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PUBLIC CHARTER SCHOOLS

HRS div. 1, tit. 18, ch. 302D
in effect

HRS §302D-1 Definitions

302D-1. Definitions Whenever used in this chapter, unless the context otherwise requires: "Applicant governing board" means the initial governing board that is: (1) Established by an eligible group or entity to submit a charter application pursuant to section 302D-13; and (2) Not subject to section 302D-12. "Authorizer" means an entity established under this chapter with chartering authority to review charter applications, decide whether to approve or deny charter applications, enter into charter contracts with applicants, oversee public charter schools, and decide whether to authorize, renew, deny renewal of, or revoke charter contracts. The term may include the commission when appropriate. "Board" means the board of education. "Charter application" means a proposal from an applicant to an authorizer to enter into a charter contract whereby the proposed school obtains public charter school status. "Charter contract" or "charter" means a fixed-term, bilateral, renewable contract between a public charter school and an authorizer that outlines the roles, powers, responsibilities, and performance expectations for each party to the contract. "Charter school" or "public charter school" refers to those public schools and their respective governing boards, as defined in this section, that are holding current charter contracts to operate as charter schools under this chapter, including start-up and conversion 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. "Commission" means the state public charter school commission established pursuant to [section] 302D-3 as a statewide authorizer. "Conversion charter school" means: (1) Any existing department school that converts to a charter school and is managed and operated in accordance with section 302D-13; or (2) Any existing department school that converts to a charter school and is managed and operated by a nonprofit organization in accordance with section 302D-13. "Computer science" shall have the same meaning as in section 302A-101. "Computer science content" shall have the same meaning as in section 302A-101. "Computer science courses" shall have the same meaning as in section 302A-101. "Department" means the department of education. "Department school" means any school that falls within the definition of "public schools" as defined in section 302A-101 and that is not a charter school. "Executive director" means the executive director of the state public charter school commission. "Governing board" means the independent board of a public charter school that is party to the charter contract with the authorizer that: (1) Is responsible for the financial, organizational, and academic viability of the charter school and implementation of the charter; (2) Possesses the independent authority to determine the organization and management of the school, the curriculum, and virtual education; (3) Has the power to negotiate supplemental collective bargaining agreements with exclusive representatives of their employees and is considered the employer of charter school employees for purposes of chapters 76, 78, and 89; and (4) Ensures compliance with applicable state and federal laws. "Nonprofit organization" means a private, nonprofit, tax-exempt entity that: (1) Is recognized as a tax-exempt organization under the Internal Revenue Code; and (2) Is registered to do business in this State in accordance with chapter 414D. "Organizational viability" means that a charter school: (1) Has been duly constituted and operates in accordance with its charter; (2) Has a governing 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 its authorizer; (5) Meets appropriate standards of student achievement as defined by the board pursuant to its duties under article X, section 3, of the Constitution of the State of Hawaii; (6) Cooperates with board and authorizer requirements in conducting its functions; (7) Complies with applicable federal, state, and county laws and requirements; (8) In accordance with authorizer 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 contract and fulfills obligations and commitments of its charter; (10) Complies with all health and safety laws and requirements; (11) Complies with all authorizer directives, policies, and procedures; and (12) Complies with all board policies deemed applicable to charter schools by the board. "Pre-opening charter school" means a charter school that has not yet satisfactorily fulfilled the authorizer's pre-opening assurance as required under section 302D-14.5 or has not yet commenced full operations as a charter school during its first full academic year. "Start-up charter school" means a new charter school established under section 302D-13 that is not a conversion charter school. [L 2012, c 130, pt of §2; am L 2013, c 159, §3; am L 2014, c 99, §3; am L 2015, c 114, §1; am L 2021, c 158, §5]

HRS §302D-3 State public charter school commission; establishment; appointment

302D-3. State public charter school commission; establishment; appointment (a) There is established the state public charter school commission with statewide chartering jurisdiction and authority. The commission shall be placed within the department for administrative purposes only. Notwithstanding section 302D-25 and any law to the contrary, the commission shall be subject to chapter 92. (b) The mission of the commission shall be to authorize high-quality public charter schools throughout the State. (c) The commission shall consist of nine members to be appointed by the board. The board shall appoint members who will be tasked with authorizing public charter schools that serve the unique and diverse needs of public school students. The chair of the commission shall be designated by the members of the commission for each school year beginning July 1, and whenever there is a vacancy. The board shall consider the combination of abilities, breadth of experiences, and characteristics of the commission, including but not limited to reflecting the diversity of the student population, geographical representation, and a broad representation of education-related stakeholders. Members of the commission shall collectively possess experience and expertise in public or nonprofit governance; management and finance; assessment; and public education. The commission shall be exempt from sections 26-34 and 26-36. (d) Understanding that the role of the commission is to ensure a long-term strategic vision for Hawaii's public charter schools, each nominee to the commission shall meet the following minimum qualifications: (1) Commitment to education. Each nominee's record should demonstrate a deep and abiding interest in education, and a dedication to the social, academic, and character development of young people through the administration of a high performing charter school system; (2) Record of integrity, civic virtue, and high ethical standards. Each nominee shall demonstrate integrity, civic virtue, and high ethical standards and be willing to hold fellow commission members to the same; (3) Availability for constructive engagement. Each nominee shall commit to being a conscientious and attentive commission member; and (4) Knowledge of best practices. Each nominee shall have an understanding of best practices in charter school educational governance or shall be willing to be trained in such. (e) Each nominee to the commission shall ideally meet the following recommended qualifications: (1) Experience governing complex organizations. Each nominee should possess experience with complex organizations, including but not limited to performance contract management, and a proven ability to function productively within them; and (2) Collaborative leadership ability. Each nominee should have substantial leadership experience that ideally illustrates the nominee's ability to function among diverse colleagues as an effective team member, with the ability to articulate, understand, and help shape consensus surrounding commission policies. (f) Five members of the commission shall constitute a quorum to conduct business. Any action taken by the commission shall be by a simple majority of the members of the commission who are present; provided that any action of the commission that may be appealed pursuant to section 302D-15 shall require a concurrence of at least five members to be valid. (g) Commission members shall serve not more than three consecutive three-year terms, with each term beginning on July 1; provided that the initial terms that commence after June 30, 2012, shall be staggered as follows: (1) Three members, including the chairperson, to serve three-year terms; (2) Three members to serve two-year terms; and (3) Three members to serve one-year terms. (h) Notwithstanding the terms of the members, the board may fill vacancies in the commission at any time when a vacancy occurs due to resignation, non-participation, the request of a majority of the commission members, or termination by the board for cause. (i) Commission members shall receive no compensation. When commission duties require that a commission member take leave of the member's duties as a state employee, the appropriate state department shall allow the commission member to be placed on administrative leave with pay and shall provide substitutes, when necessary, to fulfill that member's departmental duties. Members shall be reimbursed for necessary travel expenses incurred in the conduct of official commission business. (j) The commission shall operate with dedicated resources and staff qualified to execute the day-to-day responsibilities of the commission pursuant to this chapter. Beginning with the 2015-2016 fiscal year, the legislature shall make an appropriation to the commission separate from, and in addition to, any appropriation made to charter schools pursuant to sections 302D-28 and 302D-29.5. (k) The commission shall have the power to hire staff without regard to chapters 76 and 89. The commission shall determine staff wages, hours, benefits, and other terms and conditions for employment in accordance with chapter 89C. [L 2012, c 130, pt of §2; am L 2013, c 159, §4; am L 2014, c 99, §4; am L 2015, c 114, §2; am L 2021, c 167, §1]

HRS §302D-3.2 Fees

302D-3.2. Fees (a) In administering its responsibilities, the commission may assess fees on non-state entities and individuals to help offset its operating costs. (b) Fees collected by the commission shall be deposited into insured checking or savings accounts and shall be expended by the commission. (c) The commission shall adopt rules pursuant to chapter 91 to implement this section; provided that, notwithstanding this section or any other law to the contrary, the commission may set the initial amount of fees authorized pursuant to this section at any time without regard to chapter 91, if the commission: (1) Holds at least one public hearing to take and discuss public testimony on the proposed fee amount; and (2) Provides public notice at least thirty days prior to the date of the public hearing. [L 2014, c 99, pt of §1]

HRS §302D-3.5 Rules

302D-3.5. Rules Unless otherwise provided for in this chapter or chapter 302A, the commission may adopt rules pursuant to chapter 91 to administer and implement this chapter; provided that the board shall maintain exclusive rule-making authority over state educational policy. L 2013, c 159, pt of §1

HRS §302D-6 Principles and standards for charter authorizing

302D-6. Principles and standards for charter authorizing All authorizers shall be required to follow nationally recognized principles and standards for quality charter authorizing in all major areas of authorizing responsibility, including: (1) Organizational capacity and infrastructure; (2) Soliciting and evaluating charter applications; (3) Performance contracting; (4) Ongoing public charter school oversight and evaluation; and (5) Charter and charter contract renewal decision-making. Authorizers shall carry out all their duties under this chapter in a manner consistent with nationally recognized principles and standards and with the spirit and intent of this chapter. Evidence of material or persistent failure to do so shall constitute grounds for losing charter authorizing powers. [L 2012, c 130, pt of §2; am L 2013, c 159, §6]

