HB 241: RELATING TO CHILD CARE.

A BILL FOR AN ACT

RELATING TO CHILD CARE.

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

     SECTION 1.  The legislature finds that in the first quarter of fiscal year 2022-2023, more than fifteen thousand families with children under the age of thirteen received subsidies from the child care connection Hawaii program to help them afford child care services.  The legislature further finds that child care center providers can be faced with disruptions in services and possible closure when their operating costs are funded by tuition fees because their revenues depend upon ever-changing enrollment figures rather than a stable source of funding.

     Accordingly, the purpose of this Act is to establish a child care classroom contracts pilot program to develop and implement procedures to subsidize child care by contracting for classrooms in licensed infant and toddler child care centers and group child care centers.

     SECTION 2.  (a)  The department of human services shall establish and implement a child care classroom contracts pilot program no later than July 1, 2026.

     (b)  The department of human services shall contract directly with licensed infant and toddler child care center and group child care center providers that serve:

     (1)  Children six weeks to five years of age; and

     (2)  Families who are eligible for a federally funded child care subsidy through the department of human services;

provided that a child care center shall not be eligible for a contract if the center is part of, owned by, or operated by a private educational institution and the awarding of the contract would violate article X, section 1, of the Hawaii State Constitution.

     (c)  The pilot program shall meet the following requirements:

     (1)  The pilot program shall provide contracts for at least one full classroom at one licensed infant and toddler child care center and one licensed group child care center per county; and

     (2)  Contracts with child care center providers shall be a minimum of twelve months and may be extended for the length of the pilot period.

     (d)  The department of human services shall monitor seat utilization and may adjust the number of contracted seats based on enrollment trends and provider performance; provided that:

     (1)  Providers with consistently low utilization of contracted seats may be subject to contract modification or termination; and

     (2)  The department may contract with a service provider in accordance with chapter 103F, Hawaii Revised Statutes, to operate the child care classroom contracts pilot program.

     (e)  The pilot program shall cease to exist on June 30, 2028.

     SECTION 3.  (a)  The department of human services shall submit annual interim reports on the development and implementation of the child care classroom contracts pilot program, including impacts to child care provider stability, family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028.

     (b)  The department of human services shall submit a final report on the child care classroom contracts pilot program, including impacts to child care provider stability, family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2029.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

Department of Human Services; Child Care Classroom Contracts Pilot Program; Report

Description:

Establishes a child care classroom contracts pilot program to require the Department of Human Services to contract directly with child care center providers in licensed infant and toddler child care centers and group child care centers that meet certain criteria.  Requires reports to the Legislature.  Sunsets the pilot program on 6/30/2028.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to child care.

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

     SECTION 1.  The legislature finds that in the first quarter of fiscal year 2022-2023, more than fifteen thousand families with children under the age of thirteen received subsidies from the child care connection Hawaii program to help them afford child care services.  The legislature further finds that child care center providers can be faced with disruptions in services and possible closure when their operating costs are funded by tuition fees because their revenues depend upon ever-changing enrollment figures rather than a stable source of funding.

     Accordingly, the purpose of this Act is to establish a child care classroom contracts pilot program to develop and implement procedures to subsidize child care by contracting for classrooms in licensed infant and toddler child care centers or group child care centers.

     SECTION 2.  (a)  The department of human services shall establish and implement a child care classroom contracts pilot program no later than July 1, 2026.

     (b)  The department of human services shall contract directly with licensed infant and toddler child care center and group child care center providers that serve:

     (1)  Children six weeks to five years of age; and

     (2)  Families who are eligible for a federally funded child care subsidy through the department of human services.

     (c)  The pilot program shall meet the following requirements:

     (1)  The pilot program shall provide contracts for at least one full classroom at one licensed infant and toddler child care center and two licensed group child care centers per county; and

     (2)  Contracts with child care center providers shall be a minimum of twelve months and may be extended for the length of the pilot period.

     (d)  The department of human services may contract with a service provider in accordance with chapter 103F, Hawaii Revised Statutes, to operate the child care classroom contracts pilot program.

     (e)  The pilot program shall cease to exist on June 30, 2028.

     SECTION 3.  (a)  The department of human services shall submit annual interim reports on the development and implementation of the child care classroom contracts pilot program, including impacts to child care provider stability, family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028.

     (b)  The department of human services shall submit a final report on the child care classroom contracts pilot program, including impacts to child care provider stability, family satisfaction, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2029.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

Department of Human Services; Child Care Classroom Contracts Pilot Program; Report

Description:

Establishes a child care classroom contracts pilot program to require the Department of Human Services to contract directly with child care center providers in licensed infant and toddler child care centers and group child care centers that meet certain criteria.  Requires reports to the Legislature.  Sunsets the pilot program on 6/30/2028.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  563

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 241

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Education, to which was referred H.B. No. 241, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

     The purpose of this measure is to require the Department of Human Services to establish a Child Care Classroom Contracts Pilot Program to contract directly with child care center providers in licensed infant and toddler child care centers and group child care centers that meet certain criteria.

     Your Committee received testimony in support of this measure from the Department of Human Services; Early Learning Board; American Association of University Women of Hawaii; Hawaiʻi State Coalition Against Domestic Violence; Early Childhood Action Strategy; Hawaiʻi Children's Action Network Speaks!; and seven individuals.  Your Committee received testimony in support of the intent of this measure from the Executive Office on Early Learning.

     Your Committee finds that the State is facing a severe child care shortage, with licensed and regulated child care settings having the capacity to serve fewer than twenty percent of children from birth to age five.  This leaves families across Hawaii with a lack of options for safe and reliable child care.  Your Committee believes that this measure will increase access to early learning for Hawaii's children through a pilot program that will contract directly with child care center providers in licensed infant and toddler child care centers and group child care centers to add additional child care services options for families.

     As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 241, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Education,

STAND. COM. REP. NO.  57

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 241

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Human Services & Homelessness, to which was referred H.B. No. 241 entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE,"

begs leave to report as follows:

     The purpose of this measure is to require the Department of Human Services to:

     (1)  Establish a Child Care Classroom Contracts Pilot Program to contract directly with child care center providers in licensed infant and toddler child care centers and group child care centers that meet certain criteria; and

     (2)  Submit annual reports to the Legislature on the pilot program.

     Your Committee received testimony in support of this measure from the Department of Human Services; American Association of University Women of Hawaii; Early Childhood Action Strategy; Hawai‘i Children's Action Network Speaks!; and four individuals.  Your Committee received comments on this measure from the Executive Office on Early Learning.

     Your Committee finds that access to affordable child care is essential for working families in the State, yet many child care center providers face financial instability due to fluctuating enrollment numbers.  Your Committee further finds that child care providers that depend on tuition-based funding are vulnerable to disruptions and potential closures, impacting families and providers.  This measure creates a more stable funding model by directly subsidizing classrooms in licensed infant and toddler child care centers and group child care centers, ensuring that the State continues to invest in keiki and working families.

     Your Committee has amended this measure by:

     (1)  Specifying additional requirements for child care centers to be eligible for the pilot program;

     (2)  Changing the minimum number of required licensed group child care centers in the pilot program from two to one per county;

     (3)  Clarifying the responsibilities of the Department of Human Services regarding monitoring seat utilization and contract modification;

     (4)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 241, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 241, H.D. 1, and be referred to your Committee on Education.

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,