Bill Text: HI HB2184 | 2010 | Regular Session | Introduced

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Bill Title: Education; charter schools

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2010-01-22 - (H) Referred to EDN/HED, LAB, FIN, referral sheet 3 [HB2184 Detail]

Download: Hawaii-2010-HB2184-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	2184
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to charter schools.

 

 

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

 

     SECTION 1.  The legislature finds that education is of the utmost importance to the future of Hawai`i.  As Hawai`i continues to strive for innovative ways to improve the education and opportunities for our children, the federal government has stressed, both publicly and in its policy and funding choices, the importance of successful innovations, especially encouraging states to nurture charter schools.  Generally, the purposes for a state's public charter schools, like Hawai`i's, are some combination of the following:

·         To improve student learning by creating high-quality schools with high standards for student performance;

·         To close achievement gaps between high-performing and low-performing groups of public school students;

·         To increase high-quality educational opportunities within the public education system for all students, especially those at risk of academic failure;

·         To create new professional opportunities for teachers, school administrators, and other school personnel that allow them to have a direct voice in the operation of their schools;

·         To encourage the use of different, high-quality models of teaching, governing, scheduling, or other aspects of schooling that meet a variety of student needs;

·         To allow public schools freedom and flexibility in exchange for exceptional levels of results-driven accountability;

·         To provide students, parents, community members, and local entities with expanded opportunities for involvement in the public education systems; or

·         To encourage the replication of successful public charter schools.

The legislature also finds that, nationwide, the charter school experiment is well into its second decade and that many lessons have been learned.  Like any comprehensive policy that exists over time, the experiences of many states give guidance on many ways to improve and strengthen our public charter school laws.  In addition, the Obama Administration recently set aside several billion dollars in competitive grants called "Race to the Top" funds for the very purpose of education reform and improvements, and blatantly states that part of the criteria for qualifying for the funds hinges on states' decision to nurture charter schools.

     The legislature further finds that it is in the best interests of the people of Hawai`i to provide all children with public schools that reflect high expectations and to create conditions in all schools where these expectations can be met, and that education reform is necessary to strengthen the performance of elementary and secondary public school students.  Further, different students learn differently and public school programs should be customized to fit the needs of individual students.

     The legislature further finds that those who know students best – their parents and educators – make the best education decisions regarding the students, and that parents and educators have a right and a responsibility to participate in the education institutions that serve them.

     The purpose of this Act is to create statutory changes to enable Hawai`i to further improve public charter schools as a means of innovative public education and to better situate Hawai`i to qualify for "Race to the Top" funds and other federal grants.

PART I

     SECTION 2.  The legislature finds that all public charter schools are public schools and a part of the state's public education system, and that as such, artificial limits on the number of public charter schools are counter to policies of education innovation and service.  Accordingly, the purpose of this part is to remove artificial limits on the number of public charter schools.

     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."]

PART II

     SECTION 4.  The legislature also finds that a hallmark of strong charter school laws in other states is the existence of multiple chartering authorities.  Over twenty states provide for at least two alternative chartering authorities.  In Hawai`i, the chartering authority is the charter school review panel, with the possibility of appeals to the board of education.  Accordingly, it is the purpose of this part to propose the University of Hawaii as an alternative chartering authority to the charter school review panel.

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

     "§302B‑5  Start-up charter schools; establishment.  (a)  New start-up 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 start-up charter school application process and schedule shall be determined by the panel or university, as applicable, and shall provide for and include the following elements:

     (1)  The submission of a letter of intent to operate a start-up 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 or university, as applicable, of a completed application;

     (4)  The timely review of the application by the panel or university, as applicable, 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 or the convening of the university entity to begin review of the application, as applicable;

     (7)  The timely notification of the applicant of any revisions the panel or university, as applicable, 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 or university, as applicable, by majority vote; provided that if the panel or university does not approve the application and issue a charter, provisions requiring the panel or university, as applicable, 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 start-up charter school may begin operation before obtaining panel or university, as applicable, approval of its charter.

