SB1642

Report Title:

Public School Teachers; Shortage

Description:

Implements various programs and amendments to encourage teacher retention and recruitment. Appropriates funds.

THE SENATE	S.B. NO.	1642
TWENTY-THIRD LEGISLATURE, 2005
STATE OF HAWAII

A BILL FOR AN ACT

relating to teachers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

PURPOSE

SECTION 1. Hawaii depends on teachers to produce the intellectual capital that is the foundation of the State's future. Virtually everyone will agree that effective teaching is of high importance in the development of a successful educational system. Although the State values its teachers there is much more that can be done to:

(1) Recruit teachers aggressively;

(2) Compensate teachers in accordance with their value;

(3) Support teachers to further develop their craft; and

(4) Create vehicles for them to share their expertise.

Due to the State's teacher shortage, these are not issues that can wait. New federal mandates such as the No Child Left Behind Act require the states to achieve certain goals and maintain them. Without proper staffing with quality instructors and a means to attract such personnel, the State will certainly fall behind in meeting the national standards.

It is not only regular education classrooms that suffer from a shortage of teachers. Alternative learning environments such as the comprehensive school alienation program do as well. Students eligible for such programs often require additional personal attention from their instructors. If they do not receive it or cannot be placed in such specialized programs due to a lack of alternative education teachers, it can exacerbate the impact of the teacher shortage on the classroom management and academic achievement of regular education classrooms.

PART II

TAX INCENTIVES

SECTION 2. Everything must be done to make teaching a career chosen by the best and brightest individuals. Special incentives are needed to attract and retain those interested in an educational career. Providing tax incentives is an innovative route to raise awareness of the teaching profession.

Furthermore, the legislature finds that there is a pressing need to provide housing assistance for the recruitment and retention of teachers in hard-to-staff public schools, as determined by the department of education.

The purpose of this part is to provide a tax credit for the following:

(1) Public school teachers, depending upon their years of service;

(2) Developers who lease state-owned lands to build housing for lease or rental for teachers employed in hard-to-staff public schools; and

(3) Landlords who provide housing for teachers employed in hard-to-staff public schools.

SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Public school teacher tax credit. (a) There shall be allowed to each individual taxpayer who is a public school teacher and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, a public school teacher tax credit. The tax credit shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.

(b) The tax credit shall only apply to public school teachers who were employed for the entire school year in which the tax credit is claimed. The amount of the tax credit shall be $500 for teachers with less than five years of experience in the department of education and $250 for teachers with five or more years of experience in the department of education. As used in this section, "teacher" means those employees who spend not less than seventy per cent of their formal employment time in the direct classroom instruction of students.

(c) To qualify for the income tax credit, the taxpayer shall be in compliance with all applicable federal, state, and county laws, as well as department of education rules and internal regulations.

(d) If the tax credit under this section exceeds the taxpayer's net income tax liability under this chapter, any excess of the tax credit may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(e) Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

(f) The director of taxation shall prepare such forms as may be necessary to claim a tax credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

(g) The department of taxation shall report to the legislature annually, no later than twenty days prior to the convening of every regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year."

SECTION 4. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Teacher housing; developer tax credit program. (a) There is established in the department a teacher housing developer tax credit program which shall provide a tax credit for developers who lease state-owned lands to build housing for lease or rental to teachers employed in hard-to-staff public schools.

(b) As used in this section, "hard-to-staff public schools" includes any school or area determined to be hard-to-staff by the department of education; provided that the department of education shall reevaluate and revise such a determination periodically to maintain a current listing of hard-to-staff public schools; and provided further that any removal of a school from the hard-to-staff list shall not affect the tax credit until the next calendar year.

(1) Located in the state senatorial district of the hard-to-staff public school; provided that on Oahu teacher housing shall also be eligible if it is located in the state senatorial district adjacent to that of the hard-to-staff public school; and

(2) Built upon state-owned land and leased to a developer for a term and price to be determined by the department of land and natural resources.

(d) Each individual or corporate resident taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for the cumulative difference during any taxable year after June 30, 2005 between the fair market rental or lease rate for eligible teacher housing, as determined by the department, and the actual rental or lease rate charged by the landlord to teachers employed in hard-to-staff public schools.

(e) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information, including but not limited to an appraisal estimated by a licensed appraiser, to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

SECTION 5. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Teacher housing; tax credit program. (a) There is established in the department a teacher housing tax credit program which shall provide a tax credit for landlords renting or leasing housing to teachers employed in hard-to-staff public schools.

