Bill Text: HI SB2603 | 2024 | Regular Session | Amended

Hawaii Senate Bill 2603

Bill Title: Relating To Early Child Care.

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Introduced) 2024-02-15 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2603 Detail]

Download: Hawaii-2024-SB2603-Amended.html

THE SENATE	S.B. NO.	2603
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO EARLY CHILD CARE.

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

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 legislature further finds that 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 also finds that efforts to maintain and expand quality, affordable child care and early education programs are hindered by a lack of qualified child care and early education professionals.

Accordingly, the purpose of this Act is to:

(1) Establish a child care provider subsidy and bonus program to adequately compensate and retain the existing early child care workforce in all licensed and registered child care provider settings; and

(2) Appropriate funds for the child care provider subsidy and bonus program.

SECTION 2. (a) The department shall establish and implement a child care provider subsidy and bonus program that allows:

(1) Infant and toddler child care centers, group child care centers, and group child care homes to apply for and receive a subsidy to increase the pay of a child care center's child care workers to a rate of not less than $16.00 per hour; or

(2) Family child care homes to apply for and receive a bonus of at least $6,000 per year.

(b) The department shall develop standards and qualifications for application to and participation in the program in conformity with this Act.

(c) Subject to subsection (d), the department shall allow any licensed or registered child care provider to submit to the department an application for a subsidy or bonus pursuant to the program. Each application shall include the following:

(1) The name of the applicant;

(2) The total amount of the subsidy or bonus requested and a calculation of that amount;

(3) The amount of the subsidy that each covered child care worker will receive, or the amount of the bonus that the family child care home will receive, if the application is approved;

(4) The name of each covered child care worker;

(5) The age range of the children for which each covered child care worker or family child care home provides care;

(6) Proof that each covered child care worker or family child care home:

(A) Is an employee of a licensed or registered child care provider, or is an exempt provider approved by the department;

(B) Provides child care at the time of application; and

(C) 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 or bonus is awarded;

(7) Proof that each applicant and covered child care worker:

(A) 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; and

(B) Shall not use state funds for entertainment or lobbying activities or any other unauthorized uses prohibited by law or as determined by the department;

(8) An authorization granting 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 or bonus;

(9) Satisfaction of all standards that may be required by the source of funding; and

(10) Satisfaction of all standards prescribed in rules adopted by the department to implement the program.

(d) The following shall not receive a subsidy or bonus pursuant to the program:

(1) Any entity that is part of, owned or operated by, or owned and operated as:

(A) A nonpublic entity that provides educational services for any grades from kindergarten through grade twelve;

(B) A nonpublic entity that provides post-secondary education; or

(C) A nonpublic entity that provides 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;

(2) The department of education or an entity of the department of education;

(3) Any public charter school; and

(4) The university of Hawaii or an entity of the university of Hawaii.

(e) Applications for a subsidy or bonus pursuant to the program shall be submitted to the department on a form provided by the department and shall at a minimum contain the information required by subsection (c). The department or its designee shall review each application to determine whether each covered child care worker or family child care home is eligible to receive a subsidy or bonus moneys and shall make a final decision on each application. The department shall inform each applicant of the disposition of the applicant's application. The department shall adopt rules to establish an appeals process for any denial or partial denial of an application.

(f) The department shall not release public moneys approved for a subsidy or bonus under this Act unless a contract is entered into between the department and the applicant. 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.

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

(h) Each department 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 or bonus attained the intended results in the manner contemplated.

(i) Any applicant 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 applicant 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 or bonuses for a period of five years.

(j) The department may convene and consult community members to establish best practices, policies, or procedures, including but not limited to the development of a salary schedule, educational requirements, and other matters that would assist in the implementation of the program.

(k) The department shall adopt rules without regard to chapter 91, Hawaii Revised Statutes, to administer the program.

(l) For the purposes of this Act:

"Applicant" means:

(1) An infant and toddler child care center, group child care center, or group child care home licensed by the department that submits an application for a subsidy pursuant to the program; or

(2) A family child care home registered by the department that submits an application for a bonus pursuant to the program.

"Bonus" means an award of state funds to a specified family child care home applicant to support the activities of the family child care home applicant and permit the community to benefit from those activities.

"Child care worker" means a lead caregiver, caregiver, teacher, assistant teacher, or child care aide employed by an infant and toddler child care center, group child care center, or group child care home.

"Covered child care worker" means a child care worker employed by an infant and toddler child care center, group child care center, or group child care home applicant whom the applicant proposes will receive all or a portion of the requested subsidy if the applicant's application is approved.

"Department" means the department of human services.

"Family child care home" has the same meaning as defined in section 346-151, Hawaii Revised Statutes, that is registered by the department.

"Group child care center" has the same meaning as defined in section 346-151, Hawaii Revised Statutes, that is licensed by the department.

"Group child care home" means a facility, including an extended or modified private home, at which care is provided for seven to twelve children.

"Infant" means a child who is six weeks to twelve months of age.

"Infant and toddler child care center" means a facility licensed by the department, other than a private home, at which care is provided for infants or toddlers, or both.

"Licensed or registered child care provider" means a family child care home, group child care center, group child care home, or infant and toddler child care center licensed or registered by the department.

"Program" means the child care provider subsidy and bonus program established pursuant to subsection (a).

"Subsidy" means an award of state funds to a specified infant and toddler child care center, group child care center, or group child care home applicant to support the activities of the applicant and permit the community to benefit from those activities.

"Toddler" means a child who is twelve to thirty-six months of age.

SECTION 3. The department of human services shall submit annual reports on the development and implementation of the child care provider subsidy and bonus program, including impacts to infant and toddler child care centers, group child care centers, group child care homes, family child care homes, and child care workers, and any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 5. 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 2024-2025 to be deposited into the child care grant program special fund for the child care provider subsidy and bonus program established by section 2 of this Act.

SECTION 6. 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 2024-2025 for the child care provider subsidy and bonus program established by section 2 of this Act.

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

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment of one full-time equivalent (1.0 FTE) program specialist position to carry out the implementation and monitoring of the child care provider subsidy and bonus program established by section 2 of this Act.

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

SECTION 8. This Act shall take effect on December 31, 2050.

Report Title:

DHS; Child Care Worker Subsidy and Bonus Program; Infant and Toddler Child Care Centers; Group Child Care Centers; Family Child Care Homes; Reports; Expenditure Ceiling; Appropriations

Description:

Requires the Department of Human Services to establish and implement a Child Care Provider Subsidy and Bonus Program to provide subsidies to retain the existing child care workforce in licensed infant and toddler child care centers and group child care centers and bonuses to registered family child care homes. Requires annual reports to the Legislature. Declares that the general fund expenditure ceiling is exceeded. Makes appropriations. Takes effect 12/31/2050. (SD1)

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