Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1501
                                     S.D. 3
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committees on Education and Labor and Public
Employment, to which was referred S.B. No. 1501, S.D. 3, H.D. 1,


beg leave to report as follows:

     The purpose of this bill is to establish a comprehensive
education package with the goal of promoting greater learning and
school success for children of all ages.  To accomplish this, the
bill is comprised of four distinct parts that, when viewed as a
whole, reflect a system of care that will ensure that Hawaii's
children will be prepared for and will succeed in school.


     (1)  Part I of the bill appropriates funds to develop an
          Early Childhood Development and Education Center for
          infants and children up to four years of age in the
          Kalihi area of Honolulu;

     (2)  Part II of the bill provides parents or guardians of a
          child access to screening for the child for
          psychological and cognitive, language, motor, and
          behavioral or social-emotional development between the
          child's second and third birthday and makes an
          appropriation therefor;

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                                 Page 2

     (3)  Part III of the bill seeks to provide adolescents with
          access to quality, affordable health care in an
          environment that is familiar, non-threatening, and
          encouraging through school-based health centers by
          requiring the Director of Health to establish at least
          one school-based health center in each departmental
          school district of the Department of Education and
          appropriating funds therefor; and

     (4)  Part IV of the bill creates a process whereby up to
          twenty-five existing public schools and new schools may
          be established as a New Century School with alternative
          educational programs.

     Like the bill itself, much of the testimony received by your
Committees was divided and focused on the individual parts of the
bill.  Accordingly, the testimony received and your Committees'
findings have been divided into Parts I through IV and summarized
as follows:

Part I:

     Testimony in support of Part I was received from the Healthy
Mothers Healthy Babies Coalition of Hawaii.  Testimony in support
of the intent of Part I was received from the Department of
Education (DOE), the Department of Health (DOH), and the Good
Beginnings Alliance.

     Your Committees find that quality early childhood education
and care services increase a child's ability to succeed in school
with peers and to eventually become a contributing member of the
community.  Your Committees further find that Kalihi is in need
of increased early childhood care and education programs.

Part II:

     Testimony in support of Part II was received from the
Healthy Mothers Healthy Babies Coalition of Hawaii and the Kahuku
Complex Schools.  Testimony in support of the intent of Part II
was received from DOH.  Project SEEK testified in support of Part
II provided it is amended to ensure that all parents of young
children "shall" have access to developmental screening.  

     DOE testified that while in support of the intent to provide
early detection and remediation for early childhood learning
problems, the process of detection described is redundant to the
DOE's existing "Child Find" efforts.  

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                                 Page 3

     The Department of Budget and Finance (DB&F) commented that
DOH and private providers already provide screening and early
intervention treatment services for children from 0 to 5.  The
Good Beginnings Alliance commented on Part II.

     Your Committees find that early childhood screening,
identification, and intervention for developmental delays and
psychosocial problems can improve children's school success and
family functioning.  Your Committees further find that
standardized screening and referral protocols will help to ensure
timely identification and intervention.  This bill creates an
opportunity for public agencies, the University of Hawaii, and
private health care providers to collaborate to develop screening
and referral protocols that will effectively catch and address
individual children's needs so that they can succeed in school.

Part III:

     Testimony in support of Part III was received from the
Healthy Mothers Healthy Babies Coalition of Hawaii, Kokua Kalihi
Valley, the Hawaii Nurses' Association, the Kahuku Complex
Schools, and a pediatric nurse practitioner.  Testimony in
support of the intent of Part III was received from DOE and DOH.  
DB&F testified that establishing school-based health centers
would duplicate services already provided by private and public
health care providers.

     Your Committees find that school-based health care centers
have been determined to be an effective adolescent wellness
model.  School-based health care centers focus on prevention and
early intervention and are able to provide a continuum of
services for all students.  Your Committees feel that these
centers should be available in every departmental school

Part IV:

     Testimony in support of Part IV and the development of New
Century Schools was received from Punana Leo O Waimea, the Kanu o
ka 'Aina Teaching Team, 'Ohana o Kanu o ka 'Aina, the Wildlife
Conservation Association of Hawaii, the Hawaii Business
Roundtable, the Healthy Mothers Healthy Babies Coalition of
Hawaii, the South Maui Learning Ohana, Maui Research and
Technology Park, the Estate of James Campbell, the Native
Hawaiian Education Council, the Kahuku Complex Schools, and a
number of concerned students, parents, and teachers.

                                 STAND. COM. REP. NO. 1404
                                 Page 4

     Testimony in support of the intent of Part IV was received
from DOE, DB&F, the Hawaii State Teachers Association (HSTA), the
Hawaii Government Employees Association (HGEA), and the
Department of Human Resources Development.  HSTA and HGEA also
proposed several amendments to Part IV of the bill.  DB&F raised
several funding and budgeting concerns.

     Your Committees find that the concept of New Century
Schools, also known as charter schools, defines a new and
improved approach to education, one that is free of bureaucratic
red tape and accommodates the individual needs of students.  New
Century Schools will allow schools increased flexibility and
autonomy, with a local school board serving as the governing body
of each school, in exchange for greater accountability for
student performance.

     Your Committees further find that the development and
nurturing of New Century Schools will allow the State to
dramatically improve its educational standards for the twenty-
first century.  Currently, there are charter schools operating in
over 23 states, and emerging data suggest that charter schools
are spurring reform in traditional public schools.  In addition,
a study done by the Center for School Improvement at the
University of Minnesota of 30 charter schools in 9 states
indicated that 68 percent of charter schools demonstrated
improved student achievement.  And, other studies have shown that
charter schools are not only improving students' interest in
school, but are enhancing teachers' levels of satisfaction.

     After careful consideration of the testimonies received on
all parts of this bill, your Committees have amended the bill by:

     (1)  Deleting Part I of the bill, a topic that is currently
          being addressed in another bill, S.B. No. 512, H.D. 2,
          S.D. 1;

     (2)  In Part IV, changing the name of the new part to be
          designated and inserted into the Hawaii Revised
          Statutes, and references therein, from "New Century
          Schools" to "New Century Charter Schools," to ensure
          that new schools created pursuant to this bill are
          eligible for federal funding under the federal Charter
          School Expansion Act of 1998;

     (3)  In Part IV, deleting the requirement in sections 302A-B
          and 302A-C that the creation of a New Century Charter
          School requires an executive order of the Governor, and
          providing that the Board of Education (BOE) shall be
          responsible for designating schools as New Century
          Charter Schools;

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                                 Page 5

     (4)  In Part IV, providing in section 302A-C that the
          completed implementation plan for each proposed New
          Century Charter School, upon designation as a New
          Century Charter School, shall serve as the basis of a
          performance contract between the school and the BOE;

     (5)  In Part IV, amending section 302A-D to include
          exemptions from State procurement laws, provided that
          schools proceed responsibly in procurement and maintain
          accounting systems that are open to public scrutiny; 

     (6)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.

     As affirmed by the records of votes of the members of your
Committees on Education and Labor and Public Employment that are
attached to this report, your Committees are in accord with the
intent and purpose of S.B. No. 1501, S.D. 3, H.D. 1, as amended
herein, and recommend that it be referred to the Committee on
Finance in the form attached hereto as S.B. No. 1501, S.D. 3,
H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Education and
                                   Labor and Public Employment,

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