HAWAII ADMINISTRATIVE RULES
TITLE 8
DEPARTMENT OF EDUCATION
SUBTITLE 5
CHARTER SCHOOLS
CHAPTER 517
CHARTER CONTRACT TRANSFERS
§8-517-1 Purpose
§8-517-2 Definitions
§8-517-3 Transfer application and process
§8-517-4 Transfers at the end of a charter contract
term
§8-517-5 Transfer before the end of a charter
contract term
§8-517-6 Transfers due to termination of authorizer’s
chartering authority
§8-517-7 Computation of time
§8-517-1
Purpose. This chapter
governs the transfer of charter contracts between authorizers. [Eff FEB 18, 2017] (Auth: HRS §302A-1112) (Imp: HRS §§302D-11, 302D-20)
§8-517-2
Definitions. As used in
this chapter, unless a different meaning clearly appears in the context:
"Authorizer"
means an authorizer as defined in section 302D-1, Hawaii Revised Statutes, and
includes the state public charter school commission.
"Board"
means the board of education.
"Charter
contract" means a charter contract as defined in section 302D-1, Hawaii
Revised Statutes.
"Chartering
authority" means the authority to review charter applications, decide
whether to approve or deny charter applications, enter into charter contracts
with charter applicants, oversee public charter schools, and decide whether to
authorize, renew, deny renewal of, or revoke charter contracts in accordance
with chapter 302D, Hawaii Revised Statutes.
"Charter
school" means a charter school as defined in section 302D-1, Hawaii
Revised Statutes.
"Charter
transfer" means the transfer of a charter contract and the oversight of
the charter school whose governing board holds that contract from one
authorizer to another.
"Governing
board" means a governing board as defined in section 302D-1, Hawaii
Revised Statutes. [Eff FEB 18, 2017]
(Auth: HRS §302A-1112) (Imp: HRS §§302D-1, 302D-11, 302D-20)
§8-517-3
Transfer application and process.
(a) The board shall develop an
application form and process for charter transfers in accordance with this
chapter. The charter transfer application
and approval process shall provide for and include, at a minimum, the following
elements:
(1) The submission of a charter transfer application to the board;
(2) An opportunity for the public to comment on any proposed charter
transfer; and
(3) A timely decision by the board on whether to allow the transfer.
(b)
The following requirements shall apply to any and all charter transfers:
(1) No charter school shall be allowed to transfer its charter contract
to another authorizer in an attempt to reduce the level of oversight or
accountability to which the charter school is currently subject or to avoid
possible revocation or nonrenewal of its charter contract;
(2) No authorizer shall be allowed to transfer a charter contract to
another authorizer in an attempt to improve the overall performance of its own
portfolio of charter schools or to avoid possible revocation or nonrenewal of
the charter contract;
(3) An authorizer shall not agree to accept a charter transfer nor
shall it deny a charter transfer based on any financial incentives a larger
portfolio of schools may provide to that authorizer;
(4) A charter school whose authorizer has initiated a closure of the
school shall not be allowed to secure a charter contract from another
authorizer;
(5) Existing charter schools shall not be allowed to apply for a
charter school under another authorizer as a way of de facto transferring
oversight of the school from one authorizer to another and circumventing the
charter transfer process; provided that nothing in this chapter shall be
construed to prevent existing charter schools from applying to another
authorizer for replication or expansion purposes;
(6) Authorizers shall share among themselves information on charter
schools that are transferring between them; and
(7) All charter transfers shall be in the best interest of students. [Eff FEB 18, 2017] (Auth: HRS §302A-1112) (Imp: HRS §§302D-11, 302D-20)
§8-517-4
Transfers at the end of a charter contract term. (a)
The transfer of a charter contract that is in its final contract year
shall only be allowed if the governing board has met the terms of its expiring
charter contract with its current authorizer, including any performance
requirements, to a degree that would have otherwise resulted in charter
contract renewal with the current authorizer, and the proposed new authorizer
agrees to accept the charter transfer; provided that the requirements in
section 8-517-3(b) are met. The
authorizer that is a party to the existing charter contract shall inform the
proposed authorizer about the academic, financial, organizational, and
operational performance status of the charter school, as well as any
outstanding contractual obligations that exist.
(b)
The governing board shall submit to the board and its current authorizer
a written and signed letter of its intent to not renew the charter
contract. The proposed authorizer and
the governing board shall jointly submit to the board a charter transfer
application. A proposed charter contract
between the proposed authorizer and the governing board shall be submitted as
part of the charter transfer application and shall identify and provide a plan
to address any outstanding obligations from the existing charter contract.
(c)
The charter transfer application shall be submitted and reviewed in
accordance with the form and process establish pursuant to section 8-517-3(a);
provided that the board shall make a final determination on the charter
transfer application no later than sixty days before the expiration of the
current charter contract.
(d)
If the charter transfer is approved, the new authorizer and the
governing board shall enter into a new charter contract effective upon the
expiration of the charter contract between the current authorizer and governing
board.
