STAND. COM. REP. NO. 1249

Honolulu, Hawaii

, 2019

RE: H.B. No. 622

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 622, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC CHARTER SCHOOLS,"

begs leave to report as follows:

The purpose of this measure is to strengthen compliance and financial accountability of charter schools by:

(1) Requiring a charter school employee to report the existence of a criminal investigation or charges against an employee to the charter school's authorizer within five days upon receiving written notice of the investigation or charges;

(2) Requiring a charter school authorizer to develop, maintain, and use a purchase order system to pay for expenses;

(3) Requiring that charter school funds remain in the state treasury until disbursement by purchase order or, if the charter school closes, by approval of the authorizer or order of the court;

(4) Authorizing a charter school authorizer to conduct or require audits; and

(5) Requiring the authorizer to select independent auditors to conduct the annual audit.

An individual submitted testimony in support of this measure. Hālau Kū Māna New Century Public Charter School; West Hawaii Explorations Academy; Connections Public Charter School; Ka ‘Umeke Ka‘eo; Kawaikini New Century Public Charter School; Kua O Ka La New Century Public Charter School; Hawaii Academy of Arts & Sciences Public Charter School; The Volcano School of Arts & Sciences Public Charter School; Ke Kula ‘O Nawahiokalani‘opu‘u Iki Learning Public Charter School; Na Lei Na‘auao Native Hawaiian Charter School Alliance; Ke Kula O Samuel M Kamakau Learning Public Charter School; Kualapu‘u Public Conversion Charter School; Ke Ea Hawaii; and several individuals submitted testimony in opposition to this measure. The Board of Education and State Public Charter School Commission offered comments on this measure.

Your Committee has amended this measure by:

(1) Prohibiting affiliations between any public charter school and members of the Charter School Commission and Board of Education; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 622, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 622, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair