C HAIRPERSON G OVERNOR S TATE OF H AWAII S TATE P UBLIC C HARTER S - - PDF document

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DAVID Y. IGE GOVERNOR CATHERINE PAYNE CHAIRPERSON

STATE OF HAWAII STATE PUBLIC CHARTER SCHOOL COMMISSION (ʻAHA KULA HOʻĀMANA)

1111 Bishop Street, Suite 516, Honolulu, Hawaii 96813 Tel: (808) 586-3775 Fax: (808) 586-3776

SUBMITTAL FOR CONSIDERATION AND/OR ACTION DATE OF SUBMITTAL: March 5, 2018 DATE OF MEETING: March 8, 2018 TO: Catherine Payne, Chairperson FROM: Sione Thompson, Executive Director AGENDA ITEM:

• II. Presentation/Action on Intervention Protocol for Kona Pacific Public

Charter School’s Notice of Concern Regarding Public Charter School Contract Violations

• I. DESCRIPTION/PURPOSE

Presentation/Action on Notice of Concern issued on December 8, 2017 to Kona Pacific Public Charter School (KPPCS) regarding public charter school contract violations.

• II. AUTHORITY

Pursuant to Hawaii Revised Statutes (“HRS”) §302D-5(a)(5)1, the Commission as an authorizer of charter schools has the power and duty, among many, for monitoring, in accordance with charter contract terms, the performance and legal compliance of public charter schools. Under HRS §302D-172, the Commission, as KPPCS’s authorizer, is expressly required by law to “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

1 See Exhibit 4 for complete copy of the statute 2 See Exhibit 4 for complete copy of the statute

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• versight activities that enable the authorizer to fulfill its responsibilities under this chapter,

including conducting appropriate inquiries and investigations, so long as those activities are consistent with the intent of this chapter and adhere to the terms of the charter contract.” Additionally, the Charter Contract between the Commission and KPPCS provides for an Intervention Protocol, otherwise known as Exhibit D of the Charter Contract. The Intervention Protocol expressly provides that:

• 1. Upon finding that the School has failed to meet legal or contractual compliance
• bligations (including any goals, objectives, or outcomes set in the performance

frameworks), the Commission may issue a Notice of Concern, pursuant to Section 2.10 Notices of this Charter Contract.

• 2. Upon receiving a Notice of Concern, the School’s Governing Board will be required to

provide a written response to the Commission within fourteen calendar days and the response must include at least one of the following:

• i. a description of the remedy of the compliance breach, if the breach has been

completely remedied, including evidence of such remedy;

• ii. a written notification disputing the determination that a compliance breach has
• ccurred with accompanying evidence in support of that assertion;
• iii. a Corrective Action Plan designed to remedy the compliance breach that includes

timelines and persons responsible for each action within the plan. If the submitted Corrective Action Plan is not mutually agreeable to both the School and the Commission staff, the matter will be brought to the Commission at a General Business Meeting.

• 3. If the School disputes the Notice of Concern, the Commission will consider the matter

at a General Business Meeting and retract, modify, or uphold the Notice of Concern.

• 4. The Commission shall be updated on the issuance, remedy, and progress towards

implementation of Corrective Action Plans in the Executive Director’s Report during General Business Meetings ESCALATION OF NOTICES OF CONCERN If the School fails to respond or make progress towards correcting the breach in the time as stated in the Corrective Action Plan, repeatedly fails to comply with applicable law or Contract provision(s), or when the breach presents an immediate concern for student or employee health and safety, the Commission may take any or all of the following actions:

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• 1. Issue a Notice of Deficiency which may include prescriptive, specific action plans and

conditions for the School; or

• 2. Issue a Notification of Warning which initiates revocation proceedings in accordance

with Chapter 302D, HRS, and applicable administrative rules. In accordance with Section 302D-17(c), HRS3, this Intervention Protocol shall not apply in any circumstance in which the Commission determines that a problem or deficiency warrants revocation, in which case Chapter 302D, HRS, and the established rules, procedures and protocols for revocation shall apply.

• III. BACKGROUND

In October of 2016, the KPPCS Principal at the time, informed the Commission that she had come to learn of enrollment, withdrawal, and transfer practices of the school that were troubling and inflated actual enrollment numbers, thereby unduly increasing the school’s

• verall funding. This Principal, along with other then current and former employees,

complained to KPPCS’s governing board as well as to the Commission. The Commission initiated its own inquiry and review of KPPCS’s enrollment, withdrawal, and transfer practices as well the school’s attendance records, student records, and

• inventory. The Commission also received complaints from former employees, former

governing board members and parents regarding alleged unethical conduct of KPPCS’s former principal and executive director as well as conflicts of interest with the school’s associate non-profit, Friends of Kona Pacific Public Charter School. After reviewing student records, and conducting interviews with a number of current and former employees pursuant to the Commission’s authority and duties under HRS 302D- 17(a)4, the Commission has determined that KPPCS is not in compliance with certain provisions of the Charter Contract. On December 8, 2017, the Commission issued a Notice of Concern to KPPCS’s governing board in accordance with Exhibit D: Intervention Protocol of the Charter Contract (Exhibit 1). KPPCS’s governing board was granted two extensions of time to respond to the Notice

• f Concern.

3 See Exhibit 4 for complete copy of the statute 4 See Exhibit 4 for complete copy of the statute

4 On January 16, 2018, KPPCS’s governing board responded to the Notice of Concern (Exhibit 2). KPPCS’s governing board disputed that there was a compliance breach but offered corrective actions (Exhibit 2). In accordance with the Intervention Protocol, the matter is now presented to the Commission for formal disposition at this General Business Meeting.

• IV. DISCUSSION

KPPCS’s governing board disputes that there is a compliance breach, yet offers corrective actions that have and will take place moving forward. The Notice of Concern specifically identified the provisions of the Charter Contract that the school is not in compliance with (corresponding provisions of the school’s prior contract are identified in the parentheses):

• i. Section 3.2 State Code of Ethics and Code of Conduct (2.2, HRS 84)

The School's Governing Board and employees shall comply with the State Code of Ethics, codified in Chapter 84, HRS5.

• ii. Section 6.5 Assets (9.5)

The School shall maintain a complete and current inventory of all of its property and shall update the inventory annually. The School shall take all necessary precautions to safeguard assets acquired with public funds.

• iii. Section 7.4 Enrollment (5.3)

The School shall maintain accurate and complete enrollment data.

• iv. Section 7.5 Attendance (HRS 302A-11326)

The School shall maintain daily records of student attendance and absences.

• v. Section 7.8 Withdrawal and Transfer (5.7)

The School shall adopt and adhere to withdrawal and transfer procedures which provide for the timely release of any student who withdraws from the School and/or transfers to another school. The School’s withdrawal and transfer procedures shall also provide for the transfer of the student’s records to the new school in a reasonable timeframe.

• vi. Section 8.1 Student Records (6.7)

The School shall maintain student records for current and former students in accordance with the requirements of State and federal law, including the Family

5 See Exhibit 4 for complete copy of the statute 6 See Exhibit 4 for complete copy of the statute

5 Education Rights and Privacy Act, 20 U.S.C. § 1232g (FERPA), as may be amended from time to time.

• vii. Section 10.1 Educational Data (11.5)

Pursuant to Section 302D-23, HRS7, the School shall comply with the minimum educational data reporting standards established by the BOE and with additional data reporting required by the Commission in its oversight of this Contract and shall ensure all data is accurate and complete.

• viii. Section 13.2 Mandatory Notification (11.9.2)

The School shall notify the Commission within two calendar days when it has knowledge of any of the following:

• a. Any condition that may cause the School to vary from the terms of this

Charter Contract or applicable requirements, federal and/or State law;

• e. Any inaccuracy found in enrollment count or other data provided to the

Commission; KPPCS’s response addressed all of the contract provisions cited except, Sections 6.5 Assets; 7.4 Attendance; 10.1 Educational Data; and 13.2 Mandatory Notification. 3.2 State Code of Ethics and Code of Conduct (2.2) The School's Governing Board and employees shall comply with the State Code of Ethics, codified in Chapter 84, HRS. KPPCS denies specifically that Employee 1 violated HRS §84-11 (the state’s ethics law) when the employee accepted a gift of a two-year lease for a new Mercedes SUV because: “The receipt of the vehicle did not violate this provision because (1) the gift was not intended to influence Employee #1 in the performance of her official duties nor was is intended as a reward for any official action; and (2) the source of the gift <NAME OF DONOR REDACTED> did not have interests that may be affected by official action or lack

• f action by Employee #1.”

The Hawaii State Ethics Commission’s Gift Guidelines addresses this situation8 (Exhibit 3): “The gifts law prohibits a legislator or employee from accepting any gift if it is reasonable to infer the gift is intended to influence or reward official action. In

7 See Exhibit 4 for complete copy of the statute 8 See https://ethics.hawaii.gov/wp-content/uploads/2017/05/quickguide_gifts.pdf and http://ethics.hawaii.gov/wp-

content/uploads/2013/09/GiftsGuidelines.pdf

6 determining whether or not a gift may be accepted, the Commission considers the following: (1) the value or cost of the gift; (2) the relationship between the donor of the gift and the recipient of the gift, including whether the donor is subject to official action by the recipient; and (3) whether the gift provides any “state benefit,” including whether the gift will benefit the recipient in the performance of his or her official

• duties. A legislator or employee who receives a gift sometimes may contend that the

gift will not actually influence him or her. This, however, is not a factor in determining whether or not a gift may be accepted under the law. The gifts law is based on perception: Does it appear to a reasonable person that the gift is intended to influence or reward official action? If the answer is yes, then the gift is prohibited.” (emphasis added) The context of this gift surrounds the Donor’s efforts to secure a lease of the school’s associated non-profit Friends of Kona Pacific Public Charter School (FKPPCS), of which then Employee #1 had been the President of and continued to be actively involved. Indeed, the Donor openly states in his letter to the Commission, that he gave Employee #1 the lease of this Mercedes vehicle because he admired the Employee’s commitment and work for the

• school. Although ultimately, there was no lease of FKPPCS property with the Donor for the

solar farm, Employee #1, Donor, and KPPCS governing board do not believe they violated ethics in the acceptance of this gift. The Notice of Concern also outlined concerns regarding former employees who took post- employment within the prohibited cooling off period that were connected to work done by these employees in their role at the school. KPPCS’s governing board asserts that these post-employment rules only apply to state legislators and that there are “gray areas” of the

• law. On the contrary, a review of the Hawaii State Ethics Commission guidance shows that

these post-employment restrictions apply to employees as well.9 (See Exhibit 3) Section 7.5 Attendance (HRS 302A-1132) The School shall maintain daily records of student attendance and absences. Commission in response to the complaints, directed staff to review the records of KPPCS, and as part of that review, KPPCS could not produce evidence that the school had records of student attendance and absences. While school staff did indicate that teachers took attendance, none of the staff could produce documentation of student attendance. During this site visit, members of KPPCS’s governing board were present with Commission staff.

9 See http://ethics.hawaii.gov/wp-content/uploads/2013/09/postEmpRestrict.pdf

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• i. Section 7.4 Enrollment (5.3)

The School shall maintain accurate and complete enrollment data.

• ii. Section 7.8 Withdrawal and Transfer (5.7)

The School shall adopt and adhere to withdrawal and transfer procedures which provide for the timely release of any student who withdraws from the School and/or transfers to another school. The School’s withdrawal and transfer procedures shall also provide for the transfer of the student’s records to the new school in a reasonable timeframe.

• iii. Section 8.1 Student Records (6.7)

The School shall maintain student records for current and former students in accordance with the requirements of State and federal law, including the Family Education Rights and Privacy Act, 20 U.S.C. § 1232g (FERPA), as may be amended from time to time.

• iv. Section 10.1 Educational Data (11.5)

Pursuant to Section 302D-23, HRS10, the School shall comply with the minimum educational data reporting standards established by the BOE and with additional data reporting required by the Commission in its oversight of this Contract and shall ensure all data is accurate and complete. The complaint to the Commission centered around KPPCS’s enrollment, and withdrawal and transfer practices. The allegation made was that the school had not removed students from the enrollment system (eSIS) even when the school knew that the student had (1) not shown up for school; (2) withdrew from the school due to the parent’s decision to home- school the child (“4140”—the Department of Education’s Home school withdrawal form); moved to the mainland; or transferred to a private school. The implication being that there was no way for the Department of Education’s eSIS system to know if in fact a child was no longer attending a public school, unless the public school entered that information into the system, or if another public school in the state requested the records for a student because the student has enrolled in another public school in the state. The accuracy of the enrollment data in the state’s student information system is subject to the self-reported representations of every public school in the state. When that information is not accurate the effects of that inaccuracy can be significant. For charter schools, the enrollment data in the eSIS system (the DOE’s current student information system is now, Infinite Campus) is how charter schools are funded. Under HRS §302D-

10 See Exhibit 4 for complete copy of the statute

8 28(5)(e)11, each charter school is funded based on a per-pupil amount that is calculated by statute and by the number of students in the official enrollment count taken on October 15

• f each year. Thus, every student included in the eSIS (now Infinite Campus) on October 15

will be counted for the purpose of determining each charter school’s annual per-pupil funds. Review of the student records against eSIS records In reviewing KPPCS’s enrollment, withdrawal and transfer practices, the Commission requested and received all available electronic student information system (eSIS) records maintained by the Department of Education that the school had reported since the school

• pened. In total, there were 525 students associated with KPPCS entered into the system

during school years 2008-2009 to 2015-2016. Of these 525 students, staff initiated the inquiry by examining records for students who were currently inactive, meaning that the student had withdrawn, transferred, or homeschooled. As such, there were 129 students that met this criterion. Of the 129 students, the school was only able to produce 65 student files. Commission staff reviewed all 65 student files and initially found discrepancies in 36 of the student files (53 incidents of discrepancies) that showed evidence of the school’s failure to remove students from eSIS enrollment within a reasonable amount of time, resulting in KPPCS being paid for the student for the school year, and in some cases for multiple years. Commission staff subsequently reviewed the files and corrected their findings: one student was removed from the list of discrepancies all together, while additional discrepancies were found in two student’s files, and one discrepancy was removed from one other student. In total, in examining the 65 student files produced by the school, the Commission staff found 56 discrepancies in 35 of the student files. The review of the 65 KPPCS student files identified six common enrollment and withdrawal irregularities: Six Common Enrollment and Withdrawal Irregularities

• 1. No evidence of attendance and no withdrawal request in student file

(but files may include completed application or enrollment form)

• 2. Evidence of attendance in student file, but no withdrawal request/effective date of

withdrawal

11 See Exhibit 4 for complete copy of the statute

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• 3. Withdrawal request in student file, but inconsistent with withdrawal date in student

information system

• 4. Grade level in student information system inconsistent with grade level in

documentation from student file

• 5. Children of school leader/personnel: students were enrolled and withdrawn several

times over multiple years, grade levels from year to year are not sequential

• 6. Evidence of attendance in student file, but inconsistent with enrollment date in student

information system; students currently enrolled at KPPCS Related allegations provided to the Commission surrounded the discovery of this practice by a succeeding (now former) school director of the irregular withdrawal and transfer practices, and the former school director’s actions to correct, but also to cover up the questionable enrollment practice of the previous school years. The Commission’s review of the records, documentation, and interviews appears to corroborate these related allegations. Preliminary review of the potential over-payment of per-pupil funds based on just the discrepancies found in this very limited review of student files and records amounts to over $300,000.00. KPPCS Corrective Action Plan Commission staff reviewed KPPCS’s corrective action plan as stated in their Response to the NOC, however, the plan was not acceptable for the following reasons: “3. KPPCS is working with the Attorney General to develop an automatic withdrawal policy in order to address situations in which a student is not attending the school but KPPCS has difficulty obtaining a withdrawal form from parents.” KPPCS’s governing board has consistently maintained that a charter school is unable to withdraw a student from their enrollment rosters without a signature from a parent. This is simply untrue and unacceptable. In fact, a review of KPPCS’s student files indicated that the school did in fact withdraw students even when there was no documentation of a parent request and signature to do so. Additionally, even when there was a formal request and signed document asking the school to withdraw the student, the school did not in fact withdraw the student until after the October 15 (official enrollment count) date and in

10 many of the cases well outside a reasonable amount of time (months and in some cases, years later). A simple documentation of the communication provided to the school by the student’s parent or guardian, or the school’s reasonable efforts to obtain written request for withdrawal, and then the placement of that documentation into the student’s file, would at least provide the school with some kind of evidence that the school took reasonable steps to insure that the enrollment information in the official student information system was in fact true. “4. Updated KPPCS enrollment & withdrawal procedures have been adopted, and student records staff are trained regarding these procedures. (see Attachment 6 - Student Enrollment/Withdrawal Process; Attachment 7 – Enrollment Document Checklist; Attachment 8 - Student Withdrawal Procedures; Attachment 9 – Exiting Student Checklist)” A review of the forms and documentation of the school’s adopted “updated enrollment & withdrawal procedures,” shows discrepancies and inconsistencies in the forms themselves. Exiting Student Checklist still references eSIS, which no longer is used, yet other forms reference Infinite Campus. Regarding making sure school staff are trained properly in the student information system, Commission staff confirmed with the Department of Education’s Office of Information Technology Services, that there have not been any additional Infinite Campus trainings since the summer of 2016, that cover the enrollment, withdrawal and transfer processes.

• V. ITEMS FOR CONSIDERATION

HRS §302D-12(f)12 delineates the duties and powers of a charter school’s governing 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

12 See Exhibit 4 for complete copy of the statute

11 supplemental collective bargaining agreements with the exclusive representatives of their employees.” The Commission’s relationship to each charter school starts and ends with the governing board of each charter school, and the success of each charter school starts and ends with the governance of that charter school by its governing board. The Commission’s authority to provide ongoing oversight and corrective actions HRS§ 302D-17(d): “(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

• f 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. . . .”

12 In consideration of the information provided to the Commission prior to, and during this general business meeting, the Commission may decide to do the following: If the Commission finds: The Commission may: that the school did not violate any, some, or all of the provisions of the charter contract as stated in the Notice of Concern the Commission may retract or modify the Notice of Concern that there is a violation of a provision/provisions of the charter contract, the Notice of Concern is upheld and an acceptable corrective action plan must follow that would remedy the contract violation. that the corrective action plan provided by the charter school is insufficient to address the contract violation, the Commission may prescribe, monitor for compliance, corrective action(s) to address the contract violation(s). Should the charter school fail to effect an accepted corrective action plan, the Commission may issue:

• 1. Issue a Notice of Deficiency which

may include prescriptive, specific action plans and conditions for the School; or

• 2. Issue a Notification of Warning which

initiates revocation proceedings in accordance with Chapter 302D, HRS, and applicable administrative rules. that the contract violation(s) show that there was:

• Unlawful or unethical conduct by

governing board members;

• Unlawful or unethical conduct by the

charter school's personnel that raises serious doubts about the governing board's ability to fulfill its statutory, the Commission may reconstitute the charter school’s governing board by:

• replacing 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;

• OR the Commission may replace the

entire governing board if the alternative

13 If the Commission finds: The Commission may: contractual, or fiduciary responsibilities; AND

• Other circumstances that raise serious

doubts about the governing board's ability to fulfill its statutory, contractual,

• r fiduciary responsibilities;

is the initiation of revocation of the charter school's charter contract and the governing board opts instead for reconstitution; and 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.

Exhibit 1 Notice of Concern to Governing Board of Kona Pacific Public Charter School December 8, 2017

DAVID Y. IGE GOVERNOR CATHERINE PAYNE CHAIRPERSON

STATE OF HAWAII STATE PUBLIC CHARTER SCHOOL COMMISSION (ʻAHA KULA HOʻĀMANA)

http://CharterCommission.Hawaii.Gov 1111 Bishop Street, Suite 516, Honolulu, Hawaii 96813 Tel: (808) 586-3775 Fax: (808) 586-3776

December 8, 2017 VIA EMAIL (board@kppcs.org) Phil Fisher Chair, School Governing Board Kona Pacific Public Charter School P.O. Box 115 Kealakekua, Hawaii 96750 RE: NOTICE OF CONCERN regarding: (1) enrollment, transfer and withdrawal practices; (2) condition of student records; (3) possible employee ethics violation; (4) possible governing board member and associated non-profit conflicts of interest; and (5) other contractual violations. Dear Mr. Fisher: This letter will serve as a Notice of Concern (“Notice”) as described in the Intervention Protocol, Exhibit D (“Intervention Protocol”), of the State Public Charter School Contract (“Charter Contract”) and Hawaii Revised Statutes (HRS) 302D-17(c). After receiving complaints and reports regarding the operational practices at Kona Pacific Public Charter School (“KPPCS”), reviewing student records, and conducting interviews with a number of current and former employees pursuant to the Commission’s authority and duties under HRS 302D-17(a) the Commission has determined that KPPCS is not in compliance with certain provisions of the Charter Contract. Under Hawaii Revised Statutes (HRS) 302D-5(a)(5) the Commission, as KPPCS’s authorizer is responsible for monitoring, in accordance with charter contract terms, the performance and legal compliance of public charter schools; and under HRS 302D-5(b)(2) is responsible for and ensure the compliance of a public charter school it authorizes with all applicable state and

Exhibit 1

Phil Fisher, Governing Board Chair Page 2 December 8, 2017

federal laws, including reporting requirements. Specifically, the provisions of the Charter Contract that the school is not in compliance with are as follows: i. Section 3.2 State Code of Ethics and Code of Conduct The School's Governing Board and employees shall comply with the State Code of Ethics, codified in Chapter 84, HRS. ii. Section 6.5 Assets The School shall maintain a complete and current inventory of all of its property and shall update the inventory annually. The School shall take all necessary precautions to safeguard assets acquired with public funds. iii. Section 7.4 Enrollment The School shall maintain accurate and complete enrollment data. iv. Section 7.5 Attendance The School shall maintain daily records of student attendance and absences. v. Section 7.8 Withdrawal and Transfer The School shall adopt and adhere to withdrawal and transfer procedures which provide for the timely release of any student who withdraws from the School and/or transfers to another school. The School’s withdrawal and transfer procedures shall also provide for the transfer of the student’s records to the new school in a reasonable timeframe. vi. Section 8.1 Student Records The School shall maintain student records for current and former students in accordance with the requirements of State and federal law, including the Family Education Rights and Privacy Act, 20 U.S.C. § 1232g (FERPA), as may be amended from time to time. vii. Section 10.1 Educational Data Pursuant to Section 302D-23, HRS, the School shall comply with the minimum educational data reporting standards established by the BOE and with additional data reporting required by the Commission in its oversight of this Contract and shall ensure all data is accurate and complete. viii. Section 13.2 Mandatory Notification The School shall notify the Commission within two calendar days when it has knowledge

• f any of the following:
• a. Any condition that may cause the School to vary from the terms of this Charter

Contract or applicable requirements, federal and/or State law;

• e. Any inaccuracy found in enrollment count or other data provided to the

Commission;

Phil Fisher, Governing Board Chair Page 3 December 8, 2017

According to available electronic student information system (eSIS) records, there were a total

• f 525 students associated with KPPCS entered into the system during school years 2008-2009

to 2015-2016. Of these 525 students, staff requested and examined records for students who were currently inactive, meaning that the student had withdrawn, transferred, or

• homeschooled. As such, there were 129 students that met this criteria.

