Report Title:
Charter Schools; Funding; Standards; Personnel
Description:
Makes clarifying amendments to the new century charter school statutes. Allows charter schools to propose their own weighted student formula. (SD1)
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THE SENATE |
S.B. NO. |
1643 |
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TWENTY-THIRD LEGISLATURE, 2005 |
S.D. 1 |
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STATE OF HAWAII |
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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 the State has made a commitment to public education and public schools through its Constitution and numerous laws. Until recently, all public education was established, financially supported, and controlled by the board of education and the department of education. However, the creation of new century charter schools outside of the department of education has in effect created two groups of public schools, each with its own distinct system of funding.
The charter school movement has gained momentum encouraging innovation and excellence in public education. Hawaii's new century charter schools have demonstrated increased enrollment, higher academic achievement, and greater fiscal accountability. These twenty-seven new century charter schools, which are public schools, employ approximately five hundred public employees and educate approximately five thousand five hundred public school students. While many of Hawaii's education laws were enacted at a time when all public schools were department of education schools, the creation of new century charter schools requires modifications and clarifications in the statutes.
New century charter schools receive their operations and facility funding through per pupil allocations. This allocation is determined by a statutory formula. Unfortunately, the current formula utilizes an outdated published expenditure report known as the consolidated financial statement rather than the current budget appropriations to the department of education. Thus, while the department of education's needs are reflected in new budgets, charter school funding is frozen in the past, rendering it unable to accommodate new costs, such as collective bargaining agreements.
Furthermore, the state auditor's report no. 05-01 has reported discrepancies regarding the exemptions contained in subsection 302A-1184(a), Hawaii Revised Statues. Initially, the attorney general had advised the board of education that the exemption did not include state laws relating to collective bargaining, discriminatory employment practices, and health and safety requirements. However, most recently, the attorney general stated that the exemption only applied to state laws relating to public schools. In contrast, the office of information practices concluded that charter schools are indeed exempt from all applicable state laws. This led the County of Hawaii to exempt Na Wai Ola Waters of Life charter school from obtaining a special permit required to locate schools in state land use agricultural districts. The confusion surrounding the law suggests a need for clarification.
The purpose of this Act is to bring new century charter schools closer to a more equitable and stable funding level and to update charter school laws by:
(1) Clarifying certain aspects of Hawaii’s charter laws and updating the definitions of "public schools" and "new century charter schools";
(2) Creating a more rigorous standard for the chartering of new schools;
(3) Ensuring that qualified personnel may move more freely between the department of education schools and charter schools;
(4) Clarifying that the charter school administrative office is attached to the board of education;
(5) Allowing the executive director to be hired through a multi-year contract exempt from the state procurement code;
(6) Authorizing the executive director to adopt administrative policies and procedures;
(7) Enabling the charter schools to propose their own weighted student formula; and
(8) Convening a working group to review the state auditor's recommendations regarding the charter schools' exemptions from state laws.
SECTION 2. Section 302A-101, Hawaii Revised Statutes, is amended by amending the definitions of "new century charter schools" and "public schools" to read as follows:
""New century charter schools" means [the implementation of] schools chartered by the board of education with the flexibility to implement alternative frameworks with regard to curriculum, facilities management, instructional approach, length of the school day, week, or year, and personnel management[, formed under section 302A-1182].
"Public schools" means all academic and noncollege type schools either established and maintained by the department, or issued a charter by the board of education, in accordance with law. [All other academic and noncollege type schools are "private schools", irrespective of the hours during which the sessions take place.]"
SECTION 3. Section 302A-1182, Hawaii Revised Statutes, is amended to read as follows:
"§302A-1182 New century charter schools; establishment. (a) Up to a total of twenty-three schools may be established as new century charter schools. These new century charter schools may be established by:
(1) The creation of a new school[;] pursuant to subsections (b) and (c); or
(2) The creation of a new school, comprising programs or sections of existing public school populations and using existing public school facilities, pursuant to [subsection] subsections (b)[.] and (c).
(b) Any community, group of teachers, group of teachers and administrators, entity recognized as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or any program within an existing school may submit a letter of intent to the board to form a new century charter school, establish a local school board as its governing body, and develop a detailed implementation plan pursuant to subsection (c).