     (d)  An application to become a start-up 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 6.  Chapter 302B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§302B-A  Alternative chartering authority; University of Hawai`i.     (a)  The board of regents of the University of Hawaii shall have the authority to designate itself or another entity within the University of Hawaii to be an alternative chartering authority to the charter school review panel. The alternative chartering authority authorized by the board of regents under this section shall have the power and authority to:

(1)  Review, approve, or deny charter applications for new charter schools in accordance with section 302B-5 for the issuance of new charters; provided that applicants that are denied a charter may appeal to the superintendent for a final decision pursuant to section 302B-5;

(2)  Review, approve, or deny significant amendments to detailed implementation plans to maximize the school's financial and academic success, long-term organizational viability, and accountability; provided that a denial of a significant amendment to a detailed implementation plan may be appealed to the superintendent for a final decision pursuant to section 302B-5;

(3)  Adopt reporting requirements for charter schools;

(4)  Review annual self-evaluation reports from charter schools and take appropriate action; and

(5)  Evaluate any aspect of a charter school that the entity may have concerns with and take appropriate action, which may include probation or revocation."

PART III

     SECTION 7.  The legislature also finds that even though public charter schools are public schools and a part of the public education system of the state of Hawai`i, the funding for charter schools has been a source of controversy ever since the inception of public charter schools.  After years of relative underfunding compared to mainstream public schools, the legislature enacted Act 298, Session Laws of Hawaii 2006, to attempt to rectify the fair funding issue.  The next year, the legislature passed Act 115, Session Laws of Hawaii 2007, to improve upon Act 298.  However, the controversy over fair funding to public charter schools remains.

     The purpose of this part is to ensure equitable operational and capital funding for public charter schools.

     SECTION 8.  Section 302B-12, Hawaii Revised Statutes, is amended to read as follows:

     "§302B-12  Funding and finance.  (a)  Beginning with fiscal year 2009-2010, and each fiscal year thereafter, the [non-facility] per-pupil funding request for charter school students shall not be less than the per-pupil amount to the department in the most recently approved executive budget recommendation for the department, as set forth in paragraph (2); provided that:

     (1)  The per-pupil funding request shall include funding for projected enrollment figures for each charter school; and

     (2)  The per-pupil request for each regular education and special education student shall:

         (A)  Include all regular education cost categories, including comprehensive school support services, [but excluding] and special education services[; provided that special education services are provided and funded by the department];

         (B)  Include all means of financing [except] ,including federal funds, as reported in the most recently-approved executive budget recommendations for the department; provided that in preparing the budget the executive director shall include an analysis of the proposed budget in relationship to the most recently published department consolidated annual financial report; [and]

         (C)  Exclude fringe benefit costs [and debt service.] ; and

         (D)  Include funding for facilities and debt service.

     (b)  Fringe benefit costs for charter school employees, regardless of the payroll system utilized by a charter school, shall be included in the department of budget and finance's annual budget request.  No fringe benefit costs shall be charged directly to or deducted from the charter school per-pupil allocations.

     The legislature shall make an appropriation based upon the budget request; provided that the legislature may make additional appropriations for fringe, workers' compensation, and other employee benefits and facility costs.  The legislature may make additional appropriations for other requested amounts that benefit charter schools.

     The governor, pursuant to chapter 37, may impose restrictions or reductions on charter school appropriations similar to those imposed on other public schools.

     (c)  Charter schools shall be eligible for all federal financial support to the same extent as all other public schools.  The department shall provide the office with all state-level federal grant proposals submitted by the department that include charter schools as potential recipients and timely reports on state-level federal grants received for which charter schools may apply or are entitled to receive.  Federal funds received by the department for charter schools shall be transferred to the office for distribution to charter schools in accordance with the federal requirements.  If administrative services related to federal grants and subsidies are provided to the charter school by the department, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that shall not exceed six and one-half per cent of the charter school's federal grants and subsidies.

     Any charter school shall be eligible to receive any supplemental federal grant or award for which any other public school may submit a proposal, or any supplemental federal grants limited to charter schools; provided that if department administrative services, including funds management, budgetary, fiscal accounting, or other related services, are provided with respect to these supplemental grants, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that shall not exceed six and one-half per cent of the supplemental grant for which the services are used.

     All additional funds generated by the local school boards, that are not from a supplemental grant, shall be held separate from allotted funds and may be expended at the discretion of the local school boards.

     (d)  To enable charter schools to access state funding prior to the start of each school year, foster their fiscal planning, and enhance their accountability, the office shall:

     (1)  Provide fifty per cent of a charter school's per-pupil allocation based on the charter school's projected student enrollment no later than July 20 of each fiscal year; provided that the charter school shall have submitted to the office a projected student enrollment no later than May 15 of each year;

     (2)  Provide an additional forty per cent of a charter school's per-pupil allocation no later than November 15 of each year; provided that the charter school shall have submitted to the office:

         (A)  Student enrollment as verified on October 15 of each year; provided that the student enrollment shall be verified on the last business day immediately prior to October 15 should that date fall on a weekend; and

         (B)  An accounting of the percentage of student enrollment that transferred from public schools established and maintained by the department; provided that these accountings shall also be submitted by the office to the legislature no later than twenty days prior to the start of each regular session; and

     (3)  Retain no more than ten per cent of a charter school's per-pupil allocation no later than June 30 of each year as a contingency balance to ensure fiscal accountability and compliance;

provided that the panel may make adjustments in allocations based on noncompliance with board policies made in the board's capacity as the state education agency, department directives made in the department's capacity as the state education agency, the office's administrative procedures, and board-approved accountability requirements.

     (e)  The department shall provide appropriate transitional resources to a conversion charter school for its first year of operation as a charter school based upon the department's allocation to the school for the year prior to the conversion.

     (f)  No start-up charter school or conversion charter school may assess tuition."

PART IV

     SECTION 9.  The legislature also finds that with the nearly two decades of nationwide experience with charter schools comes the need for honest self-assessment.  While there are many provisions within this Act to strengthen the public charter school law in order to improve and innovate our public education system, increased accountability also helps to strengthen the public charter school movement and our public education system.  Public charter schools should not escape accountability because the Obama administration and other federal administrations have favored charter schools as a means to improve the delivery of public education services.  As stated before, public charter schools are public schools and a part of the public education system, which means public charter schools also receive and expend taxpayer dollars.  Accountability for taxpayer dollars is a sound public policy, and public charter schools should not be exempt from that policy.

     Accordingly, it is the purpose of this part to enact more rigorous accountability measures and transparency in the decision making processes of charter authorizers.

     SECTION 10.  Section 302B-14, Hawaii Revised Statutes, is amended to read as follows:

     "§302B-14  Accountability; probationary status; revocation of charter.  (a)  Every charter school shall conduct annual self-evaluations that shall be submitted to the panel or university, as applicable, within [sixty] fifty working days after the completion of the school year, or in accordance with reporting requirements adopted by the panel.  The self-evaluation process shall include but not be limited to:

     (1)  The identification and adoption of benchmarks to measure and evaluate administrative and instructional programs;

     (2)  The identification of any innovations or research that may assist other public schools;

     (3)  The identification of any administrative and legal barriers to meeting the adopted benchmarks, and recommendations for improvements and modifications to address the barriers;

     (4)  An evaluation of student achievement within the charter school;

     (5)  A profile of the charter school's enrollment and the community it serves, including a breakdown of regular education and special education students; [and]

     (6)  An evaluation of the school's organizational viability[.] ; and

     (7)  A financial plan showing revenues and expenditures for the past school year.

     (b)  The panel or university, as applicable, shall conduct a multi-year evaluation of each charter school on its fourth anniversary year and every [five] four years thereafter.  The panel or university, as applicable,  may from time to time establish a schedule to stagger the multi-year evaluations.

     (c)  The panel or university, as applicable, may conduct special evaluations of charter schools at any time.

     (d)  The panel or university, as applicable, may place a charter school on probationary status; provided that:

     (1)  The panel or university, as applicable, evaluates the charter school or reviews an evaluation of the charter school;

     (2)  The panel or university, as applicable, and the office are involved in substantive discussions with the charter school regarding the areas of deficiencies;

     (3)  The notice of probation is delivered to the charter school and specifies the deficiencies requiring correction, the probation period, and monitoring and reporting requirements;

     (4)  For deficiencies related to student performance, a charter school shall be allowed two years to improve student performance;

     (5)  For deficiencies related to financial plans, a charter school shall be allowed one year to develop a sound financial plan; and

     (6)  For deficiencies related to organizational viability, a charter school may be allowed one year to improve administrative compliance.

     The charter school shall remain on probationary status until the panel or university, as applicable, votes either to remove the charter school from probationary status or revoke its charter.

     (e)  If a charter school fails to resolve deficiencies by the end of the probation period, the panel [may] shall revoke the charter; provided that the vote of two-thirds of all the members to which the panel or university, as applicable, is entitled shall be required to revoke the charter.

