Report Title:

New Century Charter Schools

Description:

Amends the new century charter schools law to improve its effectiveness by clearly delineating lines of authority, to reduce uncertainty regarding roles and responsibilities. Provides the board of education with authority to carry out its role as authorizer and overseer of charter schools. Clarifies requirements for renewal and revocation of charters.

HOUSE OF REPRESENTATIVES

H.B. NO.

1620

TWENTY-THIRD LEGISLATURE, 2005

  

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

relating to NEW CENTURY charter schools.

 

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

SECTION 1. The legislature recognizes that the existing charter school law must be improved. The auditor recently audited the Na Wai Ola Waters of Life charter school and found that "The charter school law lacks clear authority and responsibility assignments, resulting in conflicting roles and uncertainty. It also provides little basis for ensuring accountability and school viability, and does not address issues that may expose the State to unintended liabilities and entanglements."

The purpose of this Act is to amend the existing charter school law and improve its effectiveness by:

(1) Clearly delineating lines of authority, thereby reducing uncertainty regarding roles and responsibilities;

(2) Provide the board of education with the authority necessary to carry out its role as authorizer and overseer of charter schools; and

(3) Further clarify requirements for renewal and revocation of charters.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Charter schools; employment. Local school boards for new century charter schools shall have responsibility and authority over employment in their respective charter schools and responsibility to ensure compliance with all applicable laws, including compliance with health and safety laws; provided that the board shall have the power to overrule a local school board decision by a two-thirds vote of its membership in matters where the health or safety of employees or students are at risk or when there is evidence of criminal behavior on the part of local school board members or school employees.

The board may adopt guidelines relating to health, safety, and criminal behavior that are binding on charter schools without regard to chapters 91 and 92."

SECTION 3. Section 302A-1182, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(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, for a period of not more than five years, and the implementation plan shall be converted to a written performance contract between the school and the board; 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."

SECTION 4. 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

(D) These agreements may differ from the master contracts;

(2) Discriminatory practices under section 378-2; [and]

(3) Health and safety requirements[.];

(4) Public agency meetings and records, chapter 92; and

(5) The state procurement code, chapter 103D.

[New century charter schools 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] 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 5. Section 302A-1186, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1186 New century charter schools; renewal of charter; accountability probationary status; revocation of charter. (a) Every new century charter school shall conduct annual self-evaluations [which] that shall be submitted to the charter school administrative office within sixty working days after the completion of the school year. The self-evaluation process shall include but not be limited to:

(1) The identification and adoption of benchmarks to measure and evaluate administrative and instructional programs as provided in this section;

(2) The identification of any administrative and legal barriers to meeting the benchmarks, as adopted, and recommendations for improvements and modifications to address the barriers;

(3) The impact of the new century charter school upon student achievement within that school;

(4) A profile of the charter school's enrollment and community it serves, including a breakdown of regular education and special education students.

(b) Charters for new century charter schools shall be for a period not to exceed five years. Any existing charter that does not have a renewal date, shall be renewed on the fifth anniversary of the granting of the charter. The new century charter school review panel shall have sixty days to review all charter school requests for charter renewals. The new century charter school review panel shall submit to the board its recommendation for renewal or non renewal of the new century charter school's charter. A new century charter school's charter shall not be renewed if the following is determined:

(1) There was a material violation of the charter;

(2) The new century charter school failed to show student progress or meet educational goals;

(3) The new century charter school violated the charter school law, the procurement law, discriminatory practices under section 378-2, or health and safety requirements;

(4) The new century charter school is financially insolvent or unstable, or fiscal mismanagement or fraud occurred;

(5) The health and safety of the students may be compromised;

(6) Two-thirds of the licensed teaching staff request revocation of the charter; or

(7) A majority of the parents of students attending the new century charter school request the non renewal or revocation of the charter.

[(b)] (c) The board [shall] may 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]. Based upon the findings of the evaluation, the board may revoke the charter of the new century charter school, or [Upon] 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, or the new century charter school violated the components of its charter, 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 new century charter school's 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[.] if any of the following are determined:

(1) The new century charter school fails to meet its probationary requirements;

(2) The new century charter school is financially insolvent or unstable, or fiscal mismanagement is identified;

(3) Two-thirds of the licensed teaching staff of the new century charter school request revocation of the charter;

(4) The majority of parents of students at the new century charter school request revocation of the charter;

(5) The new century charter school fails to submit the reports required by the charter of the new century charter school and this section;

(6) The health and safety of the students of the new century charter school is endangered; or

(7) The new century charter school fails to comply with any of the requirements of this section.

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) Operates in accordance with applicable laws and its charter;

[(3)] (4) 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)] (5) Maintains comprehensive records regarding students[,] and employees[,] and complies with federal and state health and safety requirements.

[(c)] (d) The board [of education] may adopt guidelines to supplement accountability measures incorporated in the written performance contracts required under section 302A-1182. The board [of education] may adopt guidelines under which new century charter schools shall be reviewed on an annual basis by the board for the first two years upon their formation under section 302A-1182. The review guidelines may include:

(1) Minimum school size;

(2) Assurance that each school will be able to account for the funds allocated;

(3) Assurance that each school will be held accountable for student performance;

(4) Assurance that each school will meet legal standards for the expenditure of state and federal funds; and

(5) Assurance that each school will be in compliance with applicable state and federal laws.

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

SECTION 6. Section 302A-1187, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1187 New century charter schools; charter school administrative office; administration. (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 executive director may hire necessary staff without regard to chapters 76 and 89 to assist in the administration of the office.

(b) The executive director, under the direction of the board [of education and charter schools], shall be responsible for the internal organization, operation, and management of the new century charter schools, including:

(1) Preparation and execution of the budget for the new century charter schools, including submission of the budget request to the board [of education] and to the governor;

(2) Allocation of annual appropriations to the new century charter schools[,] and annual financial audits of each new century charter school;

(3) Compliance with applicable state laws related to the administration of the new century charter schools;

(4) Preparation and execution of contracts between the new century charter schools and the department [of education] for centralized services to be provided by the department;

(5) Preparation and execution of contracts between the new century charter schools and other state agencies for financial or personnel services to be provided by such agencies to the new century charter schools;

(6) Representation of new century charter schools in communications with the board [of education], the governor, and the legislature; and

(7) Monitoring and supporting the development, growth, and progress of new century charter schools.

(c) The salary of the executive director and staff shall be set by the board [of education based upon the recommendations of an organization of charter schools within the State]; provided that the salaries and operational expenses of the new century charter school administrative office shall be paid from the annual new century charter school appropriation and shall not exceed two per cent of the total allocation in any fiscal year."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________