HB3237

Report Title:

Early Childhood Education

Description:

Creates an Early Learning Authority to oversee the State's early childhood learning system. Makes more early childhood learning programs and facilities available by establishing financial incentives for their creation. Improves the quality of early childhood learning programs and practitioners by establishing financial incentives. Attracts and retains quality practitioners in the early learning system by ensuring adequate compensation. Guarantees the availability of early learning opportunities to all children by providing subsidies to all four-year-olds.

HOUSE OF REPRESENTATIVES	H.B. NO.	3237
TWENTY-THIRD LEGISLATURE, 2006
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO EARLY CHILDHOOD EDUCATION.

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

PART I

SECTION 1. The legislature finds that the brain is shaped significantly by experiences and other stimuli in the first five years of a child's life. This period sets the foundation in which a person forms their behavioral, emotional, social, and decision-making skills, values, self-esteem, and lifelong learning ability. In short, this period paves the way for a child's healthy, successful development.

Neglect and inadequate care in the early years can hold a child back from achieving their full potential and instead place them at risk for poor outcomes later in life, which has considerable social costs.

Research and studies have shown that providing children with proper early childhood care and education has a far-reaching, long-term impact on their development. Thus, the legislature recognizes the importance of providing children with early learning opportunities of the highest quality. Early learning programs, both public and private, should meet professionally-accepted standards, be staffed by well-trained, appropriately-compensated educators, and be available to all children.

With this in mind, the legislature created the temporary early childhood education task force in 2005 to, among other things, develop plans and proposals to increase access to early learning programs for all children, increase participation in these programs by promoting their value, and improve the quality of programs and practitioners.

The purpose of this Act is, in part, to implement the recommendations of the task force, including:

(1) Creating an early learning authority to oversee the State's early childhood learning system;

(2) Making more early childhood learning programs and facilities available by establishing financial incentives for their creation;

(3) Improving the quality of early childhood learning programs and practitioners by establishing financial incentives;

(4) Attracting and retaining quality practitioners in the early learning system by ensuring adequate compensation; and

(5) Guaranteeing the availability of early learning opportunities to all children by providing subsidies for all four-year-olds.

PART II

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

EARLY LEARNING SYSTEM

§ -1 Early learning authority; established; board. (a) There is established the early learning authority, which shall be a body corporate and a public instrumentality of the State, for the purposes of implementing this chapter. The authority shall be placed within the department of education for administrative purposes only.

The authority shall develop, implement, and provide for the sustainability of a coherent, comprehensive early learning system that maximizes public and private resources to provide early learning opportunities for all young children in the state up to age eight. The authority shall increase efficiency and coordination of early learning opportunities statewide by:

(1) Developing quality standards and agreed-upon outcomes and evaluation of early education programs;

(2) Ensuring a statewide integrated early childhood system;

(3) Increasing the quality of education through access to education and training of professionals; and

(4) Providing funding for early childhood programs.

(b) The authority shall be governed by a board of directors composed of members from the private and public sectors who shall be charged with addressing the vision, mission, goals, and guiding principles of Hawaii's early childhood learning system conceptual framework. The governor shall appoint the members of the board pursuant to section 26-34; provided that:

(1) Membership on the board shall not exceed twenty;

(2) The private sector shall be broadly represented and membership representing the private sector shall be no fewer than fifteen;

(3) The governor shall:

(A) Determine which board members shall serve ex-officio and whether they shall be voting or nonvoting members;

(B) Consider for membership members of the temporary early childhood education task force as identified in section 2(d) of Act 151, Session Laws of Hawaii 2005;

(C) Consider for membership additional individuals who do not represent organizations currently represented by members of the temporary early childhood education task force; and

(D) Appoint the members of the board no later than December 31, 2006;

and

(4) The members of the temporary early childhood education task force shall act as a transitional board of directors until the governor appoints the permanent members of the board of directors pursuant to paragraph (3).

(c) The board shall appoint from its members a chairperson, vice chairperson, secretary, treasurer, and any other officers that the board may deem necessary or desirable to carry out its functions.

(d) Members shall serve without compensation, but may be reimbursed for the necessary expenses, including travel expenses, incurred in the performance of their duties.

§ -2 Hawaii's early learning system conceptual framework. Hawaii's early learning system conceptual framework shall be as follows:

(1) The purposes of the early learning system are to:

(A) Provide equal opportunities for early learning, health, social, and family resources that are responsive to families; and

(B) Include services and programs that are respectful of the host culture, honor individual preferences, and offer high quality choices;

(2) The basis on which the early learning system is built and the ideals to which it aspires and that can be identified in short-term, intermediate-term, and long-term outcomes are as follows:

(A) All Hawaii residents acknowledge and understand that the foundation of a child's life is developed in the first eight years and any interruption in the development trajectory can require expensive intervention in later years;

(B) Families and communities shall become knowledgeable about children's needs and how to foster healthy development and learning;

(C) A variety of adequate, high quality care and learning options that support the whole child with regard to health, special needs, nutrition, physical development, safety, and early learning shall become available and accessible to all of Hawaii's families with young children;

(D) The sustainability and progress of the early learning system shall be ensured by policies that include the engagement and participation of communities, early learning and allied professions, and public and private agencies;

(E) Adequate, sustainable, coordinated funding shall be available for all sectors of the early learning system; and

(F) Early care and education shall be recognized and valued as a viable profession with adequate compensation and benefits, accessible initial preparation, and continuing professional development opportunities;

and

(3) The principles used to guide decision-making that express and support the mission and goals of the system include:

(A) Every child has a right to quality early learning experiences;

(B) Families are children's first and most important teachers, and they must have choices for high quality early learning settings;

(C) All settings that serve young children and their families acknowledge the integrated nature of development in the critical domains of cognitive, social, emotional, physical, and moral development;

(D) Care and education cannot be considered separately in young children's learning and development;

(E) Programs and services supported by the early learning system must be standards-based and accountable;

(F) Standards established for early learning programs and services must be based on current knowledge of child development and reflect best practices in early childhood pedagogy and professional development;

(G) Skilled and knowledgeable early care and education practitioners are an essential key to quality and must have access to education and training opportunities and receive equitable compensation and opportunities to succeed;

(H) Development and maintenance of the early learning system must be based on data that is coordinated and shared among all stakeholders in the system;

(I) Services must be seamless and transparent to parents and children within the early learning system;

(J) Limited resources must target under-served low-income families first because this intervention has proven to have the greatest return on investment;

(K) Interagency coordination and collaboration are essential to ensure children's optimal development in all domains and the most effective use of resources; and

(L) Successful transition to elementary school requires effective collaboration, communication, and continuity between early learning sites and elementary schools. Transition strategies and practices must be based on current understanding of child development principles.

§ -3 Powers and duties. The authority shall:

(1) Ensure cross-sector and interdepartmental collaboration;

(2) Accept appropriations and any other state funding to support the operations of the authority and to implement priorities and standards;

(3) Develop a plan to ensure equal voluntary access to high quality early learning experiences for all four-year-old children;

(4) Convene a blue-ribbon task force to establish a plan and strategies for sustainable financing of the early learning system;

(5) Establish a workforce and professional development institute to ensure the recruitment and retention of a high-quality workforce for early learning programs;

(6) Promote the importance of early learning to families, policymakers, and the general public; and

(7) Apply appropriations and any other state funding to early learning programs to help build and strengthen programs while enhancing their quality and capacity.

§ -4 Early learning districts; early learning county councils. (a) The authority shall establish four early learning county districts and four early learning county councils on the islands of Oahu, Hawaii, Kauai, and Maui, supported by staff responsible for determining community needs and developing plans that provide a variety and breadth of programs that families desire.

