REPORT TITLE:
Education


DESCRIPTION:
(1)  Authorizes parents or guardians of a child access to
   screening for their child for psychological and
   physiological development between the child's second and
   third birthday.  Requires DOH to plan and develop a
   screening tool.
(2)  Requires the director of health, with the assistance of the
   superintendent of education, to establish and operate fewer
   than one school-based health center in each of the seven
   department school districts.  
(3)  Defines new century charter schools with alternate
   educational programs.  Creates a process whereby existing
   public schools and new schools may be established as new
   century charter schools.  States that current student-
   centered schools are to be designated as new century charter
   schools.
(4)  Reduces deposits to the educational facilities improvement
   special fund from $90,000,000 per year to $45,000,000 per
   year.  (SB1501 HD3)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1501
THE SENATE                              S.B. NO.           S.D. 3
TWENTIETH LEGISLATURE, 1999                                H.D. 3
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.



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

 1                              PART I
 
 2      SECTION 1.  The legislature finds that recent research has
 
 3 demonstrated that the early years of a child are most crucial in
 
 4 a child's cognitive, emotional, social, and physical development.
 
 5 Neuroscience research in early brain development as well as
 
 6 studies in early child development affirm not only the tremendous
 
 7 opportunities for prevention work with children and families, but
 
 8 also the predictable, costly consequences of not doing so.  For
 
 9 every $1 invested in early childhood education and care and early
 
10 intervention services for children from birth to five years of
 
11 age, it is estimated that $7 in later remediation and special
 
12 education services may be saved.
 
13      The legislature further finds that early screening,
 
14 identification, and intervention for developmental delays and
 
15 psychosocial problems improve children's outcomes, and have a
 
16 critical influence on school success and family functioning.  The
 
17 departments of health, education, and human services currently
 
18 provide community health services and education for screening and
 
19 assessment.  However, current resources are inadequate to make
 
20 these services available to all parents and some parents are
 

 
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 1 unaware of or do not take advantage of these services.  As a
 
 2 result, their children may miss proper screening and evaluation
 
 3 and, if needed, referrals and treatment.
 
 4      The purpose of this part is to provide a means for early
 
 5 childhood screening before a child reaches the age of three.
 
 6      SECTION 2.  Chapter 321, Hawaii Revised Statutes, is amended
 
 7 by adding a new section to be appropriately designated and to
 
 8 read as follows:
 
 9      "§321-     Early childhood screenings.  (a)  Between the
 
10 second and third anniversary of the child's birth, the parents or
 
11 guardians of the child may have access to have the child screened
 
12 for psychological and cognitive, language, motor, and behavioral
 
13 or social-emotional development.  Screening and certification of
 
14 screening may be provided by:
 
15      (1)  The child's pediatrician;
 
16      (2)  Any primary health care provider;
 
17      (3)  The department of health; or
 
18      (4)  The department of education.
 
19      (b)  As part of the screening and certification process
 
20 authorized by subsection (a), the department of health, the
 
21 department of education, the child's physician, or primary
 
22 healthcare provider may:
 

 
 
 
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 1      (1)  Provide information and referrals of programs and
 
 2           services to help remediate any developmental problems
 
 3           revealed by the screening;
 
 4      (2)  Inform all parents and guardians of their
 
 5           responsibilities with respect to ensuring that their
 
 6           child's psychological and physiological development is
 
 7           progressing satisfactorily;
 
 8      (3)  Provide assistance and advice to parents and guardians
 
 9           in meeting those responsibilities;
 
10      (4)  Provide additional screenings, assessments, or
 
11           referrals as deemed necessary; and
 
12      (5)  Use a standardized screening instrument and referral
 
13           protocol as jointly developed by the departments of
 
14           health, education, and human services, the University
 
15           of Hawaii, and the American Academy of Pediatrics."
 
16      SECTION 3.  (a)  The department of health, in conjunction
 
17 with the departments of education and human services, the
 
18 University of Hawaii, and the American Academy of Pediatrics,
 
19 shall plan and develop:
 
20      (1)  Standardized screening for the psychological and
 
21           physiological development of a child between two and
 
22           three years of age, which includes but is not limited
 
23           to:
 

 
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 1           (A)  Cognitive development;
 
 2           (B)  Language development;
 
 3           (C)  Motor development; and
 
 4           (D)  Behavioral or social-emotional development;
 
 5      (2)  Access to screening by a pediatrician or primary care
 
 6           physician or other health care of child development
 
 7           professional of child development approved by the
 
 8           department of health;
 
 9      (3)  Means to certify that a child has been screened by the
 
10           child's third birthday; and
 
11      (4)  A plan that includes benchmarking and time limits to
 
12           achieve universal screening, including identification
 
13           of populations most "at risk" to be targeted initially.
 
14      (b)  The standardized screening and referral protocol shall
 
15 be developed by June 30, 2000.
 
16      SECTION 4.  There is appropriated out of the general
 
17 revenues of the State of Hawaii the sum of $      or so much
 
18 thereof as may be necessary for fiscal year 1999-2000 to develop
 
19 the standardized screening and referral protocol provided for in
 
20 this part.
 
21      The sum appropriated shall be expended by the department of
 
22 health for the purposes of this part.
 

 
 
 
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 1                              PART II
 
 2      SECTION 5.  Children require access to health care to
 
 3 maintain good health.  When they become sick or are injured, most
 
 4 children have access to a health care professional.  However, too
 
 5 many children in the United States, particularly those from poor
 
 6 families, are at risk for multiple health problems.  Poor
 
 7 children may experience two to three times the usual incidence
 
 8 for certain medical conditions, many of which are preventable.
 
 9 The most common health problems affecting children today include
 
10 injuries, chronic illnesses such as asthma, and mental health
 
11 problems.  In addition, children are now engaging more frequently
 
12 in risky behaviors that may lead to health problems, including
 
13 smoking, binge drinking, and unsafe sex.
 
14      The number of children at risk for poor health has increased
 
15 as children have lost access to care because their parents have
 
16 lost their health insurance.  Currently, about sixteen per cent,
 
17 or eleven million, of America's children are uninsured.  Even for
 
18 children who do have health insurance, barriers to health care
 
19 exist.  For example, parents may be unable to miss work to take
 
20 their child to see a doctor.  In many low-income communities,
 
21 health care facilities are few and often inadequate.
 
22      The purpose of this part is to provide adolescents with
 
23 access to quality, affordable health care in an environment that
 

 
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 1 is familiar, nonthreatening, and encouraging through school-based
 
 2 health centers.  These centers would also provide access to
 
 3 mental health services in a nonthreatening and non-stigmatizing
 
 4 place, since services would be provided as part of a broad array
 
 5 of services.  The school-based health centers can play a
 
 6 strategic role in the delivery of school-based mental health
 
 7 assessments, intake, referrals, and services as required by the
 
 8 Felix v.Cayetano consent decree.
 
 9      SECTION 6.  Definitions.  As used in this part, unless the
 
10 context otherwise requires:
 
11      "Parent" includes a parent, custodian, or guardian.
 
12      "Records" include the results of laboratory screenings and
 
13 tests.
 
14      "Student" means a person enrolled at a public high school.
 
15      SECTION 7.  School-based health centers; establishment.  (a)
 
16 The director of health, with the assistance of the superintendent
 
17 of education, shall establish and operate no fewer than one
 
18 school-based health center in each of the seven departmental
 
19 school districts established in section 13-1(d), Hawaii Revised
 
20 Statutes.
 
21      (b)  The provision of the following types of basic health
 
22 services to eligible students shall be considered for each
 
23 center:
 

 
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 1      (1)  Mental health screening, counseling, and referrals;
 
 2      (2)  Physical examinations for athletic activities;
 
 3      (3)  Immunization for such diseases as mumps, measles,
 
 4           rubella, diphtheria, and polio;
 
 5      (4)  Nutrition counseling;
 
 6      (5)  Family counseling;
 
 7      (6)  Substance abuse counseling; and
 
 8      (7)  Individual counseling about sexuality;
 
 9      (c)  The following types of referrals shall be considered
 
10 for each center:
 
11      (1)  Laboratory screening, including throat cultures,
 
12           mononucleosis, diabetes, urinalysis, hematocrit, Pap
 
13           smears, and sickle cell anemia;
 
14      (2)  Sexually transmitted disease testing;
 
15      (3)  Pregnancy testing; and
 
16      (4)  Prenatal care.
 
17      (d)  Referrals, when necessary and appropriate, to a primary
 
18 care physician and other health and social agencies for
 
19 appropriate services and care shall be considered for each
 
20 center.
 
21      (e)  Nothing in this section shall be construed to limit the
 
22 types of health services that may be provided by a center, except
 
23 that the performance of abortions at a center and the referral of
 

 
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 1 students to abortion services by center personnel shall be
 
 2 expressly prohibited.
 
 3      (f)  Prior to the establishment and operation of a center,
 
 4 the principal of the school and the school/community-based
 
 5 management council, in consultation with at least one health care
 
 6 professional, shall make policy decisions related to the
 
 7 operation of the center and determine the services to be offered
 
 8 by the center.  
 
 9      SECTION 8.  Eligibility; consent of parent required;
 
10 exceptions.  (a)  Except as provided by section 577A-2, Hawaii
 
11 Revised Statutes, no student shall be eligible to receive
 
12 services unless the center receives a consent form signed by the
 
13 student and the student's parent.
 
14      (b)  Notwithstanding subsection (a), a student who has
 
15 reached the age of majority shall not be required to obtain the
 
16 permission of a parent to be eligible to receive services.
 
17      SECTION 9.  Provision of health services; ability to pay.
 
18 (a)  The director of health, with the assistance of the director
 
19 of human services, shall seek as many possibilities of
 
20 reimbursement as practicable, including federal or private
 
21 foundation funds, for all services provided by a center.
 