(c) Teacher housing shall be eligible for the teacher housing tax credit program if it is located in the state senatorial district of the hard-to-staff public school; provided that on Oahu teacher housing shall also be eligible if it is located in the state senatorial district adjacent to that of the hard-to-staff public school.

(d) The department shall maintain a current list of fair market rental and lease rates for areas where teacher housing is eligible for the teacher housing tax credit program.

(e) Each individual or corporate resident taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for the cumulative difference during any taxable year after June 30, 2005 between the fair market rental or lease rate for eligible teacher housing, as determined by the department, and the actual rental or lease rate charged by the landlord to teachers employed in hard-to-staff public schools.

(f) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information, including but not limited to an appraisal estimated by a licensed appraiser, to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

PART III

EDUCATION DEGREES

SECTION 6. Currently, entering freshman students interested in a career in education at the University of Hawaii are not allowed to declare a major in education until fulfilling numerous requirements that can delay acceptance for over a year. On average, it would take a student at least five and a half years to complete a degree in education. This is unacceptable considering the State's teacher shortage.

The purpose of this part is to require the University of Hawaii to review its admission policies for the college of education.

SECTION 7. The University of Hawaii shall review its college of education's admission standards and consider allowing incoming freshman to declare education as their major and enable them to graduate within four years.

PART IV

PROFESSIONAL DEVELOPMENT

SECTION 8. In order to adequately teach our children as they prepare for life in the twenty-first century, Hawaii’s public school teachers must keep up with emerging trends and be on the cutting edge of new knowledge and teaching techniques. To effectively meet these challenges, teachers must be encouraged to grow and develop professionally.

The purpose of this part is to:

(1) Establish a master teacher training program for qualified teachers to increase the quality of their skills and serve as resource to other teachers;

(2) Create a teacher incentive program to reimburse fees spent on tuition, textbook, and other costs for teachers to pursue professional coursework from an accredited college; and

(3) Amend the national board certification incentive program to allow teachers, with seven to twelve years of experience in the department, time off to pursue the national certification.

SECTION 9. Chapter 302A, Hawaii Revised Statutes, is amended by adding three new sections to part III, subpart B, to be appropriately designated and to read as follows:

"§302A- Master teachers training program. (a) The department shall establish a master teachers training program to assist teachers who desire to increase the quality of their teaching skills and serve as a resource to other teachers. Candidates for the master teachers training program shall:

(1) Possess a masters degree from an accredited university;

(2) Have not less than ten years of experience as a competent, skilled teacher;

(3) Have experience in performing additional duties and responsibilities at the school-level;

(4) Teach at the mastery level in instruction and strategies and possess expertise in mathematics, English, science, or social studies; and

(5) Agree to serve as a master teacher or regular teacher in a school for not less than five years following the date of initial certification as a master teacher.

(b) The duties of a master teacher shall include, in addition to the master teacher's regular classroom responsibilities, serving as a mentor, supervisor, or staff developer for other teachers both in or out of the master teachers training program.

(c) At the successful conclusion of the master teachers training program, the department shall certify the teacher as a master teacher. The certification shall be conditional upon an annual review by the board that deems the master teacher's performance in the master teacher assignment to have been satisfactory.

(d) A certified master teacher who is actively serving as a mentor, supervisor, or staff developer at a public school shall be compensated in accordance with section 302A-622(b).

§302A- Master teachers, staff developer. The department shall provide at least one master teacher staff developer in each school to assist the teachers at that school in preparing for master teacher training and certification, and for ongoing certification.

§302A- Master teachers' salary schedule. (a) Upon certification as a master teacher, an employee shall receive compensation at the lowest step of the lowest grade in the master teacher series that exceeds the employee's existing compensation by at least eight per cent if such a step exists.

(b) Master teachers who have completed a year's satisfactory service shall be entitled to an annual increment. Teachers who lose their certification as master teachers shall be placed in the appropriate range and step of the regular teacher salary schedule as if they had remained regular teachers."

SECTION 10. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Educational incentive program; tuition. There is established an educational incentive program in the form of reimbursement of fees paid for tuition, textbooks, and other related costs, which are approved by the department, by Hawaii resident public school teachers who pursue professional development coursework at the University of Hawaii system or an accredited college or university approved by the department of education. The department of education shall adopt rules in accordance with chapter 91 necessary for the implementation of this section."