(c) The local school board, with the support and guidance of the executive director, shall formulate and develop a detailed implementation plan that meets the requirements of this subsection and section 302A-1184. The plan shall include the following:
(1) A description of employee rights and management issues and a framework for addressing those issues that protect the rights of employees;
(2) A plan for identifying, recruiting, and retaining highly qualified instructional faculty;
[(2)] (3) A plan for identifying, recruiting, and selecting students that is not exclusive, elitist, or segregationist;
[(3)] (4) The curriculum and instructional framework to be used to achieve student outcomes, including an assessment plan;
[(4)] (5) A comprehensive plan for the assessment of student, administrative support, and teaching personnel performance, that:
(A) Recognizes the interests of the general public;
(B) Incorporates or exceeds state educational content and performance standards;
(C) Includes a system of faculty and staff accountability that holds faculty and staff both individually and collectively accountable for their performance, and that is at least equivalent to the average system of accountability in public schools throughout the State; and
(D) Provides for program audits and annual financial audits.
[(5)] (6) The governance structure of the school[;] that incorporates a conflict of interest policy for school employees serving on the local school board and a plan for periodic board training;
(7) A financial plan based on the most recent fiscal year's per pupil charter school allocation that demonstrates the ability to meet the financial obligations of one-time start-up costs and ongoing costs such as monthly payrolls, faculty recruitment, professional development, and facilities costs; and
[(6)] (8) A plan for any necessary design, construction, renovation, and management of facilities that is consistent with the state facilities plan; provided that:
(A) If the facilities management plan includes use of existing school facilities, the new century charter school shall receive authorization from the administrator responsible for the facilities; and
(B) The final determination of use shall fall within the board's discretion.
(d) The detailed implementation plan shall be submitted to the new century charter school review panel, which shall be composed of seven members as follows:
(1) [Four] Two of the members shall be board of education members or their designees appointed by the chairperson of the board of education;
(2) Two of the members shall be members of the new century charter school community approved by the chairperson of the board of education from a list submitted by existing new century charter schools; [and]
(3) One member shall be the executive director or the executive director's designee[.];
(4) One member shall be appointed by the dean of the University of Hawaii's college of education; and
(5) One member shall be a representative of the business community appointed by the executive director.
Panel review procedures shall be as provided in this section. The board may adopt rules pursuant to chapter 91 to further guide the panel's review process.
(e) The new century charter school review panel shall have sixty working days to review the completed implementation plan for a proposed new century charter school to ensure that it meets the requirements of subsection (c) and section 302A-1184. Within forty-five working days, the panel shall issue a report of its preliminary findings to the board of education and the local school board. If the panel subsequently determines that the implementation plan:
(1) Meets the requirements of subsection (c) and section 302A-1184, the panel shall by the sixtieth working day submit a recommendation to the board of education to issue a charter to the proposed new century charter school. Upon receipt of the panel's recommendation, the board [shall] may issue a charter, and the implementation plan shall be converted to a written performance contract between the school and the board; provided that if the board does not issue a charter, the board shall:
(A) Clearly identify its reasons for not issuing the charter; and
(B) Allow the local school board to revise its plan, in accordance with the board's reasons for rejecting the plan, and resubmit the amended plan; or
(2) Fails to meet the requirements of subsection (c) or section 302A-1184, the panel:
(A) Shall notify the local school board of the finding in writing to enable the local school board to appropriately amend the plan to address the findings; and
(B) May submit a recommendation to the board to issue a provisional approval for a charter if the panel determines that the applicant may reasonably be expected to expeditiously resolve any remaining findings impeding the issuance of a charter. The provisional approval shall be effective for one year. The board may extend the provisional approval beyond a period of one year. If a charter is subsequently issued, the amended implementation plan shall be converted to a written performance contract between the school and the board.
(f) An amended implementation plan shall be submitted within thirty working days of notification pursuant to subsection (e)(2)(A). The board shall deny the issuance of a charter if the local school board does not submit an amended implementation plan within the thirty working day period. The panel shall have thirty working days to review the amended implementation plan. If the amended implementation plan:
(1) Meets the requirements of subsection (c) and section 302A-1184, the panel shall by the thirtieth working day submit a recommendation to the board of education to issue a charter to the proposed new century charter school. If a charter is issued, the amended implementation plan shall be converted to a written performance contract between the school and the board; or
(2) Fails to address the findings to the panel's satisfaction the panel shall deny issuance of a charter.
(g) A local school board may file an appeal of the denial of an application for a charter with the panel. Upon filing an appeal, the panel shall forward the implementation plan and appropriate documentation of the appeal to the board of education. Within thirty working days, the board of education shall issue a report of its findings and final determination to the local school board. If the implementation plan is approved, the board of education shall issue a charter and the implementation plan shall be converted to a written performance contract between the school and the board of education.
(h) The State shall afford the local school board of any new century charter school the same protections as the State affords to the board of education.
(i) The State shall afford the local school board of any new century charter school full participation in department of education and other department personnel position listings for informational purposes.
(j) The department shall facilitate and encourage the movement of personnel between the department and new century charter schools, including providing credit for service to administrative, support, and instructional staff in charter schools equal to service in department schools; provided that:
(1) Comparable and verifiable professional development and employee evaluation standards and practices are in place in new century charter schools;
(2) New century charter school employees who are not yet tenured in the department and are entering or returning to the department shall be subject to no more than one year of probationary status; and
(3) Tenured department employees who transfer to new century charter schools shall not be required to serve a probationary period.
[(i)] (k) Any new century [conversion] charter school may, prior to the beginning of the school year, enter into an annual contract with [the] any department [of education] for centralized services to be provided by the department."
SECTION 4. Section 302a-1182.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§302A-1182.5[]] New century charter schools and new century conversion charter schools; weighted student formula. (a) Notwithstanding section 302A-1185 and beginning on September 1, 2006, new century charter schools and new century conversion charter schools shall elect whether to receive allocations according to the department's weighted student formula adopted pursuant to section 302A-1303.6 by the board of education; provided that:
(1) All new century charter schools and new century conversion charter schools, as a group, with each local school board being accorded one vote, shall elect, by greater than two-thirds agreement among the local school boards, whether to receive allocations through the department's weighted student formula;
(2) Any election by new century charter schools and new century conversion charter schools to receive department allocations, or not to receive allocations, through the department's weighted student formula shall be made by September 1 of each even-numbered year, and such election shall apply to the fiscal biennium beginning July 1 of the following year; and
(3) The election to receive allocations, or not to receive allocations, through the department's weighted student formula shall be communicated to the department through the charter school administrative office.
(b) The new century charter schools, working through the charter school administrative office, may propose to the board of education an alternative weighted student formula, approved of by more than two-thirds of the local school boards, with each local school board being accorded one vote, to be administered by the charter school administrative office and to apply to the per pupil allocation for charter schools."
SECTION 5. Section 302A-1184, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Schools designated as new century charter schools shall be exempt from all applicable state laws, except those regarding:
(1) Collective bargaining under chapter 89; provided that:
(A) The exclusive representatives defined in chapter 89 may enter into agreements that contain cost and noncost items to facilitate decentralized decisionmaking;
(B) The exclusive representatives and the local school board of the new century charter school may enter into agreements that contain cost and noncost items;
(C) The agreements shall be funded from the current allocation or other sources of revenue received by the new century charter school; [and] provided that collective bargaining increases shall be allocated by the department of budget and finance to the charter school administrative office for distribution to charter schools; and
(D) These agreements may differ from the master contracts;
(2) Discriminatory practices under section 378-2; and
(3) Health and safety requirements.
New century charter schools and the charter school administrative office shall be exempt from the state procurement code, chapter 103D, but shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices. However, where possible, the new century charter school is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption of chapter 103D and shall not subject the new century charter school to any other provision of chapter 103D. New century charter schools shall account for funds expended for the procurement of goods and services, and this accounting shall be available to the public. In addition, notwithstanding any law to the contrary, as public schools and entities of the State, new century public charter schools shall not bring suit against any other entity or agency of the State of Hawaii."
SECTION 6. Section 302A-1186, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The board shall initiate an annual independent evaluation of each new century charter school for the first two years after its establishment and every four years thereafter to assure organizational viability and compliance with applicable state laws, statewide student content and performance standards, and fiscal accountability; provided that each new century charter school established prior to July 1, 1998, shall be evaluated four years after July 1, 1998, and every four years thereafter. Upon a determination by the board that student achievement within a new century charter school does not meet the student performance standards, or that the new century charter school is not fiscally responsible, a new century charter school shall be placed on probationary status [and shall have one year] to bring student performance into compliance with statewide standards, [and] improve the school's fiscal accountability[.], and conform with the components of the charter. [If a new century charter school fails to meet its probationary requirements, or fails to comply with any of the requirements of this section, the] The board, upon a two-thirds majority vote, may [then] revoke the charter of [the] a new century charter school.
For the purposes of this subsection, "organizational viability" means that a new century charter school:
(1) Has been duly constituted in accordance with its charter;
(2) Has a local school board established in accordance with law and its charter;
(3) Employs sufficient faculty and staff to provide the necessary educational program and support services and to operate the facility in accordance with its charter; and
(4) Maintains comprehensive records regarding students, employees, and complies with federal and state health and safety requirements."
SECTION 7. Section 302A-1187, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is established a charter school administrative office, which shall be attached to the department [of education] for administrative purposes only. The office shall be administered by an executive director, who shall be appointed without regard to chapters 76 and 89 by the board of education based upon the recommendations of an organization of charter schools operating within the State or from a list of nominees submitted by the charter schools. The board of education may offer the executive director a multi-year contract. The executive director may hire necessary staff without regard to chapters 76 and 89 to assist in the administration of the office."
SECTION 8. Section 302A-1191, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (a) and (b) to read:
"(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; 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.
(b) A nonprofit organization may submit a letter of intent to the board of education to convert a department of education school to a charter school and to operate and manage [an existing public school as a new century conversion charter school], establish a local school board as its governing body, and develop a detailed implementation plan pursuant to section 302A-1182(c); provided that:
(1) The local school board as the governing body of the new century conversion charter school shall be composed of the board of directors of the nonprofit organization and not the participants specified in subsection (d)(1). The nonprofit organization may also appoint advisory panels of community representatives for each school managed by the organization, with whom the organization may consult; provided that these panels shall not have governing authority over the school and shall serve only in an advisory capacity to the nonprofit organization;
(2) The detailed implementation plan for each new century conversion charter school to be operated by the nonprofit organization shall be formulated, developed, and submitted by the local school board. The detailed implementation plan shall be approved by a majority of the votes cast by existing administrative, support, and teaching personnel, and parents; provided that the school personnel may request their bargaining unit representative to certify and conduct the elections for their respective bargaining units;
(3) After the detailed implementation plan for a new century conversion charter school operated and managed by the nonprofit organization has been approved by the new century charter school review panel and the board of education as provided in section 302A-1182(d) to (g), the board of education shall issue a charter, and the implementation plan shall be converted to a written performance contract between the nonprofit organization and the board of education, under which the new century conversion charter school shall be managed and operated as a division of the nonprofit organization[;] and shall have the same relationship with the charter school administrative office as any other local school board for a charter school;
(4) The board of directors of the nonprofit organization, as the governing body for the new century conversion charter school that it operates and manages, shall have the same protections that are afforded to the state board of education;
(5) Any new century conversion charter school that is managed and operated by a nonprofit organization shall be eligible for the same federal and state funding as other public schools; provided that the nonprofit organization may allocate federal and state funds among two or more of the new century conversion charter schools that it operates and manages to the extent permitted by law; and
(6) If, at any time, the new century conversion charter school dissolves or the charter is revoked, the State of Hawaii shall have first right, at no cost to the State, to all the assets and facilities of the new century conversion charter school, except as provided in the detailed implementation plan."
2. By amending subsections (d) and (e) to read:
"(d) As an alternative to subsection (b), any public
school or schools may submit a letter of intent to the board of
education to form a new century conversion charter school,
establish a local school board as its governing body, and
develop a detailed implementation plan pursuant to section
302A-1182(c); provided that:
(1) The local school board as its governing body shall be composed of, at a minimum, one representative from each of the following participant groups:
(A) Principals;
(B) Instructional staff members selected by the school instructional staff;
(C) Support staff selected by the support staff of the school;
(D) Parents of students attending the school selected by the parents of the school;
(E) Student body representatives selected by the students of the school; and
(F) The community at-large; [and]
(2) No principal, chief executive officer, chief administrative officer, executive director, or otherwise designated head of school may serve as an officer of the local board; and
[(2)] (3) The detailed implementation plan shall be approved by a majority of the votes cast by existing administrative, support, and teaching personnel, and parents; provided that the school personnel may request their bargaining unit representative to certify and conduct the elections for their respective bargaining units.
(e) [Up to a total of twenty-five schools may be established as new century conversion charter schools.] Any new century conversion charter school may, prior to the beginning of the school year, enter into an annual contract with the department of education for centralized services to be provided by the department."
SECTION 9. (a) There is established a working group to review, assess, and make recommendations regarding the applicability of state laws to new century charter schools and to define specific legal exemptions that may be appropriate and conducive to a balance between accountability and effective educational service delivery. The working group shall specifically address the concerns arising out of the State Auditors Report No. 05-01 which reported conflicting views between the attorney general and the office of information practices.
(b) The working group shall be comprised of the following members:
(1) The chairperson of the board of education or a designee;
(2) The superintendent of education or a designee;
(3) The executive director of the charter school administrative office or a designee;
(4) An individual appointed by the senate president;
(5) An individual appointed by the speaker of the house; and
(6) Two representatives of the new century charter schools appointed by the executive director of the charter school administrative office.
(c) The working group shall submit its findings and recommendations, including proposed legislation, to the legislature not later than twenty days before the convening of the regular session of 2006.
(d) Members of the working group shall serve without compensation but shall be reimbursed for necessary expenses incurred in the performance of their duties.
(e) The working group may request assistance from the department of education and other state agencies as necessary to provide staff support.
SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 11. This Act shall take effect upon its approval; provided that section 2 shall take effect on July 2, 2005.