HB3447

SECTION 1. Chapter 302B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302B‑A Virtual charter schools; establishment. (a) New virtual charter schools may be established pursuant to this section.

(b) Any community, group of teachers, group of teachers and administrators, or nonprofit organization may submit a letter of intent to the office to form a charter school, establish an interim local school board as its governing body, and develop a detailed implementation plan pursuant to subsection (d).

(c) The virtual charter school application process and schedule shall be determined by the panel, and shall provide for and include the following elements:

(1) The submission of a letter of intent to operate a virtual charter school;

(2) The timely transmittal of the application form and completion guidelines to the interim local school board;

(3) The timely submission to the panel of a completed application;

(4) The timely review of the application by the panel for completeness, and notification of the interim local school board if the application is complete or, if the application is insufficient, a written statement of the elements of the application that require completion;

(5) The timely resubmission of the application;

(6) Upon receipt of a completed application, the convening of the panel by the panel chairperson to begin review of the application;

(7) The timely notification of the applicant of any revisions the panel requests as necessary for a recommendation of approval;

(8) Following the submission of an application, issuance of a charter or denial of the application by the panel by majority vote; provided that if the panel does not approve the application and issue a charter, provisions requiring the panel to:

(A) Clearly identify in writing its reasons for not issuing the charter, which may be used as guidelines for an amended plan; and

(B) Allow the interim local school board to revise its plan in accordance with the panel's guidelines, and resubmit an amended plan within ten calendar days;

(9) A provision for a final date on which a decision must be made, upon receipt of an amended plan; and

(10) A provision that no virtual charter school may begin operation before obtaining panel approval of its charter.

(d) An application to become a virtual charter school shall include a detailed implementation plan that meets the requirements of this subsection and section 302B-9. The plan shall include the following:

(1) A description of employee rights and management issues and a framework for addressing those issues that protects the rights of employees;

(2) A plan for identifying, recruiting, and retaining highly-qualified instructional faculty;

(3) A plan for identifying, recruiting, and selecting students that is not exclusive, elitist, or segregationist;

(4) The curriculum and instructional framework to be used to achieve student outcomes, including an assessment plan;

(5) A 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 the educational content and performance standards developed by the department for the public school system;

(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;

(6) A governance structure for the charter school that incorporates a conflict of interest policy and a plan for periodic training to carry out the duties of local school board members;

(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

(8) A facilities plan."

SECTION 2. Section 302B-1, Hawaii Revised Statutes, is amended by amending the definition of "charter school" and adding a new definition for "virtual charter school" to be appropriately inserted and to read as follows:

"§302B‑1 Definitions. Whenever used in this chapter, unless the context otherwise requires:

"Board" means the board of education.

"Charter school" refers to those public schools holding charters to operate as charter schools under this chapter, including start-up [~~and~~], conversion, and virtual charter schools, and that have the flexibility and independent authority to implement alternative frameworks with regard to curriculum, facilities management, instructional approach, virtual education, length of the school day, week, or year, and personnel management.

"Charter school review panel" or "panel" means the panel established pursuant to section 302B-3 with the powers and duties to issue and revoke charters, approve detailed implementation plan revisions, and conduct charter school evaluations.

"Conversion charter school" means:

(1) Any existing department school that converts to a charter school and is managed and operated in accordance with section 302B-6;

(2) Any existing department school that converts to a charter school and is managed and operated by a nonprofit organization in accordance with section 302B-6; or

(3) A newly created school, consisting of programs or sections of existing public school populations that are funded and governed independently and may include part of a separate Hawaiian language immersion program using existing public school facilities.

"Department" means the department of education.

"Detailed implementation plan" means the document that details the charter school's purpose, focus, operations, organization, finances, and accountability, and becomes the basis for a performance contract between the panel and the charter school.

"Executive director" means the executive director of the charter school administrative office.

"Local school board" means the autonomous governing body of a charter school that receives the charter and is responsible for the financial and academic viability of the charter school and implementation of the charter, possesses the independent authority to determine the organization and management of the school, the curriculum, virtual education, and compliance with applicable federal and state laws, [and] has the power to negotiate supplemental collective bargaining agreements with exclusive representatives of their employees.

"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; and

(2) Is domiciled in this State.

"Office" means the charter school administrative office.

"Organizational viability" means that a charter school:

(1) Has been duly constituted in accordance with its charter;

(2) Has a local school board established in accordance with law and the charter school's charter;

(3) Employs sufficient faculty and staff to provide the necessary educational program and support services to operate the facility in accordance with its charter;

(4) Maintains accurate and comprehensive records regarding students and employees as determined by the office;

(5) Meets appropriate standards of student achievement;

(6) Cooperates with board, panel, and office requirements in conducting its functions;

(7) Complies with applicable federal, state, and county laws and requirements;

(8) In accordance with office guidelines and procedures, is financially sound and fiscally responsible in its use of public funds, maintains accurate and comprehensive financial records, operates in accordance with generally accepted accounting practices, and maintains a sound financial plan;

(9) Operates within the scope of its charter and fulfills obligations and commitments of its charter;

(10) Complies with all health and safety laws and requirements; and

(11) Complies with all panel directives, policies, and procedures.

"Start-up charter school" means a new school established under section 302B-5.

"Virtual charter school" means a new school established under section 302B-A, which delivers coursework via computer."

SECTION 3. Section 302B-4, Hawaii Revised Statutes, is repealed.

"[~~§302B‑4 Limits on charter schools.~~ The panel may authorize one new start-up charter school for each existing start-up charter school that has received a three-year or longer accreditation from the Western Association of Schools and Colleges or a comparable accreditation authority as determined by the panel, or for each start-up charter school whose charter is revoked. The total number of conversion charter schools authorized by the panel shall not exceed twenty-five.]"

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2008.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	3447
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII