Establishes a noncontiguous host culture charter school district with jurisdiction over host culture-focused charter schools as part of a 5-year demonstration project.

A BILL FOR AN ACT

SECTION 1. In the 2004 legislative session, the legislature enacted Act 134, which required the legislative reference bureau to conduct a feasibility study regarding the establishment of a noncontiguous host culture charter school district as well as a noncontiguous charter school district in the State in order to solidify existing host culture-focused charter schools. The legislative reference bureau study was also to examine funding and autonomy issues related to charter schools.

This study concluded that while various constitutional, financial, and administrative related issues must be addressed and resolved with interested stakeholders before the legislature moves forward on this issue, it would be theoretically possible to establish a noncontiguous charter school district.

The establishment of a noncontiguous host culture charter school district would fulfill the constitutional requirement set forth in article X, section 4 of the Hawaii Constitution which requires the State to promote the study of Hawaiian culture, history, and language as well as provide for a Hawaiian education program consisting of language, culture, and history in public schools.

The legislature finds that twenty-five years after the adoption of article X, section 4, there is still no data demonstrating that Hawaii's public school graduates, regardless of ethnic background, have even a minimal knowledge of Hawaiian culture, history, and language. This is a clear indication that the State, specifically the department of education, has not satisfactorily complied with this mandate.

The legislature further finds that the latest research by Kamehameha Schools indicates that in the last twenty years, there has been a forty-four per cent increase in public school students who have one or more ancestors that inhabited the Hawaiian islands prior to western contact in 1778. According to the 2000 census data, thirty-two per cent of all public school students in Hawaii are Hawaiian, making them the single largest ethnic group.

The legislature further finds that a June 2003 report by Kamehameha Schools entitled "Left Behind? – The Status of Hawaiian Students in Hawai’i Public Schools" verifies that Hawaiian students rank among the lowest of all major ethnic groups in the State’s public school system by nearly every measure of educational engagement and success. The report finds that compared to other major ethnic groups, Hawaiian children have the lowest test scores and their scores consistently lag behind the department of education's total average by at least nine percentiles. Moreover, the gap between Hawaiian student test scores and the department of education's total average increases as the students advance through the system.

Hawaiian students also have the highest dropout and lowest graduation rates in the department of education and are over- represented in special education and subsidized lunch programs. For example, among Hawaiian public school students, thirteen per cent are classified both as low-income and in need of special education, compared to just five per cent of non-Hawaiian students, and eighteen per cent of Hawaiian students are classified as requiring special education, compared to eleven per cent of non-Hawaiian students.

In addition, Hawaiian students also have disproportionately higher rates of retention and absenteeism than non-Hawaiian students. For example, one in five Hawaiian students are retained between grades nine through twelve, and nearly ten per cent of Hawaiian students miss more than twenty days in a semester, compared to just six per cent of non-Hawaiians.

The legislature further finds that according to the latest Kamehameha Schools research, Hawaiians students are more likely than their non-Hawaiian peers to attend low-quality schools. Specifically, seventy-nine per cent of public schools with large numbers of Hawaiian students are in corrective action. Inequitably distributed educational and teaching resources and disproportionately high numbers of special education referrals further compound the existing social and economic disadvantages experienced by Hawaiian students. These imbalances deprive Hawaiian public school students of opportunities for intellectual engagement, social growth, and other aspects of a quality education that help to pave the way to fulfilling futures. The Kamehameha Schools report concludes that Hawaiian children are being left behind in our state public school system.

The legislature finds a direct correlation between the dismal educational performance of Hawaiian students within Hawaii's public school system and the subsequent socio-economic failure of Hawaiian adults. For many decades, Hawaiians have led the State in the percentage of welfare recipients; un- or under-employed; incarcerated men, women, and youth; and homeless families. In addition, Hawaiians have the highest drug, alcohol, and physical abuse rates and the worst health statistics in the State.

The legislature further finds that there is overwhelming evidence that the knowledge structure of Hawaii's host culture differs significantly from the knowledge structure utilized in Hawaii's public school system. The documented educational failure of Hawaii's Hawaiian public school population is a direct reflection of the incompatibility of Hawaii’s host culture with the current public school system. Data gathered by host culture-focused charter schools shows that when Hawaiian language, culture, and values are incorporated into the pedagogical process at all levels, as mandated by the article X, section 4, the educational process suddenly has relevance and meaning for Hawaiian children. As a result, Hawaiian students are able to 1earn, grow, and excel, both in academic settings and in life thereafter.

