SB3194 SD1

Report Title:

Education; Omnibus Education Improvement

Description:

Establishes income tax credit and incremental salary increases for teachers; a comprehensive evaluation process; temporary teacher licensing; and a master teaching program. Enhances national board certification incentive program. Appropriates funds. (SD1)

THE SENATE	S.B. NO.	3194
TWENTY-THIRD LEGISLATURE, 2006		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

relating to education.

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

PART I

SECTION 1. The purpose of this part is to establish salary increases for teachers and create a comprehensive evaluation process for teachers.

SECTION 2. Chapter 89, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§89- Teacher compensation. A teacher employed by the department of education and paid under the salary schedule contained in the unit 05 collective bargaining agreement shall receive an annual increment or longevity increase, as the case may be, for a year's satisfactory service in any fiscal year; provided that this section shall not apply to an employee who qualifies for an annual increment or biannual performance step increase under section 302A-626."

SECTION 3. Section 89-9, Hawaii Revised Statutes, is amended to read as follows:

"§89-9 Scope of negotiations; consultation. (a) [~~The~~] Except as provided in subsection (g), the employer and the exclusive representative shall meet at reasonable times, including meetings sufficiently in advance of the February 1 impasse date under section 89-11, and shall negotiate in good faith with respect to wages, hours, the amounts of contributions by the State and respective counties to the Hawaii employer-union health benefits trust fund or a voluntary employees' beneficiary association trust to the extent allowed in subsection (e), and other terms and conditions of employment which are subject to collective bargaining and that are to be embodied in a written agreement as specified in section 89-10, but the obligation does not compel either party to agree to a proposal or make a concession; provided that the parties may not negotiate with respect to cost items as defined by section 89-2 for the biennium 1999 to 2001, and the cost items of employees in bargaining units under section 89-6 in effect on June 30, 1999, shall remain in effect until July 1, 2001.

(b) The employer or the exclusive representative desiring to initiate negotiations shall notify the other party in writing, setting forth the time and place of the meeting desired and the nature of the business to be discussed, sufficiently in advance of the meeting.

(c) Except as otherwise provided in this [~~chapter,~~] section, all matters affecting employee relations, including those that are, or may be, the subject of a rule adopted by the employer or any director, shall be subject to consultation with the exclusive representatives of the employees concerned. The employer shall make every reasonable effort to consult with exclusive representatives and consider their input, along with the input of other affected parties, prior to effecting changes in any major policy affecting employee relations.

(d) Excluded from the subjects of negotiations are matters of classification, reclassification, benefits of but not contributions to the Hawaii employer-union health benefits trust fund or a voluntary employees' beneficiary association trust; recruitment; examination; initial pricing; and retirement benefits except as provided in subsection (g) or section 88-8(h). The employer and the exclusive representative shall not agree to any proposal that would be inconsistent with the merit principle or the principle of equal pay for equal work pursuant to section 76-1 or that would interfere with the rights and obligations of a public employer to:

(1) Direct employees;

(2) Determine qualifications, standards for work, and the nature and contents of examinations;

(3) Hire, promote, transfer, assign, and retain employees in positions;

(4) Suspend, demote, discharge, or take other disciplinary action against employees for proper cause;

(5) Relieve an employee from duties because of lack of work or other legitimate reason;

(6) Maintain efficiency and productivity, including maximizing the use of advanced technology, in government operations;

(7) Determine methods, means, and personnel by which the employer's operations are to be conducted; and

(8) Take such actions as may be necessary to carry out the missions of the employer in cases of emergencies.

The employer and the exclusive representative may negotiate procedures governing the promotion and transfer of employees to positions within a bargaining unit; the suspension, demotion, discharge, or other disciplinary actions taken against employees within the bargaining unit; and the layoff of employees within the bargaining unit. Violations of the procedures so negotiated may be subject to the grievance procedure in the collective bargaining agreement.

(e) Negotiations relating to contributions to the Hawaii employer-union health benefits trust fund or a voluntary employees' beneficiary association trust shall be for the purpose of agreeing upon the amounts that the State and counties shall contribute under sections 87A-32 through 87A-37, toward the payment of the costs for a health benefits plan, as defined in section 87A-1, and group life insurance benefits, and the parties shall not be bound by the amounts contributed under prior agreements; provided that section 89-11 for the resolution of disputes by way of arbitration shall not be available to resolve impasses or disputes relating to the amounts the State and counties shall contribute to the Hawaii employer-union health benefits trust fund or a voluntary employees' beneficiary association trust established under chapter 87D.

(f) The repricing of classes within an appropriate bargaining unit may be negotiated as follows:

(1) At the request of the exclusive representative and at times allowed under the collective bargaining agreement, the employer shall negotiate the repricing of classes within the bargaining unit. The negotiated repricing actions that constitute cost items shall be subject to the requirements in section 89-10.

(2) If repricing has not been negotiated under paragraph (1), the employer of each jurisdiction shall ensure establishment of procedures to periodically review, at least once in five years, unless otherwise agreed to by the parties, the repricing of classes within the bargaining unit. The repricing of classes based on the results of the periodic review shall be at the discretion of the employer. Any appropriations required to implement the repricing actions that are made at the employer's discretion shall not be construed as cost items.

(g) Notwithstanding subsections (a) and (d) to the contrary, movement between incremental and longevity steps within the salary range for teachers in appropriate bargaining unit 05 shall be specified by law, including chapter 302A."

SECTION 4. Section 302A-626, Hawaii Revised Statutes, is amended to read as follows:

"§302A-626 Salary increases; [~~annual, longevity.~~] performance step increase. (a) Teachers [~~and educational officers~~] who have completed a year's satisfactory service and who have complied with the other requirements of sections 302A-602 to 302A-640, and 302A-701, shall be entitled to an annual increment[.] of 3.14 per cent of their annual salary; provided that they earn an annual salary of less than $50,000.

(b) Teachers [~~and educational officers~~] who have [~~served satisfactorily for three years in their maximum increment step or in any longevity step and who have complied~~] accomplished the following:

(1) Earned an annual salary of $50,000 or more;

(2) Received positive performance evaluations as determined by the principal or immediate supervisor; and

(3) Complied with the other requirements of sections 302A-602 to 302A-640, and 302A-701[,];

shall receive [~~longevity stop increases;~~] a biannual performance step increase of $1500; provided that the board may grant principals and vice-principals [~~longevity~~] performance step increases more frequently than once every three years pursuant to section 302A-625."

SECTION 5. Section 302A-638, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-638[]] Evaluation of teachers [~~and educational officers~~]. (a) The department shall establish an evaluation program that shall include a comprehensive evaluation process for all teachers [~~and educational officers~~]. The evaluation shall be performed at least [~~once~~] twice in each school year. The program shall define the criteria for evaluation and assign responsibilities for the application of the criteria. The evaluation of a teacher [~~or educational officer~~] shall be on the basis of efficiency, ability, and such other criteria as the department shall determine.

(b) The department shall establish evaluation procedures that are based upon the goal of improving the teacher-learning process through the enrichment of professional staff development and to assist in the success of their teaching assignment.

(1) The teacher's experience;

(2) The teacher's workload;

(3) Ability level of the students;

(4) Class size;

(5) Assistance by other support personnel;

(6) The physical space;

(7) Assignments;

(8) Materials, supplies, and equipment; and

(9) Extra duties of the teacher.

(d) The comprehensive evaluation process shall include a conference between the evaluator and teacher at a reasonable time following the completion of the evaluator's observation of the teacher and evaluation.

(e) The department shall establish evaluation indicators and standards to assist the evaluator in the determination of the teacher's performance.

(f) The department shall establish a three-person teacher advisory team to be composed of the following:

(1) Two exemplary teachers as determined by national board certification, past teacher of the year status, or designation by the superintendent; and

(2) One administrator.

The teacher advisory team shall work with the principal and the teacher, following a negative evaluation, to address possible improvements or to locate an alternative position better suited to the teacher's abilities."