SECTION 11. Section 302A-622, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-622[]] Salary ranges, teachers. (a) Salary ranges for teachers of the department, other than master teachers, shall be subject to the requirements of sections 302A-624 and 302A-626 and shall be as follows:

DEPARTMENT OF EDUCATION

SALARY RANGES

POSITIONS DOESR

Class I 1

II 3

III 5

IV 6

V 7

VI 8

VII 9

(b) Salary ranges for master teachers of the department:

(1) Shall be not less than the salary of a teacher at class V, step 9, at the first step of the master teacher series, for ten-month employees, notwithstanding section 89-19 to the contrary; and

(2) Shall be not less than the salary of an educational officer at EO 9, step 12, at the last step of the master teacher series, for ten-month employees, notwithstanding section 89-19 to the contrary, until such time that new salary ranges, grades, and schedules are negotiated for the master teacher series pursuant to section 89-9."

SECTION 12. Section 302A-706, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is established within the department the teacher national board certification incentive program to recognize and support exemplary teaching practice by supporting public school teachers who intend to pursue or have achieved national board certification under the certification program of the National Board for Professional Teaching Standards. The teacher national board certification incentive program shall provide:

(1) A $5,000 bonus per year for each public school teacher who maintains current national board certification;

(2) $1,500 upon completing the certification program of the National Board for Professional Teaching Standards; [~~and~~]

(3) A reimbursement of the remainder of the national board certification application fee upon achievement of national board certification[.]; and

(4) Time off for teachers with seven to twelve years of experience in the department to pursue national board certification; provided that during the approved time off they share their teaching expertise with colleagues or preservice teacher candidates at accredited institutions of higher education on a monthly basis."

SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2005-2006, to be expended as follows:

(1) $ for the master teachers training program; and

(2) $ for the reimbursement of tuition, textbooks, and other related costs approved by the department of education to Hawaii public school teachers who pursue professional development coursework.

SECTION 14. The sums appropriated shall be expended by the department of education for the purposes of this part.

PART V

RECRUITMENT AND RETENTION

SECTION 15. Most youths spend twelve to thirteen years in school gaining the knowledge and values they need for the rest of their lives. It is the teachers who nurture these young people and are the most valuable resource in schools. Raising awareness and appreciation of the value of teachers would make the profession more attractive. Positive environments in which teachers feel valued and respected are essential to effective teaching and learning.

Furthermore, the legislature finds it unacceptable that it takes the department of education six to eight weeks to provide new employees and interdepartmental transfers with their first paycheck. The bottom line is that the private sector by and large pays its employees in a timely manner and the public sector should not be allowed to aim for a lower standard, especially when the technological and procedural capabilities to mitigate this problem are so clearly present and so easily applicable. Employees deserve to be paid for the work they do, especially new teachers, who have so much to adapt to and prepare for without having to deal with the added stress of tardy paychecks.

Another aid in the retention of new teachers is the new personnel orientation handbook recently developed by the department. The handbook is used as a tool to assist new employees to adapt to the operations of the department. Moreover, retention of personnel is partly influenced by how quickly an employee becomes familiar with an organization's system. The legislature finds that it would be beneficial to include a new teacher section in the handbook to give the newcomers a good first impression of how the department operates and cares for its personnel as well as serve as a reference guide.

The purpose of this part is to:

(1) Require schools to finalize teacher hiring before the end of the preceding fiscal year;

(2) Ensure that new hires of the department of education are paid in a timely manner and allow payments of partial wages to mitigate the financial hardships created by delayed paychecks;

(3) Provide all newly hired teachers with a teacher handbook that includes a "new teacher" section;

(4) Establish a Hawaii teacher cadet program fund to encourage students to consider teaching as a career; and

(5) Appropriate additional funds for equipment, supplies and transportation for the department.

SECTION 16. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Teacher hiring. Beginning with the 2006-2007 school year, principals shall finalize the hiring of all teachers for the school year no later than the end of the preceding fiscal year; provided that this section shall not apply to teachers hired due to retirement, resignation, or other unforeseen causes."

SECTION 17. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Hawaii teacher cadet program fund. (a) There is established the Hawaii teacher cadet program fund (hereinafter "fund") as a separate fund of Hawaii Alliance for Future Teachers, a Hawaii nonprofit organization. Moneys received from the state, county, or federal government, private contributions of cash or other property, and the income and capital gains earned by the fund shall constitute its assets.

(b) Hawaii Alliance for Future Teachers shall expend moneys from the fund in the form of either grants to organizations or contracts with private vendors to provide programs for students who possess a high level of academic achievement and the personality traits found in good teachers to consider teaching as a career in accordance with this section.

(c) The fund may receive contributions, grants, endowments, or gifts in cash or otherwise from all sources, including corporations or other businesses, foundations, government, individuals, and other interested parties. The legislature intends that public and private sectors review and investigate all potential funding sources. The State may appropriate moneys to the fund.

(d) Hawaii Alliance for Future Teachers shall appoint the members of the Hawaii teacher cadet program advisory board, which shall be responsible for:

(1) Soliciting and otherwise raising funds for the fund;

(2) Establishing criteria for the expenditure of funds;

(3) Reviewing grant proposals using criteria established by Hawaii Alliance for Future Teachers; and

(4) Making recommendations for grants and other specific expenditures.

Members of the advisory board shall be stakeholders in Hawaii's public educational system, including students, parents, alumni, principals, community and business leaders, and representatives from the department of education and the department of accounting and general services, who shall be represented on the advisory board.

(e) In managing the moneys in the fund, Hawaii Alliance for Future Teachers shall exercise ordinary business care and prudence given the facts and circumstances prevailing at the time of action or decision. In doing so, Hawaii Alliance for Future Teachers shall consider its long- and short-term needs in carrying out its purposes, its present and anticipated financial requirements, expected total return on its investments, price trends, and general economic conditions.

(f) There may be an endowment component of the fund, and Hawaii Alliance for Future Teachers may accumulate net income and add the same to the principal.

(g) The use of any state moneys may be restricted by the legislation appropriating these moneys to the fund.

(h) Hawaii Alliance for Future Teachers may expend principal from the fund for the purposes of the fund.

(i) Any organization submitting a proposal to Hawaii Alliance for Future Teachers for moneys shall meet the following standards at the time of application:

(1) Be a for-profit organization duly registered under the laws of the State, or be a nonprofit organization determined by the Internal Revenue Service to be exempt from the federal income tax, or be an agency of the State or a county;

(2) In the case of a nonprofit organization, have a governing board whose members have no material conflict of interest and serve without compensation;

(3) In the case of an applicant that is not a state or county government agency, have bylaws or policies that describe the manner in which business is conducted and policies that relate to the management of a potential situation involving a conflict of interest;

(4) Have experience with the project or in the program area for which the proposal is being made; and

(5) Be licensed and accredited, as applicable, in accordance with the requirements of federal, state, and county governments.

(j) All proposals submitted to Hawaii Alliance for Future Teachers for moneys shall be approved by the department for consistency in meeting standards for public schools.

(k) Organizations or agencies to which moneys are awarded shall agree to comply with the following conditions before receiving the award:

(1) Use persons qualified to engage in the activity to be funded;

(2) Comply with the applicable federal, state, and county laws; and

(3) Comply with any other requirements prescribed by Hawaii Alliance for Future Teachers to ensure adherence by the recipient of the award with applicable federal, state, and county laws and with the purposes of this section.

(l) Chapter 103D shall not apply to organizations or agencies that apply for grants or contracts under this section; provided that Hawaii Alliance for Future Teachers shall be held accountable for the use of the funds under a contract with the department.

(m) Any contract awarded by Hawaii Alliance for Future Teachers shall be made with as much competition as is practical to execute its purposes.

(n) The fund shall be audited annually by an independent auditor. The results of each annual audit shall be submitted to the department not later than thirty days from the date Hawaii Alliance for Future Teachers receives the audit results. In addition, Hawaii Alliance for Future Teachers shall retain for a period of three years and permit the department, state legislators, and the auditor, or their duly authorized representatives, to inspect and have access to any documents, papers, books, records and other evidence that is pertinent to the fund.

(o) The fund shall not be placed in the state treasury, and the State shall not administer the fund, nor shall the State be liable for the operation or solvency of the fund or Hawaii Alliance for Future Teachers.

(p) For every dollar of state moneys granted by the fund to the project, there shall be a minimum of $1 in value matched by Hawaii Alliance for Future Teachers from private, federal, county, or community service.

(q) The superintendent of education shall submit an annual report of the progress of the Hawaii teacher cadet program fund no later than twenty days prior to the convening of each regular session of the legislature."

SECTION 18. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Newly hired employees; paycheck deficits; partial wages. (a) The department shall establish and implement appropriate policies, procedures, technology, and accountability measures to ensure that newly hired employees receive timely and accurate wages.

(b) All newly hired employees shall receive their first paycheck no later than the second pay period after the date of their hire by the department.

