STAND. COM. REP. NO. 122

Honolulu, Hawaii

RE: S.B. No. 864

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Education, to which was referred S.B. No. 864 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require that a minimum of two of the three auditors selected by the authorizer for the State's public charter schools have offices on the neighbor islands.

Your Committee received testimony in support of this measure from the Hawaii Public Charter School Network, Hawaii Academy of Arts and Science Public Charter School, Kanu o ka ‘Āina New Century Public Charter School, Kapolei Charter School, and two individuals. Your Committee received comments on this measure from the State Public Charter School Commission and Alaka‘i O Kaua‘i Charter School.

Your Committee finds that in 2019, the Hawaii State Public Charter School Commission requested control of the selection of auditors for public charter schools and requested that the number of auditors be limited to a choice of three. Since passage, the State Public Charter School Commission has only recommended a list of auditors all of whom were located on the island of Oahu. Your Committee further finds that having three auditors on the island of Oahu will cause undue burden and expense to neighbor island public charter schools and will likely hinder the completion of an audit of all thirty-seven public charter schools in the State within the timeframe required for the consolidated annual audit report. This measure will require that two auditor have offices on a neighbor island, which will allow charter schools on islands other than Oahu to be less burdened by the audits and be provided with an auditor located more conveniently to meet their needs.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 864 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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MICHELLE N. KIDANI, Chair