Bill Text: HI HB622 | 2019 | Regular Session | Introduced
Bill Title: Relating To Public Charter Schools.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-07-12 - Act 269, 07/09/2019 (Gov. Msg. No. 1389). [HB622 Detail]
Download: Hawaii-2019-HB622-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
622 |
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THIRTIETH LEGISLATURE, 2019 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to public charter schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 302D, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§302D-A Federal investigations. (a)
If any employee of a charter school receives written notification from a
department or agency of the United States regarding the existence of a criminal
investigation of or criminal charges against any employee of the charter school
for actions taken in the course of employment at the charter school, that
employee shall inform the charter school's authorizer of the criminal
investigation or criminal charges within five days of the notification. A person who fails to comply with this
subsection shall be guilty of a misdemeanor.
(b) Upon notification of any criminal investigation
or criminal charges pursuant to subsection (a), the authorizer shall cease
payment of any purchase orders submitted pursuant to section 302D-28(f). Upon notification of either:
(1) That
the criminal investigation has closed with no charges filed; or
(2) A
finding of not guilty rendered by a court of competent jurisdiction,
the authorizer shall disburse funds for any
validly submitted purchase order.
§302D-B Legislative appropriations; state treasury. All funds appropriated to charter
schools by the legislature shall remain in the state treasury until requested
for disbursement pursuant to section 302D-28(f) or, if a public charter school
closes, expended after approval of the authorizer or order of the court."
SECTION 2. Section 302D-17, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(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, 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."
SECTION 3. Section 302D-28, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f) Each authorizer shall develop and maintain
a purchase order system that its charter
schools shall use to pay for expenses. Charter
schools shall submit a purchase order to the authorizer
and the authorizer shall disburse funds to the vender. No funds, except those collected pursuant to
subsection (h), shall be disbursed except through the purchase order
system. 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] Make available for payment
of purchase orders not more than
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] Make available for payment
of purchase orders not more than
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[, only to schools];
provided that the school is in compliance with all financial reporting
requirements; and
(3) [Retain no more than] Deny payment
of any purchase orders if payment of
those purchase orders would reduce
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] until 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. Authorizers shall
withhold payment of purchase orders in compliance with
section 302D-A(b)."
SECTION 4. Section 302D-32, Hawaii Revised Statutes, is
amended to read as follows:
"§302D-32
Annual audit [or financial review]. Each charter school shall annually
complete an independent financial audit that complies with the requirements of
its authorizer and the department[; provided that the authorizer shall have
the discretion to allow a financial review in lieu of an independent financial
audit]. The authorizer shall be responsible
for the selection of independent auditors to fulfill the requirement of this section."
SECTION 5. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 8. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Public Charter Schools; Authorizers; Audit; Federal Investigation; Funding; Purchase Order System
Description:
Requires authorizers to withhold public charter school funding for any school under federal investigation. Requires authorizers to establish a purchase order system to pay charter school expenses. Requires charter schools to be subject to an annual financial audit. Requires authorizers to select the independent auditors that are to perform the audits on public charter schools.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