(c) If the department is unable to pay the total wages due a newly hired employee pursuant to subsection (b), the department may pay the newly hired employee on the day the newly hired employee would have received pay, partial wages in an amount not less than fifty per cent of the amount due for the second pay period and for each consecutive pay period thereafter in which the department maintains a paycheck deficit with the newly hired employee. The amounts received shall be deducted from the total wages due for the respective pay period. Once the department resolves the paycheck deficit, the newly hired employee shall no longer receive partial wages as provided by this subsection."

SECTION 19. By December 31, 2005, the department shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, as may be necessary to administer section 17.

SECTION 20. The department of education shall provide each newly hired teacher with the new personnel orientation handbook to assist in their transition into the department's school system. The handbook shall include a new teacher section to serve as a reference guide and to provide the new employees with information on the following:

(1) Professional development and incentive programs;

(2) License requirements; and

(3) Other useful information to assist new teachers with their familiarity of the department's organization and educational system.

SECTION 21. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2005-2006, for equipment, supplies, and transportation for the department of education.

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART VI

TEACHER STANDARDS

SECTION 22. The legislature finds that there exists a tremendous amount of expertise in the professional world that could be utilized to relieve the teacher shortage in public schools. Although this could entail a professional becoming a full-time licensed teacher or full-time emergency hire, it could also entail a professional teaching in a part-time capacity on an as-needed basis. The legislature further finds that the department has had limited success in creating the kinds of public-private partnerships and outreach efforts that would enable them to tap this source of exceptional teachers.

Attracting the best people into teaching means reaching out not only to people at the start of their career but also to those with experience in other occupations and professions. More should be done to simplify the process for such people to become teachers.

In its 2004 report to the governor, the Hawaii workforce development council recommended as a priority action to "solve teacher shortages by honoring the credentials of people qualified in subject areas; e.g. hire professionals with degrees in a subject if they want to become full-time teachers; employers release employees to teach part-time."

Additionally, reciprocity with other states' teacher licensure programs and national board certification will minimize the bureaucratic difficulties that often cause many first-year public school teachers to resign out of frustration. Furthermore, in light of initiatives launched in other jurisdictions, Hawaii may need to reevaluate the PRAXIS exam as a testing instrument for teacher licensure.

The purpose of this part is to:

(1) Allow the department to hire professionals as exceptional teachers;

(2) Authorize alternative routes to licensing based on performance-based standards congruent with professional experience;

(3) Establish an alternative teacher preparation program that can lead up to licensing through alternative routes developed by the Hawaii teacher standards board;

(4) Require the Hawaii teacher standards board to clearly state specific requirements needed for Hawaii certification for out-of-state licensed teachers;

(5) Provide a five-year Hawaii teacher licensing exemption for licensed out-of-state teachers; and

(6) Provide an alternative licensing requirement to replace the PRAXIS exam.

SECTION 23. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A- Alternative teacher preparation programs. (a) The department, in consultation with the Hawaii teacher standards board, and subject to the adequacy of funds, shall operate teacher preparation programs that lead up to licensing through alternative routes developed by the Hawaii teacher standards board pursuant to section 302A-802(b).

(b) In developing these alternative teacher preparation programs, the department shall:

(1) Ensure that the standards for the alternative programs are the same as the standards for traditional licensure and are linked to the Hawaii content and performance standards;

(2) Establish approval guidelines for the alternative programs that require key components of a quality program, as identified by the National Association of State Boards of Education;

(3) Ensure that the alternative programs are adequately funded in order to prevent their deterioration into emergency licensure programs;

(4) Defuse the political rhetoric surrounding the alternative programs in order to focus on their relative utility;

(5) Track the characteristics of individuals who graduate from these alternative programs and their willingness to stay employed by the department as teachers for more than five years; and

(6) Use the elements of quality alternative programs identified by the National Association of State Boards of Education as a template for a comprehensive system of teacher development."

SECTION 24. Section 302A-602, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Beginning with the 2002-2003 school year, the department may employ unlicensed individuals as emergency hires or exceptional hires pursuant to sections 302A-801 to 302A-808[.]; provided that full-time exceptional hires shall have a college degree from an accredited college or university in a subject appropriate to the course they will teach in the department, and full-time and part-time hires shall have adequate professional experience in or utilizing the skills of the course they will teach in the department, as determined by the department."

SECTION 25. Section 302A-802, Hawaii Revised Statutes, is amended to read as follows:

"§302A-802 Licensing standards[.]; exemption. (a) The board shall establish licensing standards that govern teacher licensing in Hawaii. Licensing standards established by the board shall be adopted as rules under chapter 91 unless otherwise specified in this subpart.

