STAND. COM. REP. NO. 1294-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 494

S.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Education, to which was referred S.B. No. 494, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CHARTER SCHOOLS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the Auditor to conduct a financial audit of each charter school under the State Public Charter School system and report to the Legislature;

(2) Require the State Public Charter School Commission to take action based on recommendations made by the Auditor within one year of submission of the Auditor's report to the Legislature; and

(3) Appropriate funds to the Auditor to complete the financial audits.

Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the State Public Charter School Commission and Office of the Auditor.

Your Committee finds that a financial audit of each public charter school in the State will provide accountability in the expenditure of public funds for charter schools and ensure a thriving charter school system that offers exceptional education for students in Hawaii.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 494, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Legislative Management.

Respectfully submitted on behalf of the members of the Committee on Education,

____________________________

JUSTIN H. WOODSON, Chair