22      (b)  Notwithstanding subsection (a), no eligible student
 
23 shall be denied the right to receive requested services for lack
 
24 of ability to pay for these services.
 

 
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 1      SECTION 10.  Confidentiality of records.  Except as
 
 2 otherwise provided by law, all student medical records shall be
 
 3 considered confidential information when approved by the
 
 4 student's parent.
 
 5      SECTION 11.  Financial responsibility.  If a student
 
 6 receives services for the diagnosis, examination, or
 
 7 administration of medication in the treatment of venereal
 
 8 diseases, pregnancy, or family planning services without the
 
 9 consent of a parent, then the parent of the student shall not be
 
10 liable for the legal obligations resulting from the furnishing of
 
11 these services by a center.  A student who receives these
 
12 services from a center shall assume financial responsibility for
 
13 the cost of the services.  Notwithstanding any other law to the
 
14 contrary, no spouse or parent whose consent has not been obtained
 
15 for these services shall be liable for the cost of services
 
16 incurred by the student.
 
17      SECTION 12.  Limitation of actions.  Notwithstanding any
 
18 other law to the contrary, any action to recover any debt founded
 
19 upon any contract, obligation, or liability made or incurred
 
20 pursuant to this part shall not commence until a student has
 
21 reached the age of majority; provided that the action shall
 
22 commence not more than two years after the date a student reaches
 
23 the age of majority.
 

 
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 1      SECTION 13.  Personnel.  The director of health may employ
 
 2 without regard to chapters 76 and 77, Hawaii Revised Statutes,
 
 3 physicians, nurse-practitioners, nurses, counselors, social
 
 4 workers, and all other persons that the director of health deems
 
 5 necessary or desirable to implement this part.
 
 6      SECTION 14.  Reports to the legislature.  The director of
 
 7 health shall report to the legislature on the experience of each
 
 8 school-based health center not less than thirty days prior to the
 
 9 convening of each regular session.  The report shall include:
 
10      (1)  The number of students served and the types of health
 
11           services provided;
 
12      (2)  The operating costs, including income collected through
 
13           fees, monetary donations, private grants, and in-kind
 
14           services;
 
15      (3)  Quantifiable changes in high-risk behaviors among
 
16           students receiving services through the center;
 
17      (4)  Recommended changes to improve the center; and
 
18      (5)  Any other information that the department of health may
 
19           determine to be necessary to assist the legislature in
 
20           evaluating the efficacy, cost-effectiveness, and
 
21           intangible merits of the center.
 
22      SECTION 15.  There is appropriated out of the general
 
23 revenues of the State of Hawaii the sum of $     or so much
 
24 thereof as may be necessary for fiscal year 1999-2000 and the
 

 
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 1 same sum or so much thereof as may be necessary for fiscal year
 
 2 2000-2001 for school-based health centers, including the hiring
 
 3 of necessary staff.
 
 4      The sums appropriated shall be expended by the department of
 
 5 health for the purposes of this part.
 
 6      SECTION 16.  There is appropriated out of the general
 
 7 revenues of the State of Hawaii the sum of $    or so much
 
 8 thereof as may be necessary for fiscal year 1999-2000 and the
 
 9 same sum or so much thereof as may be necessary for fiscal year
 
10 2000-2001 for school-based health centers.
 
11      The sums appropriated shall be expended by the department of
 
12 education for the purposes of this part.
 
13                             PART III
 
14      SECTION 17.  The legislature finds that as long as a public
 
15 school complies with the requirements that it be free to all
 
16 attending students, that its admissions policies be
 
17 nondiscriminatory, and that it comply with statewide performance
 
18 standards, a school should otherwise be free from statutory and
 
19 regulatory requirements that tend to inhibit or restrict a
 
20 school's ability to make decisions relating to the provision of
 
21 educational services to the students attending the school.
 
22      To nurture the ideal of more autonomous and flexible
 
23 decision-making at the school level, the legislature supports the
 
24 concept of new century charter schools.  The legislature finds
 

 
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 1 that this concept defines a new approach to education that is
 
 2 free of bureaucratic red tape and accommodating of the individual
 
 3 needs of students to allow the State to dramatically improve its
 
 4 educational standards for the twenty-first century.  Both
 
 5 existing public schools and new schools may be established as new
 
 6 century charter schools, and these schools will allow educators
 
 7 to better tailor the curriculum to enhance the learning of the
 
 8 students.  
 
 9      The purpose of this part is to increase the flexibility and
 
10 autonomy at the school level by allowing existing public schools
 
11 and new schools to be designated as new century charter schools.
 
12 These new century charter schools shall have a local school board
 
13 as a governing body, and shall operate independent educational
 
14 programs from those provided by the department of education
 
15 statewide.
 
16      SECTION 18.  Chapter 302A, Hawaii Revised Statutes, is
 
17 amended by adding a new part to be appropriately designated and
 
18 to read as follows:
 
19              "PART .  NEW CENTURY CHARTER SCHOOLS
 
20      §302A-A   New century charter schools.  All schools
 
21 previously designated as student-centered schools shall be
 
22 designated as new century charter schools.
 

