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THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 302A-1123, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "[[]302A-1123[]]  Student-centered schools; programs and
 4 administration.(a)  Any public school, up to a total of twenty-
 5 five schools, may establish a student-centered school[, which
 6 shall be attached to the board of education for administrative
 7 purposes only as specified under section 302A-1123.6]; provided
 8 that:
 9      (1)  Any public school that establishes a student-centered
10           school shall be exempt from all applicable state laws;
11           except those regarding:
12           (A)  Collective bargaining under chapter 89; provided
13                that the exclusive representatives and the
14                employers defined in chapter 89 may enter into
15                agreements that contain cost and noncost items to
16                facilitate decentralized decision-making; and
17                provided further that the exclusive bargaining
18                unit representatives and the local school board of
19                the student-centered school may enter into

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 1                agreements that contain cost and noncost items;
 2                and provided further that the agreements shall be
 3                funded from the current allocation or other
 4                sources of revenue received by the student-
 5                centered school;
 6           (B)  State procurement laws; and
 7           (C)  Discriminatory practices under section 378-2, and
 8                health and safety requirements;
 9      (2)  The school establishes a local school board as its
10           governing body composed of, at a minimum, one
11           representative from each of the following participant
12           groups:
13           (A)  Principals;
14           (B)  Instructional staff members selected by the school
15                instructional staff;
16           (C)  Support staff selected by the support staff of the
17                school;
18           (D)  Parents of students attending the school selected
19                by the parents of the school;
20           (E)  Student body representatives selected by the
21                students of the school; and
22           (F)  The community-at-large;
23      (3)  The local school board [may] shall formulate school-

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 1           based educational [policy and] goals in accordance with
 2           statewide educational performance standards[, adopt
 3           school performance standards and assessment mechanisms,
 4           monitor school success,] and shall utilize satisfactory
 5           indicators to determine whether its students meet or
 6           exceed such goals and the statewide educational
 7           performance standards established by the board of
 8           education.  The indicators shall include the assessment
 9           required for students in the other public schools,
10           although the school may adopt additional school
11           performance standards and assessment mechanisms, and
12           shall include timelines for the achievement of student
13           performance goals and the assessment of student
14           performance.  The local school board may select the
15           principal as the chief executive officer of the school
16           in accordance with paragraph (1)(A).  The principal
17           shall consult and work collaboratively with the local
18           school board and have jurisdiction over the internal
19           organization, operation, and management of the school;
20      (4)  The local school board has developed a detailed
21           implementation plan containing the elements prescribed
22           under subsection (b) for a student-centered school that
23           has been approved by three-fifths of the school's

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

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 1      (6)  Annual financial and program audits.
 2      (c)  The board of education shall review the proposed
 3 student-centered school plan to assure that it complies with
 4 [statewide educational performance standards.  Unless the board
 5 of education finds that the plan conflicts with statewide
 6 educational performance standards, the plan shall become
 7 effective within thirty days after its submission.  If the board
 8 of education finds a conflict with statewide educational
 9 performance standards, it shall notify the local school board of
10 the finding in writing to enable the local school board to
11 appropriately amend the plan to resolve the conflict.] the
12 requirements of this section.  The board of education shall have
13 final authority to approve or disapprove of the proposed student-
14 centered school plan.
15      (d)  Student-centered schools shall receive an allocation of
16 state general funds based upon the operational and educational
17 funding requirements of the schools; provided that:
18      (1)  For fiscal year 1998-1999, the allocation shall be
19           based on a total per pupil expenditure as determined by
20           the legislative auditor; provided that the allocation
21           may be adjusted by the auditor to reflect the changes
22           to the department's budget in the Supplemental
23           Appropriations Act of 1998, H.B. No. 2500, and any

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 1           appropriation made for collective bargaining
 2           agreements; and provided further that a school may
 3           negotiate an adjusted allocation in order to have the
 4           department of education provide services to the school;
 5           and
 6      (2)  Beginning in fiscal year 1999-2000, and every year
 7           thereafter, the [auditor] superintendent shall
 8           determine the appropriate allocation based on the total
 9           department of education general fund appropriation and
10           per pupil expenditure for the previous year; provided
11           that the [legislative auditor] superintendent shall
12           take into consideration any changes to the department's
13           budget by the legislature and any collective bargaining
14           negotiated amounts[;].  The superintendent shall make
15           the allocation based upon consultation with appropriate
16           constituencies and within thirty days of the date of
17           determination of enrollment;
18 and provided further that the allocation for self-contained
19 special education students and for other special education
20 students shall be adjusted appropriately to reflect the
21 additional expenses incurred for the students in these programs.
22      (e)  All federal and other financial support for student-
23 centered schools shall be equal to all other public schools;

