REPORT TITLE:
Education, Privatization


DESCRIPTION:
Allows the department of education to contract for services and
programs.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2304
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO EDUCATION.



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

 1      SECTION 1.  Chapter 302A, Hawaii Revised Statutes, is
 
 2 amended by adding a new part to be appropriately designated and
 
 3 to read as follows:
 
 4                  "PART  .  FREEDOM TO CONTRACT
 
 5      §302A-  Short title.  This part shall be known as the
 
 6 Board of Education Freedom to Contract Act.
 
 7      §302A-  Findings.  The legislature finds that:
 
 8      (1)  The board of education shall have the freedom to
 
 9           contract for services and programs;
 
10      (2)  Many of the functions currently under the direction of
 
11           the department should be outsourced to improve
 
12           performance and keep costs down;
 
13      (3)  Through outsourcing, i.e., contracting with the private
 
14           sector to perform government functions, certain
 
15           services and programs may be performed more cost-
 
16           efficiently and effectively;
 
17      (4)  Due to fiscal constraints, many state programs and
 
18           services are already being scaled back, compelling the
 
19           State to seriously consider a long-term plan for "right
 

 
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 1           sizing" -- to become leaner, more efficient, and more
 
 2           effective in the delivery of services to the public.
 
 3      §302A-    Definitions.  For the purposes of this part,
 
 4 "education services" means direct instructional services to
 
 5 pupils, including, but not limited to, any education program
 
 6 authorized or required by law, and administrative services or any
 
 7 other support service necessary for the operation of the school
 
 8 district.
 
 9      §302A-    Board authorization to contract.  Notwithstanding
 
10 any other law to the contrary, the board of education, or the
 
11 department, or a departmental school district, pursuant to board
 
12 policy, may enter into a contract with a private person, firm,
 
13 corporation, organization, or association to provide services or
 
14 management of all or a portion of the education services
 
15 necessary to operate the schools of the departmental school
 
16 district, including direct educational services to pupils,
 
17 administrative services, food services, school facility
 
18 maintenance services, or the leasing of school facilities for use
 
19 in providing instructional or administrative services.
 
20      §302A-    Rules.  Notwithstanding any other law to the
 
21 contrary, the board of education shall adopt rules, pursuant to
 
22 chapter 91 to effectuate this part."
 
23      SECTION 2.  Section 302A-1102, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "[[]§302A-1102[]]  Department of education; statewide and
 
 3 regional administrative services.  (a)  The department shall
 
 4 serve as the central support system responsible for the overall
 
 5 administration of statewide educational policy, interpretation,
 
 6 and development of standards for compliance with state and
 
 7 federal laws, and coordination and preparation of a systemwide
 
 8 budget for the public schools.  The department may establish
 
 9 regional administrative units to provide administrative support
 
10 to the schools for personnel, fiscal, and procurement services.
 
11 The regional administrative units may also be assigned
 
12 responsibility for the administration and operation of special
 
13 education programs and special schools.
 
14      (b)  Notwithstanding any law to the contrary, the functions
 
15 of the department shall be limited to those that are not
 
16 contracted out to private entities under chapter 302A, part    ,
 
17 although the department shall remain responsible for those
 
18 functions.  The private entities contracted shall assume the
 
19 functions of the department in the areas contracted.  Any
 
20 reference in the Hawaii Revised Statutes to the department with
 
21 respect to a contracted function shall be deemed to refer to any
 
22 private entity or entities contracted by the department to
 
23 perform the function."
 

 
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 1      SECTION 3.  It is the intent of this Act not to jeopardize
 
 2 the receipt of any federal aid nor to impair the obligation of
 
 3 the State or any agency thereof to the holders of any bond issued
 
 4 by the State or by any such agency, and to the extent, and only
 
 5 to the extent, necessary to effectuate this intent, the governor
 
 6 may modify the provisions of this Act, but shall promptly report
 
 7 any modification with reasons therefor to the the legislature at
 
 8 its next session thereafter for legislative review.
 
 9      SECTION 4.  All appropriations, records, equipment,
 
10 machines, files, supplies, contracts, books, papers, documents,
 
11 maps, and other personal property heretofore made, used,
 
12 acquired, or held by the department of education relating to the
 
13 functions contracted to any private entity contracted to perform
 
14 any function of the department pursuant to this Act, may be used
 
15 by the contractor for those functions to which they relate;
 
16 provided the items shall remain the property of the State. 
 
17      SECTION 5.  All rules, policies, procedures, guidelines, and
 
18 other material adopted or developed by the department of
 
19 education shall remain in full force and effect until amended or
 
20 repealed by the the department pursuant to chapter 91, Hawaii
 
21 Revised Statutes.  In the interim, every reference to the
 
22 department of education in those rules, policies, procedures,
 
23 guidelines, and other material shall be deemed, where
 

 
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 1 appropriate, to refer to the private entities contracted to
 
 2 perform the respective functions of the department pursuant to
 
 3 this Act.
 
 4      SECTION 6.  This Act shall not affect rights and duties that
 
 5 matured, penalties that were incurred, and proceedings that were
 
 6 begun, before its effective date.
 
 7      SECTION 7.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 8.  This Act shall take effect upon its approval.
 
10 
 
11                           INTRODUCED BY:  _______________________