 
 
 
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 1      §302A-B   New century charter schools; establishment.  (a)
 
 2 Up to a total of twenty-five schools may be established as new
 
 3 century charter schools.  These new century charter schools may
 
 4 be established by:
 
 5      (1)  The creation of a new school by the board of education,
 
 6           pursuant to 302A-C;
 
 7      (2)  An existing public school pursuant to subsection (b);
 
 8           or
 
 9      (3)  The creation of a new school, comprising programs or
 
10           sections of existing public school populations and
 
11           using existing public school facilities pursuant to
 
12           section 302A-C.
 
13      (b)  Any public school or schools may form a new century
 
14 charter school by establishing a local school board as its
 
15 governing body composed of, at a minimum, one representative from
 
16 each of the following participant groups:
 
17      (1)  Principals;
 
18      (2)  Instructional staff members selected by the school
 
19           instructional staff;
 
20      (3)  Support staff selected by the support staff of the
 
21           school;
 
22      (4)  Parents of students attending the school selected by
 
23           the parents of the school;
 

 
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 1      (5)  Student body representatives selected by the students
 
 2           of the school; and
 
 3      (6)  The community at-large.
 
 4      (c)  The local school board shall formulate and develop a
 
 5 detailed implementation plan, which shall include but not be
 
 6 limited to the following:
 
 7      (1)  A description of the administrative and educational
 
 8           framework, and which provides for the basic protection
 
 9           of employees and their reasonable academic freedoms;
 
10      (2)  A plan for identifying, recruiting, and selecting
 
11           students to make certain that student participation is
 
12           not exclusive, elitist, or segregationalist;
 
13      (3)  A plan for assessing student performance equal to those
 
14           employed throughout the State which focuses upon the
 
15           established state educational performance standards,
 
16           the rigor of standards, and technical validity, as well
 
17           as any other specific student outcomes to be achieved,
 
18           and making this plan accountable to the general public;
 
19      (4)  The curriculum, instructional framework, and assessment
 
20           mechanisms to be used to achieve student outcomes;
 
21      (5)  A plan to hold the school, its faculty, and staff
 
22           (collectively and individually) accountable in the same
 
23           or an equivalent manner as are other public schools
 
24           throughout the State;
 

 
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 1      (6)  A governance structure of the school;
 
 2      (7)  A facilities management plan which is consistent with
 
 3           the state facilities plan; and
 
 4      (8)  Annual financial and program audits.
 
 5      The detailed implementation plan shall be approved by sixty
 
 6 per cent of the school's existing administrative, support, and
 
 7 teaching personnel, and parents; provided that the school
 
 8 personnel may request their bargaining unit representative to
 
 9 certify and conduct the elections for their respective bargaining
 
10 units.  Once approved, the detailed implementation plan shall be
 
11 submitted to the board of education for review.
 
12      (d)  The board of education shall review the proposed new
 
13 century charter school plan to assure that it complies with
 
14 subsection (c) and section 302A-D.  Unless the board of education
 
15 finds that the plan conflicts with subsection (c) or section
 
16 302A-D, the plan shall be converted to a written performance
 
17 contract between the school and the board.  If the board finds a
 
18 conflict with subsection (c) or section 302A-D, it shall notify
 
19 the local school board of the finding in writing to enable the
 
20 local school board to appropriately amend the plan to resolve the
 
21 conflict.
 
22      (e)  The new century charter schools shall not charge
 
23 tuition.  The State shall afford the local school board of any
 

 
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 1 new century charter school the same protections as the State
 
 2 affords to the state board of education.
 
 3      §302A-C   New century charter schools; request for
 
 4 establishment and designation.(a)  As an alternative to section
 
 5 302A-B(b), any community or any program within an existing school
 
 6 may submit a letter of intent to the board for the establishment
 
 7 of a new century charter school.
 
 8      (b)  The authors of the letter of intent shall then develop
 
 9 an implementation plan, which would include the appointment an
 
10 interim school board, pursuant to section 302A-B(c); provided
 
11 that the plan shall also address issues of personnel management,
 
12 and any funding for the design and construction costs of building
 
13 or renovating the new century school shall be consistent with the
 
14 state facilities plan.  The board shall provide support and
 
15 guidance to the community in formulating an implementation plan
 
16 which is compliant with sections 302A-B(c) and 302A-D. 
 
17      (c)  The board of education shall review the completed
 
18 implementation plan for the proposed new century charter school
 
19 to ensure its compliance with sections 302A-B(c) and 302A-D.
 
20 Unless the board finds that the plan conflicts with section 302A-
 
21 B(c) or 302A-D, the board shall designate the proposed new
 
22 century charter school as a new century charter school.  The
 
23 interim local school board shall establish the local school board
 

 
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 1 pursuant to section 302A-B(b) no later than thirty days after the
 
 2 board designates the new century charter school.  The plan shall
 
 3 be converted to a written performance contract, which shall be
 
 4 executed by the board and the new century charter school no later
 
 5 than sixty days after the submittal of the plan.
 
