STAND. COM. REP. 2487

Honolulu, Hawaii

, 2004

RE: S.B. No. 2424

S.D. 1

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Labor and Education, to which was referred S.B. No. 2424 entitled:

"A BILL FOR AN ACT RELATING TO NEW CENTURY CONVERSION CHARTER SCHOOLS,"

beg leave to report as follows:

The purpose of this measure is to allow new century charter school employees to retain their civil service status that was possessed prior to conversion.

This measure also:

(1) Allows new century conversion charter schools to offer employees hired after conversion the choice of civil service status; and

(2) Allow employees of new century conversion charter schools to retain civil service status upon transfer to a non-charter department of education school.

Testimony in support of this measure was submitted by the Department of Human Resources Development (DHRD), Kualapuu Elementary School, Waimea Middle School, the Hawaii State Teachers Association, the Hawaii Government Employees Association, the Hawaii Business Roundtable, the Hawaii Association of Independent Schools, Good Beginnings Alliance, and Ho`okako`o Corporation.

Comments on the measure were also submitted by the Department of Education (DOE).

Your Committees find that Act 2, Session Laws of Hawaii 2002, enabled a non-profit corporation to partner with an existing public school to become a new century conversion charter school. Your Committees further find that the new century conversion charter schools provide the opportunity for greater flexibility, choice, and accountability in public schools, concentrating on improved student achievement. However, it was determined by DHRD that upon conversion, charter school employees lose their civil service status, and any requisite benefits. Subsequently, DOE and DHRD reached a one-year agreement to allow charter school employees to continue their civil service status, in hopes that resolution by the Legislature would follow.

Your Committees determine that this loss of civil service status was not a contemplated consequence of such conversion and places the affected employees in a precarious position. Additionally, your Committees determine that current charter schools may be forced to rescind their charter school status, and the conversion of additional schools is jeopardized due to the fact that the schools will not consider conversion if the result will be to strip current civil service employees of their current status. As a result, our students and communities will suffer from the lack of benefits of the partnership with the non-profit corporations.

Therefore, your Committees find that employees of conversion charter schools should be permitted to retain their civil service status upon conversion or transfer from a conversion charter school to a DOE school, and that conversion charter schools should also be permitted to provide the choice of civil service status to new hires. Additionally, your Committees believe that further assurances should be established to ensure that new employees, hired after conversion, are provided with the choice of civil service status.

Accordingly, your Committees have amended this measure by requiring the Department of Human Resources Development to develop and implement procedures to ensure that employees hired after conversion are provided with the choice of civil service status.

As affirmed by the records of votes of the members of your Committees on Labor and Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2424, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2424, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Education,

____________________________

NORMAN SAKAMOTO, Chair

____________________________

BRIAN KANNO, Chair