Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Labor and Public Employment and Education, to which was referred S.B. No. 2424, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this bill is to preserve and extend civil service rights, privileges, and benefits to employees in applicable positions in New Century Conversion Charter Schools (NCCCS). Among other things, this bill:

DHRD, Hawaii Association of Independent Schools, Hawaii Business Roundtable, Hawaii State Teachers Association, Ho'okako'o Corporation, Waimea Middle School, Kualapuu Elementary School, Good Beginnings Alliance, Charter School Administrative Office, and a concerned individual testified in support of this bill. DOE and Hawaii Government Employees Association (HGEA) supported the intent of this measure.

Act 2, Session Laws of Hawaii 2002, enabled a nonprofit corporation to partner with an existing public school to become an entity known as a "New Century Conversion Charter School." NCCCS were established to offer a new model of hope by offering a choice in the public school system of a school that was empowered with more direct control of school management decisions, greater flexibility to focus on improved student achievement, and greater accountability.

Currently, a number of schools are exploring the possibility of becoming a NCCCS. However, your Committees note that the single, most important and recurring issue facing these schools is whether personnel at the school will be allowed to keep the benefits, rights, and privileges afforded to them by the civil service system. In a recent position issued by DHRD, it was determined that upon conversion to a NCCCS, employees lose their civil service status and any requisite benefits. Subsequently, DHRD and DOE reached a one-year agreement to allow NCCCS employees to continue their civil service status with the hope that a legislative solution would ensue.

Your Committees believe that the loss of civil service benefits, privileges, and rights was an unintended consequence of the charter school conversion process and that this oversight should be corrected.

As such, your Committees have amended this measure by:

Your Committees understand the concerns raised by HGEA regarding certain individuals at two schools that have already converted to charter schools, namely Waialae and Lanikai Charter Schools, who are not assured civil service retention status under this measure. DOE, DHRD, and the Department of the Attorney General are urged to work together to resolve this situation as soon as possible.

As affirmed by the records of votes of the members of your Committees on Labor and Public Employment and Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2424, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2424, S.D. 2, H.D. 1, and be referred to the Committee on Finance.