 6      §302A-D  New century charter schools; exemptions.  Schools
 
 7 designated as new century charter schools shall be exempt from
 
 8 all applicable state laws, except those regarding:
 
 9      (1)  Collective bargaining under chapter 89; provided that:
 
10           (A)  The exclusive representatives defined in chapter
 
11                89 may enter into agreements that contain cost and
 
12                noncost items to facilitate decentralized
 
13                decision-making; 
 
14           (B)  The exclusive representatives and the local school
 
15                board of the new century charter school may enter
 
16                into agreements that contain cost and noncost
 
17                items; and
 
18           (C)  The agreements shall be funded from the current
 
19                allocation or other sources of revenue received by
 
20                the new century charter school;
 
21      (2)  Discriminatory practices under section 378-2; and
 
22      (3)  Health and safety requirements.
 

 
 
 
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 1 New century charter schools shall be exempt from the state
 
 2 procurement code, but shall proceed responsibly in procuring
 
 3 goods and services.  New century charter schools shall account
 
 4 for funds expended for the procurement of goods and services, and
 
 5 this accounting shall be available to the public.
 
 6      §302A-E  New century charter schools; funding. (a)  New
 
 7 century charter schools shall receive an allocation of state
 
 8 general funds based upon the operational and educational funding
 
 9 requirements of the schools; provided that:
 
10      (1)  Beginning in fiscal year 1999-2000, and every year
 
11           thereafter, the superintendent shall make the
 
12           allocation based upon the recommendations of a panel
 
13           convened by the superintendent and within thirty days
 
14           of the date of determination of enrollment;
 
15      (2)  Small schools shall be given a subsidy or small school
 
16           allotment to augment the per pupil allocation given;
 
17      (3)  The superintendent shall take into consideration any
 
18           changes to the department's budget by the legislature
 
19           and any applicable collective bargaining negotiated
 
20           amounts; and
 
21      (4)  The allocation for self-contained special education
 
22           students and for other special education students shall
 
23           be adjusted appropriately to reflect the additional
 
24           expenses incurred for students in these programs.
 

 
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 1      (b)  All federal and other financial support for new century
 
 2 charter schools shall be equal to all other public schools;
 
 3 provided that if administrative services are provided to the
 
 4 school by the department, the school shall reimburse the
 
 5 department for the actual costs of the administrative services in
 
 6 an amount that does not exceed six and one-half per cent of the
 
 7 school's allocation.  Any new century charter school shall be
 
 8 eligible to receive any financial grant or award for which any
 
 9 other public school may submit a proposal.  All additional funds
 
10 that are generated by the local school board shall be considered
 
11 supplementary and may be expended at the discretion of the local
 
12 school board.
 
13      §302A-F  New century charter schools; self-evaluation.(a)
 
14 Every new charter century school shall conduct self-evaluations
 
15 annually.  The self-evaluation process shall include but not be
 
16 limited to:
 
17      (1)  The identification and adoption of benchmarks to
 
18           measure and evaluate administrative and instructional
 
19           programs as provided in this section;
 
20      (2)  The identification of any administrative and legal
 
21           barriers to meeting the benchmarks, as adopted, and
 
22           recommendations for improvements and modifications to
 
23           address the barriers; and
 

 
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 1      (3)  The impact upon the students of the student-centered
 
 2           school.
 
 3 Every new century charter school shall submit a report of its
 
 4 self-evaluation to the board of education within sixty days after
 
 5 the completion of the school year; provided that the department
 
 6 shall have thirty days to respond to any recommendation regarding
 
 7 improvements and modifications that would directly impact the
 
 8 department.
 
 9      (b)  The board of education shall initiate an independent
 
10 evaluation of each new century charter school four years after
 
11 its establishment and every four years thereafter to assure
 
12 compliance with statewide student performance standards; provided
 
13 that each new century charter school established prior to July 1,
 
14 1998, shall be evaluated four years after July 1, 1998, and every
 
15 four years thereafter.  Upon a determination by the board of
 
16 education that student achievement within a new century charter
 
17 school does not meet the student performance standards, a new
 
18 century charter school shall be placed on probationary status and
 
19 shall have two years to bring student performance into compliance
 
20 with statewide standards.  If a new century charter school fails
 
21 to meet its probationary requirements, or fails to comply with
 
22 any of the requirements of this section, the board of education,
 
23 upon a two-thirds majority vote, may then deny the continuation
 
24 of the new century charter school.
 

 
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 1      §302A-G  New century charter schools; administrative
 
 2 supervision.  Whenever any new charter century school is
 
 3 established under section 302A-B, the following provisions shall
 
 4 apply except as otherwise specifically provided by this chapter:
 
 5      (1)  Following consultation with the new century charter
 
 6           school, the board of education shall represent the new
 
 7           century charter school in communications with the
 
 8           governor and with the legislature;
 
 9      (2)  The financial requirements for state funds of the new
 
10           century charter school shall be submitted through the
 
11           board of education and included in the budget for the
 
12           department;
 
13      (3)  The approval of all policies and rules adopted by the
 
14           new century charter school shall be preceded by an open
 
15           public meeting and shall not be subject to chapter 91;
 
16      (4)  The employment, appointment, promotion, transfer,
 
17           demotion, discharge, and job descriptions of all
 
18           officers and employees of or under the jurisdiction of
 
19           the new century charter school shall be determined by
 
20           the new century charter school and applicable personnel
 
21           laws and collective bargaining agreements;
 
22      (5)  Except as set forth in this section, the board of
 
23           education or the superintendent of education shall not
 

 
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 1           have the power to supervise or control the new century
 
 2           charter school in the exercise of its functions,
 
 3           duties, and powers; and
 
 4      (6)  Local school boards may enter into an annual business
 
 5           contract for centralized services to be provided by the
 
 6           department prior to the beginning of each school year.
 
 7      §302A-H  New century charter schools; mandate to support.
 
 8 The department, together with key representatives of the major
 
 9 divisions in the department, representatives from the unions, as
 
10 well as individuals from the new century charter schools shall
 
11 collaborate together on a system of technical assistance that
 
12 will provide a baseline for success of each new century charter
 
13 school.  In addition, the department, through the board and its
 
14 superintendent, shall provide any other information and technical
 
15 assistance upon request necessary to support the establishment
 
16 and expansion of new century charter schools."
 
17      SECTION 19.  Section 302A-101, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By adding a new definition to be appropriately inserted
 
20 and to read:
 
21      ""New century charter schools" means the implementation of
 
22 alternative frameworks with regard to curriculum, facilities
 
23 management, instructional approach, length of the school day,
 

 
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 1 week, or year, and personnel management; and may be a new school
 
 2 or include two or more schools acting jointly."
 
 3      2.  By repealing the definition of "student-centered
 
 4 schools":
 
 5      [""Student-centered schools" means the implementation of
 
 6 alternative frameworks with regard to curriculum; facilities
 
 7 management; instructional approach; length of the school day,
 
 8 week, or year; and personnel management; and may include two or
 
 9 more schools acting jointly."]
 
10      SECTION 20.  Section 302A-1114, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "[[]§302A-1114[]]  Power of appointment, removal.  The
 
13 department, from time to time, may appoint and remove such
 
14 teachers, educational officers, and other personnel as may be
 
15 necessary for carrying out the purposes of sections 302A-201,
 
16 302A-301, 302A-401 to 302A-410, 302A-601, 302A-1001 to 302A-1004,
 
17 302A-1101 to [302A-1123,] 302A-1122, 302A-1301 to 302A-1305,
 
18 302A-1401 to 302A-1403, and 302A-1501 to 302A-1506, and regulate
 
19 their duties, powers, and responsibilities, when not otherwise
 
20 provided by law."
 
21      SECTION 21.  Section 302A-1302, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "§302A-1302  School-based budget flexibility.  Beginning
 
 2 with the 1995-1997 fiscal biennium, the department shall
 
 3 implement school-based budget flexibility for schools, complexes,
 
 4 and learning support centers.  The flexibility shall be limited
 
 5 to the school-based budgeting program EDN 100 of the department
 
 6 for all schools except [student-centered schools] new century
 
 7 charter schools defined in section 302A-101; provided that
 
 8 beginning in fiscal year 1998-1999, and every year thereafter,
 
 9 the department shall distribute the full appropriation due to a
 
10 [student-centered] new century charter school pursuant to section
 
11 [302A-1123(d)] 302A-E directly to the [student-centered] new
 
12 century charter school."
 
13      SECTION 22.  Section 302A-1123, Hawaii Revised Statutes, is
 
14 repealed.
 
15      ["§302A-1123  Student-centered schools; programs and
 
16 administration.(a)  Any public school, up to a total of
 
17 twenty-five schools, may establish a student-centered school,
 
18 which shall be attached to the board of education for
 
19 administrative purposes only as specified under section
 
20 302A-1123.6; provided that:
 
21      (1)  Any public school that establishes a student-centered
 
22           school shall be exempt from all applicable state laws;
 
23           except those regarding:
 

 
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 1           (A)  Collective bargaining under chapter 89; provided
 
 2                that the exclusive representatives and the
 
 3                employers defined in chapter 89 may enter into
 
 4                agreements that contain cost and noncost items to
 
 5                facilitate decentralized decision-making; and
 
 6                provided further that the exclusive bargaining
 
 7                unit representatives and the local school board of
 
 8                the student-centered school may enter into
 
 9                agreements that contain cost and noncost items;
 
10                and provided further that the agreements shall be
 
11                funded from the current allocation or other
 
12                sources of revenue received by the
 
13                student-centered school; 
 
14           (B)  State procurement laws; and
 
15           (C)  Discriminatory practices under section 378-2, and
 
16                health and safety requirements;
 