HRS §302D-8 Conflict of interests

302D-8. Conflict of interests (a) A member of the state public charter school commission shall not be eligible to serve on the commission if the member was affiliated with any public charter school within one year preceding appointment to the commission. As used in this subsection, "affiliated" means attached or connected as a current or previous employee, governing board member, vendor, contractor, agent, or representative. (b) An employee, trustee, agent, or representative of an authorizer shall not simultaneously serve as an employee, trustee, agent, representative, vendor, or contractor of a public charter school authorized by that authorizer. Authorizer members shall disclose to the authorizer a list of all charter schools in which the member has previously been an employee, governing board member, vendor, contractor, agent, or representative. [L 2012, c 130, pt of §2; am L 2014, c 99, §7; am L 2019, c 269, §1]

HRS §302D-9 Exclusivity of authorizing functions and rights

302D-9. Exclusivity of authorizing functions and rights No governmental or other entity, other than those expressly granted chartering authority as set forth in this chapter, may assume any charter authorizing function or duty in any form, unless expressly allowed by law. L 2012, c 130, pt of §2

HRS §302D-11 Oversight of public charter school authorizers

302D-11. Oversight of public charter school authorizers (a) The board shall be responsible for overseeing the performance and effectiveness of all authorizers established under this chapter. (b) In accordance with section 302D-7, every authorizer shall submit to the board and the legislature an annual report. The board shall communicate to every authorizer the requirements for the format, content, and submission of the annual report. (c) Persistently unsatisfactory performance of an authorizer's portfolio of public charter schools, a pattern of well-founded complaints about the authorizer or its public charter schools, or other objective circumstances may trigger a special review by the board. In reviewing or evaluating the performance of authorizers the board shall apply nationally recognized principles and standards for quality charter authorizing. If at any time the board finds that an authorizer is not in compliance with an existing charter contract, its authorizing contract with the board, or the requirements of all authorizers under this chapter, the board shall notify the authorizer in writing of the identified problems, and the authorizer shall have reasonable opportunity to respond to and remedy the problems. (d) If an authorizer persists, after due notice from the board, in violating a material provision of a charter contract or its authorizing contract with the board, or fails to remedy other identified authorizing problems, the board shall notify the authorizer, within a reasonable amount of time under the circumstances, that it intends to revoke the authorizer's chartering authority unless the authorizer demonstrates a timely and satisfactory remedy for the violation or deficiencies. (e) In the event of revocation of any authorizer's chartering authority, the board shall manage the timely and orderly transfer of each charter contract held by that authorizer to another authorizer in the State, with the mutual agreement of each affected public charter school and proposed new authorizer. The new authorizer shall enter into a new charter contract with the charter school for the remainder of the charter term. [L 2012, c 130 pt of §2]

HRS §302D-12 Charter school governing boards; powers and duties

302D-12. Charter school governing boards; powers and duties (a) No person may serve on the governing board of a charter school if the person is an employee or former employee of any charter school under the jurisdiction of that governing board, a relative of an employee or former employee of any charter school under the jurisdiction of that governing board, or any vendor or contractor providing goods or services to any charter school under the jurisdiction of that governing board, unless: (1) The person is a former employee of a charter school under the jurisdiction of that governing board and at least one year has passed since the conclusion of the former employee's employment with that charter school; (2) The person is a relative of a former employee of a charter school under the jurisdiction of that governing board and at least one year has passed since the conclusion of the former employee's employment with that charter school; (3) The person is a vendor or contractor and at least one year has passed since the conclusion of the vendor or contractor's service to a charter school under the jurisdiction of that governing board; or (4) The person serving on the governing board shall not cause more than one-third of the voting members of the governing board to be made up of: (A) Employees or former employees of any charter school that is under the jurisdiction of that governing board; provided that this subparagraph shall not include persons who are covered under paragraph (1); (B) Relatives of employees or of former employees of any charter school that is under the jurisdiction of that governing board; provided that this subparagraph shall not include persons who are covered under paragraph (2); and (C) Vendors or contractors who are providing goods or services to any charter school that is under the jurisdiction of that governing board; provided that this subparagraph shall not include persons who are covered under paragraph (3). (b) In selecting governing board members, consideration shall be given to persons who: (1) Provide the governing board with a diversity of perspective and a level of objectivity that accurately represent the interests of the charter school students and the surrounding community; (2) Demonstrate an understanding of best practices of nonprofit governance; and (3) Possess strong financial and academic management and oversight abilities, as well as human resource and fundraising experience. (c) No employee or former employee of a charter school, relative of an employee or former employee of a charter school, or any vendor or contractor providing goods or services to a charter school may serve as the chair of the governing board of that charter school unless at least one year has elapsed since the conclusion of the employee's employment with the school or the conclusion of a vendor's or contractor's service to the school; provided that an authorizer may grant an exemption from the provisions of this subsection based upon a determination by the authorizer that an exemption is in the best interest of the charter school. (d) A nonprofit organization that has been approved by an authorizer to operate and manage a conversion charter school and serve as the conversion charter school's governing board shall establish the nonprofit organization's board of directors as the governing board and shall not be selected pursuant to subsections (a), (b), and (c); provided that: (1) The nonprofit organization may also appoint advisory groups of community representatives for each conversion charter school managed by the nonprofit organization; provided that these groups shall not have governing authority over the conversion charter school and shall serve only in an advisory capacity to the nonprofit organization; (2) The board of directors of the nonprofit organization, as the governing board of the conversion charter school that it operates and manages, shall have the same protections that are afforded to all other governing boards in its role as the conversion charter school governing body; (3) Any conversion charter school that is managed and operated by a nonprofit organization shall be eligible for the same federal and state funding as other public schools; provided that nothing in this section shall prohibit a nonprofit organization from making a contribution toward the operation of a conversion charter school; and (4) If, at any time, the board of directors of the nonprofit organization governing the conversion charter school votes to discontinue its relationship with the charter school as the charter contract holder, the conversion charter school's administrators, teachers, or community may submit a charter application to the authorizer, in accordance with section 302D-13 to continue as a conversion charter school without the participation of the nonprofit organization. (e) Section 78-4 shall not apply to members of governing boards; provided that no governing board member shall be allowed to serve on more than two governing boards simultaneously. For purposes of this subsection, a governing board that governs more than one charter school shall be considered one board. (f) The governing board shall be the independent governing body of its charter school and shall have oversight over and be responsible for the financial, organizational, and academic viability of the charter school, implementation of the charter, and the independent authority to determine the organization and management of the school, the curriculum, virtual education, and compliance with applicable federal and state laws. The governing board shall ensure its school complies with the terms of the charter contract between the authorizer and the school. The governing board shall have the power to negotiate supplemental collective bargaining agreements with the exclusive representatives of their employees. (g) Governing boards and charter schools 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. Governing boards and charter schools are encouraged to use the provisions of chapter 103D wherever 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 to any other provision of chapter 103D. (h) Charter schools and their governing boards shall be exempt from the requirements of chapters 91 and 92. The governing boards shall: (1) Hold meetings open to the public; (2) Post the notices and agendas of public meetings: (A) At a publicly accessible area in the charter school's office so they are available for review during regular business hours; and (B) On the charter school's internet website, not less than six calendar days prior to the public meeting, unless a waiver is granted by the authorizer or authorizer's designee in the case of an emergency; (3) Keep written minutes of all public meetings that shall include: (A) The date, time, and place of the meeting; (B) The members of the governing board recorded as either present or absent; (C) The substance of all matters proposed, discussed, and decided; (D) The views of the participants; (E) A record, by individual member, of any votes taken; and (F) Any other information that any member of the governing board requests be included or reflected in the minutes; (4) Not be required to produce a full transcript or audio or video recording of any public meeting, unless otherwise required by law; (5) Post the written minutes from public meetings: (A) At a publicly accessible area in the charter school's office so the minutes are available for review during regular business hours; and (B) On the charter school's internet website, within sixty calendar days after the public meeting or five calendar days after the next public meeting, whichever is sooner; and (6) Maintain a list of the current names and contact information of the governing board's members and officers: (A) In the charter school's office so it is available for review during regular business hours; and (B) On the charter school's internet website. (i) All charter school employees and members of governing boards shall be subject to chapter 84. (j) Governing boards shall be exempt from sections 26‑34 and 26-36. The State shall afford the governing board of any charter school the same protections as the State affords the board in accordance with section 26-35.5. (k) For purposes of this section: "Employees" shall include but not be limited to: (1) The chief executive officer, chief administrative officer, executive director, or otherwise designated head of a charter school; and (2) Any person under an employment contract to serve as the chief executive officer, chief administrative officer, executive director, or designated head of a charter school. "Relative" means a spouse, fiance, or fiancee of the employee; any person who is related to the employee within four degrees of consanguinity; or the spouse, fiance, or fiancee of such person. (l) Governing boards shall have the power to make and execute contracts and all other instruments necessary or convenient for the exercise of their duties and functions under this chapter. [L 2012, c 130, pt of §2; am L 2013, c 159, §7; am L 2014, c 99, §8; am L 2015, c 114, §4; am L 2016, c 113, §2]

HRS §302D-13 Start-up and conversion charter schools; establishment

302D-13. Start-up and conversion charter schools; establishment (a) New start-up and conversion charter schools may be established pursuant to this section. (b) Any community, department school, school community council, group of teachers, group of teachers and administrators, or nonprofit organization may establish an applicant governing board and develop a charter application pursuant to this section; provided that: (1) An applicant governing board established by a community may develop a charter application for a start-up charter school; (2) An applicant governing board established by a department school or a school community council may develop a charter application for a conversion charter school; (3) An applicant governing board established by a group of teachers or a group of administrators may develop a charter application for a start-up or conversion charter school; and (4) A nonprofit organization may: (A) Establish an applicant governing board that is separate from the nonprofit organization and develop a charter application for a start-up or conversion charter school; or (B) Establish an applicant governing board that shall be the board of directors of the nonprofit organization and may develop a charter application for a conversion charter school; provided that any nonprofit organization that seeks to manage and operate a conversion charter school shall: (i) Submit to the authorizer at the time of the charter application bylaws or policies that describe the manner in which business is conducted and policies that relate to the management of potential conflict of interest situations; (ii) Have experience in the management and operation of public or private schools or, to the extent necessary, agree to obtain appropriate services from another entity or entities possessing such experience; (iii) Not interfere in the operations of the department school to be converted until otherwise authorized by the authorizer in consultation with the department; and (iv) Have the same protections that are afforded to all other governing boards in its role as the conversion charter school governing board. (c) The charter school application process and schedule shall be determined by the authorizer, and shall provide for and include, at a minimum, the following elements: (1) The issuance and publication of an application process by the authorizer on the authorizer's internet website that, at a minimum: (A) Solicits charter applications and presents the authorizer's strategic vision for chartering; (B) Includes or directs applicant governing boards to the performance framework developed by the authorizer in accordance with section 302D-16; (C) Includes criteria that will guide the authorizer's decision to approve or deny a charter application; (D) States clear, appropriately detailed questions and provides guidelines concerning the format and content essential for applicant governing boards to demonstrate the capacities necessary to establish and operate a successful charter school; and (E) Requires charter applications to provide or describe all essential elements, as determined by the authorizer, of proposed school plans; (2) The timely submission of a completed charter application to the authorizer; provided that a charter application for a conversion charter school shall include certification and documentation that the charter application was approved by a majority of the votes cast by existing administrative, support, and teacher personnel, and parents of students at the existing department school; provided that: (A) This vote shall be considered by the authorizer to be the primary indication of the existing administrative, support, and teaching personnel, and parents' approval to convert to a charter school; (B) The balance of stakeholders represented in the vote and the extent of support received in support of the conversion shall be key factors, along with the applicant's proposed plans, to be considered by the authorizer when deciding whether to award a charter; and (C) A breakdown of the number of administrative, support, and teaching personnel, and parents of students who constitute the existing department school and the number who actually participated in the vote shall be provided to the authorizer; (3) The timely review of the charter application by the authorizer for completeness, and notification by the authorizer to the applicant governing board that the charter application is complete or, if the authorizer determines that the application is incomplete, notification by the authorizer to the applicant governing board that the application is incomplete, providing a detailed listing of any missing elements of the application, and providing a reasonable opportunity for the applicant governing board to cure any deficiency within the application period; (4) Upon receipt of a completed charter application, the review and evaluation of the charter application by qualified persons including but not limited to: (A) An in-person interview with representatives from the applicant governing board; and (B) An opportunity in a public forum for the public to provide input on each charter application; (5) Following the review and evaluation of a charter application, approval or denial of the charter application by the authorizer in a meeting open to the public and subsequent written notice to the applicant; provided that in the event of a denial, the notice shall provide specific information to the applicant on the applicant's right to appeal the decision to the board, including but not limited to the number of days by which the applicant shall file an appeal with the board and where to file an appeal; (6) A provision for a final date by which a written decision to approve or deny a charter application shall be made by the authorizer to the applicant, upon receipt of a complete charter application; and (7) A provision that no charter school may begin operation before obtaining authorizer approval of its charter application and charter contract and fulfilling pre-opening requirements that may be imposed by the authorizer, pursuant to section 302D-14.5. (d) A charter application to become a start-up or conversion charter school shall meet the requirements of this subsection, section 302D-25, and any other requirements set by the authorizer. The charter application shall, at a minimum: (1) Include plans for a charter school that are likely to satisfactorily meet the academic, financial, organizational, and operational performance indicators, measures, and metrics set forth in the authorizer's performance framework, pursuant to section 302D-16; (2) Include plans for a charter school that is in compliance with applicable laws; and (3) Recognize the interests of the general public. (e) In reviewing a charter application under this section, an authorizer shall take into consideration the constitution of the applicant governing board, terms of applicant governing board members, and the process by which applicant governing board members were selected. (f) In reviewing charter applications under this section, an authorizer shall develop a schedule to approve or deny a charter application by the end of the calendar year before the opening year of the proposed charter school for purposes of meeting any deadlines to request funding from the legislature; provided that nothing in this section shall be construed as requiring an authorizer to accept and review charter applications annually. (g) If a conflict between the provisions in this section and other provisions in this chapter occurs, this section shall control. [L 2012, c 130, pt of §2; am L 2013, c 159, §8; am L 2014, c 99, §9; am L 2015, c 114, §5; am L 2016, c 113, §3; am L 2021, c 167, §2]

HRS §302D-14.5 Approved charter applications; start-up period; pre-opening charter schools

302D-14.5. Approved charter applications; start-up period; pre-opening charter schools (a) The authorizer may require an applicant governing board whose charter application is approved by the authorizer pursuant to section 302D-13 to satisfactorily meet pre-contracting criteria set by the authorizer before being allowed to enter into a charter contract. (b) An approved applicant governing board that fails to satisfactorily meet the pre-contracting criteria and enter into a charter contract with its authorizer within the period initially established or subsequently extended by the authorizer shall be considered to have withdrawn its application. (c) An applicant governing board shall not be considered an entity of the State, but shall have the authority to execute the initial charter contract; provided that the term of duration of the initial charter contract shall not exceed five years, not including the pre-opening period. Upon the execution of the initial charter contract, the applicant governing board shall become the governing board of the newly established pre-opening charter school. A pre-opening charter school that is a conversion charter school shall be a separate entity of the State from the department school from which it is converting during the start-up period. (d) The authorizer shall establish pre-opening criteria in order to ensure that a pre-opening charter school is prepared to successfully open and operate as a charter school. Until such time as the pre-opening school satisfactorily meets such pre-opening criteria and commences operations in its first full academic year, the pre-opening charter school: (1) Shall not be entitled to receive funding under section 302D-26, 302D-28, 302D-29, or 302D-29.5; (2) Shall employ no employees but may engage independent contractors; (3) Shall not be subject to the performance framework under section 302D-16; and (4) May be granted temporary exemptions from provisions of the charter contract by the authorizer. (e) The charter contract of a pre-opening charter school that fails to satisfactorily meet its pre-opening criteria within the start-up period initially established or subsequently extended by the authorizer shall be void. The pre-opening charter school shall thereupon be considered an approved charter applicant that has withdrawn its application. (f) An approved applicant governing board that withdraws its application shall not be allowed to execute a charter contract unless it reapplies and has its charter application approved by an authorizer in accordance with this chapter. [L 2014, c 99, pt of §1; am L 2015, c 114, §6]

HRS §302D-15 Appeals; charter applications, renewals, or revocations

302D-15. Appeals; charter applications, renewals, or revocations (a) The board shall have the power to decide appeals of decisions by an authorizer to deny the approval of a charter application, deny renewal of a charter contract, or revoke a charter school's charter contract. An appeal shall be filed with the board within twenty-one calendar days of the receipt of the notification of denial or revocation. Only a party whose charter application has been denied, whose charter contract renewal has been denied, or whose charter contract has been revoked may initiate an appeal under this section for cause. The board shall review an appeal and issue a final decision within sixty calendar days of the filing of the appeal. (b) The board shall serve as the final arbitrator of appeals authorized by subsection (a). (c) A party shall not be entitled to a hearing before the board under this section until it has exhausted all available administrative remedies. (d) The board shall adopt rules pursuant to chapter 91 to implement this section. [L 2012, c 130, pt of §2; am L 2013, c 159, §10]