SECTION 6. This part shall not be applied so as to impair any collective bargaining agreement existing as of the effective date of this Act in a manner violative of either the Hawaii constitution or Article I, section 10, of the United States Constitution.

PART II

SECTION 7. The purpose of this part is to provide various tax relief for teachers including a:

(1) Credit for public school teachers, depending upon their years of service;

(2) Credit for developers who lease state-owned lands to build housing for lease or rental for teachers employed in hard-to-staff public schools;

(3) Credit for landlords who provide housing for teachers employed in hard-to-staff public schools; and

(4) Deduction for classroom supply expenses.

SECTION 8. Chapter 235, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:

"§235- Public school teacher tax credit. (a) There shall be a public school teacher tax credit for each individual taxpayer who is a public school teacher as defined in section 302A-501, and who is not claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes in the same tax year. The tax credit shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.

(b) The tax credit shall only apply to public school teachers who were employed by the department for the entire school year in which the tax credit is claimed. The amount of the tax credit shall be $250.

(c) To qualify for the income tax credit, the taxpayer shall be in compliance with all applicable federal, state, and county laws, as well as department of education rules and internal regulations.

(d) If the tax credit under this section exceeds the taxpayer's net income tax liability under this chapter, any excess of the tax credit may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(e) Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

(f) The director of taxation shall prepare any forms necessary to claim a tax credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91 to effectuate the purposes of this section. Specifically, the department of education shall certify to the department of taxation as to which public school teachers qualify for the tax credit allowed under this section.

(g) The department of taxation shall report to the legislature annually, no later than twenty days prior to the convening of every regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year.

§235- Teacher housing; developer tax credit program. (a) There is established in the department a teacher housing developer tax credit program that shall provide a tax credit for developers who lease state-owned lands to build housing for lease or rental to teachers employed in hard-to-staff public schools.

(b) As used in this section, "hard-to-staff public schools" includes any school or area determined to be hard-to-staff by the department; provided that the department shall include a justification for each area determination, and shall reevaluate and revise such a determination periodically to maintain a current listing of hard-to-staff public schools. Any removal of a school from the hard-to-staff list shall not affect the availability of the tax credit until the next calendar year.

(1) Located in the state senatorial district of the hard-to-staff public school; provided that on Oahu, teacher housing shall also be eligible if it is located in the state senatorial district adjacent to that of the hard-to-staff public school; and

(2) Built upon state-owned land and leased to a developer for a term and price to be determined by the department of land and natural resources.

(d) Each individual or corporate resident taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for the cumulative difference, during any taxable year after December 31, 2005, between the fair market rental or lease rate for the relevant state senatorial district, as provided in this section, and the actual rental or lease rate charged by the landlord to teachers employed in hard-to-staff public schools. For the purposes of this section, the department of taxation shall create an annual list of fair market values calculated as of the first of every calendar year; provided that the maximum deduction under this section shall not exceed $400 per month, or $4,800 per tax year, per rental or lease unit.

(e) The director of taxation shall prepare any forms necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information, including an appraisal completed by a licensed appraiser, to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91. The department of education shall certify to the department of taxation as to which state senatorial districts qualify for the tax credit allowed under this section.

§235- Teacher housing; tax credit program. (a) There is established in the department a teacher housing tax credit program that shall provide a tax credit for landlords renting or leasing housing to teachers employed in hard-to-staff public schools.

(c) Teacher housing shall be eligible for the teacher housing tax credit program if it is located in the state senatorial district of the hard-to-staff public school; provided that on Oahu, teacher housing shall also be eligible if it is located in the state senatorial district adjacent to that of the hard-to-staff public school.

(d) Each individual or corporate resident taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for the cumulative difference during any taxable year after December 31, 2005, between the fair market rental or lease rate for housing in the relevant state senatorial district, as determined in this section, and the actual rental or lease rate charged by the landlord to teachers employed in hard-to-staff public schools. For the purposes of this section, the department of taxation shall create an annual list of fair market values calculated as of the first of every calendar year; provided that the maximum deduction under this section shall not exceed $400 per month, or $4,800 per tax year, per rental or lease unit.