(e)
If the charter transfer is not approved, the governing board may
withdraw its letter of nonrenewal and proceed with its current authorizer’s
charter contract renewal process. If the
charter transfer is not approved and the governing board does not withdraw its
letter or enter into a new charter contract with its current authorizer, the
charter contract shall be considered nonrenewed, and the charter school shall
close in accordance with applicable law and the terms of the charter contract,
unless the board requires a temporary extension of the charter contract, upon
such terms and conditions it deems appropriate, for unique or extenuating
circumstances. [Eff FEB 18, 2017]
(Auth: HRS §302A-1112) (Imp: HRS §§302D-18, 302D-20)
§8-517-5
Transfers before the end of a charter contract term. (a)
The transfer of a charter contract that is not in its final contract
year shall only be allowed under special circumstances pursuant to section
302D-20, Hawaii Revised Statutes; provided that the requirements in section
8-517-3(b) are met.
(b)
An authorizer or a governing board may submit to the board a written and
signed letter requesting the transfer of a charter contract to another
authorizer; provided that an authorizer may submit a letter only with the
mutual consent of the governing board.
The letter shall explain the reason for the request, provide evidence
that the transfer is in the best interest of the charter school’s students, and
identify the proposed new authorizer that has agreed to the proposed
transfer. The authorizer that is a party
to the existing charter contract shall inform the proposed authorizer about the
academic, financial, organizational, and operational performance status of the
charter school, as well as any outstanding contractual obligations that exist.
(c)
The proposed authorizer and the governing board shall jointly submit to
the board a charter transfer application.
A proposed charter contract between the proposed authorizer and the
governing board shall be submitted as part of the charter transfer application
and shall identify and provide a plan to address any outstanding obligations
from the existing charter contract.
(d)
The charter transfer application shall be submitted and reviewed in
accordance with the form and process established pursuant to section
8-517-3(a); provided that the board shall make a final determination on the
charter transfer application no later than May 1; provided further that the
letter requesting the transfer and the charter transfer application are
submitted by February 1 of the same school year.
(e)
If the charter transfer is approved, the new authorizer and the
governing board shall enter into a new charter contract effective July 1 of the
next school year. The effectuation of
the new charter contract shall terminate the previous charter contract. [Eff FEB 18, 2017] (Auth: HRS §302A-1112) (Imp: HRS §302D-20)
§8-517-6
Transfers due to termination of authorizer’s chartering authority. (a) If
an authorizer’s chartering authority is terminated due to the revocation,
nonrenewal, or voluntary surrender of its authorizing contract, the transfer of
any charter contracts overseen by that entity shall be allowed; provided that
the requirements in section 8-517-3(b) are met.
The entity whose chartering authority is terminated shall inform the
board about the academic, financial, organizational, and operational
performance status of each charter school in its portfolio, as well as any
outstanding contractual obligations that exist.
(b)
Each governing board overseen by the entity whose chartering authority
is terminated shall submit to the board a charter transfer application.
(c)
The board shall solicit from the pool of existing authorizers a new
authorizer for each charter school overseen by the entity whose chartering
authority is terminated. Each proposed
charter transfer shall be with the mutual agreement of the proposed new
authorizer and governing board; provided that if no other authorizer agrees or
is available to accept the transfer of a charter contract overseen by the
entity whose chartering authority is terminated, the state public charter
school commission shall be the new authorizer for that charter school.
(d)
Each charter transfer application shall be submitted and reviewed in
accordance with the form and process established pursuant to section 8-517-3(a)
or a special expedited process developed and adopted by the board
notwithstanding section 8-517-3(a); provided that the board shall make a final
determination on each charter transfer application within forty-five days of
the termination of the former authorizer’s chartering authority but no later
than sixty days before the start of the next school year.
(e)
Upon the approval of each charter transfer, the new authorizer and the
governing board shall enter into a new charter contract effective
immediately. Any new charter contract
shall be effective for the remainder of the contract term under the previous
charter contract with the previous authorizer.
Notwithstanding section 8-517-4, if the remaining term of the charter
contract with the previous authorizer is less than a year, the new authorizer
and governing board shall enter into a new charter contract with a contract
term no less than a year. [Eff FEB 18,
2017] (Auth: HRS §302A-1112) (Imp: HRS §§302D-11, 302D-20)
§8-517-7 Computation of time. (a)
The time in which any act provided in this chapter is to be done is
computed by excluding the first day and including the last, unless the last day
is a Saturday, Sunday, or state holiday and then it is also excluded. When the prescribed period of time is less
than seven days, Saturdays, Sundays, or state holidays within the designated
period shall be excluded in the computation.
(b) For the purposes of this chapter,
"school year" means a year that begins on July 1 and ends on June 30
of the following calendar year. [Eff FEB
18, 2017] (Auth: HRS §302A-1112)
(Imp: HRS
§91-2)