HRS §302D-16 Performance framework

302D-16. Performance framework (a) The performance provisions within the charter contract shall be based on a performance framework that clearly sets forth the academic, financial, organizational, and operational performance indicators, measures, and metrics that will guide the authorizer's evaluations of each public charter school. The performance framework, as established by the authorizer, shall include indicators, measures, and metrics for, at a minimum: (1) Student academic proficiency; (2) Student academic growth; (3) Achievement gaps in proficiency and growth between major student subgroups; (4) Attendance; (5) Enrollment variance; (6) Postsecondary readiness, as applicable for high schools; (7) Financial performance and sustainability; (8) Performance and stewardship, including compliance with all applicable laws, rules, and terms of the charter contract; and (9) Organizational viability. (b) Annual academic performance targets shall be set by each public charter school in conjunction with its authorizer, and shall be designed to track each school in meeting applicable federal, state, and authorizer expectations. (c) The performance framework shall allow the inclusion of additional rigorous, valid, and reliable indicators proposed by a public charter school to augment external evaluations of its performance; provided that the authorizer approves the quality and rigor of such school-proposed indicators, and the indicators are consistent with the purposes of this chapter and the charter contract. (d) The performance framework shall require the disaggregation of all student performance data by major student subgroups. (e) For each public charter school it oversees, the authorizer shall be responsible for verifying and either maintaining or having access to all charter school data upon which the performance framework relies. (f) Multiple schools overseen by a single governing board shall be required to report their performance as separate, individual charter schools, and each charter school shall be held independently accountable for its performance. [L 2012, c 130, pt of §2; am L 2013, c 159, §11; am L 2014, c 99, §11]

HRS §302D-17 Ongoing oversight and corrective actions

302D-17. Ongoing oversight and corrective actions (a) An authorizer shall continually monitor the performance and legal compliance of the public charter schools it oversees, including collecting and analyzing data to support ongoing evaluation according to the charter contract. Every authorizer shall have the authority to conduct or require oversight activities that enable the authorizer to fulfill its responsibilities under this chapter, including conducting appropriate inquiries, financial reviews, audits, and investigations, so long as those activities are consistent with the intent of this chapter and adhere to the terms of the charter contract. Upon the request of its authorizer, each public charter school shall provide to the authorizer full access to its fiscal and accounting books, documents, and files. (b) Each authorizer shall annually publish and provide, as part of its annual report to the board and the legislature, a performance report for each public charter school it oversees, in accordance with the performance framework set forth in the charter contract and section 302D-16. The authorizer may require each public charter school it oversees to submit an annual report to assist the authorizer in gathering complete information about each school. The annual report may include the status of the charter school's compliance with annual performance targets, as determined by the charter contract. (c) In the event that a public charter school's performance or legal compliance appears unsatisfactory, the authorizer shall promptly notify the public charter school of the perceived problem and provide reasonable opportunity for the charter school to remedy the problem, unless the problem warrants revocation in which case the revocation time frames set forth in section 302D-18 shall apply. (d) Notwithstanding section 302D-18 to the contrary, every authorizer shall have the authority to take appropriate corrective actions or exercise sanctions short of revocation in response to apparent deficiencies in public charter school performance or legal compliance. Such actions or sanctions may include, if warranted: (1) Requiring a school to develop and execute a corrective action plan within a specified time frame; and (2) Reconstituting the governing board of the charter school; provided that the following conditions are met: (A) Reconstitution occurs only under exigent circumstances, including the following: (i) Unlawful or unethical conduct by governing board members; (ii) Unlawful or unethical conduct by the charter school's personnel that raises serious doubts about the governing board's ability to fulfill its statutory, contractual, or fiduciary responsibilities; and (iii) Other circumstances that raise serious doubts about the governing board's ability to fulfill its statutory, contractual, or fiduciary responsibilities; (B) The authorizer shall replace up to, but no more than, the number of governing board members necessary so that the newly appointed members constitute a voting majority in accordance with the governing board's bylaws; except that the authorizer may replace the entire governing board if the alternative is the initiation of revocation of the charter school's charter contract and the governing board opts instead for reconstitution; and (C) Reconstitution occurs in accordance with processes set forth by the authorizer that provide the charter school's personnel and parents with timely notification of the prospect of reconstitution. (e) The authorizer shall have the authority to direct the governing board and the charter school 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 or mitigate significant liability to the State. The board shall have the authority to direct the authorizer 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. [L 2012, c 130, pt of §2; am L 2014, c 99, §12; am L 2015, c 114, §7; am L 2019, c 269, §2]

HRS §302D-18 Renewals, revocations, and nonrenewals

302D-18. Renewals, revocations, and nonrenewals (a) A charter contract may be renewed for successive five-year terms of duration, although an authorizer may vary the terms based on performance, demonstrated capacities, and particular circumstances of each charter school. An authorizer may grant a renewal of a charter contract with specific conditions for necessary improvements to a charter school. (b) The authorizer shall issue a charter school performance report and charter contract renewal application guidance to any charter school whose charter contract is in its final contract year. The performance report shall summarize the charter school's performance record to date, based on the data required by this chapter and the charter contract, and shall provide notice of any weaknesses or concerns perceived by the authorizer concerning the charter school that may jeopardize its position in seeking renewal. (c) The renewal application guidance shall, at a minimum, provide an opportunity for the public charter school to: (1) Submit any corrections or clarifications to the performance report; (2) Present additional evidence, beyond the data contained in the performance report, supporting its case for charter renewal; (3) Describe improvements undertaken or planned for the school; and (4) Detail the charter school's plans for the next charter term. (d) The renewal application guidance shall include or refer explicitly to the criteria that will guide the authorizer's renewal decisions, which shall be based on the charter contract and be consistent with this chapter. (e) No later than thirty days after the issuance of the performance report, the governing board of a charter school seeking renewal shall submit a renewal application to the authorizer pursuant to the renewal guidance issued by the authorizer. The authorizer shall decide whether or not to renew the charter no later than forty-five days after the filing of the renewal application. (f) In making charter renewal decisions, every authorizer shall: (1) Ground its decisions in evidence of the school's performance over the term of the charter contract in accordance with the performance framework set forth in the charter contract; (2) Ensure that data used in making the renewal decisions are available to the charter school and the public; and (3) Provide a public report summarizing the evidence and basis for each decision. (g) A charter contract may be revoked at any time or not renewed if the authorizer determines that the charter school did any of the following or otherwise failed to comply with the provisions of this chapter: (1) Committed a material and substantial violation of any of the terms, conditions, standards, or procedures required under this chapter or the charter contract; (2) Failed to meet or make sufficient progress toward performance expectations set forth in the contract; (3) Failed to meet generally accepted standards of fiscal management; or (4) Substantially violated any material provision of law from which the charter school is not exempted. (h) An authorizer shall develop revocation and nonrenewal processes that: (1) Provide charter contract holders with a timely notification of the prospect of revocation or non-renewal and the reasons for such possible closure; (2) Allow charter contract holders a reasonable amount of time in which to prepare a response; (3) Provide charter contract holders with an opportunity to submit documents and give testimony challenging the rationale for closure and supporting the continuation of the school at an orderly proceeding held for that purpose; provided that the proceeding shall be governed by the requirements set forth in this section and shall not be additionally subject to the requirements for an agency hearing under chapter 91; (4) Allow charter contract holders access to representation by counsel, subject to section 28-8.3, and to call witnesses on their behalf; (5) Permit the recording of proceedings described in paragraph (3); and (6) After a reasonable period for deliberation, require a final determination to be made and conveyed in writing to the charter contract holders. (i) If an authorizer revokes or does not renew a charter contract, the authorizer shall clearly state in writing the reasons for the revocation or nonrenewal. (j) Within fifteen days of taking action to renew, not to renew, or to revoke a charter contract, the authorizer shall report to the board the action taken, and shall simultaneously provide a copy of the report to the charter school. The report shall set forth the action taken and reasons for the decision and assurances as to compliance with all the requirements set forth in this chapter. [L 2012, c 130, pt of §2; am L 2013, c 159, §12; am L 2014, c 99, §13; am L 2016, c 113, §4]

HRS §302D-19 School closure and dissolution

302D-19. School closure and dissolution (a) Prior to any public charter school closure decision, an authorizer shall have developed a public charter school closure protocol to ensure timely notification to parents, orderly transition of students and student records to new schools, and proper disposition of school funds, property, and assets in accor­dance with the requirements of this chapter. The protocol shall specify tasks, timelines, and responsible parties, including delineating the respective duties of the school and the authorizer. In the event of a public charter school closure for any reason, the authorizer shall oversee and work with the closing school to ensure a smooth and orderly closure and transition for students and parents, as guided by the closure protocol. (b) In the event of a public charter school closure for any reason, the assets of the school, excluding facilities, shall be distributed first to satisfy outstanding payroll obligations for employees of the school, then to creditors of the school, and then to the state treasury to the credit of the general fund. If the assets of the school are insufficient to pay all parties to whom the school owes compensation, the prioritization of the distribution of assets may be determined by decree of a court of law. (c) In the event of a public charter school closure for any reason, if the public charter school received an appropriation for capital improvements to its facilities, the charter school or its authorizer shall negotiate with the expending agency for a lump sum or installment repayment to the State of the amounts appropriated. This restriction shall be registered, recorded, and indexed in the bureau of conveyances or with the assistant registrar of the land court as an encumbrance on the property. Amounts received from the repayment under this subsection shall be deposited into the general fund. (d) In the event of a public charter school closure for any reason, other public charter schools shall have the right of first refusal for the closed public charter school's facilities, if the facilities are owned by the State. If no other public charter school exercises the right of first refusal, the facilities shall revert back to the department and the State. [L 2012, c 130, pt of §2]