SECTION 9. Section 235-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be excluded from gross income, adjusted gross income, and taxable income:

(1) Income not subject to taxation by the State under the Constitution and laws of the United States;

(2) Rights, benefits, and other income exempted from taxation by section 88-91, having to do with the state retirement system, and the rights, benefits, and other income, comparable to the rights, benefits, and other income exempted by section 88-91, under any other public retirement system;

(3) Any compensation received in the form of a pension for past services;

(4) Compensation paid to a patient affected with Hansen's disease employed by the State or the United States in any hospital, settlement, or place for the treatment of Hansen's disease;

(5) Except as otherwise expressly provided, payments made by the United States or this State, under an act of Congress or a law of this State, which by express provision or administrative regulation or interpretation are exempt from both the normal and surtaxes of the United States, even though not so exempted by the Internal Revenue Code itself;

(6) Any income expressly exempted or excluded from the measure of the tax imposed by this chapter by any other law of the State, it being the intent of this chapter not to repeal or supersede any such express exemption or exclusion;

(7) Income received by each member of the reserve components of the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States of America, and the Hawaii national guard as compensation for performance of duty, equivalent to pay received for forty-eight drills (equivalent of twelve weekends) and fifteen days of annual duty, at an:

(A) E-1 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2004;

(B) E-2 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2005;

(C) E-3 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2006;

(D) E-4 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2007; and

(E) E-5 pay grade after eight years of service; provided that this subparagraph shall apply to taxable years beginning after December 31, 2008;

(8) Income derived from the operation of ships or aircraft if the income is exempt under the Internal Revenue Code pursuant to the provisions of an income tax treaty or agreement entered into by and between the United States and a foreign country, provided that the tax laws of the local governments of that country reciprocally exempt from the application of all of their net income taxes, the income derived from the operation of ships or aircraft that are documented or registered under the laws of the United States;

(9) The value of legal services provided by a prepaid legal service plan to a taxpayer, the taxpayer's spouse, and the taxpayer's dependents;

(10) Amounts paid, directly or indirectly, by a prepaid legal service plan to a taxpayer as payment or reimbursement for the provision of legal services to the taxpayer, the taxpayer's spouse, and the taxpayer's dependents;

(11) Contributions by an employer to a prepaid legal service plan for compensation (through insurance or otherwise) to the employer's employees for the costs of legal services incurred by the employer's employees, their spouses, and their dependents; [~~and~~]

(12) Amounts received in the form of a monthly surcharge by a utility acting on behalf of an affected utility under section 269-16.3 shall not be gross income, adjusted gross income, or taxable income for the acting utility under this chapter. Any amounts retained by the acting utility for collection or other costs shall not be included in this exemption[.]; and

(13) The value of any out-of-pocket expenses incurred by a teacher for classroom supplies or materials; provided that the deduction shall not exceed $250 and may be claimed regardless of whether the teacher files an itemized return. For the purposes of this paragraph, "teacher" has the same meaning as in section 302A-501."

PART III

SECTION 10. The purpose of this part is to:

(1) Establish a master teacher training program for qualified teachers to increase the quality of their skills and serve as resource to other teachers; and

(2) Amend the national board certification incentive program to allow teachers who have seven to twelve years of experience in the department time off to pursue the national certification.

SECTION 11. Chapter 302A, Hawaii Revised Statutes, is amended by adding three new sections to part III, subpart B, to be appropriately designated and to read as follows:

"§302A- Master teachers training program. (a) The department shall establish a master teachers training program to assist teachers who desire to increase the quality of their teaching skills and serve as a resource to other teachers. Candidates for the master teachers training program shall:

(1) Possess a master's degree from an accredited university;

(2) Have not less than ten years of experience as a classroom teacher;

(3) Have experience in performing additional duties and responsibilities at the school-level;

(4) Teach at the mastery level in instruction and strategies and possess expertise in mathematics, English, science, or social studies; and

(5) Agree to serve as a master teacher or regular teacher in a school for not less than five years following the date of initial certification as a master teacher.

(b) The duties of a master teacher shall include, in addition to the master teacher's regular classroom responsibilities, serving as a mentor, supervisor, or staff developer for other teachers both in or out of the master teachers training program.

(c) At the successful conclusion of the master teachers training program, the department shall certify the teacher as a master teacher. The certification shall be conditional upon an annual review by the board that deems the master teacher's performance in the master teacher assignment to have been satisfactory.

(d) A certified master teacher who is actively serving as a mentor, supervisor, or staff developer at a public school shall be compensated in accordance with section 302A-622(b).

§302A- Master teachers, staff developer. The department shall provide at least one master teacher staff developer in each school to assist the teachers at that school in preparing for master teacher training and certification, and for ongoing certification.

§302A- Master teachers' salary schedule. (a) Upon certification as a master teacher, an employee shall receive compensation at the lowest step of the lowest grade in the master teacher series that exceeds the employee's existing compensation by at least eight per cent if such a step exists.

(b) Master teachers who have completed a year's satisfactory service shall be entitled to an annual increment. Teachers who lose their certification as master teachers shall be placed in the appropriate range and step of the regular teacher salary schedule as if they had remained regular teachers."

SECTION 12. Section 302A-622, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-622[]] Salary ranges, teachers. (a) Salary ranges for teachers of the department, other than master teachers, shall be subject to the requirements of sections 302A-624 and 302A-626 and shall be as follows:

DEPARTMENT OF EDUCATION

SALARY RANGES

POSITIONS DOESR

Class I 1

II 3

III 5

IV 6

V 7

VI 8

VII 9

(b) Salary ranges for master teachers of the department:

(1) Shall be not less than the salary of a teacher at class V, step 9, at the first step of the master teacher series, for ten-month employees, notwithstanding section 89-19 to the contrary; and

(2) Shall be not less than the salary of an educational officer at EO 9, step 12, at the last step of the master teacher series, for ten-month employees, notwithstanding section 89-19 to the contrary, until such time that new salary ranges, grades, and schedules are negotiated for the master teacher series pursuant to section 89-9."

SECTION 13. Section 302A-706, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-706[]] Teacher national board certification incentive program. (a) There is established within the department the teacher national board certification incentive program to recognize and support exemplary teaching practice by supporting public school teachers who intend to pursue or have achieved national board certification under the certification program of the National Board for Professional Teaching Standards, and teacher educators in the University of Hawaii system who have achieved national certification through this program. The teacher national board certification incentive program shall provide:

(1) A $5,000 bonus per year for each public school teacher and teacher educator in the University of Hawaii system who maintains current national board certification; provided that any bonus provided to a teacher educator in the University of Hawaii system shall be paid by the University of Hawaii;

(2) $1,500 upon completing the certification program of the National Board for Professional Teaching Standards; [~~and~~]

(3) A reimbursement of the remainder of the national board certification application fee upon achievement of national board certification[.]; and

(4) Time off for teachers who have seven to twelve years of experience in the department to pursue national board certification. Each time off period shall not exceed one hour per school day and shall not exceed ninety hours per school year; provided that the teacher affirms in good faith the intention to remain employed by the department for no less than five additional years after completing the certification program of the National Board for Professional Teaching Standards; provided further that during the approved time off they share their teaching expertise with colleagues or preservice teacher candidates at accredited institutions of higher education on a monthly basis.

(b) The incentive program shall include a mentoring component that encourages and enables national board-certified teachers to assist other teachers and share their teaching expertise.

(c) For the purposes of this section, "teacher educator" means a faculty member in the University of Hawaii system who teaches in a teacher preparation program."

SECTION 14. 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 2006-2007, for the master teachers training program.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART IV

SECTION 15. The purpose of this part is to provide a temporary teaching license to teachers who have:

(1) A valid teaching certificate issued by the United States Department of Defense; and

(2) At least three years of teaching experience in a United States Department of Defense operated school.

SECTION 16. Section 302A-802, Hawaii Revised Statutes, is amended to read as follows:

"§302A-802 Licensing standards; policies. (a) The board and department shall establish licensing standards that govern teacher licensing in Hawaii. Licensing standards established by the board and department shall be adopted as rules under chapter 91 unless otherwise specified in this subpart.