(b) In the development of its standards, the board shall consider the existing teacher applicant pool that is available in the State and the level of the qualification of these applicants, as well as the nature and availability of existing preservice higher education teacher training programs. The board, in consultation with the department, shall [~~also consider~~] develop alternative routes to licensing, such as national teacher examinations and performance-based standards congruent with professional experience that certify competency in subject areas or programs taught in the public schools. The board shall also clearly state, using a means easily accessed and format easily interpreted by the general public, precisely which specific requirements a licensed teacher from out of state needs, on a state-by-state basis, to complete to be a licensed teacher in Hawaii.

(c) The board shall grant a licensing exemption to out-of-state licensed teachers for a period not to exceed five years, provided that:

(1) Satisfactory performance is maintained as determined by the school principal or designee; and

(2) The out-of-state license does not expire prior to the conclusion of the five-year period."

SECTION 26. Section 302A-804, Hawaii Revised Statutes, is amended to read as follows:

"§302A-804 Powers and duties of the department. The department shall retain all of its rights and powers except for the authority provided to the board under this subpart. The department's powers and duties under this subpart shall be limited to:

(1) Hiring, except in emergency and exceptional situations as described in this chapter, licensed teachers to teach in their fields of licensing;

(2) Reporting data annually to the board about the supply of, and demand for, teachers, including the identification of shortage areas, out-of-field teaching assignments, numbers of teachers teaching out-of-field, numbers and types of courses and classes taught by out-of-field teachers, and numbers and types of students taught by out-of-field teachers;

(3) On an emergency and case-by-case basis, hiring unlicensed individuals; provided that:

(A) A list of the names, work sites, teaching assignments, and progress toward licensing of these individuals shall be reported to the board and any changes shall be updated on a monthly basis by the department;

(B) There are no properly licensed teachers for the specific assignments for which the individuals are being hired; and

(C) No individual may be employed by the department on an emergency basis for more than four years. During this time the individual must demonstrate active pursuit of licensing in each year of employment;

(4) On an exceptional and case-by-case basis, hiring unlicensed individuals; provided that:

(A) A list of the names, work sites, and teaching assignments shall be reported to the board and any changes shall be updated on a monthly basis by the department;

(B) There are no properly licensed teachers for the specific assignments for which the individuals are being hired; and

[~~(4)~~] (5) Submitting an annual report to the board documenting:

(A) The number of exceptional hires and emergency hires by subject matter areas and by schools;

(B) The reasons and duration of employment for the exceptional hiring and emergency hiring enumerated in subparagraph (A);

(D) The department's efforts to address the shortages described in subparagraph (A); and

[~~(5)~~] (6) Providing any other information requested by the board that is pertinent to its powers and duties."

SECTION 27. Section 302A-805, Hawaii Revised Statutes, is amended to read as follows:

"§302A-805 Teachers; license required; renewals. Beginning July 1, 2002, all new licenses shall be issued by the board. No person shall serve as a half-time or full-time teacher in a public school without first having obtained a license from the board under this subpart. All licenses issued by the board shall be valid only for the fields specified on the licenses and shall be renewable every five years if the individual continues to:

(1) Satisfy the board's licensing standards;

(2) Show evidence of successful teaching in the previous five years; and

(3) Satisfy the board's requirements for renewal of licenses.

Teachers whose licenses expire on June 30, 2002, or June 30, 2003, shall be granted an automatic extension of two years. No person shall be issued a license or teach on an exceptional basis or emergency basis in the public schools without having first paid the fees established by the board in accordance with chapter 91."

SECTION 28. The Hawaii teacher standards board shall review alternative licensing requirements to replace the PRAXIS examination requirement. The review of alternative requirements shall include but not be limited to the consideration of requiring a minimum amount of years of teaching experience to replace the PRAXIS examination requirement.

SECTION 29. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 30. It is the intent of this Act not to jeopardize the receipt of any federal aid nor to impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modification with reasons therefor tot he legislature at its next session thereafter for review by the legislature.

SECTION 31. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 32. This Act shall take effect upon its approval; provided that:

(1) Sections 3, 4, and 5 shall apply to taxable years beginning after December 31, 2004;

(2) Section 12 shall take effect on June 30, 2005; and

(3) Sections 13, 17, and 21 shall take effect on July 1, 2005.

INTRODUCED BY:	_____________________________