HI HB674

Establishes three new sections requiring charter schools to conduct annual independent financial audits, implement criminal history record checks for employees in positions near children, and comply with non-discrimination enrollment policies.

Modifies charter school enrollment procedures: start-up schools must use public lottery when capacity is exceeded and cannot discriminate based on protected characteristics; conversion schools must serve their former geographic service area.

Increases oversight by the State Public Charter School Commission with nine appointed members, establishes minimum and recommended qualifications for members, and clarifies conflict-of-interest disclosure requirements.

Amends charter school governance to limit employees to one-third of governing board voting members, allows charter school heads to serve as non-voting ex officio members, and extends state employee protections to charter school executives.

Makes technical clarifications to charter authorization, renewal, and revocation processes, establishes performance frameworks for charter contracts, and allows students at charter schools to participate in athletics at other public schools if no comparable program exists at their school.