17      (2)  The school establishes a local school board as its
 
18           governing body composed of, at a minimum, one
 
19           representative from each of the following participant
 
20           groups:
 
21           (A)  Principals;
 
22           (B)  Instructional staff members selected by the school
 
23                instructional staff;
 

 
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 1           (C)  Support staff selected by the support staff of the
 
 2                school;
 
 3           (D)  Parents of students attending the school selected
 
 4                by the parents of the school;
 
 5           (E)  Student body representatives selected by the
 
 6                students of the school; and
 
 7           (F)  The community at-large;
 
 8      (3)  The local school board may formulate school-based
 
 9           educational policy and goals in accordance with
 
10           statewide educational performance standards, adopt
 
11           school performance standards and assessment mechanisms,
 
12           monitor school success, and may select the principal as
 
13           the chief executive officer of the school in accordance
 
14           with paragraph (1)(A).  The principal shall consult and
 
15           work collaboratively with the local school board and
 
16           have jurisdiction over the internal organization,
 
17           operation, and management of the school;
 
18      (4)  The local school board has developed a detailed
 
19           implementation plan containing the elements prescribed
 
20           under subsection (b) for a student-centered school that
 
21           has been approved by three-fifths of the school's
 
22           administrative, support, and teaching personnel, and
 
23           parents; provided that the school personnel may request
 

 
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 1           their bargaining unit representatives to certify and
 
 2           conduct the elections for their respective bargaining
 
 3           units;
 
 4      (5)  The detailed implementation plan has been submitted to
 
 5           the board of education for review;
 
 6      (6)  The detailed implementation plan assures compliance
 
 7           with statewide student performance standards;
 
 8      (7)  No student-centered school shall charge tuition; and
 
 9      (8)  The State shall afford the local school board of any
 
10           student-centered school the same protections as the
 
11           State affords to the state board of education.
 
12      (b)  The detailed implementation plan for the student-
 
13 centered school shall include but not be limited to the
 
14 following:
 
15      (1)  A description of the administrative and educational
 
16           framework;
 
17      (2)  Specific student outcomes to be achieved;
 
18      (3)  The curriculum, instructional framework, and assessment
 
19           mechanisms to be used to achieve student outcomes;
 
20      (4)  Governance structure of the school;
 
21      (5)  Facilities management plan; and
 
22      (6)  Annual financial and program audits.
 

 
 
 
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 1      (c)  The board of education shall review the proposed
 
 2 student-centered school plan to assure that it complies with
 
 3 statewide educational performance standards.  Unless the board of
 
 4 education finds that the plan conflicts with statewide
 
 5 educational performance standards, the plan shall become
 
 6 effective within thirty days after its submission.  If the board
 
 7 of education finds a conflict with statewide educational
 
 8 performance standards, it shall notify the local school board of
 
 9 the finding in writing to enable the local school board to
 
10 appropriately amend the plan to resolve the conflict.
 
11      (d)  Student-centered schools shall receive an allocation of
 
12 state general funds based upon the operational and educational
 
13 funding requirements of the schools; provided that:
 
14      (1)  For fiscal year 1998-1999, the allocation shall be
 
15           based on a total per pupil expenditure as determined by
 
16           the legislative auditor; provided that the allocation
 
17           may be adjusted by the auditor to reflect changes to
 
18           the department's budget in the Supplemental
 
19           Appropriations Act of 1998, Act 116, Session Laws of
 
20           Hawaii 1998, and any appropriation made for collective
 
21           bargaining agreements; and provided further that a
 
22           school may negotiate an adjusted allocation in order to
 
23           have the department of education provide services to
 
24           the school; and
 

 
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 1      (2)  Beginning in fiscal year 1999-2000, and every year
 
 2           thereafter, the auditor shall determine the appropriate
 
 3           allocation based on the total department of education
 
 4           general fund appropriation and per pupil expenditure
 
 5           for the previous year; provided that the legislative
 
 6           auditor shall take into consideration any changes to
 
 7           the department's budget by the legislature and any
 
 8           collective bargaining negotiated amounts;
 
 9 and provided further that the allocation for self-contained
 
10 special education students and for other special education
 
11 students shall be adjusted appropriately to reflect the
 
12 additional expenses incurred for the students in these programs.
 
13      (e)  All federal and other financial support for
 
14 student-centered schools shall be equal to all other public
 
15 schools; provided that if administrative services are provided to
 
16 the school by the department, the school shall reimburse the
 
17 department for the actual costs of the administrative services in
 
18 an amount that does not exceed 6.5 per cent of the school's
 
19 allocation.  Any student-centered school shall be eligible to
 
20 receive any financial grant or award for which any other public
 
21 school may submit a proposal.  All additional funds that are
 
22 generated by the local school board shall be considered
 
23 supplementary and may be expended at the discretion of the local
 
24 school board.
 