(b) In the development of its standards, the board and department shall consider the existing teacher applicant pool that is available in the State and the level of the qualification of these applicants, as well as the nature and availability of existing preservice higher education teacher training programs. The board and department shall also consider alternative routes to licensing, such as national teacher examinations that certify competency in subject areas or programs taught in the public schools.

(1) Develop a plan for licensing more individuals with practical experience for teaching in vocational/technical programs;

(2) Develop a plan to accept teachers from any state as long as they have completed state-approved teacher education programs and pass relevant Hawaii teacher examinations or their equivalent;

(3) Clarify the requirements, on a state-by-state basis, for out-of-state licensed teachers to obtain a license in Hawaii;

(4) Develop a plan to facilitate licensing for those who intend to teach in Hawaii immersion programs, the island of Niihau, or any other [[]extraordinary[]] situation as defined by the [[]superintendent[]] or the superintendent's designee; and

(5) Pursue full teacher license reciprocity with the mid-Atlantic states, California, Colorado, Illinois, Michigan, New York, Oregon, and Washington.

(d) The department may license any pre-service or in-service teacher who:

(1) Possesses a valid teaching license issued by the United States Department of Defense; and

(2) Has at least three years of teaching experience in a United States Department of Defense operated school;

provided that after four years from the date of initial licensure under this subsection, an individual licensed under this subsection shall be subject to the license renewal provisions of section 302A-805, except for the need to pass any testing instrument or instruments that may otherwise be required by the Hawaii teachers standards board under this section; provided further that the individual's performance has been deemed satisfactory by the school principal or designee. The department may pay teachers licensed under this subsection a salary that is commensurate with their professional experience and competitive with the private sector. The board, in consultation with the department, shall develop performance-based standards based on the licensing criteria of this subsection and utilize them for the licensing of teachers."

PART V

SECTION 17. The purpose of this part is to appropriate funds for the teacher cadet program established under section 302A-401.5, Hawaii Revised Statutes.

SECTION 18. 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 2006-2007, to be deposited in the teacher cadet program special fund.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART VI

SECTION 19. The purpose of this part is to codify the department of education's professional development school program and appropriate funds for the program.

SECTION 20. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Professional development school program; established. (a) The department of education shall allocate the funds appropriated to professional development schools by means of competitive grants for up to five years subject to the availability of resources. A grant application shall include a description of how the professional development school will meet the professional development school standards of the National Council for the Accreditation of Teacher Education and the department's six images of success:

(1) Standards-based learning;

(2) Professionalism and the capacity of the system;

(3) Quality of student support;

(4) Coordinated team work;

(5) Responsiveness of the system; and

(6) Focused and sustained action.

(b) Five per cent of the funds appropriated for the establishment and continued development of professional development schools shall be set aside for program administration, including an annual professional development school conference.

(c) Grants may be awarded for up to five years and may be renewable. Professional development schools shall present annual reports to the department and shall present findings at the annual professional development schools conference.

(d) For the purposes of this section, "professional development schools" means those public schools, consortia of schools, or departments within schools that have entered into formal agreements with state-approved teacher education programs to address:

(1) Standards-based education;

(2) Teacher preparation; and

(3) Professional development."

SECTION 21. There is appropriated out of the general revenues of the State of Hawaii the sum of $200,000, or so much thereof as may be necessary for fiscal year 2006-2007, for the purpose of funding the department of education's professional development school program.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART VII

SECTION 22. The purpose of this part is to appropriate funds for the Hawaii educator loan program.

SECTION 23. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000, or so much thereof as may be necessary for fiscal year 2006-2007, to be deposited in the Hawaii educator loan program special fund established pursuant to section 304-20.6, Hawaii Revised Statutes.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART VIII

SECTION 24. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 25. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 26. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 27. This Act shall take effect on July 1, 2006; provided that sections 8 and 9 shall apply to taxable years beginning after December 31, 2005.