     (f)  The panel or university, as applicable, may place a charter school on probationary status or revoke the charter for serious student or employee health or safety deficiencies; provided that:

     (1)  The charter school is given notice of specific health or safety deficiencies and is afforded an opportunity to present its case to the panel or university, as applicable;

     (2)  The panel chair or university, as applicable, appoints a task group, which may be an investigative task group or the office, to visit the charter school and conduct meetings with its local school board and its school community to gather input;

     (3)  Based on its findings, the task group shall recommend to the panel or university, as applicable, to revoke the charter, place the charter school on probation, or continue the charter;

     (4)  The vote of two-thirds of all the members to which the panel or university, as applicable, is entitled shall be required to revoke the charter;

     (5)  The best interest of the school's students guide all decisions; and

     (6)  After a decision to revoke a charter, the charter school shall be allowed to remain open until a plan for an orderly shutdown or transfer of students and assets is developed and executed, or until the school year ends, whichever comes first.

     (g)  If there is an immediate concern for student or employee health or safety at a charter school, the panel or university, as applicable, in consultation with the office, may adopt an interim restructuring plan that may include the appointment of an interim local school board, an interim local school board chairperson, or a principal to temporarily assume operations of the school; provided that if possible without further jeopardizing the health or safety of students and employees, the charter school's stakeholders and community are first given the opportunity to elect a new local school board which shall appoint a new interim principal.  The board shall have the authority to direct the panel to take appropriate action to immediately address serious health and safety issues that may exist at a charter school in order to ensure the health and safety of students and employees and mitigate significant liability to the State.

     (h)  The board or university, as applicable, shall adopt rules pursuant to chapter 91 for placing charter schools on probation and for revoking a charter.

     (i)  If, at any time, a charter school dissolves or the charter is revoked, the State shall have first right, at no cost to the State, to all the assets and facilities of the charter school, except as otherwise provided by law."

PART V

     SECTION 11.  Section 302B-9, Hawaii Revised Statutes, is amended to read as follows:

     "§302B-9  Exemptions from state laws.  (a)  Charter schools shall be exempt from chapters 91 and 92 and all other state laws in conflict with this chapter, except those regarding:

     (1)  [Collective bargaining under chapter 89; provided that:

         (A)  The exclusive representatives as defined in chapter 89 and the local school board of the charter school may enter into supplemental agreements that contain cost and noncost items to facilitate decentralized decision-making;

         (B)  The agreements shall be funded from the current allocation or other sources of revenue received by the charter school; provided that collective bargaining increases for employees shall be allocated by the department of budget and finance to the charter school administrative office for distribution to charter schools; and

         (C)  These supplemental agreements may differ from the master contracts negotiated with the department;

     (2)] Discriminatory practices under section 378-2; and

    [(3)] (2)  Health and safety requirements.

     (b)  Charter schools and the office shall be exempt from chapter 103D, but shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices.  Charter schools and the office are encouraged to use the provisions of chapter 103D where possible; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption from chapter 103D and shall not subject the charter school or the office to any other provision of chapter 103D.  Charter schools and the office shall account for funds expended for the procurement of goods and services, and this accounting shall be available to the public.

     (c)  Any charter school, prior to the beginning of the school year, may enter into an annual contract with any department for centralized services to be provided by that department.

     (d)  Notwithstanding any law to the contrary, as public schools and entities of the State, neither a charter school nor the office may bring suit against any other entity or agency of the State.

     (e)  The employees of a charter school may negotiate as a separate bargaining unit with the local school board of the charter school, and may enter into supplemental agreements that contain cost and noncost items to facilitate decentralized decision-making.  If the employees of a charter school choose not to negotiate as a separate bargaining unit, the employees will be covered by the collective bargaining agreements negotiated by their respective bargaining units under chapter 89.  Any agreements shall be funded from the current allocation or other sources of revenue received by the charter school; provided that collective bargaining increases for employees shall be allocated by the department of budget and finance to the charter school administrative office for distribution to charter schools.  Supplemental agreements may differ from the master contracts negotiated with the department."

     SECTION 12.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 13.  This Act shall take effect on July 1, 2010.

 

 

INTRODUCED BY:	_____________________________
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Report Title:

Education; charter schools

 

Description:

Proposes amendments to strengthen and improve state public charter school laws.

 

 

 

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