Of the 129 students, staff was only able to obtain 65 student files that were produced by the

• school. Commission staff reviewed all 65 student files and found discrepancies in 42 of the

student files (53 incidents of discrepancies) that show evidence of the school’s failure to remove students from eSIS enrollment with a reasonable amount of time, resulting in KPPCS being paid for the student for the school year, and in some cases for multiple years. Exhibit 1 (attached excel spreadsheet) shows the individual student and a description of the discrepancy between the eSIS record (which is used to provide per-pupil funding) and the paper student file at the school. The Commission will not be publicly disclosing the identity of these students except to refer to them as “Student 1 through Student 36.” To insure confidentiality

• f the records, Sione Thompson will provide the password for this excel spreadsheet to you by

telephone. With respect to the ethics matters, Exhibit 2 lists the employees. The Commission will not be publicly disclosing the identity of these employees except to refer to them as “Employee 1 and Employee 2.” By providing you with the information in this format, the information regarding students and employees that the Commission finds relevant can be disclosed during any public discussions while protecting the privacy of any student and employee. Chapter 84, HRS.As specified under the Intervention Protocol, a response must be provided by the school governing board within fourteen calendar days of receipt of this Notice. The School must complete the Response to Notice of Concern form (provided as an attachment to this Notice) by December 22, 2017, no later than 4:30 P.M. Please return the form to the Commission at http://frameworks.compliance@spcsc.hawaii.gov. Any questions regarding this Notice can be directed to Scott Hall at scott.hall@spcsc.hawaii.gov or at 808-586-3781/808- 586-3838. The governing board’s response must include at least one of the following: i. A description of the remedy of the compliance breach; if the breach has been completely remedied, evidence of such remedy;

Phil Fisher, Governing Board Chair Page 4 December 8, 2017

ii. A written notification disputing the determination that a compliance breach has

• ccurred with accompanying evidence in support of that assertion; and/or

iii. A Corrective Action Plan designed to remedy the compliance breach that includes timelines and persons responsible for each action within the plan. If the submitted Corrective Action Plan is not mutually agreeable to both the School and the Commission staff, the matter will be brought to the Commission at a general business meeting. Failure to respond to the Notice or make progress towards the breach in the time stated in the Corrective Action Plan may escalate the severity of this situation and require additional action by the Commission. For more information, please see the Intervention Protocol, Exhibit D of the Charter Contract. Thank you very much for your attention to these matters and the Commission looks forward to a resolution. As determined by the response submitted, a notification will be provided via email when the Notice has been satisfactorily resolved. Best regards, Sione Thompson Executive Director c: Deann Canuteson, Operations Director, Kona Pacific Public Charter School (via email) Kim Le Bas, Pedagogical Director, Kona Pacific Public Charter School (via email)

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2014-2015 1 11 - Moved to another State 12/1/2014 Student record contains 11/10/2014 fax coversheet for student record transfer to mainland school; however, no parent request for transfer of records, so cannot verify withdrawal date 2013-2014 2 11 - Moved to another State 12/27/2013 Student record does not contain evidence of attendance in SY 2012-2013 or SY 2013-2014 or student record transfer request from parents or documentation of record transfer, so cannot verify withdrawal date 2012-2013 3 55 - Home Schooled 12/7/2012 Student record contains a Form 4140, but from previous school year (11/23/2011) 2009-2010 4 55 - Home Schooled 2/22/2010 Student record contains an enrollment agreement dated the day student was withdrawn to home school and does not contain a Form 4140; however, there is 10/18/2011 letter from school to parents re: option to participate in statewide assessment 2012-2013 5 55 - Home Schooled 12/7/2012 Form 4140 in student record was submitted on 9/11/2012, but student not withdrawn from KPPCS in DOE's SIS until after 10/15 per-pupil funding count date 2012-2013 6 54 - No Show 2/15/2013 Student admitted to KPPCS in DOE's SIS on 10/15/2012 and then withdrawn upon record transfer request from School; from fax coversheet for record transfer: "due to difficulties with housing, have never attended here;" no evidence in student record of attempts by school to confirm that student still intended to attend after not showing up for four months; sibling was not admitted to KPPCS in DOE's SIS 2012-2013 7 11 - Moved to another State 12/5/2012 Student withdrawn from KPPCS in DOE's SIS after 10/15 per- pupil funding count date, but student record does not contain evidence of withdrawal or student record transfer or evidence

• f enrollment prior to withdrawal

2013-2014 8 11 - Moved to another State 11/22/2013 Student record contains progress report for 1st Qtr SY 2013- 2014, but does not contain evidence of transfer to mainland school, so cannot verify whether student left before or after 10/15/2014 (DOE 1st Qtr ended 10/4/2013) Page 1 of 7

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2013-2014 9 11 - Moved to another State 5/30/2014 Student record contains record transfer request from mainland school dated signed by parent and dated 10/21/2013, so it is possible that student left KPPCS prior to 10/15 per-pupil funding count date; student not withdrawn from KPPCS in DOE's SIS until 5/30/14; sibling: 2013-2014 10 12 - Moved to another State 5/30/2014 Student record includes record transfer request from mainland school dated signed by parent and dated 10/21/2013, so it is possible that student left KPPCS prior to 10/15 per-pupil funding count date; student not withdrawn from KPPCS in DOE's SIS until 5/30/14; sibling: 2014-2015 11 11 - Moved to another State 12/1/2014 Student record contains enrollment paperwork (most recent document is hearing screening release form dated 8/27/2010), but no evidence that student attended KPPCS 2013-2014 11 11 - Moved to another State 12/1/2014 Student record contains enrollment paperwork (most recent document is hearing screening release form dated 8/27/2010), but no evidence that student attended KPPCS 2012-2013 11 11 - Moved to another State 12/1/2014 Student record contains enrollment paperwork (most recent document is hearing screening release form dated 8/27/2010), but no evidence that student attended KPPCS 2011-2012 11 11 - Moved to another State 12/1/2014 Student record contains enrollment paperwork (most recent document is hearing screening release form dated 8/27/2010), but no evidence that student attended KPPCS 2010-2011 11 11 - Moved to another State 12/1/2014 Student record contains enrollment paperwork (most recent document is hearing screening release form dated 8/27/2010), but no evidence that student attended KPPCS 2015-2016 12 55 - Home Schooled 10/23/2015 Form 4140 in student record is effective as of 9/1/2015 (signed by both parents 10/1/2015) 2013-2014 13 According to DOE's SIS, student was admitted to KPPCS on 8/14/2013; however, student record contains record transfer request from KPPCS to mainland school indicating that student enrolled at KPPCS for SY 2014-2015 and transferred records include evidence (report cards) that student was enrolled at mainland school in SY 2013-2014, not at KPPCS 2014-2015 14 10 - Enrolling Private School 12/15/2014 Student record does not contain evidence of either attendance at KPPCS (i.e., progress reports, health records) or transfer to private school, so cannot verify withdrawal date Page 2 of 7

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2014-2015 15 11 - Moved to another State 9/22/2015 Student record contains enrollment documentation for SY 2012-2013, but no evidence that student attended KPPCS or transferred to mainland school, so cannot verify withdrawal date 2013-2014 15 11 - Moved to another State 9/22/2015 Student record contains enrollment documentation for SY 2012-2013, but no evidence that student attended KPPCS or transferred to mainland school, so cannot verify withdrawal date 2012-2013 15 11 - Moved to another State 9/22/2015 Student record contains enrollment documentation for SY 2012-2013, but no evidence that student attended KPPCS or transferred to mainland school, so cannot verify withdrawal date 2014-2015 16 11 - Moved to another State 11/7/2014 Student record contains progress report for 1st Qtr SY 2014- 2015, but does not contain evidence of transfer to mainland school, so cannot verify whether student left before or after 10/15/2014 (DOE 1st Qtr ended 10/3/2014) 2012-2013 17 55 - Home Schooled 1/3/2013 According to DOE's SIS, student was withdrawn from KPPCS

• n 1/3/2013 in grade 8, but student was admitted to KPPCS
• n 8/3/2009 in grade 7; according to enrollment form,

student's DOB , making student's age on 1/3/2013 ( years) appropriate for grade 2010-2011 17 Student record only contains one undated report card for grade 4, so cannot confirm attendance at KPPCS through 1/3/2013 (when student was withdrawn to home school) 2009-2010 17 According to DOE's SIS, student was admitted to KPPCS on 8/3/2009 in grade 7, but student record contains enrollment agreement dated 2/10/2009 for grade 5; according to enrollment form, student's DOB , making student's age on 8/3/2009 ( years) appropriate for grade 2013-2014 18 11 - Moved to another State 12/11/2013 Student record does not contain evidence of attendance from 8/9/2013 or transfer to mainland school, so cannot verify withdrawal date; sibling: 2013-2014 19 11 - Moved to another State 12/11/2013 Student record does not contain evidence of attendance from 8/9/2013 or transfer to mainland school, so cannot verify withdrawal date; sibling: Page 3 of 7

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2015-2016 20 11 - Moved to another State 9/23/2015 Student record contains enrollment agreement for SY 2014- 2015, but no evidence of attendance that year or withdrawal/transfer to a mainland school, so cannot verify withdrawal date; sibling: 2014-2015 20 11 - Moved to another State 9/23/2015 Student record contains enrollment agreement for SY 2014- 2015, but no evidence of attendance that year or withdrawal/transfer to a mainland school, so cannot verify withdrawal date; sibling: 2013-2014 20 11 - Moved to another State 9/23/2015 Student record contains enrollment agreement for SY 2014- 2015, but no evidence of attendance that year or withdrawal/transfer to a mainland school, so cannot verify withdrawal date; sibling: 2013-2014 21 11 - Moved to another State 12/15/2014 Student record contains enrollment agreement for SY 2014- 2015, but no evidence of attendance that year or withdrawal/transfer to a mainland school, so cannot verify withdrawal date; sibling: 2012-2013 22 55 - Home Schooled 12/7/2012 Form 4140 in student record is effective as of 10/18/2011 (signed by both parents 11/16/2011) 2009-2010 22 According to DOE's SIS, student was admitted to KPPCS on 11/30/2009 in grade 3, but student record contains enrollment agreement dated 2/10/2009 for grade 1; according to birth certificate, student's DOB , making student's age on 11/30/2009 ( years) appropriate for grade 2012-2013 23 55 - Home Schooled 12/7/2012 According to DOE's SIS, student was admitted to KPPCS on 8/10/2011, but student record contains letter from parent dated 8/31/2011 requesting that student be withdrawn from KPPCS for SY 2011-2012; student record does not include a Form 4140; sibling: 2011-2012 23 55 - Home Schooled 12/7/2012 According to DOE's SIS, student was admitted to KPPCS on 8/10/2011, but student record contains letter from parent dated 8/31/2011 requesting that student be withdrawn from KPPCS for SY 2011-2012; student record does not include a Form 4140; sibling: Page 4 of 7

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2014-2015 24 12 - Moved foreign country 9/17/2015 Student record contains enrollment documentation for SY 2011-2012 and SY 2012-2013, but no evidence that student attended KPPCS or transferred to school abroad, so cannot verify withdrawal date 2013-2014 24 12 - Moved foreign country 9/17/2015 Student record contains enrollment documentation for SY 2011-2012 and SY 2012-2013, but no evidence that student attended KPPCS or transferred to school abroad, so cannot verify withdrawal date 2012-2013 24 12 - Moved foreign country 9/17/2015 Student record contains enrollment documentation for SY 2011-2012 and SY 2012-2013, but no evidence that student attended KPPCS or transferred to school abroad, so cannot verify withdrawal date 2011-2012 24 12 - Moved foreign country 9/17/2015 Student record contains enrollment documentation for SY 2011-2012 and SY 2012-2013, but no evidence that student attended KPPCS or transferred to school abroad, so cannot verify withdrawal date 2015-2016 25 11 - Moved to another State 12/21/2015 According to DOE's SIS, student was admitted to KPPCS on 10/8/2015; however, although student record contains documentation of acceptance and parents' interest in enrolling student, there is no enrollment paperwork or evidence of attendance; sibling: 2015-2016 26 11 - Moved to another State 12/21/2015 According to DOE's SIS, student was admitted to KPPCS on 10/8/2015; however, although student record contains documentation of acceptance and parents' interest in enrolling student, there is no enrollment paperwork or evidence of attendance; sibling: 2014-2015 27 55 - Home Schooled 12/12/2014 Student record contains notice of withdrawal form signed by parent requesting that student be withdrawn from KPPCS as

• f 5/30/2014 for SY 2014-2015; student record does not

include a Form 4140 2014-2015 28 11 - Moved to another State 10/1/2015 Student record includes progress reports for SY 2013-2014, but no evidence of attendance beyond this year or of transfer to mainland school; note: according to DOE's SIS, siblings transferred to mainland school on 12/22/2014 Page 5 of 7

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2009-2010 29 55 - Home Schooled 7/5/2010 Form 4140 in student record is neither signed nor dated, so cannot verify when student was withdrawn to home school; however, student record does contain a letter from KPPCS to parents re: opportunity to participate in statewide assessments for SY 2011-2012 2012-2013 30 99 - Transfer to HDOE School 8/20/2013 According to DOE's SIS, student was re-admitted to KPPCS

• n 10/15/2012, but student record does not contain enrollment

paperwork or evidence of attendance, so cannot verify that student attended during this time 2011-2012 30 55 - Home Schooled 5/14/2012 Student record does not contain a Form 4140, so cannot verify if/when student withdrew to home school 2011-2012 31 55 - Home Schooled 5/14/2012 Student record does not contain a Form 4140, so cannot verify if/when student withdrew to home school 2014-2015 32 According to DOE's SIS, student was admitted to KPPCS on 10/15/2012; however, student record does not contain evidence of attendance until SY 2015-2016 2013-2014 32 According to DOE's SIS, student was admitted to KPPCS on 10/15/2012; however, student record does not contain evidence of attendance until SY 2015-2016 2012-2013 32 According to DOE's SIS, student was admitted to KPPCS on 10/15/2012; however, student record does not contain evidence of attendance until SY 2015-2016 (2016-2017?) 33 Student record contains record transfer request from private school dated 2/6/2016, but student was not withdrawn from KPPCS in DOE's SIS as of Summer 2016 2014-2015 34 11 - Moved to another State 10/5/2015 According to DOE's SIS, student was re-admitted to KPPCS

• n 7/31/2014 after transferring to mainland school on

3/24/2014, but student record does not contain enrollment paperwork or evidence of attendance for SY 2014-2015 of SY 2015-2016, so cannot verify that student attended during this time 2014-2015 35 54 - No Show 10/5/2015 Student record contains health record and birth certificate, but no enrollment paperwork or evidence of attendance for SY 2014-2015 or SY 2015-2016, so cannot verify whether student attended during this time Page 6 of 7

Exhibit 1 Enrollment Discrepancies

School year Last name First name Student # for public disclosure Withdrawal reason from DOE's student information system (SIS) Withdrawal date Discrepancy 2014-2015 36 11 - Moved to another State 12/17/2014 Form 4140 in student record is effective as of 8/7/2014 (accompanied by signed letter dated 8/11/2014); according to DOE's SIS, student was not withdrawn to home school Page 7 of 7

EXHIBIT 2 Kona Pacific Public Charter School (KPPCS) employees and ethics violations Publicly ID employee number Employee Name Ethics violation Alleged Actions Employee 1 GIFT-VIOLATION OF ETHICS (>$25.00)- violation of (HRS §84- 11, 11.5) Admitted to acceptance of a leased Mercedes SUV for personal use from a vendor who was seeking to lease land for a solar farm and also donated solar panels to the school. Employee 1 Violation of post- employment restrictions HRS Sections 84-18(b) and (c) After leaving the employment of KPPCS, began work /accepted contracts with the non- profit Friends of KPPCS. Employee 2 Violation of post- employment restrictions HRS Sections 84-18(b) and (c) Immediately upon leaving school employment began work for Friends of KPPCS

Exhibit 2 Governing Board of Kona Pacific Public Charter School’s Response to the Notice of Concern of December 8, 2017

DAVID Y. IGE GOVERNOR CATHERINE PAYNE CHAIRPERSON STATE OF HAWAII STATE PUBLIC CHARTER SCHOOL COMMISSION (ʻAHA KULA HOʻĀMANA) 1111 Bishop Street, Suite 516, Honolulu, Hawaii 96813 Tel: (808) 586-3775 Fax: (808) 586-3776 RESPONSE TO NOTICE OF CONCERN Governing Board for: Kona Pacific Public Charter School Date Notice of Concern issued: December 8, 2017 Issue/Compliance Breach: (1) enrollment, transfer and withdrawal practices; (2) condition

• f student records; (3) possible employee ethics violation; (4) possible governing board

member and associated non-profit conflicts of interest; and (5) other contractual violations. Response Due By: January 15, 2018 (extension granted) On behalf of Kona Pacific Public Charter School, I, Phil Fisher, as its governing board chair, hereby affirm (check one option and attach requested information): x That we dispute the determination a compliance breach has occurred, and have attached evidence in support of that assertion (may attach additional documentation if necessary). We understand that by disputing this Notice of Concern that the matter will be decided by the Commission at the next General Business meeting should Commission staff decide to uphold the compliance breach. x That we are submitting a corrective action plan that is designed to remedy the compliance breach, which include timelines and persons responsible for each action within the plan. I understand that if the submitted Corrective Action Plan is not mutually agreeable to both our Charter School and the Commission staff, the matter will be brought to the Commission for determination at the next General Business Meeting. We also understand that the Commission shall be updated on the issuance, remedy, and progress towards implementation of our approved corrective action plan in the Executive Director’s Report during the Commission’s General Business Meetings.

Exhibit 2

Phil Fisher, Governing Board Chair Page 3 January 15, 2018

3 3. KPPCS is working with the Attorney General to develop an automatic withdrawal policy in order to address situations in which a student is not attending the school but KPPCS has difficulty obtaining a withdrawal form from parents. 4. Updated KPPCS enrollment & withdrawal procedures have been adopted, and student records staff are trained regarding these procedures. (see Attachment 6 - Student Enrollment/Withdrawal Process; Attachment 7 – Enrollment Document Checklist; Attachment 8 - Student Withdrawal Procedures; Attachment 9 – Exiting Student Checklist) II. Condition of Student Records As set forth above, in the past there has been room for improvement in KPPCS student record

• keeping. The challenges were the result of lack of established student record keeping procedures,

clerical error, difficulty obtaining withdrawal form from parents, and challenges with student information systems. In order to avoid any future errors in student record keeping, KPPCS has adopted the following corrective actions: 1. In the fall of 2015, all student files were thoroughly reviewed and updated. 2. Student records staff participate in regular Infinite Campus trainings. 3. KPPCS is working with the Attorney General to develop an automatic withdrawal policy in order to address situations in which a student is not attending the school but KPPCS has difficulty obtaining a withdrawal form from parents. 4. Updated KPPCS enrollment & withdrawal procedures have been adopted, and student records staff are trained regarding these procedures. (see Attachment 6 - Student Enrollment/Withdrawal Process; Attachment 7 – Enrollment Document Checklist; Attachment 8 - Student Withdrawal Procedures; Attachment 9 – Exiting Student Checklist) III. Possible Employee Ethics Violation Former KPPCS received a leased vehicle from in November,

• 2013. The receipt of this gift was not in violation of any law or ethics code.

Hawaii Revised Statutes §84-11 states, in relevant part, as follows: §84-11 Gifts. No legislator or employee shall solicit, accept, or receive, directly or indirectly, any gift, whether in the form of money, service, loan, travel, entertainment, hospitality, thing, or promise, or in any other form, under circumstances in which it can reasonably be inferred that the gift is intended to influence the legislator or employee in the performance of the legislator's or employee's official duties or is intended as a reward for any official action on the legislator's or employee's part. §84-11.5 Reporting of gifts. (a) Every legislator and employee shall file a gifts disclosure statement with the state ethics commission on June 30 of each year if all the following conditions are met:

Attachment 10

Attachment 11

Attachment 12

Attachment 13

Exhibit 3 Hawaii State Ethics Commission Advisory and Guidance

Guidelines for Gifts Under the State Ethics Code

The State Ethics Code, chapter 84, Hawaii Revised Statutes (“HRS”), has a gifts law that prohibits state legislators and employees from accepting certain gifts. To assist legislators and employees in better understanding the gifts law and to help prevent inadvertent violations of the law, these guidelines outline the types of gifts that generally may be accepted and the types of gifts that generally may not be accepted under the law. The guidelines are not intended to be a comprehensive discussion of the gifts law; rather, they are a resource to help you quickly recognize the types of gifts that may raise concerns under the law. It is strongly recommended that you contact the State Ethics Commission (“Commission”) for advice if you have questions about any gifts, especially gifts that may not be addressed by these guidelines. The State Ethics Code: The Constitutional Mandate and Statutory Purpose The Hawaii State Constitution, Article XIV, entitled “Code of Ethics,” declares that “[t]he people of Hawaii believe that public officers and employees must exhibit the highest standards of ethical conduct and that these standards come from the personal integrity of each individual in government.” (Emphasis added.) With this constitutional mandate as the foundation, the legislature adopted the State Ethics Code directing that the ethics laws be “liberally construed to promote high standards of ethical conduct in state government.” (Emphasis added.) It is in this light that the Commission must interpret the gifts law and the other sections of the State Ethics Code. Gifts Law, HRS Section 84-11 '84-11 Gifts. No legislator or employee shall solicit, accept, or receive, directly or indirectly, any gift, whether in the form of money, service, loan, travel, entertainment, hospitality, thing, or promise, or in any other form, under circumstances in which it can reasonably be inferred that the gift is intended to influence the legislator or employee in the performance of the legislator=s or employee=s official duties or is intended as a reward for any

• fficial action on the legislator=s or employee=s part.

The gifts law prohibits a legislator or employee from accepting any gift if it is reasonable to infer the gift is intended to influence or reward official action. In determining whether or not a gift may be accepted, the Commission considers the following: (1) the value or cost of the gift; (2) the relationship between the donor of the gift and the recipient of the gift, including whether the donor is subject to official action

Page 2

by the recipient; and (3) whether the gift provides any “state benefit,” including whether the gift will benefit the recipient in the performance of his or her official duties. A legislator or employee who receives a gift sometimes may contend that the gift will not actually influence him or her. This, however, is not a factor in determining whether or not a gift may be accepted under the law. The gifts law is based on perception: Does it appear to a reasonable person that the gift is intended to influence

• r reward official action? If the answer is yes, then the gift is prohibited.

Gifts Guidelines The following guidelines apply to four categories of gifts: Tangible Gifts; Meals and “Food and Drink” Events; Activity-related Gifts; and Travel. Certain types of gifts, generally, may be accepted under the gifts law. Please note, however, that the guidelines concerning acceptable gifts may not apply to all state

• employees. In particular, for employees whose official duties include law enforcement,

regulation, inspection, or procurement, the acceptance of any gift from certain individuals or organizations may be prohibited. These employees are advised to contact the Commission before accepting gifts from anyone who is subject to their enforcement, regulation, inspection, or procurement duties. (1) Tangible Gifts: “Gifts of Aloha” and other nominal gifts may be accepted. “Gifts of Aloha” are modest gifts of nominal value, which are traditionally given as part of our local culture as a gesture of aloha or goodwill. “Gifts

• f Aloha” include, but are not limited to, flowers or a flower lei, or a box of

candy, cookies, manapua or malasadas to share with the office. Other tangible gifts of nominal or minimal value may also be accepted. Examples of acceptable gifts include a calendar, coffee mug, or small promotional business items such as a pen, mousepad, or refrigerator magnet. Generally speaking, tangible gifts other than “Gifts of Aloha” or gifts of nominal value cannot be accepted. Examples of prohibited tangible gifts include, but are not limited to, cash, gift cards, computer or electronic equipment, jewelry, sports equipment, and gifts of personal benefit that are not of nominal or minimal value. (2) Meals and “Food and Drink” Events: Meals and “food and drink” types of events valued at under $25, generally, may be accepted. Examples of meals and “food and drink” types of events include, but are not limited to, breakfasts, lunches, and dinners; pupus; receptions; “meet

Page 3

and greet” types of events; and fundraiser dinners. These meals and “food and drink” events, if valued at under $25, generally may be accepted.1 The value of a gift generally means its fair market value. With respect to events requiring admission by ticket, such as a fundraiser dinner, the Commission considers the value of the event to be the face value of the ticket, not the net cost of the ticket or the subjective value of the food and drink consumed by an individual at the event. Receptions and meals, including ticketed events, valued at $25 or more, may not be accepted by a legislator or employee unless there is a legitimate “state benefit,” i.e., there is a reasonable relationship between the event and the legislator’s or employee’s official duties. Generally, a desire to “show support” for an organization by attending a fundraising function is not, by itself, sufficient to establish a “state benefit.” (3) Activity-related Gifts: Gifts that are activity-related, generally, cannot be accepted except in very limited situations. “Activity-related” gifts include, but are not limited to, recreational, sports, and entertainment events such as golf (including charity golf tournaments), cruises, tickets to athletic contests, movies, shows, concerts, and tickets or passes to visitor attractions. (4) Travel: Travel cannot be accepted absent a legitimate “state benefit,” i.e., a reasonable relationship between the trip and the legislator’s or employee’s official duties. Gifts that are travel-related, including, but not limited to, airfare, hotel accommodations, and meals, generally, may be accepted only if there is a legitimate “state benefit” (i.e., the purpose of the travel-related gift must reasonably benefit the legislator or employee in performing his or her

• fficial duties).

If you are offered a gift that includes travel-related expenses, it is strongly recommended that you contact the Commission’s office for advice. You will be asked to complete a travel questionnaire that will assist the Commission’s staff in issuing you advice.

1 However, as discussed above, for employees whose official duties include law enforcement, regulation,

inspection, or procurement, the acceptance of any gift from certain individuals or organizations may be prohibited, so those employees should contact the Commission’s office for advice prior to accepting meals and invitations to “food and drink” events of any value.

Page 4

Gift Type What Can Be Accepted Tangible Gifts “Gifts of Aloha” and gifts of nominal or minimal value Meals and “Food and Drink” Events Less than $25 Activity-related Gifts Nothing, except in very limited circumstances Travel Must establish legitimate “state benefit” The Commission emphasizes that these are general guidelines and they may not apply to every gift situation. There may be circumstances that would allow a legislator

• r an employee to accept a gift that falls outside of the guidelines for acceptable gifts.2

If you are offered a gift that appears to fall outside of these guidelines, you should contact the Commission for further discussion and advice about your specific situation. In addition to the gifts law, other sections of the State Ethics Code may also

• apply. For example, the State Ethics Code prohibits legislators and employees from

accepting gifts that amount to unwarranted privileges or benefits to them.3 Reporting of Gifts, Section 84-11.5, HRS The State Ethics Code also requires legislators and employees to file a gifts disclosure statement if three conditions are met: (1) the legislator or employee, or the legislator’s or employee’s spouse or dependent child, has received a gift or gifts valued singularly or in the aggregate in excess of $200 from one source; (2) the source of the gifts has interests that may be affected by the legislator’s or employee’s official action; and (3) the gift is not exempted from the gifts reporting requirements.4 Please remember that a legislator or employee is not allowed to accept a gift under the State Ethics Code just because the gift has been reported on a gifts disclosure statement. Contact the State Ethics Commission for Advice If you have questions as to whether the acceptance of any gift is permissible under the State Ethics Code, please do not hesitate to contact the State Ethics Commission for advice at (808) 587-0460 or ethics@hawaiiethics.org.

2 The legislator or employee must, however, demonstrate that the gift will provide a legitimate state

benefit.

3 HRS section 84‐13 et seq. It is beyond the scope of these guidelines to discuss gifts situations that may

also raise concerns under other sections of the State Ethics Code. If you have questions about other ethics laws that may apply to a specific situation, please contact the Commission’s office.

4 See HRS section 84‐11.5(d).

(Issued: 8/2011)

HAWAII STATE ETHICS COMMISSION

1001 Bishop Street, Suite 970 | Honolulu, Hawaii 96813 | ethics@hawaiiethics.org | (808) 587-0460 Whether you can accept a gift, an invitation to an event, or a trip, and what (and when) you need to report This guide provides general guidelines on whether state

• ffjcials can accept gifts. However, every situation is difgerent,

so please call us if you have questions! Any time you are ofgered a gift, there are three ethics laws to consider:

• 1. The gifts law prohibits you from accepting any gift where

there is a reasonable inference that the gift is intended to infmuence you in the performance of your job.

• 2. The gifts reporting law requires that you fjle an annual

report (in June) if you have received, from one source, any gift(s) that, singly or together, are valued at more than $200.

• 3. The fair treatment law prohibits you from getting extra

perks (or “unwarranted” benefjts) for yourself or someone else. The fjrst question is whether you can accept a gift. The State Ethics Commission looks at three factors:

• 1. Donor. Who is ofgering the gift to you? What is that

person’s relationship to you? If you are directly regulating someone – that is, if you decide whether someone gets a permit, or funding, or a citation – then you generally should not accept anything from that person, regardless

• f its value. If the person giving the gift is a long-time

personal friend who never does business with your state agency, that’s probably okay. This is usually the fjrst question we ask – if the donor relationship creates a problem, we usually don’t even look at the second two factors.

• 2. Value. How much is the gift worth? Is someone giving

you a pencil worth a few cents or a round of golf worth $100? The public should trust you to do your job with integrity; this trust may be lost if people see you taking lavish trips, eating fancy meals, or otherwise enjoying expensive things that are paid for by someone else.

• 3. State purpose. How will the State benefjt if you accept

the gift? Here are some things to consider when deciding whether to accept a gift: Educational value. Will the gift (for example, a gift that involves travel to attend a conference) help you better perform your state job? Usually, we look at whether there is real educational value in attending an event or going on a trip (either for you to gain knowledge or for you to impart your expertise, if that’s within your agency’s mission). On the other hand, is the event really just entertainment, like a sports event

• r a concert? Keep in mind that “networking” alone probably

isn’t enough to show that a gift will benefjt the State.

• Protocol. Going to an event with visiting dignitaries from

another country is part of the job for some government

• ffjcials, such as the Governor, and those offjcials have

more discretion to go to events for protocol purposes. For legislators, the Ethics Commission gives some weight to events within the legislator’s district. The Commission may allow individuals to accept certain gifts when refusing such a gift would be culturally inappropriate – for example, legislators can usually accept inexpensive (under $25) “gifts of aloha” from constituents. The Commission looks at what your job is with the state and how your acceptance of this gift may – or may not – fjt within the State’s mission and your job duties. No State Purpose. Certain gifts are almost always prohibited:

• Travel upgrades (for example, an upgrade to fjrst-class

plane travel or to a nicer hotel room ofgered to you because

• f your position with the state);
• Golf;
• Tickets to concerts, sporting events, theatrical

performances, movies, and other entertainment events;

• Cash or gift cards.

The following charts may help, but please remember, the State Ethics Commission is here to help you! Any time you have a question about the Ethics Code – for example, if you’re wondering whether you can (or should) do something – please contact us. We have an attorney of the day ready to take your (confjdential) call or e-mail. You can reach us at ethics@ hawaiiethics.org or (808) 587-0460. Also, the Ethics Commission ofgers trainings at least once a month. Check http://ethics.hawaii.gov for the latest schedule. We look forward to working with you – and more than 50,000 other state employees, board members, and commission members – to maintain the highest ethical standards in government!

HAWAII STATE ETHICS COMMISSION

1001 Bishop Street, Suite 970 Honolulu, HI 96813 (808) 587-0460 ethics@hawaiiethics.org http://ethics.hawaii.gov/ Twitter: @HawaiiEthics

THE STATE ETHICS CODE – A QUICK GUIDE ON GIFTS

Question #1: Who’s ofgering the gift to you?

Usually prohibited regardless of the value of the gift May be allowed depending on the circumstances Usually allowed A person or business that is:

• regulated by my agency;
• applying for a permit with

my agency; or

• involved in a contested

case with my agency. These “gifts” are more like bribes – they are prohibited. A contractor, consultant, or vendor of my agency. These kinds of gifts are generally prohibited, though there are times when you can

• accept. Call for advice.

A non-profjt organization or trade association. These kinds of gifts are allowable in some circumstances and prohibited in

• thers. Call us for advice.

A foundation or government agency that wants to support government employees working in my fjeld These kinds of gifts may be allowable depending upon the value of the gift and the state

• purpose. Move on to Question

#2 A family member or long-time friend who doesn’t do any business with my agency. These kinds of gifts are usually

• kay to accept unless you think

you were given the gift because

• f your state position.

Yes! It will be really fun and entertaining, but probably won’t benefjt the State much…. No – I will learn a lot from this event, but I wouldn’t call it “fun.” It’s entertaining, I guess, but I’m going because I feel like I need to attend. Otherwise, I’d rather skip it.

• Hmm. There might be ethics

problems here. Don’t accept unless you speak with the Ethics Commission fjrst. Consider whether you can conduct whatever business you need somewhere else, like in your offjce, and ask yourself whether going to this event is really the best way for you to serve the public. Okay, I’ll pass. I’m going anyway!!! Violating the Ethics Code can lead to fjnes of $1,000 per violation and other

• consequences. Please call us

fjrst! Is this really related to your state duties? Will this help you do your job better? Maybe, but I’m not sure. You bet! The public will be impressed at what a great job I’m doing serving the people of Hawaii!

Great choice!!! Way to be an ethics role model!

Call us. These can be close questions, and it depends on what your reason is for being there, how much the event costs, your relationship with the donor, and how many of these events you’ve gone to in the past. Remember the goal is to make sure that the people of Hawaii have trust in state offjcials to act in the public interest, and that you’re not abusing your position to get free food, travel, or other perks.

Question #2: Consider the kind of gift that’s being ofgered and whether there is a benefjt to the State. Let’s assume we’re talking about an invitation to an event: is there any benefjt to the State or is it just for your personal entertainment?

Events / Conferences / Other Gifts

Current as of July 2017. See ethics.hawaii.gov for updates.