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 1 provided that if administrative services are provided to the
 2 school by the department, the school shall reimburse the
 3 department for the actual costs of the administrative services in
 4 an amount that does not exceed 6.5 per cent of the school's
 5 allocation.  Any student-centered school shall be eligible to
 6 receive any financial grant or award for which any other public
 7 school may submit a proposal.  All additional funds that are
 8 generated by the local school board shall be considered
 9 supplementary and may be expended at the discretion of the local
10 school board.
11      (f)  Every student-centered school shall conduct self-
12 evaluations annually.  The self-evaluation process shall include
13 but not be limited to the following:
14      (1)  The identification and adoption of benchmarks to
15           measure and evaluate administrative and instructional
16           programs as provided in this section;
17      (2)  The identification of any administrative and legal
18           barriers to meeting the benchmarks, as adopted, and
19           recommendations for improvements and modifications to
20           address the barriers; and
21      (3)  The impact upon the students of the student-centered
22           school.
23 Every student-centered school shall submit a report of its self-

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 1 evaluation to the board of education within sixty days after the
 2 completion of the school year; provided that the department shall
 3 have thirty days to respond to any recommendation regarding
 4 improvements and modifications that would directly impact the
 5 department.
 6      The board of education shall evaluate each student-centered
 7 school four years after its establishment and every four years
 8 thereafter to assure compliance with [statewide student
 9 performance standards, consistent with subsection (a)(3);] the
10 requirements of this section; provided that each student-centered
11 school established prior to July 1, 1998, shall be evaluated four
12 years after July 1, 1998[.], and every four years thereafter.
13 Upon a determination by the board of education that student
14 achievement within a student-centered school does not meet the
15 student performance standards, a student-centered school shall be
16 placed on probationary status and shall have [two years] one year
17 to bring student performance into compliance with [statewide
18 standards.] the requirements of this section.  If a student-
19 centered school fails to meet its probationary requirements[,] or
20 fails to comply with any of the requirements of this section, the
21 board of education, upon a two-thirds majority vote, may then
22 deny the continuation of the student-centered school."
23      SECTION 2.  Section 302A-1123.6, Hawaii Revised Statutes, is

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 1 amended to read as follows:
 2      "[[]302A-1123.6[]]  Student-centered schools;
 3 administrative supervision.  Whenever any student-centered school
 4 is established under section 302A-1123, the following provisions
 5 shall apply except as otherwise specifically provided by this
 6 chapter:
 7      (1)  Following consultation with the student-centered
 8           school, the board of education shall represent the
 9           student-centered school in communications with the
10           governor and with the legislature;
11      (2)  The financial requirements for state funds of the
12           student-centered school shall be submitted through the
13           board of education and included in the budget for the
14           department;
15      (3)  The approval of all policies and rules adopted by the
16           student-centered school shall be preceded by an open
17           public meeting [and shall not be] subject to chapter
18           91;
19      (4)  The employment, appointment, promotion, transfer,
20           demotion, discharge, and job descriptions of all
21           officers and employees of or under the jurisdiction of
22           the student-centered school shall be determined by the
23           student-centered school and applicable personnel laws

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 1           and collective bargaining agreements;
 2      [(5) Except as set forth in this section, the board of
 3           education or the superintendent of education shall not
 4           have the power to supervise or control the student-
 5           centered school in the exercise of its functions,
 6           duties, and powers.]
 7      (5)  The board of education shall have the power to require
 8           that the student-centered school be subject to the same
 9           accountability system applicable to all other public
10           schools; and
11      (6)  Local school boards shall enter into an annual business
12           contract for centralized services to be provided by the
13           department prior to the beginning of each school year."
14      SECTION 3.  Section 302A-1302, Hawaii Revised Statutes, is
15 amended to read as follows:
16      "302A-1302  School-based budget flexibility.  Beginning
17 with the 1995-1997 fiscal biennium, the department shall
18 implement school-based budget flexibility for schools, complexes,
19 and learning support centers.  The flexibility shall be limited
20 to the school-based budgeting program EDN 100 of the department
21 [for all schools except student-centered schools defined in
22 section 302A-101; provided that beginning in fiscal year 1998-
23 1999, and every year thereafter, the department shall distribute

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 1 the full appropriation due to a student-centered school pursuant
 2 to section 302A-1123(d) directly to the student-centered
 3 school]."
 4      SECTION 4.  Section 302A-1123.5, Hawaii Revised Statutes, is
 5 repealed.
 6      ["[302A-1123.5]  Student-centered schools; mandate to
 7 support.  The department, through the board and its
 8 superintendent, shall provide information and technical
 9 assistance upon request necessary to support the establishment
10 and expansion of student-centered schools."]
11      SECTION 5.  Statutory material to be repealed is bracketed.
12 New statutory material is underscored.
13      SECTION 6.  This Act shall take effect on July 1, 1999.
15                              INTRODUCED BY:______________________

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