The legislature finds that the Hawaiian population is currently the only indigenous peoples in the United States that does not have some form of self-determination in education. As indigenous people, Hawaiians have a right to all levels and forms of education, including access to education in their own language, and the right to establish their educational systems and institutions according to their own customs and traditions.

Furthermore, according to article 1.7.1 of the Coolangatta Statement, ratified by thousands of indigenous educators at the 1999 World Indigenous Peoples Conference on Education in Hilo, "meaningful, empowering and culturally sustainable education for indigenous people will be possible only when indigenous people have the control (a fundamental right) and the resources (an inarguable responsibility of states/governments) to develop educational theories, curriculum, and practices that are indigenous and determine the environment within which this education can best occur."

The legislature finds that while there is currently no formal process for Hawaiian people to assert their own self-determination in education in Hawaii, Act 62, Session Laws of Hawaii 1999, established new century charter schools, to provide opportunities for Hawaiian communities to join together and implement learning models that addresses the poor outcomes of Hawaiian public school students. These host culture-focused charter schools, which are located in some of Hawaii’s most destitute areas, comprise fifty-seven per cent of Hawaii’s existing twenty three charter schools and welcomes students of all ethnic backgrounds.

All of the new century charter school models incorporate Hawaiian culture, language, and community involvement and demonstrate that Hawaiian communities are able to design and implement quality models of twenty-first century education, which can dramatically improve Hawaiian student learning.

The legislature further finds that since its formation in January 2000, the Hawaiian charter school alliance, called Na Lei Na’auao, made up of a dozen Hawaiian focused start-up charter schools, has demonstrated an impressive ability to collaborate according to the Hawaiian value of kukulu kumuhana. For example, Na Lei Na’auao has obtained millions in federal education dollars to collaborate on gifted and talented programs, curriculum development, teacher certification, and a comprehensive action research project. Furthermore, Na Lei Na’auao has successfully initiated viable, long-term partnerships with entities like the Kamehameha Schools, who through their Ho’olako Like program match $1 for every $4 the State allocates for this program. In addition, Kamehameha Schools is providing professional development, including principal’s training, support with conferences, and other assistance to Na Lei Na’auao schools.

The twelve Na Lei Na’auao communities located on three islands have successfully utilized technology to overcome challenges of physical separation and have demonstrated over the past years that they can work together effectively - even with minimal resources. Further, the alliance has proven that Na Lei Na’auao communities can respect each other’s autonomy, while supporting the mission of Na Lei Na’auao to "nurture and grow models of education throughout the Hawaiian Islands, which are community designed and controlled and reflect, respect and embrace Hawaiian cultural values, philosophies and ideologies."

The legislature further finds that data relating to these host culture designed and controlled charter schools confirm that culturally driven education significantly improves the educational achievement of Hawaiian children. For example, during the 2000-2001 school year, Kanu o ka Aina New Century Public Charter School had the highest attendance in the State, with a student population that is over ninety per cent Hawaiian. During the 2001-2002 school year, Hawaiian students attending Na Lei Na’auao schools scored better than Hawaiian students attending department of education schools. Other data such as improvement in grade point averages, increase in the level of parent and student satisfaction, success in college, and mainstreaming of special-education students further supports the notion that Hawaiian students prefer a culturally driven approach to education and such an approach increases student interest and subsequently educational success.

The legislature, the governor, the board of education, and countless citizens acknowledge that Hawaii’s public school system is too large. The legislature further acknowledges that decentralization has been recommended by various studies for over three decades. To date, the most significant effort to initiate more community control in the educational process has been the passage of Act 62, Session Laws of Hawaii 1999, which allowed for the establishment of a maximum of twenty-three start-up charter schools. The purpose of these schools is to provide alternative frameworks with regard to curriculum; facilities management; instructional approach; length of the school day, week, or year; and personnel management, in order to meet the needs of Hawaii's diverse student population.

The legislature finds that the federal government strongly supports charter schools; however, due to restrictions in Hawaii’s existing charter school law, which caps the number of charter schools and allows for only one chartering agency, the State of Hawaii, as a consequence, is ineligible for millions of dollars of federal school funding.