(b) The duties of the early learning districts and councils shall be countywide to:

(1) Collect and report data;

(2) Identify outcomes and indicators;

(3) Set strategic priorities;

(4) Coordinate community programs and services;

(5) Plan and budget programs to align them with district strategic priorities;

(6) Assess performance of the district in relation to district and system strategic priorities; and

(7) Coordinate interagency programs and services, including public awareness, technical assistance to providers, leadership and professional development, and one-stop services for financial aid.

§ -5 Nonprofit organization; contract. The authority may contract with an early education organization exempt under Section 501(c)(3) of the Internal Revenue Code, to assist in:

(1) Starting up operations of the authority by providing coordination and technical assistance;

(2) Establishing a workforce and professional development institute;

(3) The operation of the early learning districts and early learning county councils;

(4) Implementing quality improvement grants to increase overall program quality of early childhood education programs;

(5) Expanding community-based early childhood education programs such as play and learn groups;

(6) Leading a blue-ribbon panel to establish a plan and strategies for sustainable financing of the early learning system;

(7) Funding infrastructure to ensure improved data systems; and

(8) Funding county and community activities expressed in community plans.

§ -6 Workforce and professional development institute for early childhood education. The authority shall establish a workforce and professional development institute within the authority. The authority shall determine the composition of a board of directors to govern the institute, select the members, set their terms, and hire a director. The director, in collaboration with the institute board and the authority, shall:

(1) Develop an early childhood education compensation plan for the State;

(2) Develop and implement a plan to support the recruitment and retention of the early childhood workforce for all early learning settings;

(3) Develop and implement a plan to increase access to higher education and community-based training for early childhood educators;

(4) Conduct ongoing needs assessment and analysis of the staffing needs of community early learning programs;

(5) Plan and provide for community-specific implementation of recruitment and retention strategies with a particular focus on creating career and professional development counseling and support statewide;

(6) Advocate for and convene partners to ensure increased access to a broad array of early learning community-based and higher education options;

(7) Provide technical assistance to counties to identify needs and secure funding to expand workforce and professional development opportunities within their communities; and

(8) Collaborate with the department of education and the teacher education coordinating council."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $2,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 for the operation of the early learning authority pursuant to this part as follows:

(1) Early learning authority $1,500,000

(2) Contract with nonprofit organization 500,000

The sum appropriated shall be expended by the department of education for the purposes of this part.

PART III

SECTION 4. Chapter , Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part .

FINANCIAL INCENTIVES FOR THE EARLY LEARNING SYSTEM

§ -A Capacity expansion subsidies. (a) If selected, a qualifying early learning program may claim a capacity expansion subsidy to start or expand their program to serve more children, including:

(1) The creation of a new program;

(2) The construction of a new facility;

(3) Renovations and other improvements to an existing facility;

(4) The purchase of equipment or systems that enable facilities to comply with building, fire, and sanitation codes;

(5) The purchase of furnishings; and

(6) The purchase of motor vehicles to provide transportation for children to programs, or for staff and program materials to various locations for traveling programs.

(b) The subsidy allowed for each qualifying early learning program shall be a maximum of $ per year.

(c) To apply for the subsidy, an early learning program shall submit a program description to the early learning authority, to include:

(1) The program's purpose, mission, and history, if the latter is applicable;

(2) The population, in terms of age and geographic location, that will be served by the program;

(3) A description of the program, including curriculum and staffing qualifications;

(4) A description of the proposed facilities or expansion of existing facilities;

(5) Current funding;

(6) Program outcomes and evaluation procedures; and

(7) Operating hours.

(d) The early learning authority shall select early learning programs to receive the subsidy based on the early learning program's compatibility with the strategic plan set by the area's early learning county council, through an evaluation of the program description submitted by the applicant.

(e) Prior to receiving the subsidy, the selected early learning program shall enter into a written contract with the department of education agreeing to:

(1) Begin operations of the early learning program in the state within one year after receiving the subsidy, or continue operations of the early learning program for at least a period of three years after receiving the subsidy, unless the department of education determines that there are extenuating circumstances; and

(2) Reimburse the State for all amounts received under this section if the early learning program fails to comply with this subsection.

(f) The department shall monitor and verify an early learning program's fulfillment of all requirements for a subsidy under this section.

If an early learning program does not comply with the requirements of the capacity expansion subsidy, the department of education shall enforce repayment of all amounts received under this section. Enforcement shall include the use of all lawful collection procedures, including private collection agencies.

Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain a capacity expansion subsidy through fraudulent means shall be disqualified from future receipt of the subsidy and shall be liable to the department of education to repay the subsidy.

(g) The superintendent of education:

(1) Shall prepare forms as may be necessary to claim a subsidy under this section;

(2) Shall enter into a written contract with the applicant pursuant to subsection (e) after the early learning authority has selected the applicant to receive the subsidy;

(3) Shall prepare an annual report to the governor and legislature containing, in regards to the prior calendar year:

(A) The number of subsidies granted;

(B) The programs to which subsidies were granted and for what purpose;

(D) The total number of programs that fail to comply with subsection (e);

and

(4) May adopt rules pursuant to chapter 91 to effectuate this section.

(h) As used in this section:

"Facility" means the site in which an early learning program that is either licensed or is license-exempt, operates or is conducted, whether it is in a formal, center-based setting, or in an informal setting such as a site that is mainly used for a purpose other than an early learning program but has an area dedicated for the program; provided that in a family childcare home, "facility" means the part of the home that is used for the family childcare program.

"Qualifying early learning program" means a program that:

(1) Provides early learning services to three or more unrelated children whose ages range from birth to five years old;

(2) Is operational for a minimum of eight hours a week; and

(3) Is licensed under the department of human services or is license-exempt,

and shall include public, private, non-profit, and for-profit preschools, child care centers, nursery schools, preschools operating within public and private schools, head start programs, and independent and system affiliated family child care homes. The program shall fulfill, or plan to fulfill as shown in a program description submitted to the early learning authority, the criteria set by the early learning authority for an early learning program.

§ -B Quality enhancement subsidies for early learning programs. (a) If selected, a qualifying early learning program may claim a quality enhancement subsidy to improve the quality of the program in one or more of the following areas:

(1) Development and use of the Hawaii preschool content standards, if the program serves four-year-old children;

(2) Curriculum and learning activities that are developmentally and culturally-appropriate;

(3) Developmentally and culturally-appropriate interaction with the children and families served;

(4) Technology-assisted education;

(5) Training and development of staff, leadership, administration, and organization;

(6) Safety and healthiness of the environment;

(7) Procedures that ensure access to needed health, immunization, and related services for the children served;

(8) Resource and referral services;

(9) Needs and resource assessments;

(10) Program evaluation;

(11) Technical assistance; and

(12) Long-range planning.

(b) The subsidy allowed for each qualifying early learning program shall be a maximum of $ per year.

(c) To apply for the subsidy, an early learning program shall submit a program description to the early learning authority, to include:

(1) The program's purpose, mission, and history, if the latter is applicable;

(2) The population, in terms of age and geographic location, that will be served by the program;

(3) A description of the program, including curriculum and staffing qualifications;

(4) A description of the goal for quality enhancement;

(5) Current funding;

(6) Program outcomes and evaluation procedures; and

(7) Operating hours.

(e) Prior to receiving the subsidy, the selected early learning program must enter into a written contract with the department of education agreeing to:

(2) Reimburse the State for all amounts received under this section if the early learning program fails to comply with this subsection.

(f) The department shall monitor and verify an early learning program's fulfillment of all requirements for a subsidy under this section.