 
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 1      (f)  Every student-centered school shall conduct
 
 2 self-evaluations annually.  The self-evaluation process shall
 
 3 include but not be limited to the following:
 
 4      (1)  The identification and adoption of benchmarks to
 
 5           measure and evaluate administrative and instructional
 
 6           programs as provided in this section;
 
 7      (2)  The identification of any administrative and legal
 
 8           barriers to meeting the benchmarks, as adopted, and
 
 9           recommendations for improvements and modifications to
 
10           address the barriers; and
 
11      (3)  The impact upon the students of the student-centered
 
12           school.
 
13 Every student-centered school shall submit a report of its
 
14 self-evaluation to the board of education within sixty days after
 
15 the completion of the school year; provided that the department
 
16 shall have thirty days to respond to any recommendation regarding
 
17 improvements and modifications that would directly impact the
 
18 department.
 
19      The board of education shall evaluate each student-centered
 
20 school four years after its establishment to assure compliance
 
21 with statewide student performance standards, consistent with
 
22 subsection (a)(3); provided that each student-centered school
 
23 established prior to July 1, 1998 shall be evaluated four years
 

 
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 1 after July 1, 1998.  Upon a determination by the board of
 
 2 education that student achievement within a student-centered
 
 3 school does not meet the student performance standards, a
 
 4 student-centered school shall be placed on probationary status
 
 5 and shall have two years to bring student performance into
 
 6 compliance with statewide standards.  If a student-centered
 
 7 school fails to meet its probationary requirements, the board of
 
 8 education, upon a two-thirds majority vote, may then deny the
 
 9 continuation of the student-centered school."]
 
10      SECTION 23.  Section 302A-1123.5, Hawaii Revised Statutes,
 
11 is repealed.
 
12      ["[§302A-1123.5]  Student-centered schools; mandate to
 
13 support.  The department, through the board and its
 
14 superintendent, shall provide information and technical
 
15 assistance upon request necessary to support the establishment
 
16 and expansion of student-centered schools."]
 
17      SECTION 24.  Section 302A-1123.6, Hawaii Revised Statutes,
 
18 is repealed. 
 
19      ["[§302A-1123.6]  Student-centered schools; administrative
 
20 supervision.  Whenever any student-centered school is established
 
21 under section 302A-1123, the following provisions shall apply
 
22 except as otherwise specifically provided by this chapter:
 

 
 
 
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 1      (1)  Following consultation with the student-centered
 
 2           school, the board of education shall represent the
 
 3           student-centered school in communications with the
 
 4           governor and with the legislature;
 
 5      (2)  The financial requirements for state funds of the
 
 6           student-centered school shall be submitted through the
 
 7           board of education and included in the budget for the
 
 8           department;
 
 9      (3)  The approval of all policies and rules adopted by the
 
10           student-centered school shall be preceded by an open
 
11           public meeting and shall not be subject to chapter 91;
 
12      (4)  The employment, appointment, promotion, transfer,
 
13           demotion, discharge, and job descriptions of all
 
14           officers and employees of or under the jurisdiction of
 
15           the student-centered school shall be determined by the
 
16           student-centered school and applicable personnel laws
 
17           and collective bargaining agreements;
 
18      (5)  Except as set forth in this section, the board of
 
19           education or the superintendent of education shall not
 
20           have the power to supervise or control the
 
21           student-centered school in the exercise of its
 
22           functions, duties, and powers."] 
 

 
 
 
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 1      SECTION 25.  In codifying the new sections added by section
 
 2 18 of this part, the revisor of statutes shall substitute the
 
 3 appropriate section numbers for the letters used in designating
 
 4 the new sections in this part.
 
 5                              PART IV
 
 6      SECTION 26.  Section 237-31, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§237-31  Remittances.  All remittances of taxes imposed by
 
 9 this chapter shall be made by money, bank draft, check, cashier's
 
10 check, money order, or certificate of deposit to the office of
 
11 the department of taxation to which the return was transmitted.
 
12 The department shall issue its receipts therefor to the taxpayer
 
13 and shall pay the moneys into the state treasury as a state
 
14 realization, to be kept and accounted for as provided by law;
 
15 provided that the sum from all general excise tax revenues
 
16 realized by the State that represents the difference between
 
17 [$90,000,000] $45,000,000 and the proceeds from the sale of any
 
18 general obligation bonds authorized for that fiscal year for the
 
19 purposes of the state educational facilities improvement special
 
20 fund shall be deposited in the state treasury in each fiscal year
 
21 to the credit of the state educational facilities improvement
 
22 special fund; provided further that a sum, not to exceed
 

 
 
 
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 1 $5,000,000, from all general excise tax revenues realized by the
 
 2 State shall be deposited in the state treasury in each fiscal
 
 3 year to the credit of the compound interest bond reserve fund."
 
 4                              PART V
 
 5      SECTION 27.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 28.  This Act shall take effect upon its approval;
 
 8 provided that:
 
 9      (1)  Sections 4, 15, and 16 shall take effect on July 1,
 
10           1999; and
 
11      (2)  Section 2 shall take effect on July 1, 2000.