The legislature further finds that national authorities agree that Hawaii’s current charter school law is among the weakest in the nation. According to a report by the legislative reference bureau entitled, "On the Level," Hawaii's current charter school law needs extensive clarification in numerous areas including:

Clarifications are also necessary regarding funding, methodologies, allocations and procurement, and defining the relationship between charter schools, the board of education, the department of education, and the State.

The purpose of this Act is to create a noncontiguous host culture charter school district as part of a five-year demonstration project. This noncontiguous host culture charter school district shall be made up of no more than twelve host culture-focused charter schools. This district will operate independently from existing or future school district structures. The purpose of this Act is to:

This Act will also provide opportunities to solidify existing host culture-focused charter schools, by re-allocating current funding and providing opportunities for additional federal funding with the creation of the host culture charter school district.

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

"PART    . Host Culture Charter School District

§302A-A Host culture charter school district; established. There is established as a five-year pilot demonstration project, the noncontiguous host culture charter school district to be monitored by the host culture district council. This noncontiguous host culture charter school district may consist of existing host culture-focused charter schools located within all the counties of this State. There shall be no discrimination in host culture-focused charter schools based on race, religion, sex, or ancestry. A noncontiguous host culture charter school district shall have local educational agency status in order to qualify for equitable federal funding.

The noncontiguous host culture charter school district shall work in collaboration with the board of education, the superintendent of education, and the charter school executive director. Except as otherwise provided in this subpart, the board of education, the superintendent of education, or the charter school executive director shall not have the power to supervise or control the noncontiguous host culture charter school district in the exercise of its functions, duties, and powers.

§302A-B Funding for the host culture charter school district; fiscal management. (a) The noncontiguous host culture charter school district shall be exempt from the state procurement code pursuant to 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. The noncontiguous host culture charter school district shall account for funds expended for the procurement of goods and services and this accounting shall be available for public inspection.

The noncontiguous host culture charter school district shall enact fiscal policies as well as establish a system of accountability that is a model of transparency in order to verify true spending in education.

(b) The noncontiguous host culture charter school district shall receive a flat per-pupil allocation of $9,753.00 ($10,422 less debt service of $669 per pupil), set by statute and based upon the independent Cooper-Ouchi Report, 2003, to be provided in a separate appropriation. In addition, accompanying budget bills provisos shall accommodate all fringe benefit costs as it does for all other state employees at no additional charge to the district; provided that:

(c) To enable the noncontiguous host culture charter school district to access state funding prior to the start of each school year, foster prudent fiscal planning, and enhance accountability, the department of accounting and general services shall provide:

(d) In accordance with the mandates of the No Child Left Behind program, the noncontiguous host culture charter school district shall receive a consistent per pupil amount for each regular and special education student, including comprehensive school support services and all means of financing, excluding special education services which shall be provided by the department of education at the charter school.

(e) As clarified in the No Child Left Behind program, the department of education shall disperse in a timely manner a fair and equitable portion of any federal financial support provided for public school children in the State of Hawaii.

(f) As the designated local educational agency, the noncontiguous host culture charter school district shall be eligible to receive any supplementary financial grant or award that may be available to other local educational agencies.

(g) All additional funds that are generated by the noncontiguous host culture charter school district and do not arise from a supplementary grant, shall be separate and apart from allotted funds and may be expended at the discretion of the noncontiguous host culture charter school district.

(h) If at any time the noncontiguous host culture charter school district dissolves or is denied continuation, the State of Hawaii shall have first right, at no cost to the State, to all of the assets of the noncontiguous host culture charter school district.

(i) Host culture-focused charter schools shall be eligible for capital improvement funds using the same process as other public schools for design, construction, and renovation of campuses.

(j) Host culture-focused charter schools shall be eligible to participate in tax-exempt bond programs.

(k) Host culture-focused charter schools shall have first option to occupy "underutilized" county facilities for educational purposes.

(l) Host culture-focused charter schools shall have first option to occupy or liquidate any government seized real estate property. Liquidated property funds shall be equally divided amongst statewide culture-focused charter schools for the purposes of facilities maintenance and development.

