.

["§302A-1185 New century charter schools; funding. (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:

(b) All federal financial support for new century charter schools shall be no less than all other public schools; provided that if administrative services related to federal grants and subsidies are provided to the charter school by the department, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that does not exceed six and one-half per cent of the charter school's federal grants and subsidies.

Any new century charter school shall be eligible to receive any supplementary financial grant or award for which any other public school may submit a proposal, or any supplemental federal grants limited to new century charter schools; provided that if department administrative services, including funds management, budgetary, fiscal accounting, or other related services, are provided with respect to these supplementary grants, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that does not exceed six and one-half per cent of the supplementary grant for which the services are used.

All additional funds that are generated by the local school boards, not from a supplementary grant, shall be separate and apart from allotted funds and may be expended at the discretion of the local school boards.

(c) To enable new century charter schools to access state funding prior to the start of each school year, foster their fiscal planning, and enhance their accountability, the department shall:

(d) If, at any time, the new century 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 charter school, except as otherwise provided in the detailed implementation plan."]

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2003-2004, for new century charter schools and new century conversion charter schools, EDN 110.

The sum appropriated shall be expended by the charter school education agency for the purposes of this Act.

SECTION 7. To enable new century charter schools and new century conversion charter schools to access state funds in the fiscal year 2003-2004, prior to the establishment of the charter school education agency, the department of budget and finance shall make allocations directly to the charter schools in the amounts appropriated by the legislature for the fiscal year 2003-2004 as follows:

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on May 17, 2054.