HAWAII STATE ETHICS COMMISSION

1001 Bishop Street, Suite 970 | Honolulu, HI 96813 | ethics@hawaiiethics.org | (808) 587-0460 | Twitter: @HawaiiEthics

THE STATE ETHICS CODE – A QUICK GUIDE ON POST-EMPLOYMENT LAWS

Are there any restrictions on me once I leave my job with the State of Hawaii? What if I’m an unpaid Board

• r Commission member?
• Yes. The post-employment laws apply to anyone who has worked for the State for at least six months, as an employee, legislator,
• r unpaid Board/Commission member.

What are the post-employment rules?

There are three restrictions:

• 1. A one-year restriction on certain kinds of private work;
• 2. A two-year restriction on contracts with the State; and
• 3. A permanent restriction on revealing confjdential information.

Here’s how each one works:

• 1. One-year “cooling ofg” period. For one year after you leave state employment, you may not:
• a. represent someone else, for pay, before your former agency; or
• b. represent someone else, for pay, on any matters you worked on while at your former agency.

In other words, for one year, you may not communicate directly with your former agency on behalf of a private

• employer. Also, for one year, you can’t represent your company before any state agency on matters you worked
• n while a state employee.
• 2. Two-year restriction on certain kinds of contracts. The Ethics Code prohibits a state agency from

contracting with a private company if:

• a. the private company is assisted by a former employee of the state agency;
• b. the former employee worked on the same matter while s/he worked for the State; and
• c. the former employee left state employment less than 2 years ago.

Here’s how this works: let’s say you work on a project for the State, and you then leave your state job to work for a private company. Your new employer wants to bid on a contract with the State involving the same project. If you assist the company with its bid, and you left your state job less than 2 years ago, the State cannot enter into the contract with your company. In other words, by assisting the company with its bid, you could “taint” the potential contract, costing your new private employer the opportunity to work on that contract. To see how this works in practice, see http://bit.ly/HIethics-2017-05.

• 3. Permanent restriction on using or revealing confjdential information. You may not disclose confjdential

information you learned while employed by the State or use it for anyone’s benefjt. I’m retiring, but my agency wants to contract with me to fjnish up some work. Can we do that? Yes, within limits. The State can contract directly with a former employee “to act on a matter on behalf of the State”; therefore, the State may enter into a limited contract with a former employee without any “cooling ofg” period. If you are thinking about doing this, please contact the Ethics Commission for advice. Can I get help from the Ethics Commission before I leave my job with the State? What about after I leave? Yes and yes! If you are thinking of leaving your state job, contact us for confjdential guidance about what restrictions might apply to you in a new job. If you’re already in your new job, you can still call us – it’s free, it’s fast, and it’s confjdential. Is there anything else required by the Ethics Code before I leave State employment?

If you fjle a fjnancial disclosure form each year, you may need to fjle an “exit” form. Similarly, you may need to fjle a fjnal gifts disclosure statement if you received any reportable gifts in the last year. Contact the Ethics Commission for more information.

Exhibit 4 Hawaii Revised Statutes Chapter 302A-1132 Chapter 302D Sections 5; 12; 17; 23; 28 Hawaii Revised Statutes Chapter 84 Sections 11.5, 12, 13, 14, 15, 16, 17, 18, 19

§302A-1132 Attendance compulsory; exceptions. (a) Unless excluded from school or excepted from attendance, all children who will have arrived at the age of at least five years on or before July 31 of the school year, and who will not have arrived at the age of eighteen years, by January 1 of any school year, shall attend either a public or private school for, and during, the school year, and any parent, guardian, or other person having the responsibility for, or care of, a child whose attendance at school is obligatory shall send the child to either a public or private school. Attendance at a public or private school shall not be compulsory in the following cases: (1) Where the child is physically or mentally unable to attend school (deafness and blindness excepted), of which fact the certificate of a duly licensed physician shall be sufficient evidence; (2) Where the child, who has reached the fifteenth anniversary of birth, is suitably employed and has been excused from school attendance by the superintendent or the superintendent's authorized representative, or by a family court judge; (3) Where, upon investigation by the family court, it has been shown that for any other reason the child may properly remain away from school; (4) Where the child has graduated from high school; (5) Where the child is enrolled in an appropriate alternative educational program as approved by the superintendent or the superintendent's authorized representative in accordance with the plans and policies

• f the department, or notification of intent to home school has been submitted to the principal of the

public school that the child would otherwise be required to attend in accordance with department rules adopted to achieve this result; or (6) Where: (A) The child has attained the age of sixteen years; (B) The principal has determined that: (i) The child has engaged in behavior which is disruptive to other students, teachers, or staff;

• r

(ii) The child's non-attendance is chronic and has become a significant factor that hinders the child's learning; and (C) The principal of the child's school, and the child's teacher or counselor, in consultation with the child and the child's parent, guardian, or other adult having legal responsibility for or care of the child, develops an alternative educational plan for the

• child. The alternative educational plan shall include

a process that shall permit the child to resume school.

The principal of the child's school shall file the plan made pursuant to subparagraph (C) with the child's school record. If the adult having legal responsibility for or care of the child disagrees with the plan, then the adult shall be responsible for obtaining appropriate educational services for the child. (b) Any employer who employs a child who is excused from school attendance in accordance with subsection (a)(2) shall notify the child's school within three days upon termination of the child's employment. (c) Beginning with the 2014-2015 school year, any parent, guardian, or other person having the responsibility for, or care of, a child who will be at least five years of age on or before July 31 of the school year shall enroll the child in a public school kindergarten unless the child is enrolled at a private school or the child's attendance is otherwise exempt under this section. [L 1996, c 89, pt

• f §2 and am c 162, §2; am L 2014, c 76, §3]

Cross References Kindergartens; attendance, see §302A-411. Case Notes Because the State provides schooling for all children between the ages of six and eighteen, plaintiff, a minor, had a property interest in plaintiff's education. 950 F. Supp. 2d 1159 (2013).

§302D-5 Authorizer powers, duties, and

• liabilities. (a) Authorizers are responsible for executing the

following essential powers and duties: (1) Soliciting and evaluating charter applications; (2) Approving quality charter applications that meet identified educational needs and promote a diversity of educational choices; (3) Declining to approve weak or inadequate charter applications; (4) Negotiating and executing sound charter contracts with each approved charter applicant and with existing public charter schools; (5) Monitoring, in accordance with charter contract terms, the performance and legal compliance of public charter schools; and (6) Determining whether each charter contract merits renewal, nonrenewal, or revocation. (b) An authorizer shall: (1) Act as a point of contact between the department and a public charter school it authorizes; (2) Be responsible for and ensure the compliance of a public charter school it authorizes with all applicable state and federal laws, including reporting requirements; (3) Be responsible for the receipt of applicable federal funds from the department and the distribution

• f funds to the public charter school it authorizes; and

(4) Be responsible for the receipt of per-pupil funding from the department of budget and finance and distribution of the funding to the public charter school it authorizes. (c) An authorizer shall have the power to make and execute contracts and all other instruments necessary or convenient for the exercise of its duties and functions under this chapter. (d) An authorizer may delegate its duties to officers, employees, and contractors. (e) Regulation by authorizers shall be limited to the powers and duties set forth in this section, and shall be consistent with the spirit and intent of this chapter. (f) An authorizer, members of the board of an authorizer acting in their official capacity, and employees or agents of an authorizer are immune from civil and criminal liability with respect to all activities related to a public charter school authorized by that authorizer, except for any acts or omissions constituting wilful

• misconduct. Members of the commission shall be afforded the same

protection afforded the members of the board pursuant to section 26- 35.5. (g) An authorizer shall not provide technical support to a prospective charter school applicant, an applicant governing board, or

a charter school it authorizes in cases in which the technical support will directly and substantially impact any authorizer decision related to the approval or denial of the charter application or the renewal, revocation, or nonrenewal of the charter contract. This subsection shall not apply to technical support that an authorizer is required to provide to a charter school pursuant to federal law. [L 2012, c 130, pt of §2; am L 2013, c 159, §5; am L 2014, c 99, §5; am L 2015, c 114, §3; am L 2016, c 113, §1]

§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

• f an employee or former employee of a charter school, or any vendor

• r 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

• r 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

• f 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

• ffice 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

• ffice 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

• fficers:

(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]

§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 and investigations, so long as those activities are consistent with the intent of this chapter and adhere to the terms

• f the charter contract.

(b) Each authorizer shall annually publish and provide, as part

• f 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]

[§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]

§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

• n 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, only to schools 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

• f 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

• peration 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]

CHAPTER 84 STANDARDS OF CONDUCT Preamble Part I. General Provisions Section 84-1 Construction 84-2 Applicability 84-3 Definitions Part II. Code of Ethics 84-10 University of Hawaii; technology transfer activities; exemption 84-11 Gifts 84-11.5 Reporting of gifts 84-12 Confidential information 84-13 Fair treatment 84-13.5 Washington Place; campaign activities 84-14 Conflicts of interests 84-15 Contracts 84-16 Contracts voidable 84-17 Requirements of disclosure 84-17.5 Disclosure files; disposition 84-18 Restrictions on post employment 84-19 Violation Part III. State Ethics Commission 84-21 State ethics commission established; composition Part IV. Administration and Enforcement 84-31 Duties of commission; complaint, hearing, determination 84-31.3 Filing of false charges 84-31.5 Repealed 84-32 Procedure 84-33 Disciplinary action for violation 84-34 No compensation 84-35 Staff 84-35.5 Prohibition from political activity 84-36 Cooperation 84-37 Concurrent jurisdiction 84-38 Judicial branch 84-39 Administrative fines Part V. Mandatory Ethics Training 84-41 Applicability of part 84-42 Mandatory ethics training course 84-43 Ethics training course Historical Note

Source notes for each section of this chapter start with L 1972, c 163, which completely amended this chapter. For prior law, see L 1967, c 263 and L 1968, c 21. Attorney General Opinions As long as the mandatory topics listed in the third paragraph of article XIV of the Hawaii State Constitution are addressed, the legislature exercises discretion over what specific conduct is prohibited, permitted, or otherwise regulated under the state ethics

• code. Assuming no other state or federal constitutional provision is

brought into play, the legislature may exempt certain conduct from the state ethics code or otherwise subject it to related regulation, such as disclosure requirements. Att. Gen. Op. 15-2. The state ethics code must apply to all state employees; individual employees may not be exempted from the state ethics code. Att. Gen.

• Op. 15-2.

Law Journals and Reviews Confidentiality Breeds Contempt: A First Amendment Challenge to Confidential Ethics Commission Proceedings of the City & County of

• Honolulu. 18 UH L. Rev. 797.