HRS §302D-20 Charter transfers

302D-20. Charter transfers (a) Transfer of a charter contract, and of oversight of that public charter school, from one authorizer to another before the expiration of the charter term shall not be permitted except by special petition to the board by a public charter school or its authorizer. The board shall review such petitions on a case-by-case basis and may grant transfer requests in response to special circumstances and evidence that such a transfer would serve the best interests of the public charter school's students. (b) The board may adopt rules pursuant to chapter 91 to carry out the purposes of this section. [L 2012, c 130, pt of §2]

HRS §302D-21 Annual board report

302D-21. Annual board report No later than the opening day of each regular session of the legislature, the board shall issue to the governor, the legislature, and the public, an annual report on the State's public charter schools, drawing from the annual reports submitted by every authorizer, as well as any additional relevant data compiled by the board, for the school year ending in the preceding calendar year. The annual report shall include: (1) The board's assessment of the successes, challenges, and areas for improvement in meeting the purposes of this chapter, including the board's assessment of the sufficiency of funding for public charter schools, and any suggested changes in state law or policy necessary to strengthen the State's public charter schools; (2) A line-item breakdown of all federal funds received by the department and distributed to authorizers; (3) Any concerns regarding equity and recommendations to improve access to and distribution of federal funds to public charter schools; (4) A summary of the criteria used by the charter school facilities funding working group, established pursuant to section 302D-29.5, in allocating facilities funding; (5) A detailed breakdown of the allocation of funding through general funds and bond funds; (6) A detailed list of the projects funded by general funds and bond funds; (7) The status of funding for projects previously awarded; and (8) A discussion of all board policies adopted in the previous year, including a detailed explanation as to whether each policy is or is not applicable to charter schools. [L 2012, c 130, pt of §2; am L 2013, c 159, §13; am L 2014, c 99, §14; am L 2015, c 114, §8 and c 234, §3]

HRS §302D-23 Minimum educational data reporting standards

302D-23. Minimum educational data reporting standards The board shall establish educational reporting standards that shall include minimum standards for reporting fiscal, personnel, and student data, by means of electronic transfer of data files from charter schools to the department. The minimum standards established by the board shall include but not be limited to data required for the department, as the state education agency, to meet all applicable federal reporting requirements. [L 2012, c 130, pt of §2]

HRS §302D-24 Occupancy and use of facilities of department schools

302D-24. Occupancy and use of facilities of department schools (a) When the department considers whether to close any particular department school, the department shall submit a notice of possible availability of a department school or notice of vacancy of a department school to the board pursuant to section 302A‑1151.5(b); provided that the department has not elected to use the department school to support education programs. (b) If a charter school exclusively or jointly occupies or uses buildings or facilities of a department school immediately prior to converting to a charter school, upon conversion that charter school shall be given continued exclusive or joint use of the buildings or facilities; provided that: (1) The State may reclaim some or all of the buildings or facilities if it demonstrates a tangible and imperative need for such reclamation; and (2) The State and the conversion charter school voluntarily enter into an agreement detailing the portion of those buildings or facilities that shall be reclaimed by the State and a timetable for the reclamation. If a timetable cannot be reached, the State may petition the board for the reclamation, and the board may grant the petition only to the extent that it is not possible for the conversion charter school and the State to jointly occupy or use the buildings or facilities. (c) Upon receipt of a notice pursuant to section 302A‑1151.5(b), the board shall solicit applications from charter schools interested in using and occupying all or portions of the facilities of the department school by: (1) Promptly notifying all charter schools that the department school is being considered for closure; and (2) Affording each charter school an opportunity to submit an application with a written explanation and justification of why the charter school should be considered for possible occupancy and use of the facilities of the department school. (d) After fully considering each charter school's application and based on the applications received and on other considerations, the board shall: (1) Provide a written response to each charter school's application after each application has been fully considered; (2) Compile a prioritized list of charter schools; and (3) Make a final determination of which charter school, if any, shall be authorized to use and occupy the department school facilities. (e) Upon the selection of a charter school to use a vacant department school facility or portion of a department school facility, the department and the charter school's authorizer shall enter into necessary agreements within ninety days of the selection to carry out the purposes of this section; provided that any agreement between the authorizer and the department shall stipulate that a charter school that uses and occupies a department school facility or portion of a department school facility shall be responsible for the full or pro rata share of the repair and maintenance costs for that facility or portion of the facility, as the case may be. (f) The board shall adopt policies and procedures necessary to carry out the purposes of this section, including but not limited to: (1) Procedures for charter schools to apply in writing to use vacant department school facilities; (2) Criteria for the board to use in determining which charter schools to include on the prioritized list to be submitted to the department; and (3) Procedures for the board to notify charter school applicants that are granted or denied the use of vacant department school facilities. [L 2012, c 130, pt of §2; am L 2014, c 99, §15]

HRS §302D-25 Applicability of state laws

302D-25. Applicability of 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 governing 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's authorizer for distribution to the charter school; and (C) These supplemental agreements may differ from the master contracts negotiated with the department; (2) Discriminatory practices under section 378-2; and (3) Health and safety requirements. (b) Charter schools, the commission, and authorizers 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, the commission, and authorizers 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, commission, or authorizer to any other provision of chapter 103D. Charter schools, the commission, and authorizers shall account for funds expended for the procurement of goods and services, and this accounting shall be available to the public. (c) Charter schools and their employees, the commission and its employees, and governing boards and their members shall be subject to chapter 84. (d) 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. (e) Notwithstanding any law to the contrary, as public schools and entities of the State, a charter school, including its governing board, the commission, and any authorizer may not bring suit against any other entity or agency of the State. (f) Charter schools, the commission, and authorizers shall be exempt from section 302A-1401. (g) For purposes of statutory delegation of authority to department heads by other state agencies, the executive director shall be deemed the department head of the commission and charter schools unless otherwise specifically provided. [L 2012, c 130, pt of §2; am L 2014, c 99, §16]

HRS §302D-26 Civil service status; employee rights

302D-26. Civil service status; employee rights (a) Civil service employees of department schools shall retain their civil service status upon the conversion of their school to a conversion charter school. Positions in a conversion charter school that would be civil service in a department school shall be civil service positions and subject to chapter 76. An employee with civil service status at a conversion charter school who transfers, is promoted, or takes a voluntary demotion to another civil service position shall be entitled to all of the rights, privileges, and benefits of continuous, uninterrupted civil service. Civil service employees of a conversion charter school shall have civil service status in the department's civil service system and shall be entitled to all rights, privileges, and benefits as other civil service employees employed by the department. Exempt employees as provided in section 76-16(b)(11)(B) of a conversion charter school shall have support services personnel status in the department's support services personnel system and shall be entitled to all rights, privileges, and benefits as other exempt employees employed by the department in their support services personnel system. (b) The State shall afford administrative, support, and instructional employees in charter schools full participation in the State's systems for retirement, workers' compensation, unemployment insurance, temporary disability insurance, and health benefits in accordance with the qualification requirements for each. (c) The department, to the extent possible, shall provide its position listings to authorizers and any interested governing board of any charter school. (d) The department, in conjunction with authorizers, shall facilitate the movement of instructional personnel between the department and charter schools; provided that: (1) Comparable and verifiable professional development and employee evaluation standards and practices, as determined and certified by the authorizers, are in place in charter schools for instructional staff; (2) Licensed charter school teachers, as determined by the Hawaii teacher standards board, who are not yet tenured in the department and are entering or returning to the department after employment at a charter school, shall be subject to a probationary period in the department pursuant to policies and practices as determined by the department, the board, and collective bargaining agreements; and (3) Tenured department licensed teachers, as determined by the department, who transfer to charter schools shall be subject to the appropriate collective bargaining agreement. (e) The department shall establish a process that permits employees of department public schools that become conversion charter schools pursuant to section 302D-13 to transfer to a department public school governed by chapter 302A. [L 2012, c 130, pt of §2; am L 2014, c 99, §17; am L 2015, c 112, §2 and c 114, §9]

HRS §302D-27 Administration of workers' compensation

302D-27. Administration of workers' compensation The department of human resources development shall administer workers' compensation claims for employees of charter schools, who shall be covered by the same self-insured workers' compensation system as other public employees. The department of human resources development shall process, investigate, and make payments on claims; provided that: (1) Charter schools shall compile the preliminary claim form and forward it to the department of human resources development; and (2) The department of human resources development shall receive no more than 0.07 per cent of the EDN 600 appropriation to process these workers' compensation claims. [L 2012, c 130, pt of §2]

HRS §302D-28 Funding and finance

302D-28. Funding and finance (a) Beginning with fiscal year 2012-2013, and each fiscal year thereafter, the non-facility general fund per-pupil funding request for charter school students shall be the same as the general fund per-pupil amount to the department in the most recently approved executive budget recommendation for the department and shall be based upon reasonable projected enrollment figures for all charter schools. The general fund per-pupil request for each regular education and special education student shall: (1) Include all general fund regular education cost categories, including comprehensive school support services, but excluding special education services, adult education, and the after-school plus program; provided that these services are provided and funded by the department; and (2) Exclude fringe benefit costs 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 facility and other costs. The governor, pursuant to chapter 37, may impose restrictions or reductions on charter school appropriations similar to those imposed on department schools. (c) Notwithstanding any law to the contrary, to ensure non-facility per-pupil general fund amounts allocated for the department and charter school students are equal on an annualized fiscal year basis, each year the director of finance shall: (1) Determine the sum of general fund appropriations made for department and charter school student non-facility costs described in subsections (a) and (b); (2) Determine the sum of department and charter school student enrollment based on reviewed and verified student enrollment counts as of October 15; (3) Determine a per-pupil amount by dividing the sum of general fund appropriations determined under paragraph (1) by the sum of student enrollment determined under paragraph (2); (4) Transfer a general fund amount between the department and charter schools that will provide each with a per-pupil allocation equal to the amount determined on an annualized fiscal year basis under paragraph (3); and (5) Annually account for all calculations and transfers made pursuant to this subsection in a report to the legislature, governor, department, and charter schools. This subsection shall not limit the ability of the director of finance to modify or amend any allotment pursuant to chapter 37. (d) Charter schools shall be eligible for all federal financial support to the same extent as department schools. The department shall provide all authorizers 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 authorizers for distribution to the charter schools they authorize in accordance with the federal requirements. If administrative services related to federal grants 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 per cent of the charter school's federal grants. Any charter school shall be eligible to receive any supplemental federal grant or award for which any department 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 per cent of the supplemental grant for which the services are used. All additional funds generated by the governing boards, that are not from a supplemental grant, shall be held separate from allotted funds and may be expended at the discretion of the governing boards. (e) Authorizers shall calculate a general fund per-pupil amount based upon the amount of general funds appropriated by the legislature and released by the governor and the projected enrollment amount used to calculate the general funds appropriated pursuant to subsection (a). Authorizers shall submit a report to the legislature no later than twenty days prior to the convening of each regular session that contains each charter school's current school year projection that is used to submit the budget request, the updated May 15 enrollment projection, the actual October 15 enrollment count, the authorizer's reviewed and verified enrollment count, and the November 15 enrollment count. (f) To enable charter schools to access state funding prior to the start of each school year, foster their fiscal planning, enhance their accountability, and avoid over-allocating general funds to charter schools based on self-reported enrollment projections, authorizers shall: (1) Provide sixty 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 its authorizer a projected student enrollment no later than May 15 of each year; (2) Provide an additional thirty per cent of a charter school's per-pupil allocation no later than December 1 of each year, based on the October 15 student enrollment, as reviewed and verified by the authorizer; provided that the school is in compliance with all financial reporting requirements; and (3) Retain no more than the balance of the remaining ten per cent of a charter school's per-pupil allocation, as a contingency balance to ensure fiscal accountability and compliance, no later than June 30 of each year; provided that authorizers may make adjustments in allocations based on noncompliance with charter contracts and the board 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 board's administrative procedures, and board-approved accountability requirements. (g) 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. (h) No charter school may assess tuition; provided that a charter school may assess and collect special fees and charges from students for co-curricular activities. Any special fees and charges collected pursuant to this subsection shall be deposited into insured checking or savings accounts and expended by each individual charter school. [L 2012, c 130, pt of §2; am L 2014, c 96, §17 and c 99, §18; am L 2016, c 113, §5; am L 2019, c 269, §3]

HRS §302D-28.5 Financial insolvency

302D-28.5. Financial insolvency (a) In the event that any public charter school becomes financially insolvent, the school shall be deemed to have surrendered its charter. For purposes of this section, a school shall be determined to be financially insolvent when it is unable to pay its staff when payroll is due. (b) In the event that any public charter school becomes financially insolvent, the authorizer shall adopt a closure protocol as described under section 302D-19(a). [L 2015, c 110, §1]

HRS §302D-29.5 Facilities funding

302D-29.5. Facilities funding (a) Beginning with the 2016-2017 fiscal year, and each fiscal year thereafter, the legislature shall consider making an appropriation and bond authorization to the commission for the design, planning, construction, repair, and maintenance of public charter school improvements to address issues of health, safety, and legal compliance; expand or improve instructional space; provide for food services; or provide restroom facilities. The appropriation and bond authorization for charter schools shall be separate from, and in addition to, any appropriation made to charter schools pursuant to this section and section 302D-28. These amounts shall be prioritized for allocation by the charter school facilities funding working group. (b) The governor, pursuant to chapter 37, may impose restrictions or reductions on appropriations for charter schools similar to those imposed on department schools. (c) This section shall not limit the ability of the director of finance to modify or amend any allotment pursuant to chapter 37. (d) There is established a charter school facilities funding working group within the department of education, which shall consist of the following members, or their designees: (1) The chairperson of the commission; (2) The executive director of the commission; (3) The director of finance; (4) The comptroller; (5) The superintendent of education; (6) An individual with expertise in real estate, to be appointed by the chairperson of the commission; and (7) An individual with expertise in finance, to be appointed by the chairperson of the commission. The commission shall develop criteria to determine the distribution of funds appropriated pursuant to subsection (a) to the charter schools. The criteria shall include distribution based on the need and performance of the charter schools, overall benefit to the surrounding community, amount of risk and availability of recourse to the State, and whether a particular charter school received facilities funding through other state funding, including grants-in-aid or a separate appropriation. The charter school facilities funding working group shall be exempt from chapter 92 and shall act in an advisory capacity to prioritize the allocation of general fund appropriations and bond proceeds for public charter schools to expend based on the criteria established by the commission. (e) Nothing in this section shall be construed as restricting the authority of the commission to support the facilities needs of the charter schools through other means. [L 2013, c 159, pt of §1; am L 2014, c 99, §19; am L 2015, c 234, §4]

HRS §302D-31 Athletics

302D-31. Athletics The department shall provide students at charter schools, including students enrolled at charter schools whose curriculum incorporates virtual education, with the same opportunity to participate in athletics as is provided to students at department schools. If a student at any charter school wishes to participate in a sport for which there is no program at the charter school, the department shall allow that student to participate in a comparable program at the department school in the service area in which the student resides. All charter school students participating in athletics shall abide by all rules, regulations, and policies of the athletic league, association, and program applicable to the department school in whose athletic program the student is participating. [L 2012, c 130, pt of §2; am L 2013, c 159, §14; am L 2014, c 99, §21]

HRS §302D-32 Annual audit

302D-32. Annual audit Each charter school shall annually complete an independent financial audit that complies with the requirements of its authorizer and the department. The authorizer shall provide to each charter school it oversees a list of approved independent auditors, from which the charter school shall select one independent auditor to comply with this section. [L 2013, c 159, pt of §1; am L 2014, c 99, §22; am L 2019, c 269, §4; am L 2021, c 166, §1]

HRS §302D-33 Criminal history record checks

302D-33. Criminal history record checks (a) The authorizer shall require charter schools to obtain verifiable information regarding the criminal history of persons who are employed or seeking employment in any position, including teacher trainees, that places them in close proximity to children, including criminal history record checks in accordance with section 846-2.7. Information obtained pursuant to this subsection shall be used exclusively by the charter school for the purpose of determining whether a person is suitable for working in close proximity to children. All such decisions shall be subject to applicable federal laws and regulations. (b) The employer or prospective employer may: (1) Refuse to allow or continue to allow teacher training; (2) Terminate the employment of any employee; or (3) Deny employment to an applicant, if the person has committed a crime, and if the employer or prospective employer finds by reason of the nature and circumstances of the crime, that the person poses a risk to the health, safety, or well-being of children. Refusal, termination, or denial may occur only after appropriate investigation and notification to the employee or applicant of the results and planned action and after the employee or applicant is given an opportunity to meet and rebut the findings. Nothing in this subsection shall abrogate any applicable rights under chapter 76 or 89, or any administrative rule of the commission. (c) Notwithstanding any other law to the contrary, for purposes of this section, the commission shall be exempt from section 831-3.1 and shall not be required to conduct investigations, notifications, or hearings in accordance with chapter 91. [L 2013, c 159, pt of §1; am L 2015, c 114, §10]

HRS §302D-33.5 Investigation of misconduct; reporting to the department of education; harm to students registry; due process; indemnity

302D-33.5. Investigation of misconduct; reporting to the department of education; harm to students registry; due process; indemnity (a) Pursuant to the requirements of section 302A-1006, each public charter school shall certify to the department any final finding resulting from the public charter school's investigation that an employee inflicted harm on a student, notwithstanding whether the employee was terminated, retired, resigned, or was banned from the school pending completion of the investigation. Each public charter school shall complete an investigation without regard to the status of employment of the employee under investigation or the status of the employee's future involvement with the institution. (b) The reporting public charter school shall certify, before transmitting the employee's name and other information to the department, that: (1) The employee whose name and information are transmitted to the department for inclusion on the harm to students registry was given prior written notice of the public charter school's decision to transmit the employee's name and information for this purpose; (2) The employee was given the opportunity to appeal the decision; and (3) The employee either waived the right to appeal or lost the appeal. The department shall rely on the certification of the public charter school that the employee was provided due process in accordance with this section. (c) Each public charter school shall consult the harm to students registry to determine whether a candidate for employment at the school is listed on the registry. (d) Each public charter school shall consult the harm to students registry before authorizing a volunteer's assistance in a role that involves the volunteer's interaction with, or close proximity to, a student or students. (e) If a candidate for employment or a potential volunteer's name is listed on the harm to students registry, the public charter school shall cease to consider the candidate for employment or shall prohibit the volunteer's assistance in a role that involves interaction with, or close proximity to, a student or students. (f) Each public charter school, when requested by another institution, shall share with that institution the existence of any employee investigation that includes allegations of infliction of harm to a student, including ongoing investigations. (g) A public charter school that provides information or an opinion about an employee's job performance to a prospective employing institution shall be presumed to be acting in good faith and shall have qualified immunity from civil or criminal liability for disclosing the information and for the consequences of the disclosure. (h) The good faith presumption under subsection (g) shall be rebuttable upon a showing, by a preponderance of the evidence, that the information or opinion disclosed was: (1) Knowingly false; or (2) Knowingly misleading. (i) Nothing in subsections (g) and (h) shall affect the rights, obligations, remedies, liabilities, or standards of proof under chapters 89, 92F, 368, and 378. (j) A person whose name is listed on the harm to students registry may request the reporting public charter school to submit a certified request to the department to remove the person's name from the registry if new information is discovered that proves that the person has not inflicted harm on a student such that the person's name does not belong on the registry. (k) A public charter school certifying the inclusion of an employee on or removal of an employee from the harm to students registry, or refusing to certify the removal of an employee from the harm to students registry, shall defend and indemnify the department from any liability resulting from any claim or cause of action relating to the employee's inclusion on or removal from the registry, or relating to the public charter school's refusal to certify the removal of the employee from the registry. (l) As used in this section: "Department" means department of education. "Employee" has the same meaning as defined in section 302A-1006(q). "Final finding" has the same meaning as defined in section 302A-1006(q). "Harm to students registry" or "registry" has the same meaning as defined in section 302A-1006(q). "Inflicted harm on a student" or "infliction of harm on a student" has the same meaning as defined in section 302A-1006(q). "Institution" has the same meaning as defined in section 302A-1006(q). "Investigation" has the same meaning as defined in section 302A-1006(q). [L 2024, c 156, §4]

HRS §302D-34 Enrollment

302D-34. Enrollment (a) A public charter school shall not discriminate against any student or limit admission based on race, color, ethnicity, national origin, religion, gender, sexual orientation, income level, disability, level of proficiency in the English language, need for special education services, or academic or athletic ability. (b) A start-up charter school: (1) Shall be open to any student residing in the State who is entitled to attend a department school; (2) Shall enroll all students who submit an application, unless the number of students who submit an application exceeds the capacity of a program, class, grade level, or building; provided that a student who is currently enrolled in a charter school that has been notified of the prospect of revocation in accordance with section 302D-18, or is closing in accordance with section 302D-19, whichever occurs first, may be given first priority to enroll at another charter school to which the student applies, or placed at the top of the waitlist for enrollment; (3) Shall select students through a public lottery if, as described in paragraph (2), capacity is insufficient to enroll all students who have submitted a timely application; (4) May give an enrollment preference to students within a given age group or grade level and may be organized around a special emphasis, theme, or concept as stated in the charter school's application and as approved by the charter school's authorizer; (5) May give an enrollment preference to students enrolled in the charter school during the previous school year and to siblings of students already enrolled at the charter school; (6) May give an enrollment preference through a weighted lottery to educationally disadvantaged students. For the purposes of this paragraph: "Educationally disadvantaged students" means students who are economically disadvantaged, students with disabilities, migrant students, limited English proficient students, neglected or delinquent students, and homeless students. "Weighted lottery" means any lottery that gives additional weight to individual students who are identified as part of a specified set of students but does not reserve or set aside seats for individual students or sets of students; and (7) May give any other enrollment preference permitted by the charter school's authorizer, on an individual charter school basis, if consistent with law; provided that nothing in this subsection shall preclude the formation of a start-up charter school whose mission is focused on serving students with disabilities, who are of the same gender, who pose such severe disciplinary problems that they warrant a specific educational program, or who are at a risk of academic failure. (c) A conversion charter school shall: (1) Enroll any student who resides within the school's former geographic service area pursuant to section 302A-1143, for the grades that were in place when the department school converted to a charter school; provided that the department may consult with a conversion charter school every three years to determine whether realignment of the charter school's service area is appropriate given population shifts and the department's overall service area reviews; and (2) Be subject to subsection (b): (A) For grades that were not in place when the school converted to a public charter school; and (B) For any seats still available at the charter school after the enrollment of all students desiring to attend the charter school who reside within the school's former geographic service area pursuant to section 302A-1143. [L 2013, c 159, pt of §1; am L 2014, c 99, §23; am L 2015, c 111, §§1, 5 and c 114, §11; am L 2016, c 55, §53 and c 113, §6]

HRS §302D-35 Use of vacant department facilities

302D-35. Use of vacant department facilities (a) When any department considers whether to close any particular facility, it shall give reasonable consideration to making all or portions of the facility available to public charter schools and early learning programs that are affiliated with a public charter school. (b) Each department shall provide notice to the superintendent and the commission identifying suitable unused facilities that may be appropriate for: (1) Public charter schools; and (2) Early learning programs that are affiliated with a public charter school. The department of accounting and general services shall inventory the suitable facilities, and, in determining suitability for educational reuse, priority shall be given to facilities on sites with sufficient space for three or more classrooms. (c) The department of accounting and general services shall conduct biennial surveys of all departments concerning any unused facilities, or in the case of the department of education any under utilized department schools, that meet the conditions under subsection (b) and maintain an inventory of all such unused or under utilized facilities. The department of accounting and general services shall provide biennial reports on the inventory maintained under this subsection to the state public charter school commission. (d) The department of accounting and general services shall adopt rules pursuant to chapter 91 necessary to carry out the purposes of this section. (e) For purposes of this section, "department" means all of the departments listed in section 26-4. (f) Upon receipt of a notice pursuant to subsection (b), the state public charter school commission shall: (1) Solicit applications from public charter schools or early learning programs that are affiliated with a public charter school, respectively, that are interested in using and occupying all or portions of the facilities; and (2) Submit a prioritized list of public charter schools or early learning programs that are affiliated with a public charter school, respectively, to the department of accounting and general services for final determination of which public charter schools or early learning programs that are affiliated with a public charter school, if any, shall be authorized to use and occupy the facilities. [L 2015, c 234, §2; am L 2018, c 85, §1; am L 2024, c 152, §2]

HRS §302D-36 Youth suicide awareness and prevention protocol

302D-36. Youth suicide awareness and prevention protocol (a) Each charter school shall provide a youth suicide awareness and prevention training program and risk referral protocol to school personnel who work directly with students in kindergarten through grade twelve on an annual basis in accordance with section 302A-856. (b) By September 15 of each year, each charter school shall report to the department on prior school year training prevention activities completed as described under section 302A‑856. (c) Neither the department nor any of its agencies, boards, members, personnel, designees, agents, or volunteers shall be liable in civil damages to any party for any act or omission of an act relating to the provision of, participation in, or implementation of the components of the training program or protocol required by this section unless that act or omission amounts to gross negligence, wilful and wanton conduct, or intentional wrongdoing. [L 2019, c 270, §2]

HRS §302D-37 Standardized assessment for students entering kindergarten

302D-37. Standardized assessment for students entering kindergarten (a) The commission shall adopt the kindergarten entry assessment adopted by the board pursuant to section 302A-1165(a) to assess all charter school students entering kindergarten within the first thirty days of admission into kindergarten. (b) The commission may waive the requirements of the uniform kindergarten entry assessment on a case-by-case basis. (c) The commission shall share the information gathered from public charter schools pursuant to this section with the department, department of human services, and executive office on early learning to the extent not otherwise prohibited by administrative rule or law. [L 2020, c 46, pt of §3; am L 2021, c 210, §9]

HRS §302D-38 Prior early learning programs attendance disclosure

302D-38. Prior early learning programs attendance disclosure (a) At least one parent or guardian of each child entering kindergarten shall disclose to the public charter school at which the child is enrolled the name and address of the early learning program that the child attended during the previous academic year. Each public charter school shall provide to the commission the information disclosed pursuant to this section. The commission may also require the disclosure of any other information not otherwise prohibited by law that would assist the department, the department of human services, and the executive office on early learning in developing, assessing, and implementing strategies to meet the early learning needs of children in the State. The commission and the executive office on early learning shall use the information to assist the department of human services and executive office on early learning in determining the levels of prekindergarten attendance and need for child care in geographic regions of the State and identify the highest priority regions requiring prekindergarten programs and child care to meet the needs of unserved or underserved eligible children and shall provide the information to the department of human services. (b) The commission may include a request for the information required by subsection (a) on a kindergarten enrollment form or any other appropriate form used at all public charter schools. (c) The commission shall share the information gathered pursuant to this section with the department, department of human services, and executive office on early learning to the extent not otherwise prohibited by administrative rule or law. [L 2020, c 46, pt of §3]

HRS §302D-39 Public early learning and preschool programs; administrative authority

302D-39. Public early learning and preschool programs; administrative authority (a) The commission shall have administrative authority over all state-funded early learning programs and private partnership-funded preschool programs in public charter schools except for special education and Title I-funded prekindergarten programs. (b) The early learning programs in charter schools shall enroll no more than a maximum of twenty children per classroom who are three- or four-years-old on or before July 31 of the school year, as aligned with the department's kindergarten age entry requirements. (c) Subject to the availability of funding, the commission shall implement an application process for schools to establish an early learning program. (d) Each early learning program and preschool program shall meet the following requirements: (1) The availability of a classroom and outdoor play area that meet department of human services requirements for the health and safety of three- and four-year-old children and is exempt from section 346-161 as a public preschool provider; (2) The commitment of the principal to implementing an early learning program, including through active participation in professional development sessions offered through the commission, and promoting continuity and alignment between and across other early learning programs in the community and other grade levels in the school to ensure the positive outcomes of children are sustained; (3) The inclusion of students with disabilities based on individualized education program placement; provided that: (A) The in-classroom ratio of students with disabilities shall be based on the inclusion of children with disabilities in proportion to the general population of the school; (B) Subparagraph (A) does not anticipate or permit imposing caps or quotas on the number of children with disabilities in a program or not individualizing services for children with disabilities under the Individuals with Disabilities Education Act of 2004 (20 U.S.C. 1400 et seq., as amended); (C) The department shall collaborate with the charter school to coordinate services for students with disabilities who are placed in the classroom offered through the program; and (D) Funding for all costs associated with the implementation of the individualized education program of students shall be provided through the department; (4) Enrollment in the program shall be free and voluntary; (5) The enrollment shall not exceed twenty children per classroom; and (6) The incorporation of standards that are research-based and developmentally-appropriate practices associated with improved educational outcomes for children, such as: (A) Positive teacher-child interactions that shall be evaluated through observations conducted by the commission using a research-based tool at least twice a year, for the purposes of professional development; provided that the observations shall not be used for the purposes of teacher evaluation; (B) The early learning environment shall be assessed using a tool that measures its effectiveness and shall be conducted at least two times per school year by a certified observer who is employed or contracted by the commission; provided that the teaching staff shall use the assessment data and feedback to improve the quality of the learning environment; provided further that observations shall be used for the purposes of professional development and shall not be used for the purposes of teacher evaluation; (C) Use of individual child formative assessments that are used for ongoing planning relating to all areas of child development and learning including cognitive, linguistic, social emotional approaches to learning, and health and physical development; (D) Family engagement in partnership with charter schools, including conducting outreach for enrollment and engagement of families in their children's education in recognition of families' role as their child's first and most important teacher; (E) Alignment with the Hawaii early learning and development standards, department standards, state content and performance standards, and general learner outcomes for grades kindergarten to twelve to facilitate a seamless educational experience for children; (F) Requirements that any teacher shall have coursework in early childhood education pursuant to Hawaii teacher standards board licensing requirements for a prekindergarten teacher or be enrolled in a state-approved teacher education program and be working toward satisfying the Hawaii teacher standards board licensing requirements; and (G) Requirements that any educational assistant has a current child development associate credential, coursework for a certificate that meets the requirements for child development associate credential preparation, or be enrolled in and working toward completing a program that prepares the individual to obtain the credential. (e) The commission shall monitor the implementation of the educational experience for children. (f) The commission shall provide support to incorporate the standards developed pursuant to subsection (d), including support related to teacher-child interactions, early childhood learning environment, individual child assessments, and family engagement. (g) Teaching staff participating in a program established pursuant to this section shall participate in coaching and mentoring and professional development opportunities offered through the commission; provided that the commission shall cover the associated travel and substitute teacher costs, contingent upon funding availability. The commission may extend this support, excluding travel and substitute teacher costs, to individuals who are not participating in the program to promote alignment between all grade levels, programs, and settings. (h) School leaders shall attend professional development sessions related to P-3 (preschool to grade three) alignment offered through the commission. The commission shall cover the costs associated with travel and substitute teacher expenditures, contingent upon the availability of funding. The commission may extend this support, excluding travel and substitute teacher costs, to individuals who are not participating in the program to promote alignment between all grade levels, programs, and settings. (i) The commission shall work with each charter school to develop and annually update a written three-year plan that promotes, within the school and community, alignment of and transitions between learning experiences, and report on the progress made toward the plan by the end of the school year. (j) The commission shall coordinate with other agencies and programs to facilitate comprehensive services for early learning. (k) The commission shall promote the development of a cohesive, comprehensive, and sustainable early learning system. The commission shall coordinate with other early learning providers, including those providing the programs and services, to promote alignment between prekindergarten and elementary school programs and to support children and their families in making successful transitions from prekindergarten into kindergarten. (l) Each early learning program and preschool program may use available classrooms for public preschool programs statewide. (m) The commission shall adopt rules pursuant to chapter 91 for the purpose of this section. (n) The commission shall submit a report to the legislature no later than twenty days prior to the convening of each regular session regarding state-funded early learning programs in charter schools. The report shall include, as related to each type of program: (1) The number and location of classrooms; (2) Sources of funding for each classroom; (3) Aggregated data reflecting the quality of teacher-child interactions relating to emotional support, classroom organization, and instructional support; (4) Aggregated data reflecting the quality of the early learning environment and the teacher-child interactions that maximize the learning opportunities of the environment; and (5) Aggregated student outcomes related to all areas of child development and learning, including cognitive, linguistic, social and emotional approaches to learning and health and physical development, as assessed using a formative assessment tool selected or approved by the commission. This reported data shall be compiled from the previously state-funded school year. [L 2020, c 46, pt of §3; am L 2021, c 210, §4]

HRS §302D-41 Industry-recognized credentials; career development success program

302D-41. Industry-recognized credentials; career development success program (a) There is established by the commission a career development success program to provide financial incentives for participating public charter schools to encourage students enrolled in grades nine through twelve in public charter schools to enroll in and successfully complete qualified industry-credential programs. (b) Beginning with the 2022-2023 fiscal year, each participating school may receive up to $1,000 for each pupil who, in the preceding fiscal year, successfully completes a qualified industry-credential program. The funds shall be distributed to participating schools as provided in subsections (e) and (f). (c) Each participating school may decide annually whether to participate in the career development success program. (d) The commission shall create a process with a deadline for participating schools to report student credential attainment. (e) For each fiscal year, the commission shall distribute to each participating school an amount equal to $1,000 multiplied by the number of pupils reported by the participating school as successfully earning an industry certificate by completing a qualified industry-credential program; provided that a participating school shall not receive a distribution for more than ten per cent of the total number of completed industry certificates reported by all participating schools. (f) For each fiscal year, the commission shall distribute funds in the following order until all funds are disbursed: (1) Based on the order received by the commission, funds shall be distributed first to participating schools for all who attained Advanced Credentials; (2) Based on the order received by the commission, funds shall be distributed to participating schools for all who attained Door Opener Credentials; (3) Based on the order received by the commission, funds shall be distributed to participating schools for all who attained Springboard Credentials; (4) Based on the order received by the commission, funds shall be distributed to participating schools for all who attained Foundational Credentials; and (5) Any remaining funds shall be deposited into the general fund. (g) Each participating school shall regularly communicate to all students in grades nine through twelve the availability of qualified industry-credential programs and the benefits a student receives as a result of successfully completing one of the programs or courses. The participating school shall design the communications to students with the goal of increasing participation in the qualified industry-credential programs and courses across all student subgroups. (h) As used in this section: "Advanced Credentials" means credentials that signal proficiency in industry-specific skills for priority occupations that may also require a bachelor's degree, as determined by the department. "Door Opener Credentials" means credentials that signal proficiency in industry-specific skills for priority occupations that require some post-secondary education, including certificates and associate degrees, as determined by the department. "Foundational Credentials" means credentials that prepare learners with essential knowledge and skills for a range of priority occupations, including workplace safety, as determined by the department. "Participating school" means a public charter school that chooses to participate in the career development success program established pursuant to this section. "Qualified industry-credential program" means a program that is recognized by the department as offering students the opportunity to attain a high-value industry credential. "Springboard Credentials" means credentials that signal proficiency in industry-specific skills for priority occupations that often do not require a postsecondary certificate or degree, as determined by the department. [L 2022, c 143, §3]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0302D/HRS_0302D-.htmFetched: 11/10/2026

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