§302A-C Host culture district council; established. (a) The noncontiguous host culture charter school district shall be monitored by a nine member host culture district council initially appointed by the governor. Voting members of the host culture district council shall be subject to section 26-34; provided that the governor shall include the superintendent of education and the charter school executive director, and shall appoint two members from a list of not less than five educators submitted by the Hawaiian studies and language section of the department of education, three members from a list of not less than seven names submitted by existing host culture-focused charter schools, one kupuna from a list of not less than four names submitted by existing host culture-focused charter schools, and one student representative elected by the students of existing host culture-focused charter schools.

(b) The host culture district council shall elect its own chairperson and develop guidelines by which successor council members are to be appointed, elected, or removed.

(c) The host culture district council may hire staff to assist it in its mandated purpose and to carry out administrative functions it deems appropriate.

§302A-D Host culture-focused charter schools; exemptions. (a) Schools designated as host culture-focused charter schools shall be exempt from all applicable state laws, except those regarding:

(b) Host culture-focused charter schools shall be exempt from the state procurement code under 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, host culture-focused charter schools are 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 host culture-focused charter school to any other provision of chapter 103D. Host culture-focused charter schools shall account for funds expended for the procurement of goods and services, and this accounting shall be available to the public.

§302A-E Host culture-focused charter schools; accountability. (a) Each host culture-focused charter school shall conduct annual self-evaluations. The self-evaluation process shall include, but not be limited to:

(b) Each host culture-focused charter school shall submit a report of its self-evaluation to the host culture district council within sixty working days after the end of the school year. The host culture district council shall have thirty working days to respond to any recommendations regarding improvements and modifications.

(c) In the fourth year of this pilot demonstration project, the host culture district council shall conduct an evaluation of the effectiveness of the host culture-focused charter approach authorized under this subpart. Based on this evaluation, the host culture district council shall directly report to the legislature and the governor with recommendations to modify, expand, or terminate the host culture-focused charter school approach no less than twenty days before the convening of the regular session of 2009.

The evaluation of the effectiveness of the host culture-focused charter school approach shall include the following factors:

(d) Upon a determination by the host culture district council that student achievement within a host culture-focused charter school does not meet applicable student performance standards, or that the host culture-focused charter school is not fiscally responsible, a host culture-focused 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. If a host culture-focused charter school fails to meet its probationary requirements, or fails to comply with any of the requirements of this section, the host culture district council, upon a two-thirds majority vote, may then deny the continuation of the host culture-focused charter school.

(e) The host culture district council may adopt guidelines and regulations to supplement accountability measures.

§302A-F Host culture-focused charter schools; administrative supervision. The following provisions shall apply to all host culture-focused charter schools:

§302A-G Host culture district council, host culture charter school district, and host culture-focused charter schools; representation by attorney general. The host culture district council, host culture charter school district, and host culture-focused charter schools are entitled to legal services and representation from the attorney general in all legal proceedings in state and federal courts. The attorney general, upon request, shall provide legal services and representation in the same manner as the attorney general provides to public schools, the department of education, and the board of education.

§302A-H Host culture-focused charter schools; mandate to support. The chair of the board of education charter school committee, the superintendent of education, the charter school executive director, as well as key representatives of the major divisions of the department of education, and representatives from other state departments providing related services, including but not limited to the department of health, the department of accounting and general services, the department of budget and finance, and representatives from the unions, as well as individuals from the host culture charter school district and host culture-focused charter schools shall collaborate on a system of technical assistance that will provide a baseline for success for each host culture-focused charter school. In addition, the department, through the board of education and its superintendent, shall provide any other information and technical assistance, upon request, which is necessary to support the growth of host culture-focused charter schools and the host culture charter school district."

SECTION 3. Section 26-35.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) For purposes of this section, "member" means any person who is appointed, in accordance with the law, to serve on a temporary or permanent state board, including members of the host culture district council established under section 302A-C, local school board of any new century charter school established under section 302A-1182, or new century conversion charter school established under section 302A-1191, council, authority, committee, or commission, established by law or elected to the board of education or the board of trustees of the employees' retirement system under section 88-24; provided that "member" shall not include any person elected to serve on a board or commission in accordance with chapter 11 other than a person elected to serve on the board of education."

SECTION 4. 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 2005-2006, for establishing a noncontiguous host culture charter school district and hiring of necessary staff and council.

SECTION 5. The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.

SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 7. This Act shall take effect on July 1, 2005, and shall be repealed on July 1, 2010; provided that section 26-35.5, Hawaii Revised Statutes, is reenacted in the form in which it read on June 30, 2005.