Case Notes Although an application of §84-13 was necessary to decide the union's complaint under §89-13, it could not be said that the question arose under this chapter; where union filed the complaint with the labor relations board under §89-19, the board had "exclusive original jurisdiction" to determine prohibited practice complaints and the ethics commission would not have had jurisdiction to make that determination; thus, the board had the power to apply §84-13 in order to decide whether a prohibited practice violation actually occurred and it did not exceed its jurisdiction in ruling that a violation did not occur based on the application of §84-13. 116 H. 73, 170 P.3d 324. PREAMBLE The purpose of this chapter is to (1) prescribe a code of ethics for elected officers and public employees of the State as mandated by the people of the State of Hawaii in the Hawaii constitution, article XIV; (2) educate the citizenry with respect to ethics in government; and (3) establish an ethics commission which will administer the codes

• f ethics adopted by the constitutional convention and by the

legislature and render advisory opinions and enforce the provisions of this law so that public confidence in public servants will be

• preserved. [L 1972, c 163, pt of §1; am L 1979, c 91, §2; am L 1981, c

82, §10]

PART II. CODE OF ETHICS Note Part heading amended by L 1979, c 91, §5. Attorney General Opinions As long as the mandatory topics listed in the third paragraph of article XIV of the Hawaii State Constitution are addressed, the legislature exercises discretion over what specific conduct is prohibited, permitted, or otherwise regulated under the state ethics code. Assuming no other state or federal constitutional provision is brought into play, the legislature may exempt certain conduct from the state ethics code or otherwise subject it to related regulation, such as disclosure requirements. Att. Gen. Op. 15-2. The state ethics code must apply to all state employees; individual employees may not be exempted from the state ethics code. Att. Gen. Op. 15-2. §84-11 Gifts. No legislator or employee shall solicit, accept,

• r receive, directly or indirectly, any gift, whether in the form of

money, service, loan, travel, entertainment, hospitality, thing, or promise, or in any other form, under circumstances in which it can reasonably be inferred that the gift is intended to influence the legislator or employee in the performance of the legislator's or employee's official duties or is intended as a reward for any official action on the legislator's or employee's part. [L 1972, c 163, pt of §1; gen ch 1985] Attorney General Opinions Section does not apply to receipt by department of agriculture of gifts from private sector to assist in preventing entry of brown tree snakes into Hawaii, since the gifts are to be used by department to conduct official department functions. Att. Gen. Op. 92-04.

[§84-11.5] Reporting of gifts. (a) Every legislator and employee shall file a gifts disclosure statement with the state ethics commission on June 30 of each year if all the following conditions are met: (1) The legislator or employee, or spouse or dependent child of a legislator or employee, received directly or indirectly from one source any gift or gifts valued singly or in the aggregate in excess of $200, whether the gift is in the form of money, service, goods, or in any other form; (2) The source of the gift or gifts have interests that may be affected by official action or lack of action by the legislator or employee; and (3) The gift is not exempted by subsection (d) from reporting requirements under this subsection. (b) The report shall cover the period from June 1 of the preceding calendar year through June 1 of the year of the report. (c) The gifts disclosure statement shall contain the following information: (1) A description of the gift; (2) A good faith estimate of the value of the gift; (3) The date the gift was received; and (4) The name of the person, business entity, or organization from whom, or on behalf of whom, the gift was received. (d) Excluded from the reporting requirements of this section are the following: (1) Gifts received by will or intestate succession; (2) Gifts received by way of distribution of any inter vivos or testamentary trust established by a spouse or ancestor; (3) Gifts from a spouse, fiance, fiancee, any relative within four degrees of consanguinity or the spouse, fiance, or fiancee of such a relative. A gift from any such person is a reportable gift if the person is acting as an agent or intermediary for any person not covered by this paragraph; (4) Political campaign contributions that comply with state law; (5) Anything available to or distributed to the public generally without regard to the official status of the recipient; (6) Gifts that, within thirty days after receipt, are returned to the giver or delivered to a public body or to a bona fide educational or charitable organization without the donation being claimed as a charitable contribution for tax purposes; and

(7) Exchanges of approximately equal value on holidays, birthday, or special occasions. (e) Failure of a legislator or employee to file a gifts disclosure statement as required by this section shall be a violation

• f this chapter.

(f) This section shall not affect the applicability of section 84-11. [L 1992, c 322, pt of §1] §84-12 Confidential information. No legislator or employee shall disclose information which by law or practice is not available to the public and which the legislator or employee acquires in the course of the legislator's or employee's official duties, or use the information for the legislator's or employee's personal gain or for the benefit of anyone; provided that this section shall not preclude a person who serves as the designee or representative of an entity that is a member of a task force from disclosing information to the entity which the person acquires as the entity's designee or representative. [L 1972, c 163, pt of §1; gen ch 1985; am L 2012, c 208, §3] §84-13 Fair treatment. No legislator or employee shall use or attempt to use the legislator's or employee's official position to secure or grant unwarranted privileges, exemptions, advantages, contracts, or treatment, for oneself or others; including but not limited to the following: (1) Seeking other employment or contract for services for oneself by the use or attempted use of the legislator's or employee's office or position. (2) Accepting, receiving, or soliciting compensation or other consideration for the performance of the legislator's or employee's official duties or responsibilities except as provided by law. (3) Using state time, equipment or other facilities for private business purposes. (4) Soliciting, selling, or otherwise engaging in a substantial financial transaction with a subordinate

• r a person or business whom the legislator or employee inspects or supervises in the legislator's or

employee's official capacity. Nothing herein shall be construed to prohibit a legislator from introducing bills and resolutions, or to prevent a person from serving

• n a task force or from serving on a task force committee, or from

making statements or taking official action as a legislator, or a task force member or a task force member's designee or

• representative. Every legislator, or task force member or designee or

representative of a task force member shall file a full and complete public disclosure of the nature and extent of the interest or transaction which the legislator or task force member or task force member's designee or representative believes may be affected by the legislator's or task force member's official action. [L 1972, c 163, pt of §1; gen ch 1985; am L 2012, c 208, §4]

Case Notes Although an application of this section was necessary to decide the union's complaint under §89-13, it could not be said that the question arose under chapter 84; where union filed the complaint with the labor relations board under §89-19, the board had "exclusive original jurisdiction" to determine prohibited practice complaints and the ethics commission would not have had jurisdiction to make that determination; thus, the board had the power to apply this section in

• rder to decide whether a prohibited practice violation actually
• ccurred and it did not exceed its jurisdiction in ruling that a

violation did not occur based on the application of this section. 116

• H. 73, 170 P.3d 324.

As this section prohibited the posting of campaign materials on a union bulletin board on the fourth floor of a state building, and nothing in chapter 89 was explicitly contrary to, or inconsistent with, that construction, there was no conflict between §89-3 and this

• section. 116 H. 73, 170 P.3d 324.

Where the posting of campaign materials on a union bulletin board on the fourth floor of a state building was prohibited by this section, and was thus not lawful, the postings were not protected under the express language of §89-3 (2006). 116 H. 73, 170 P.3d 324. Where the State, as employer, expressed a "legitimate" concern with campaign materials postings on the union bulletin board on the fourth floor of the department of transportation building, inasmuch as the supervisors at the department believed them to be in violation of this section and an ethics commission bulletin entitled "Campaign Restrictions for State Officials and State Employees", and there was no Hawaii labor relations board finding of "union animus", the removal

• f campaign materials from the union bulletin board did not infringe
• n the "mutual aid or protection" clause of §89-3 (2006). 116 H. 73,

170 P.3d 324.

§84-14 Conflicts of interests. (a) No employee shall take any

• fficial action directly affecting:

(1) A business or other undertaking in which the employee has a substantial financial interest; or (2) A private undertaking in which the employee is engaged as legal counsel, advisor, consultant, representative, or other agency capacity. A department head who is unable to disqualify the department head's self on any matter described in paragraphs (1) and (2) will not be in violation of this subsection if the department head has complied with the disclosure requirements of section 84-17. A person whose position on a board, commission, or committee is mandated by statute, resolution, or executive order to have particular qualifications shall only be prohibited from taking official action that directly and specifically affects a business or undertaking in which the person has a substantial financial interest; provided that the substantial financial interest is related to the member's particular qualifications. (b) No employee shall acquire financial interests in any business or other undertaking which the employee has reason to believe may be directly involved in official action to be taken by the employee. (c) No legislator or employee shall assist any person or business or act in a representative capacity before any state or county agency for a contingent compensation in any transaction involving the State. (d) No legislator or employee shall assist any person or business or act in a representative capacity for a fee or other compensation to secure passage of a bill or to obtain a contract, claim, or other transaction or proposal in which the legislator or employee has participated or will participate as a legislator or employee, nor shall the legislator or employee assist any person or business or act in a representative capacity for a fee or other compensation on such bill, contract, claim, or other transaction or proposal before the legislature or agency of which the legislator or employee is an employee or legislator. (e) No employee shall assist any person or business or act in a representative capacity before a state or county agency for a fee or

• ther consideration on any bill, contract, claim, or other transaction
• r proposal involving official action by the agency if the employee

has official authority over that state or county agency unless the employee has complied with the disclosure requirements of section 84- 17. (f) Subsections (a), (b), and (d) shall not apply to a task force member or the designee or representative of that task force member whose service as a task force member would not otherwise cause that member, designee, or representative to be considered an employee, if the task force member or the designee or representative of that task force member complies with the disclosure requirements under

section 84-17. [L 1972, c 163, pt of §1; am L 1978, c 245, §2; am L 2012, c 208, §5] Case Notes "Directly affecting" construed; change in classification of lands by land use commission directly affects petitioners, but others are affected only indirectly, at most. 57 H. 87, 550 P.2d 1275. §84-15 Contracts. (a) A state agency shall not enter into any contract to procure or dispose of goods or services, or for construction, with a legislator, an employee, or a business in which a legislator or an employee has a controlling interest, involving services or property of a value in excess of $10,000 unless: (1) The contract is awarded by competitive sealed bidding pursuant to section 103D-302; (2) The contract is awarded by competitive sealed proposal pursuant to section 103D-303; or (3) The agency posts a notice of its intent to award the contract and files a copy of the notice with the state ethics commission at least ten days before the contract is awarded. (b) A state agency shall not enter into a contract with any person or business which is represented or assisted personally in the matter by a person who has been an employee of the agency within the preceding two years and who participated while in state office or employment in the matter with which the contract is directly

• concerned. This subsection shall not apply to any contract that is

awarded in accordance with subsection (a) with a person or business represented or assisted by a person who was a member of a task force

• r served as the designee or representative of a task force member. [L

1972, c 163, pt of §1; am L 1978, c 245, §3; gen ch 1985; am L 1989, c 226, §1; am L 1995, c 178, §2; am L 2012, c 208, §6] §84-16 Contracts voidable. In addition to any other penalty provided by law, any contract entered into by the State in violation

• f this chapter is voidable on behalf of the State; provided that in

any action to avoid a contract pursuant to this section the interests

• f third parties who may be damaged thereby shall be taken into

account, and the action to void the transaction is initiated within sixty days after the determination of a violation under this

• chapter. The attorney general shall have the authority to enforce

this provision. [L 1972, c 163, pt of §1]

§84-17 Requirements of disclosure. (a) For the purposes of this section, the terms: "Disclosure period" refers to the period from January 1 of the preceding calendar year to the time of the filing of the employee's or legislator's disclosure of financial interests. "Substantially the same" refers to no more than ten amendments or changes to the information reported for the preceding disclosure period. (b) The disclosure of financial interest required by this section shall be filed: (1) By any person enumerated in subsection (c), except a member of the legislature, between January 1 and May 31 of each year; (2) By a member of the legislature between January 1 and January 31 of each year; (3) Within thirty days of a person's election or appointment to a state position enumerated in subsection (c); or (4) Within thirty days of separation from a state position if a prior financial disclosure statement for the position was not filed within the one hundred eighty days preceding the date of separation; provided that candidates for state elective offices or the constitutional convention shall file the required statements no later than twenty days prior to the date of the primary election for state

• ffices or the election of delegates to the constitutional convention.

(c) The following persons shall file annually with the state ethics commission a disclosure of financial interests: (1) The governor, the lieutenant governor, the members of the legislature, and delegates to the constitutional convention; provided that delegates to the constitutional convention shall only be required to file initial disclosures; (2) The directors and their deputies, the division chiefs, the executive directors and the executive secretaries and their deputies, the purchasing agents and the fiscal officers, regardless of the titles by which the foregoing persons are designated, of every state agency and department; (3) The permanent employees of the legislature and its service agencies, other than persons employed in clerical, secretarial, or similar positions; (4) The administrative director of the State, and the assistants in the office of the governor and the lieutenant governor, other than persons employed in clerical, secretarial, or similar positions; (5) The hearings officers of every state agency and department; (6) The president, the vice presidents, assistant vice presidents, the chancellors, and the provosts of the University of Hawaii and its community colleges; (7) The superintendent, the deputy superintendent, the assistant superintendents, the complex area superintendents, the state librarian, and the deputy state librarian of the department of education;

(8) The administrative director and the deputy director of the courts; (9) The members of every state board or commission whose original terms of office are for periods exceeding one year and whose functions are not solely advisory; (10) Candidates for state elective offices, including candidates for election to the constitutional convention, provided that candidates shall only be required to file initial disclosures; (11) The administrator and assistant administrator of the office of Hawaiian affairs; and (12) The Hawaii unmanned aerial systems test site chief operating officer. (d) The financial disclosure statements of the following persons shall be public records and available for inspection and duplication: (1) The governor, the lieutenant governor, the members of the legislature, candidates for and delegates to the constitutional convention, the trustees of the office of Hawaiian affairs, and candidates for state elective offices; (2) The directors of the state departments and their deputies, regardless of the titles by which the foregoing persons are designated; provided that with respect to the department of the attorney general, the foregoing shall apply only to the attorney general and the first deputy attorney general; (3) The administrative director of the State; (4) The president, the vice presidents, the assistant vice presidents, the chancellors, members of the board of regents, and the provosts of the University of Hawaii; (5) The members of the board of education and the superintendent, the deputy superintendent, the state librarian, and the deputy state librarian of the department of education; (6) The administrative director and the deputy director of the courts; (7) The administrator and the assistant administrator of the office of Hawaiian affairs; and (8) The members of the following state boards, commissions, and agencies: (A) The board of directors of the agribusiness development corporation established under section 163D-3; (B) The board of agriculture established under section 26- 16; (C) The state ethics commission established under section 84-21; (D) The Hawaii community development authority established under section 206E-3; (E) The Hawaiian homes commission established under the Hawaiian Homes Commission Act of 1920, as amended, and section 26-17;

(F) The board of directors of the Hawaii housing finance and development corporation established under section 201H-3; (G) The board of land and natural resources established under section 171-4; (H) The state land use commission established under section 205-1; (I) The legacy land conservation commission established under section 173A-2.4; (J) The natural area reserves system commission established under section 195-6; (K) The board of directors of the natural energy laboratory

• f Hawaii authority established under section 227D-2;

(L) The board of directors of the Hawaii public housing authority established under section 356D-3; (M) The public utilities commission established under section 269-2; and (N) The commission on water resource management established under section 174C-7. (e) The information on the financial disclosure statements shall be confidential, except as provided in subsection (d). The commission shall not release the contents of the disclosures except as may be permitted pursuant to this chapter. Any person who releases any confidential information shall be subject to section 84-31(c). (f) Candidates for state elective offices, including candidates for election to the constitutional convention, shall only be required to disclose their own financial interests. The disclosures of financial interests of all other persons designated in subsection (c) shall state, in addition to the financial interests of the person disclosing, the financial interests of the person's spouse and dependent children. All disclosures shall include: (1) The source and amount of all income of $1,000 or more received, for services rendered, by the person in the person's own name or by any other person for the person's use or benefit during the preceding calendar year and the nature of the services rendered; provided that required disclosure under this paragraph for the income source of the spouse or dependent child of a person subject to subsection (d) shall be limited to the name of the business or other qualifying source of income, and need not include the income source's address; provided further that other information that may be privileged by law or individual items of compensation that constitute a portion of the gross income of the business or profession from which the person derives income need not be disclosed; (2) The amount and identity of every ownership or beneficial interest held during the disclosure period in any business having a value of $5,000 or more or equal to ten per cent of the ownership of the business and, if the interest was transferred during the disclosure period, the date of the transfer; provided that an interest in the form of an account in a federal or state regulated financial institution, an interest in the form of a policy in a mutual insurance company, or individual items in a mutual fund or a blind trust, if the mutual fund or blind trust has been disclosed pursuant to this paragraph, need not be disclosed; (3) Every officership, directorship, trusteeship, or other fiduciary relationship held in a business during the disclosure period, the term of office and the annual compensation;

(4) The name of each creditor to whom the value of $3,000 or more was owed during the disclosure period and the original amount and amount outstanding; provided that debts arising out of retail installment transactions for the purchase of consumer goods need not be disclosed; (5) The street address and, if available, the tax map key number, and the value of any real property in which the person holds an interest whose value is $10,000 or more, and, if the interest was transferred or

• btained during the disclosure period, a statement of the amount and nature of the consideration received
• r paid in exchange for such interest, and the name of the person furnishing or receiving the

consideration; provided that disclosure shall not be required of the street address and tax map key number

• f the person's residence;

(6) The names of clients personally represented before state agencies, except in ministerial matters, for a fee or compensation during the disclosure period and the names of the state agencies involved; and (7) The amount and identity of every creditor interest in an insolvent business held during the disclosure period having a value of $5,000 or more. (g) Where an amount is required to be reported, the person disclosing may indicate whether the amount is at least $1,000 but less than $10,000; at least $10,000 but less than $25,000; at least $25,000 but less than $50,000; at least $50,000 but less than $100,000; at least $100,000 but less than $150,000; at least $150,000 but less than $250,000; at least $250,000 but less than $500,000; at least $500,000 but less than $750,000; at least $750,000 but less than $1,000,000; or $1,000,000 or more. An amount of stock may be reported by number of shares. (h) The state ethics commission shall provide a long form of disclosure on all even-numbered years and a short form of disclosure for subsequent annual filings on all odd-numbered years in those instances where the financial interests of the person disclosing are substantially the same as those reported for the preceding disclosure period. (i) Failure of a legislator, a delegate to the constitutional convention, or employee to file a disclosure of financial interests as required by this section shall be a violation of this chapter. Any legislator, delegate to a constitutional convention, or employee who fails to file a disclosure of financial interests when due shall be assessed an administrative fine of $75. The state ethics commission, upon the expiration of the time allowed for filing, may post on its website for public inspection a list of all persons who have failed to file financial disclosure statements. The state ethics commission shall notify a person, by in-person service, electronic mail to the person's state electronic mail address, or first class mail, of the failure to file, and the disclosure of financial interests shall be submitted to the state ethics commission not later than 4:30 p.m. on the tenth day after notification of the failure to file has been mailed to the person. If a disclosure of financial interests has not been filed within ten days of the due date, an additional administrative fine of $10 for each day a disclosure remains unfiled shall be added to the administrative fine. All administrative fines collected under this section shall be deposited in the State's general

• fund. Any administrative fine for late filing shall be in addition to

any other action the state ethics commission may take under this chapter for violations of the state ethics code. The state ethics commission may waive any administrative fines assessed under this subsection for good cause shown. (j) The chief election officer, upon receipt of the nomination paper of any person seeking a state elective office, including the

• ffice of delegate to the constitutional convention, shall notify the

state ethics commission of the name of the candidate for state office and the date on which the person filed the nomination paper. The state ethics commission, upon the expiration of the time allowed for filing, shall release to the public a list of all candidates who have failed to file financial disclosure statements and shall immediately assess a late filing penalty fee against those candidates of $50, which shall be collected by the state ethics commission and deposited into the general fund. The state ethics commission may investigate, initiate, or receive charges as to whether a candidate's financial disclosure statement discloses the financial interests required to be

• disclosed. After proceeding in conformance with section 84-31, the

state ethics commission may issue a decision as to whether a candidate has complied with section 84-17(f) and this decision shall be a matter

• f public record. [L 1972, c 163, pt of §1; am L 1978, c 245, §4; am L

1979, c 91, §6; am L 1980, c 87, §§1, 2; am L 1985, c 152, §1; gen ch 1985; am L 1989, c 113, §§1, 2; am L 1991, c 150, §1; am L 1993, c 26, §1; am L 1995, c 49, §1 and c 230, §1; am L 1997, c 50, §1; am L 2000, c 297, §18; am L 2003, c 187, §4; am L 2005, c 135, §1; am L 2006, c 207, §2; am L 2007, c 9, §4; am L 2011, c 5, §10; am L 2013, c 125, §1; am L 2014, c 230, §2; am L 2015, c 208, §3; am L 2017, c 52, §1] Rules of Court Judges, financial disclosures, see RSC rule 15. §84-17.5 Disclosure files; disposition. (a) All financial disclosure statements filed by a legislator, employee, or delegate to a constitutional convention shall be maintained by the state ethics commission during the term of office of the legislator, employee, or delegate and for a period of six years thereafter. Upon the expiration of the six-year period, the financial disclosure statement and all copies thereof shall be destroyed. (b) Upon the expiration of six years after an election for which a candidate for state elective office or a constitutional convention has filed a financial disclosure statement, the state ethics commission shall destroy the candidate's financial disclosure statement and all copies thereof. (c) Financial disclosure statements provided for in section 84- 17(d) shall cease to be public records once the six-year period in subsection (a) or (b) has run. (d) Nothing herein shall bar the state ethics commission from retaining a financial disclosure statement or copy of a financial

disclosure statement that has become part of a charge case or advisory

• pinion request, or is part of an ongoing investigation. [L 1989, c

219, §1; am L 1993, c 27, §1; am L 1997, c 49, §1] §84-18 Restrictions on post employment. (a) No former legislator or employee shall disclose any information which by law or practice is not available to the public and which the former legislator or employee acquired in the course of the former legislator's or employee's official duties or use the information for the former legislator's or employee's personal gain or the benefit of anyone. (b) No former legislator, within twelve months after termination

• f the former legislator's employment, shall represent any person or

business for a fee or other consideration, on matters in which the former legislator participated as a legislator or on matters involving

• fficial action by the legislature.

(c) No former employee, within twelve months after termination

• f the former employee's employment, shall represent any person or

business for a fee or other consideration, on matters in which the former employee participated as an employee or on matters involving

• fficial action by the particular state agency or subdivision thereof

with which the former employee had actually served. This section shall not apply to a former task force member who, but for service as a task force member, would not be considered an employee. (d) This section shall not prohibit any agency from contracting with a former legislator or employee to act on a matter on behalf of the State within the period of limitations stated herein, and shall not prevent such legislator or employee from appearing before any agency in relation to such employment. (e) This section shall not apply to any person who is employed by the State for a period of less than one hundred and eighty-one days. (f) For the purposes of this section, "represent" means to engage in direct communication on behalf of any person or business with a legislator, a legislative employee, a particular state agency

• r subdivision thereof, or their employees. [L 1972, c 163, pt of §1;

gen ch 1985; am L 1995, c 239, §1; am L 2012, c 208, §7] Note Other standards, see county charters. Rules of Court Lawyers, see HRPC rule 1.11.

§84-19 Violation. (a) Any favorable state action obtained in violation of the code of ethics for legislators or employees and former employees is voidable in the same manner as voidable contracts as provided for under section 84-16; and the State by the attorney general may pursue all legal and equitable remedies available to it. (b) The State by the attorney general may recover any fee, compensation, gift, or profit received by any person as a result of a violation of the code of ethics by a legislator or employee or former legislator or employee. Action to recover under this subsection shall be brought within one year of a determination of such violation. (c) Any violation of this chapter by an employee, candidate for election to and elected delegate to the constitutional convention shall be punishable only in accordance with the code of ethics adopted by the constitutional convention. [L 1972, c 163, pt of §1; am L 1979, c 91, §7; am L 1981, c 82, §11; am L 1989, c 291, §1]