REPORT TITLE:
A+ Programs; Privatization


DESCRIPTION:
Allows the department of education to contract out all or a
portion of its after-school plus (A+) programs.  Establishes an
after-school revolving fund.  Exempts private providers of A+
services from civil service and collective bargaining laws.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2322
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO AFTER-SCHOOL PLUS (A+) PROGRAMS.



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

 1      SECTION 1.  The legislature finds that there is a need to
 
 2 provide the department of education with increased flexibility in
 
 3 running its after-school plus (A+) program for children.  This
 
 4 includes giving the department the option to contract out the
 
 5 entire program if it believes that privatization will provide the
 
 6 most efficient and economical service delivery while providing
 
 7 quality services.  Accordingly, the purpose of this Act is to:
 
 8      (1)  Allow the department of education to run all or
 
 9           portions of the after-school plus program, or to
 
10           contract out all or portions of that program to private
 
11           providers, and to exempt those private providers from
 
12           civil service and collective bargaining laws;
 
13      (2)  Make the after-school plus programs for children self-
 
14           supporting by establishing a revolving fund, which is
 
15           to be used only to support those after-school plus
 
16           programs that are not contracted out; and
 
17      (3)  Allow the department to charge fees for the programs
 
18           that are not contracted out, to be deposited in the new
 
19           revolving fund; provided that the fees charged reflect
 

 
Page 2                                                     2322
                                     H.B. NO.           
                                                        
                                                        


 1           the true costs of the programs and are not used to
 
 2           support any other programs.
 
 3      SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is
 
 4 amended by adding a new section to be appropriately designated
 
 5 and to read as follows:
 
 6      "§302A-    After-school plus (A+) revolving fund.  There is
 
 7 established within the state treasury a revolving fund to be
 
 8 known as the after-school plus (A+) revolving fund, into which
 
 9 shall be deposited all fees collected pursuant to section
 
10 302A-408(b), and all other moneys received by the board in the
 
11 form of appropriations, grants, or donations that are
 
12 specifically earmarked for the purposes of the fund.  The
 
13 revolving fund shall be administered by the department and used
 
14 only to pay for the costs of the after-school plus (A+) program
 
15 administered by the department that have not been contracted out
 
16 to private entities."
 
17      SECTION 3.  Section 302A-408, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "[[]§302A-408[]]  After-school and weekend programs.  (a)
 
20 The department and the appropriate county agencies may establish
 
21 and regulate programs of after-school and weekend community-
 
22 school activities for children, including but not limited to day-
 
23 care programs, arts and crafts, hula, ukulele, and other
 

 
Page 3                                                     2322
                                     H.B. NO.           
                                                        
                                                        


 1 educational or recreational projects, wherever feasible, at
 
 2 public school and public park facilities.  In addition to any
 
 3 appropriation of public funds, reasonable fees established by the
 
 4 agencies operating the programs may be collected from children
 
 5 enrolled, in the furtherance of particular programs.  The
 
 6 appropriate agencies may obtain from time to time the services of
 
 7 persons in a voluntary or unpaid capacity, exempt from chapters
 
 8 76 and 77, as may be necessary for carrying out the purposes of
 
 9 this section, and may regulate their duties, powers, and
 
10 responsibilities when not otherwise provided by law.  Any person
 
11 whose services have been so accepted, while engaged in the
 
12 performance of duty under this section, shall be deemed a state
 
13 employee or an employee of a political subdivision, as the case
 
14 may be, in determining the liability of the State or the
 
15 political subdivision for the negligent acts of these persons.
 
16      (b)  Notwithstanding any other law to the contrary, at the
 
17 discretion of the department, the department may contract out
 
18 pursuant to chapter 103D, either in whole or in part, the
 
19 department's after-school plus (A+) program to private providers;
 
20 provided that:
 
21      (1)  Any privately contracted services shall be
 
22           substantially equivalent to or better in quality than
 
23           those which are provided by other pilot A+ programs;
 

 
Page 4                                                     2322
                                     H.B. NO.           
                                                        
                                                        


 1      (2)  Any employees of a private provider under contract to
 
 2           provide services for the A+ program shall be exempt
 
 3           from chapters 76, 77, and 89;
 
 4      (3)  All fees collected by the department for the purposes
 
 5           of the A+ program shall be deposited into the after-
 
 6           school plus (A+) revolving fund established under
 
 7           section 302A-   ;
 
 8      (4)  The fees charged for the A+ program shall reflect the
 
 9           true costs of the programs and shall not be used to
 
10           support any other educational programs.  This paragraph
 
11           shall apply whether the A+ program is administered by
 
12           the department or by a private provider;
 
13      (5)  Participants in the A+ program who do not have the
 
14           ability to pay for all or part of the A+ program fees
 
15           shall be appropriately assessed on a sliding fee scale
 
16           basis and in accordance with the ability of the
 
17           department to afford the difference between the true
 
18           cost of the program and the amounts so assessed;
 
19      (6)  Nothing shall restrict a private provider under
 
20           contract to provide services for the A+ program from
 
21           providing before-school, vacation care, transportation,
 
22           or other extra services at an additional fee;
 
23      (7)  Moneys appropriated to the department for other
 

 
Page 5                                                     2322
                                     H.B. NO.           
                                                        
                                                        


 1           educational programs shall not be transferred to
 
 2           augment the appropriation for the A+ program; and
 
 3      (8)  The department shall adopt rules pursuant to chapter 91
 
 4           to implement this subsection."
 
 5      SECTION 4.  Section 8 of Act 334, Session Laws of Hawaii
 
 6 1990, is repealed.
 
 7      ["SECTION 8.  Each respective school shall have the option
 
 8 to administer the pilot A+ program directly or to subcontract for
 
 9 services with a private entity; provided that any privately
 
10 contracted services shall be substantially equivalent to or
 
11 better in quality than those which are provided by other pilot A+
 
12 programs.
 
13      The procedures for contracting for private services shall be
 
14 established by the department of education.
 
15      The monthly fees charged by the private provider shall be
 
16 the same as charged by other pilot A+ programs.  The private
 
17 provider shall be reimbursed by the department of education on a
 
18 monthly basis at a rate not to exceed the per pupil costs of
 
19 pilot A+ programs at other department of education operated
 
20 sites, after discounting for monthly fees collected from each
 
21 appropriate pupil.  The school shall provide the private
 
22 contractor with appropriate school facilities at no cost.
 
23      Nothing shall restrict the private provider from providing
 

 
Page 6                                                     2322
                                     H.B. NO.           
                                                        
                                                        


 1 before-school, vacation care, transportation, or other extra
 
 2 services at an additional fee."]
 
 3      SECTION 5.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 6.  This Act shall take effect upon its approval.
 
 6 
 
 7                           INTRODUCED BY:  _______________________