SB 747: BOE; DOE; Audit Office; Established; Reports; Positions; Appropriation

A BILL FOR AN ACT

RELATING TO THE BOARD OF EDUCATION.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart C, to be appropriately designated and to read as follows:

     "§302A-     Audit office.  (a)  There is established within the board an audit office, which shall operate independently to ensure accountability, transparency, and efficiency in the operations, expenditures, and programs of the department.

     (b)  The audit office shall have the authority to:

     (1)  Conduct financial audits, including:

          (A)  Examination of accounts and financial records of the department, including schools, programs, and administrative divisions;

          (B)  To ensure proper use of public funds; and

          (C)  To ensure compliance with applicable laws and financial accountability;

     (2)  Conduct performance audits, including the evaluation of the effectiveness, efficiency, and economy of operations, programs, and activities undertaken by the department in achieving its established goals and objectives;

     (3)  Provide recommendations to improve the financial aid and operational efficiency of the department, including suggestions for best practices, corrective actions, and allocation of resources;

     (4)  Examine and inspect all accounts, books, files, reports, and other documents of the department, including subsidiaries, agencies, commissions, or other affiliated programs, as necessary to conduct audits;

     (5)  Examine and inspect facilities, operations, and resources under the jurisdiction of the department;

     (6)  Administer oaths, take testimony, and compel the production of documents as part of audit investigations; and

     (7)  Engage independent consultants or experts, as needed, to perform specialized evaluations in support of audit objectives.

     (c)  The audit office shall be headed by an auditor.  The auditor shall oversee the appointment of staff, who shall have expertise in auditing, accounting, or other relevant fields.  Staff members shall be exempt from chapter 76, and their salaries and costs shall be included in the budget of the board.

     (d)  All audits conducted by the audit office shall conform to government auditing standards as prescribed by the Comptroller General of the United States.

     (e)  The audit office shall operate in accordance with the principles of independence and transparency.  The audit office shall not be subject to the direction or control of any other agency or department in the execution of its duties.

     (f)  The audit office shall submit annual reports of its findings and recommendations relative to the expenditures made and financial transactions by the different school complex areas, including any proposed legislation, to the board, superintendent, and legislature no later than twenty days prior to the convening of each regular session; provided that the reports shall include audits and examinations conducted by the auditor for the immediately preceding school year and all other audits and examinations conducted by the auditor during the current school year.  Reports shall be available for public inspection.

     (g)  The audit office shall send certified copies of audits and examinations made by the auditor to the governor and director of finance.  Copies of the audits may also be submitted to the legislature upon request of any member of the senate or house of representatives."

     SECTION 2.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the [University] university of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the [University] university of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the [University] university of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of human services, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

[[](38)[]]  Senior software developers in the department of taxation;

[[](39)[]]  In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

[[](40)[]]  The state fire marshal; [and

  [](41)[]]  The administrator for the law enforcement standards board[.]; and

    (42)  Positions in the audit office within the board of education.

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 3.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for:

     (1)  The establishment and operation of the audit office established pursuant to section 1 of this Act; and

     (2)  The establishment of      full-time equivalent (     FTE) positions within the audit office.

     The sums appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

BOE; DOE; Audit Office; Established; Reports; Positions; Appropriation

Description:

Establishes an Audit Office within the Board of Education to audit operations and expenditures of the Department of Education.  Exempts positions within the Audit Office from civil service law.  Requires annual reports to the Governor and Director of Finance.  Authorizes the Legislature to request a copy of the annual reports.  Establishes positions within the Audit Office.  Appropriates funds.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE BOARD OF EDUCATION.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart C, to be appropriately designated and to read as follows:

     "§302A-     Audit office.  (a)  There is established within the board an audit office, which shall operate independently to ensure accountability, transparency, and efficiency in the operations, expenditures, and programs of the department.

     (b)  The audit office shall have the authority to:

     (1)  Conduct financial audits, including:

          (A)  Examination of accounts and financial records of the department, including schools, programs, and administrative divisions;

          (B)  To ensure proper use of public funds; and

          (C)  Compliance with applicable laws and financial accountability;

     (2)  Conduct performance audits, including the evaluation of the effectiveness, efficiency, and economy of operations, programs, and activities undertaken by the department in achieving its established goals and objectives;

     (3)  Provide recommendations to improve the financial aid and operational efficiency of the department, including suggestions for best practices, corrective actions, and allocation of resources;

     (4)  Examine and inspect all accounts, books, files, reports, and other documents of the department, including subsidiaries, agencies, commissions, or other affiliated programs, as necessary to conduct audits;

     (5)  Examine and inspect facilities, operations, and resources under the jurisdiction of the department;

     (6)  Administer oaths, take testimony, and compel the production of documents as part of audit investigations; and

     (7)  Engage independent consultants or experts, as needed, to perform specialized evaluations in support of audit objectives.

     (c)  The audit office shall be headed by an auditor.  The auditor shall oversee the appointment of staff, who shall have expertise in auditing, accounting, or other relevant fields.  Staff members shall be exempt from chapter 76, and their salaries and costs shall be included in the budget of the board.

     (d)  All audits conducted by the audit office shall conform to government auditing standards as prescribed by the Comptroller General of the United States.

     (e)  The audit office shall operate in accordance with the principles of independence and transparency.  The audit office shall not be subject to the direction or control of any other agency or department in the execution of its duties.

     (f)  The audit office shall submit annual reports of its findings and recommendations relative to the expenditures made and financial transactions by the different school complex areas, including any proposed legislation, to the board, superintendent, and legislature no later than twenty days prior to the convening of each regular session; provided that the reports shall include audits and examinations conducted by the auditor for the immediately preceding school year and all other audits and examinations conducted by the auditor during the current school year.  Reports shall be available for public inspection.

     (g)  The audit office shall send certified copies of audits and examinations made by the auditor to the governor and director of finance.  Copies of the reports may also be submitted to the legislature upon request of any member of the senate or house of representatives."

     SECTION 2.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the University of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of human services, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

[[](38)[]]  Senior software developers in the department of taxation;

[[](39)[]]  In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

[[](40)[]]  The state fire marshal; [and

  [](41)[]]  The administrator for the law enforcement standards board[.]; and

    (42)  Positions in the audit office within the board of education.

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 3.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for:

     (1)  The establishment and operation of the audit office established pursuant to section 1 of this Act; and

     (2)  The establishment of six full-time equivalent (6.0 FTE) positions within the audit office.

     The sums appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

BOE; DOE; Audit Office; Established; Reports; Positions; Appropriations

Description:

Establishes an Audit Office within the Board of Education to audit operations and expenditures of the Department of Education.  Exempts positions within the Audit Office from civil service law.  Requires annual reports to the Governor and Director of Finance.  Authorizes the Legislature to request a copy of the annual reports.  Establishes six full-time equivalent (6.0 FTE) positions within the Audit Office.  Appropriates funds.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO THE BOARD OF EDUCATION.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart C, to be appropriately designated and to read as follows:

     "§302A-    Audit office.  (a)  There is established within the board an audit office, which shall operate independently to ensure accountability, transparency, and efficiency in the operations, expenditures, and programs of the department.

     (b)  The audit office shall have the authority to:

     (1)  Conduct financial audits, including:

          (A)  Examination of accounts and financial records of the department, including schools, programs, and administrative divisions;

          (B)  Ensure proper use of public funds; and

          (C)  Compliance with applicable laws and financial accountability;

     (2)  Conduct performance audits, including the evaluation of the effectiveness, efficiency, and economy of operations, programs, and activities undertaken by the department in achieving its established goals and objectives;

     (3)  Provide recommendations to improve the financial aid and operational efficiency of the department, including suggestions for best practices, corrective actions, and allocation of resources;

     (4)  Examine and inspect all accounts, books, files, reports, and other documents of the department, including subsidiaries, agencies, commissions, or other affiliated programs, as necessary to conduct audits;

     (5)  Examine and inspect facilities, operations, and resources under the jurisdiction of the department;

     (6)  Administer oaths, take testimony, and compel the production of documents as part of audit investigations; and

     (7)  Engage independent consultants or experts, as needed, to perform specialized evaluations in support of audit objectives.

     (c)  The audit office shall be headed by an auditor.  The auditor shall oversee the appointment of staff, who shall have expertise in auditing, accounting, or other relevant fields.  Staff members shall be exempt from chapter 76, and their salaries and costs shall be included in the budget of the board.

     (d)  All audits conducted by the audit office shall conform to government auditing standards as prescribed by the Comptroller General of the United States.

     (e)  The audit office shall operate in accordance with the principles of independence and transparency.  The audit office shall not be subject to the direction or control of any other agency or department in the execution of its duties.

     (f)  The audit office shall submit annual reports of its findings and recommendations relative to the expenditures made and financial transactions by the different school complex areas, including any proposed legislation, to the board, superintendent, and the legislature no later than twenty days prior to the convening of each regular session; provided that the reports shall include audits and examinations conducted by the auditor for the immediately preceding school year and all other audits and examinations conducted by the auditor during the current school year.  Reports shall be available for public inspection.

     The audit office shall send certified copies of audits and examinations made by the auditor to the governor and the director of finance.  Copies of the reports may also be submitted to the legislature upon request of any member of the senate or house of representatives."

     SECTION 2.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

     (11) (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

     (13) (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the University of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of human services, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

[[](38)[]]Senior software developers in the department of taxation;

[[](39)[]]In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

[[](40)[]]The state fire marshal; [and

[](41)[]] The administrator for the law enforcement standards board[.]; and

    (42)  Positions in the audit office within the board of education.

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 3.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for:

     (1)  The establishment and operation of the audit office established pursuant to section 1 of this Act; and

     (2)  The establishment of six full-time equivalent (6.0 FTE) positions within the audit office.

     The sums appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

BOE; DOE; Audit Office; Established; Reports; Positions; Appropriations

Description:

Establishes an Audit Office within the Board of Education to audit operations and expenditures of the Department of Education.  Exempts positions within the Audit Office from civil service law.  Requires annual reports to the Governor and Director of Finance.  Authorizes the Legislature to request a copy of the annual reports.  Establishes six full-time equivalent (6.0 FTE) positions within the Audit Office.  Appropriates funds.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to the board of education.

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

     SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart C, to be appropriately designated and to read as follows:

     "§302A-    Audit office.  (a)  There is established within the board an audit office, which shall operate independently to ensure accountability, transparency, and efficiency in the operations, expenditures, and programs of the department.

     (b)  The audit office shall have the authority to:

     (1)  Conduct financial audits, including:

          (A)  Examination of accounts and financial records of the department, including schools, programs, and administrative divisions;

          (B)  Ensure proper use of public funds; and

          (C)  Compliance with applicable laws and financial accountability;

     (2)  Conduct performance audits, including the evaluation of the effectiveness, efficiency, and economy of operations, programs, and activities undertaken by the department in achieving its established goals and objectives;

     (3)  Provide recommendations to improve the financial aid and operational efficiency of the department, including suggestions for best practices, corrective actions, and allocation of resources;

     (4)  Examine and inspect all accounts, books, files, reports, and other documents of the department, including subsidiaries, agencies, commissions, or other affiliated programs, as necessary to conduct audits;

     (5)  Examine and inspect facilities, operations, and resources under the jurisdiction of the department;

     (6)  Administer oaths, take testimony, and compel the production of documents as part of audit investigations; and

     (7)  Engage independent consultants or experts, as needed, to perform specialized evaluations in support of audit objectives.

     (c)  The audit office shall be headed by an auditor.  The auditor shall oversee the appointment of staff, who shall have expertise in auditing, accounting, or other relevant fields.  Staff members shall be exempt from chapter 76, and their salaries and costs shall be included in the budget of the board.

     (d)  All audits conducted by the audit office shall conform to government auditing standards as prescribed by the Comptroller General of the United States.

     (e)  The audit office shall operate in accordance with the principles of independence and transparency.  The audit office shall not be subject to the direction or control of any other agency or department in the execution of its duties.

     (f)  The audit office shall submit annual reports of its findings and recommendations relative to the expenditures made and financial transactions by the different school complex areas, including any proposed legislation, to the board, superintendent, and the legislature no later than twenty days prior to the convening of each regular session; provided that the reports shall include audits and examinations conducted by the auditor for the immediately preceding school year and all other audits and examinations conducted by the auditor during the current school year.  Reports shall be available for public inspection.

     The audit office shall send certified copies of audits and examinations made by the auditor to the governor and the director of finance copies of the reports may also be submitted to the legislative council or any legislative interim committee, upon request."

     SECTION 2.  Section 76-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The civil service to which this chapter applies shall comprise all positions in the State now existing or hereafter established and embrace all personal services performed for the State, except the following:

     (1)  Commissioned and enlisted personnel of the Hawaii National Guard and positions in the Hawaii National Guard that are required by state or federal laws or regulations or orders of the National Guard to be filled from those commissioned or enlisted personnel;

     (2)  Positions filled by persons employed by contract where the director of human resources development has certified that the service is special or unique or is essential to the public interest and that, because of circumstances surrounding its fulfillment, personnel to perform the service cannot be obtained through normal civil service recruitment procedures.  Any contract may be for any period not exceeding one year;

     (3)  Positions that must be filled without delay to comply with a court order or decree if the director determines that recruitment through normal recruitment civil service procedures would result in delay or noncompliance, such as the Felix-Cayetano consent decree;

     (4)  Positions filled by the legislature or by either house or any committee thereof;

     (5)  Employees in the office of the governor and office of the lieutenant governor, and household employees at Washington Place;

     (6)  Positions filled by popular vote;

     (7)  Department heads, officers, and members of any board, commission, or other state agency whose appointments are made by the governor or are required by law to be confirmed by the senate;

     (8)  Judges, referees, receivers, masters, jurors, notaries public, land court examiners, court commissioners, and attorneys appointed by a state court for a special temporary service;

     (9)  One bailiff for the chief justice of the supreme court who shall have the powers and duties of a court officer and bailiff under section 606-14; one secretary or clerk for each justice of the supreme court, each judge of the intermediate appellate court, and each judge of the circuit court; one secretary for the judicial council; one deputy administrative director of the courts; three law clerks for the chief justice of the supreme court, two law clerks for each associate justice of the supreme court and each judge of the intermediate appellate court, one law clerk for each judge of the circuit court, two additional law clerks for the civil administrative judge of the circuit court of the first circuit, two additional law clerks for the criminal administrative judge of the circuit court of the first circuit, one additional law clerk for the senior judge of the family court of the first circuit, two additional law clerks for the civil motions judge of the circuit court of the first circuit, two additional law clerks for the criminal motions judge of the circuit court of the first circuit, and two law clerks for the administrative judge of the district court of the first circuit; and one private secretary for the administrative director of the courts, the deputy administrative director of the courts, each department head, each deputy or first assistant, and each additional deputy, or assistant deputy, or assistant defined in paragraph (16);

    (10)  First deputy and deputy attorneys general, the administrative services manager of the department of the attorney general, one secretary for the administrative services manager, an administrator and any support staff for the criminal and juvenile justice resources coordination functions, and law clerks;

    (11)  (A)  Teachers, principals, vice-principals, complex area superintendents, deputy and assistant superintendents, other certificated personnel, and no more than twenty noncertificated administrative, professional, and technical personnel not engaged in instructional work;

          (B)  Effective July 1, 2003, teaching assistants, educational assistants, bilingual or bicultural school-home assistants, school psychologists, psychological examiners, speech pathologists, athletic health care trainers, alternative school work study assistants, alternative school educational or supportive services specialists, alternative school project coordinators, and communications aides in the department of education;

          (C)  The special assistant to the state librarian and one secretary for the special assistant to the state librarian; and

          (D)  Members of the faculty of the University of Hawaii, including research workers, extension agents, personnel engaged in instructional work, and administrative, professional, and technical personnel of the university;

    (12)  Employees engaged in special, research, or demonstration projects approved by the governor;

    (13)  (A)  Positions filled by inmates, patients of state institutions, and persons with severe physical or mental disabilities participating in the work experience training programs;

          (B)  Positions filled with students in accordance with guidelines for established state employment programs; and

          (C)  Positions that provide work experience training or temporary public service employment that are filled by persons entering the workforce or persons transitioning into other careers under programs such as the federal Workforce Investment Act of 1998, as amended, or the Senior Community Service Employment Program of the Employment and Training Administration of the United States Department of Labor, or under other similar state programs;

    (14)  A custodian or guide at Iolani Palace, the Royal Mausoleum, and Hulihee Palace;

    (15)  Positions filled by persons employed on a fee, contract, or piecework basis, who may lawfully perform their duties concurrently with their private business or profession or other private employment and whose duties require only a portion of their time, if it is impracticable to ascertain or anticipate the portion of time to be devoted to the service of the State;

    (16)  Positions of first deputies or first assistants of each department head appointed under or in the manner provided in section 6, article V, of the Hawaii State Constitution; three additional deputies or assistants either in charge of the highways, harbors, and airports divisions or other functions within the department of transportation as may be assigned by the director of transportation, with the approval of the governor; one additional deputy in the department of human services either in charge of welfare or other functions within the department as may be assigned by the director of human services; four additional deputies in the department of health, each in charge of one of the following:  behavioral health, environmental health, hospitals, and health resources administration, including other functions within the department as may be assigned by the director of health, with the approval of the governor; two additional deputies in charge of the law enforcement programs, administration, or other functions within the department of law enforcement as may be assigned by the director of law enforcement, with the approval of the governor; three additional deputies each in charge of the correctional institutions, rehabilitation services and programs, and administration or other functions within the department of corrections and rehabilitation as may be assigned by the director of corrections and rehabilitation, with the approval of the governor; two administrative assistants to the state librarian; and an administrative assistant to the superintendent of education;

    (17)  Positions specifically exempted from this part by any other law; provided that:

          (A)  Any exemption created after July 1, 2014, shall expire three years after its enactment unless affirmatively extended by an act of the legislature; and

          (B)  All of the positions defined by paragraph (9) shall be included in the position classification plan;

    (18)  Positions in the state foster grandparent program and positions for temporary employment of senior citizens in occupations in which there is a severe personnel shortage or in special projects;

    (19)  Household employees at the official residence of the president of the University of Hawaii;

    (20)  Employees in the department of education engaged in the supervision of students during meal periods in the distribution, collection, and counting of meal tickets, and in the cleaning of classrooms after school hours on a less than half-time basis;

    (21)  Employees hired under the tenant hire program of the Hawaii public housing authority; provided that no more than twenty-six per cent of the authority's workforce in any housing project maintained or operated by the authority shall be hired under the tenant hire program;

    (22)  Positions of the federally funded expanded food and nutrition program of the University of Hawaii that require the hiring of nutrition program assistants who live in the areas they serve;

    (23)  Positions filled by persons with severe disabilities who are certified by the state vocational rehabilitation office that they are able to perform safely the duties of the positions;

    (24)  The sheriff;

    (25)  A gender and other fairness coordinator hired by the judiciary;

    (26)  Positions in the Hawaii National Guard youth and adult education programs;

    (27)  In the Hawaii state energy office in the department of business, economic development, and tourism, all energy program managers, energy program specialists, energy program assistants, and energy analysts;

    (28)  Administrative appeals hearing officers in the department of human services;

    (29)  In the Med-QUEST division of the department of human services, the division administrator, finance officer, health care services branch administrator, medical director, and clinical standards administrator;

    (30)  In the director's office of the department of human services, the enterprise officer, information security and privacy compliance officer, security and privacy compliance engineer, security and privacy compliance analyst, information technology implementation manager, assistant information technology implementation manager, resource manager, community or project development director, policy director, special assistant to the director, and limited English proficiency project manager or coordinator;

    (31)  The Alzheimer's disease and related dementia services coordinator in the executive office on aging;

    (32)  In the Hawaii emergency management agency, the executive officer, public information officer, civil defense administrative officer, branch chiefs, and emergency operations center state warning point personnel; provided that for state warning point personnel, the director shall determine that recruitment through normal civil service recruitment procedures would result in delay or noncompliance;

    (33)  The executive director and seven full-time administrative positions of the school facilities authority;

    (34)  Positions in the Mauna Kea stewardship and oversight authority;

    (35)  In the office of homeland security of the department of law enforcement, the statewide interoperable communications coordinator;

    (36)  In the social services division of the department of human services, the business technology analyst;

    (37)  The executive director and staff of the 911 board;

[[](38)[]]Senior software developers in the department of taxation;

[[](39)[]]In the department of law enforcement, five Commission on Accreditation for Law Enforcement Agencies, Inc., coordinator positions;

[[](40)[]]The state fire marshal; [and]

[[](41)[]]The administrator for the law enforcement standards board[.]; and

    (42)  Positions in the audit office within the board of education.

     The director shall determine the applicability of this section to specific positions.

     Nothing in this section shall be deemed to affect the civil service status of any incumbent as it existed on July 1, 1955."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $575,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for:

     (1)  The establishment and operation of the audit office established pursuant to section 1 of this Act; and

     (2)  The establishment of six full-time equivalent (6.0 FTE) positions within the audit office.

     The sums appropriated shall be expended by the department of education for the purposes of this Act.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

BOE; DOE; Audit Office; Established; Reports; Positions; Appropriations

Description:

Establishes an Audit Office within the Board of Education to audit operations and expenditures of the Department of Education.  Exempts positions within the Audit Office from civil service law.  Requires annual reports to the Legislature.  Establishes six full-time equivalent (6.0 FTE) positions within the Audit Office.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1974

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 747

      S.D. 1

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred S.B. No. 747, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE BOARD OF EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish an Audit Office within the Board of Education to audit the operations and expenditures of the Department of Education;

     (2)  Establish positions within the Audit Office and exempt those positions from civil service; and

     (3)  Appropriate funds for the establishment and operation of the Audit Office and establishment of positions.

     Your Committee received comments on this measure from the Board of Education.

     Your Committee has amended this measure by:

     (1)  Changing the number of positions to be established to an unspecified number; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 747, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 747, S.D. 1, H.D. 2.

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

STAND. COM. REP. NO.  1386

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 747

      S.D. 1

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred S.B. No. 747, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE BOARD OF EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish an Audit Office within the Board of Education to audit the operations and expenditures of the Department of Education;

     (2)  Establish positions within the Audit Office and exempt those positions from civil service; and

     (3)  Appropriate funds for the establishment and operation of the Audit Office and exempt positions.

     Your Committee received comments on this measure from the Board of Education.

     Your Committee finds that the establishment of an Audit Office within the Board of Education will ensure accountability, transparency, and efficiency in the operations, expenditures, and programs of the Department of Education.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 747, S.D. 1, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

STAND. COM. REP. NO.  1191

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 747

      S.D. 1

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Education, to which was referred S.B. No. 747, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE BOARD OF EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish an Audit Office within the Board of Education to audit operations, expenditures, and programs of the Department of Education;

     (2)  Exempt positions in the Audit Office from civil service law; and

     (3)  Appropriate funds for:

          (A)  The establishment and operation of the Audit Office; and

          (B)  The establishment of six full-time equivalent positions within the Audit Office.

     Your Committee received comments on this measure from the Board of Education.

     Your Committee finds that the establishment of an Audit Office will provide additional oversight over the Board of Education and Department of Education and increase transparency and accountability in the State's public education system.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     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. 747, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 747, S.D. 1, H.D. 1, and be referred to your Committee on Labor.

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

STAND. COM. REP. NO. 861

Honolulu, Hawaii

RE:    S.B. No. 747

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 747, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE BOARD OF EDUCATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish the Audit Office within the Board of Education to ensure accountability, transparency, and efficiency in the operations, expenditures, and programs of the Department of Education.

     Your Committee received written comments in support of this measure from the Board of Education.

     Your Committee finds that an independent agency of the Department of Education dedicated to conducting financial and performance audits, recommending improvements, and examining records and facilities will help to improve the efficiency of Hawaii's public schools while ensuring accountability.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 747, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 99

Honolulu, Hawaii

RE:    S.B. No. 747

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Education, to which was referred S.B. No. 747 entitled:

"A BILL FOR AN ACT RELATING TO THE BOARD OF EDUCATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish an Audit Office within the Board of Education to audit operations and expenditures of the Department of Education;

     (2)  Exempt positions within the Audit Office from civil service law;

     (3)  Require annual reports;

     (4)  Establish six full-time equivalent (6.0 FTE) positions within the Audit Office; and

     (5)  Appropriate funds.

     Your Committee received testimony in support of this measure from the Board of Education.

     Your Committee finds that the Department of Education is the only statewide system of public education, servicing nearly two hundred fifty schools across the State.  As the Department of Education accounts for a significant portion of the State's annual budget, oversight through an independent audit office will help the Board of Education to determine effective educational policy.  Therefore, this measure enhances accountability and oversight of public education operations while maintaining operational efficiency of the Department of Education.

     Your Committee has amended this measure by:

     (1)  Changing the appropriation to an unspecified amount;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     Your Committee notes that this measure, as amended, contains an unspecified appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $575,000 for the establishment of an Audit Office within the Board of Education.

     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. 747, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 747, S.D. 1, and be referred to your Committee on Ways and Means.

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