Proposes constitutional amendments to provide the department of education with complete autonomy from the executive branch by establishing the department as a political subdivision headed by the board of education.

A BILL FOR AN ACT

SECTION 1. The purpose of this Act is to propose amendments to article X of the Constitution of the State of Hawaii to:

SECTION 2. Article X of the Constitution of the State of Hawaii is amended by adding a new section to read as follows:

"DEPARTMENT OF EDUCATION; POLITICAL SUBDIVISION; BONDS

The department of education shall be a political subdivision headed by the board of education which shall enact ordinances and govern the political subdivision in a manner similar to other political subdivisions of the State, effective July 1, 2006. The department shall have all of the functions, powers and duties necessary to provide for the establishment, support and control of the statewide system of public education, except police powers. The department of education shall be separate and apart from the rest of state government but shall be subject to general law.

The department of education may issue general obligation bonds for the payment of the principal and interest of which the full faith and credit of the political subdivision is pledged and, unless otherwise indicated, includes reimbursable general obligation bonds. All bonds and other instruments of indebtedness issued by the department of education shall be subject to article VII, sections 12 and 13. For the purposes of determining the department's debt ceiling, the department of education shall follow the provisions of article VII, section 13. Fees, payments, income, excluding federal funds, and education excise tax revenues shall be considered general fund revenues of the department. The department of education shall be responsible for the payment of all principal and interest on general obligation bonds issued by the State and outstanding for the direct benefit of the public school system on the effective date of this section.

This article shall not limit the power of the legislature to enact laws of statewide concern."

SECTION 3. Article X, section 3, of the Constitution of the State of Hawaii is amended to read as follows:

"POWER OF THE BOARD OF EDUCATION

Section 3. The board of education shall have the power[, as provided by law,] to formulate statewide educational policy and appoint the superintendent of education as the chief executive officer of the public school system. The board of education shall have jurisdiction over the internal organization and management of the department of education and the public school system and shall exercise its jurisdiction in a manner consistent with general laws, effective July 1, 2006."

SECTION 4. The question to be printed on the ballot shall be as follows:

"Shall the Constitution of the State of Hawaii be amended to:

SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.

SECTION 6. These amendments shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.