If an early learning program does not comply with the requirements of the quality enhancement subsidy, the department of education shall enforce repayment of all amounts received under this section. Enforcement shall include the use of all lawful collection procedures, including private collection agencies.

Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain a quality enhancement subsidy through fraudulent means shall be disqualified from future receipt of the subsidy and shall be liable to the department of education to repay the subsidy.

(g) The superintendent of education:

(1) Shall prepare forms as may be necessary to claim a subsidy under this section;

(2) Shall enter into a written contract with the applicant pursuant to subsection (e) after the early learning authority has selected the applicant to receive the subsidy;

(3) Shall prepare an annual report to the governor and legislature containing, in regards to the prior calendar year:

(A) The number of subsidies granted;

(B) The programs to which subsidies were granted and for what purpose;

(D) The total number of programs that fail to comply with subsection (e);

and

(4) May adopt rules pursuant to chapter 91 to effectuate this section.

(h) As used in this section:

"Qualifying early learning program" means a program that:

(1) Provides early learning services to three or more unrelated children whose ages range from birth to five years old;

(2) Is operational for a minimum of eight hours a week; and

(3) Is licensed under the department of human services or is license-exempt,

§ -C Scholarship grants for early learning practitioners. (a) The department of education shall provide scholarship grants up to a maximum amount per academic year as determined by the early learning authority, to eligible early learning practitioners to further their knowledge, skills, and ability to work with children. The early learning authority shall establish guidelines governing the administration of the scholarship grants.

(b) The scholarship grant shall be for a maximum period of time as determined by the early learning authority. To qualify for renewals beyond the first year, the practitioner shall comply with the requirements of subsection (e), and the early learning authority shall determine that the practitioner is making satisfactory progress toward completing an associate's or bachelor's degree or certification.

(c) Scholarship grants shall only be used for tuition, books, laboratory fees, and any other required educational fees and costs.

(d) A practitioner applying for the scholarship shall apply to the early learning authority and include all information and documentation required by the early learning authority. The application shall include a verified statement of grade point average from the appropriate approved educational institution.

(e) The practitioner shall enter into a written contract with the department of education agreeing to:

(1) Satisfy all degree or certification requirements and other requirements under this section;

(2) After receiving the degree, continue providing early learning services in the state for the minimum period of time determined by the early learning authority; and

(3) Reimburse the State for all amounts received under this section if the practitioner fails to comply with this subsection.

(f) Scholarship grants received by a student under this section shall not be considered taxable income under chapter 235, or considered financial assistance or appropriations to the approved educational institution.

(g) Scholarship grants awarded under this section shall be limited to funds appropriated for the purpose of awarding grants or funds otherwise matched by external entities. First priority for scholarship grant awards shall be given to renewal applicants.

(h) A scholarship grant under this section is only transferable to another approved educational institution if approved by the early learning authority.

(i) If the practitioner terminates enrollment in the approved educational institution during the academic year or prior to completion of the approved course of study and is eligible to have all or a portion of the tuition payments refunded under the refund policies of the institution, the approved educational institution shall notify the early learning authority in writing and shall return all unused portions of the scholarship grant to the department of education. Returned amounts shall be used to fund other scholarship grants under this section.

(j) The early learning authority shall monitor and verify a practitioner's fulfillment of all requirements for a scholarship grant under this section.

If a practitioner does not comply with the requirements of the scholarship grant, the department of education shall enforce repayment of all amounts received under this section. Enforcement shall include the use of all lawful collection procedures, including private collection agencies.

Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain a scholarship grant through fraudulent means shall be disqualified from future receipt of the scholarship grant and shall be liable to the department of education to repay the scholarship grant.

(k) The superintendent of education:

(1) Shall prepare forms as may be necessary to claim a scholarship grant under this section;

(2) Shall enter into a written contract with the applicant pursuant to subsection (e) after the early learning authority has selected the applicant to receive the scholarship grant;

(3) Shall prepare an annual report to the governor and legislature containing, in regards to the prior calendar year:

(A) The total number of practitioners receiving scholarship grants;

(B) The total amount of scholarship grants awarded; and

and

(4) May adopt rules pursuant to chapter 91 to effectuate this section.

