Hawaii-2024-HB504-Amended

SECTION 1. The legislature finds that a strong child care and early education workforce is necessary to support Hawaii's children, working families, and communities. The demand for quality child care and early education far exceeds the number of qualified child care and early education professionals currently available in the State.

The legislature further finds that compensation for child care workers factors into retention rates. According to the Center for the Study of Child Care Employment's 2020 Early Childhood Workforce Index, the national average wage for an early childhood worker was $11.65 an hour and the average in Hawaii was $12.43 an hour. The legislature also finds that efforts to maintain and expand quality and affordable child care and early education programs are hindered by the lack of qualified child care and early education professionals.

Accordingly, the purpose of this Act is to:

(1) Require the department of human services to develop a two-year preschool child care worker subsidy pilot program to retain the existing early child care workforce in licensed child care facilities for preschool children aged two through five; and

(2) Appropriate funds for the pilot program.

SECTION 2. (a) The department of human services shall establish and implement a two-year preschool child care worker subsidy pilot program no later than six months after the effective date of this Act.

(b) The department shall develop standards and qualifications for participation in the pilot program by child care workers, which shall at a minimum meet the following requirements:

(1) The pilot program shall be available to all lead caregivers, caregivers, and child care aides in child care facilities for preschool children aged two through five licensed by the department;

(2) Participants shall not be employed by the department of education, public charter schools, or federally funded early head start programs; and

(3) Participants shall be limited to child care workers working in licensed child care facilities for preschool children aged two through five only.

(c) The department shall utilize the child care grant program special fund to subsidize participants' wages to ensure that all participants are paid wages of at least $19.00 per hour.

(d) Requests for subsidies shall be submitted to the department in accordance with administrative rules adopted by the department to administer the subsidy program. Each request shall at a minimum state:

(1) The name of the child care provider requesting a subsidy;

(2) The subsidy amount being requested; and

(3) The age range of the children the child care provider serves.

(e) Each applicant for a subsidy shall provide proof that the applicant:

(1) Has United State citizenship or permanent United States resident alien status and is a resident of the State at the time of application;

(2) Is currently licensed or registered as a child care provider, or is an exempt provider approved by the department;

(3) Provides infant and toddler care at the time of application;

(4) Complies with all other federal, state, or county statutes, rules, or ordinances necessary to conduct the activities or provide the services for which a subsidy is awarded;

(5) Complies with all applicable federal and state laws prohibiting discrimination against a person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

(6) Agrees not to use state funds for entertainment or lobbying activities;

(7) Allows the department, legislative committees and their staff, and the auditor full access to the applicant's records, reports, files, and other related documents and information for the purposes of monitoring, measuring the effectiveness of, and ensuring the proper expenditure of the subsidy;

(8) Is employed by a child care facility that is not part of, owned or operated by, or owned or operated as a private educational institution;

(9) Satisfies any other standards that may be required by the source of funding; and

(10) Meets all other standards prescribed in rules adopted by the department to implement the subsidy.

(f) Every request for a subsidy shall be submitted to the department on an application form provided by the department and shall at a minimum contain the information required by subsection (e). The department shall review each request to determine whether the applicant is eligible to receive a subsidy and shall make a final decision on each request. The department shall inform each subsidy applicant of the disposition of the applicant's request. The department shall adopt rules to establish an appeals process for any denial of a request.

(g) The department shall not release the public funds approved for a subsidy under this Act unless a contract is entered into between the department and the subsidy recipient. The department shall develop and determine, in consultation with and subject to review and approval of the department of the attorney general, the specific contract form to be used.

(h) Appropriations for subsidies made under this Act shall be subject to the allotment system generally applicable to all appropriations made by the legislature.

(i) Every department subsidy contract executed pursuant to this Act shall be monitored by the department to ensure compliance with this Act, and shall be evaluated annually to determine whether the subsidy attained the intended results in the manner contemplated.

(j) Any subsidy recipient who withholds or omits any material fact or deliberately misrepresents facts to the department shall be in violation of this Act and, in addition to other penalties provided by law, any recipient found to have violated this Act or the terms of any contract executed pursuant to this Act shall be prohibited from applying for any department subsidies for a period of five years from the date of termination.

(k) The department may convene and consult community members to establish best practices, policies, or procedures, including the development of a salary schedule, educational requirements, and other matters that would assist implementation of the program.

(l) The department shall adopt rules without regard to chapter 91, Hawaii Revised Statutes, to administer the preschool child care worker subsidy pilot program.

(m) The department shall submit annual reports on the development and implementation of the preschool child care worker pilot program, including impacts to operators and staff of child care facilities for preschool children, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2024 and 2025.

(n) The department shall submit a final report on the pilot program, including impacts to operators and staff of child care facilities for preschool children, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

(o) For the purposes of this Act:

"Department" means the department of human services.

"Private educational institution" means a non-public entity that provides:

(1) Educational services for any grades from kindergarten through grade twelve;

(2) Post-secondary education; or

(3) Pre-kindergarten level services;

that are provided by an entity that holds itself out to the public as a school or educational institution, or that are identified by the entity as educational services rather than solely as child care services.

"Recipient" means a child care provider receiving a subsidy.

"Subsidy" means an award of state funds to a specified recipient to support the activities of the recipient and permit the community to benefit from those activities.

(p) The pilot program shall cease to exist on June 30, 2026.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the child care grant program special fund.

SECTION 4. There is appropriated out of the child care grant program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be used for the child care worker subsidy pilot program established by section 2 of this Act.

The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 5. This Act shall take effect on June 30, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	504
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII