SECTION 1. The legislature finds that facilities funding has been a long-standing issue for charter schools nationally and locally. In Hawaii, start-up charter schools have paid the costs of their facilities from operational funds. Not until the regular session of 2013, did the legislature authorize the state public charter school commission to request facilities funding as part of its annual budget request to the director of finance beginning with the 2014-2015 fiscal year.

Most start-up charter schools do not have their own food service facility. This shortcoming has been exacerbated by a recent audit report of the public school food service program that has forced the department of education to curtail its food service support to charter schools. This forces most start-up charter schools to expend scarce funds to contract outside vendors to provide school meals.

The purpose of this Act is to create a charter schools food service special fund and appropriate funds to meet the food service needs of the State's public charter schools.

SECTION 2. Chapter 302D, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:

"§302D-A General obligation bonds; food service facilities. (a) Notwithstanding any law to the contrary, the commission shall be authorized to request the issuance of general obligation bonds from the director of finance and allocate the proceeds of any general obligation bonds to assist public charter schools with the design, planning, construction, repair, and maintenance of charter school food service facilities.

(b) Notwithstanding any law to the contrary, the proceeds of any general obligation bonds shall be allocated to the commission for deposit into the charter schools food service special fund established under section 302D-B irrespective of whether a specific project or purpose has been provided for in a legislative act authorizing the issuance of general obligation bonds.

(c) Unless otherwise required by law, any public charter school food service facilities constructed, in whole or in part, through the proceeds of general obligation bonds shall be owned by the State.

(d) Moneys appropriated for capital improvement projects pursuant to any authorization of the issuance of general obligation bonds for the design, planning, construction, repair, and maintenance of public charter school facilities shall be considered expended upon deposit into the charter schools food service special fund.

§302D-B Charter schools food service special fund. (a) There is established within the state treasury a special fund to be known as the charter schools food service special fund to be administered and expended by the commission.

(b) The moneys in the special fund shall be reserved for use by the commission for the purpose of meeting the food service needs of state public charter schools.

(c) The proceeds of any general obligation bonds authorized by the director of finance pursuant to section 302D-A shall be deposited into the charter schools food service special fund.

(d) Funds may be allocated to various public charter schools; provided that the commission shall allocate the funds pursuant to criteria created by, and based upon the prioritization schedule of the charter school facilities funding working group pursuant to section 302D-C(b).

(e) The commission shall submit an annual report to the legislature no later than twenty days prior to the convening of each regular session providing the following:

(1) A summary of the criteria used by the commission in allocating funds from the charter schools food service special fund;

(2) The procedures and guidelines developed for the appropriate use, expenditure, and oversight of funds;

(3) A detailed breakdown of the allocations made from the charter schools food service special fund; and

(4) A detailed list of projects funded through the charter schools food service special fund.

§302D-C Charter school food service facilities funding working group. (a) There is established a charter school food service facilities funding working group within the commission, 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 assistant superintendent, office of school facilities and support services;

(5) The chair of the senate committee on ways and means; and

(6) The chair of the house of representatives committee on finance.

(b) The charter school food service facilities funding working group shall determine criteria for and prioritize the expenditures from the charter schools food service special fund, based in part on the performance and needs of the public charter schools. The working group shall also establish procedures and guidelines for the appropriate use, expenditure, and oversight of these funds."

SECTION 3. The director of finance is authorized to issue general obligation bonds in the sum of $5,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2015-2016 for the purpose of meeting the food service needs of the State's public charter schools.

The sums appropriated shall be expended by the state public charter school commission for the purposes of this Act.

SECTION 4. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2018, shall lapse as of that date.

SECTION 5. In codifying the new sections added by section 2 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. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval; provided that sections 3 and 4 shall take effect on July 1, 2015.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1215
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII