The code removed status offenders from the jurisdiction of the juvenile courts and gave the Department of Social and Health Services (DSHS) the responsibility for providing crisis intervention services and temporary, non-secure residential care for these youths. The code calls for DSHS to cooperate with other public and voluntary agencies in the development and coordination of these activities. At issue are what kind of services will best serve these youths, who can provide the services most effectively and least expenisvely, and what services are already in existence and whether they will or should be duplicated. Underlying these issues is the philosophical conflict between those favoring the public provision of serices and those favoring private provision of services. From the DSHS point of view, DSHS has the authority and responsibility for providing the services itself; the language of the bill is permissive regarding contracting out; and DSHS needs only to expand its present services. From the private agency point of view, private agencies have existing staff and facilities and can save overhead costs; private agencies offer more services; direct service volunteers are often available through the agencies; and no institutional stigma is is connected with service by a private agency. The historical context, the legislative intent, and DSHS policies are discussed in separate sections. For related reports, see NCJ 72319-21 and 72323.