(l) As used in this section:

"Eligible early learning practitioner" means an individual who:

(1) Is a resident of the state of Hawaii;

(2) Provides early learning services to three or more unrelated children whose ages range from birth to five years old, including individuals employed as teachers, assistant teachers, aides, or family child care providers in public, private, non-profit, and for-profit preschools, child care centers, nursery schools, preschools operating within public and private schools, head start programs, and independent and system affiliated family child care homes, whether licensed under the department of human services or license-exempt;

(3) Has been employed in the position for at least one year prior to applying for a scholarship grant under this section; and

(4) Is enrolled in and pursuing courses of study that will lead to an associate's or bachelor's degree in early childhood care or education, or early learning teacher certification.

§ -D Practitioner wage supplements. (a) The department of education shall provide wage supplements based on educational background, as determined by the early learning authority, to eligible early learning practitioners to ensure their adequate compensation. The early learning authority shall establish guidelines governing the administration of the scholarship grants.

(b) The department of education shall distribute wage supplements as follows:

(1) $6,000 per year for practitioners with a bachelor's or master's degree in early childhood care or education;

(2) $3,000 per year for practitioners with an associate's degree in early childhood care or education; and

(3) $1,500 per year for practitioners with a child development associate credential certificate.

(c) Wage supplements shall be paid directly to eligible early learning practitioners every six months, to supplement and not supplant wages earned in the prior six-month period.

(d) A practitioner applying for the wage supplement shall apply to the early learning authority and include all information and documentation required by the early learning authority, such as proof of employment wages received and official college transcripts from the appropriate approved educational institution.

(e) Wage supplements distributed under this section shall be limited to funds appropriated for the purpose of distributing wage supplements or funds otherwise matched by external entities. First priority for wage supplement distribution shall be given to practitioners with the lowest current salaries.

(f) The early learning authority shall verify a practitioner's fulfillment of all requirements for a wage supplement under this section.

If, after receiving the wage supplement, a practitioner is found to be in noncompliance with the requirements to receive a wage supplement, the department of education shall enforce repayment of all amounts received under this section. Enforcement shall include the use of all lawful collection procedures, including private collection agencies.

Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain a wage supplement through fraudulent means shall be disqualified from future receipt of the wage supplement and shall be liable to the department of education to repay the wage supplement.

(g) The superintendent of education:

(1) Shall prepare forms as may be necessary to claim a wage supplement under this section;

(2) Shall prepare an annual report to the governor and legislature containing, in regards to the prior calendar year:

(A) The total number of practitioners receiving wage supplements, and categorized according to subsection (b);

(B) The total amount of wage supplements distributed, and categorized according to subsection (b);

(C) The salaries of each practitioner receiving wage supplements and the early learning program under which they are employed; and

(D) The total number of practitioners who are found to be in noncompliance with the requirements to receive a wage supplement;

and

(4) May adopt rules pursuant to chapter 91 to effectuate this section.

(h) As used in this section:

"Eligible early learning practitioner" means an individual who:

(1) Is a resident of the state of Hawaii;

and

(3) Has been employed in the position for at least six consecutive months prior to applying for wage supplements under this section.

§ -E Early learning subsidies for four-year-old children. (a) The department of education shall provide subsidies, up to a maximum of $6,360 per year per child, for eligible children to attend qualifying early learning programs.

(b) A qualifying early learning program may apply with the early learning authority for early learning subsidies for eligible children who are admitted to the program. The subsidy shall apply only to the current school year.

Parents or guardians of eligible children shall make known their desire to receive a subsidy by applying for the subsidy with the early learning program, including submitting:

(1) Proof of the child's age;

(2) Proof of child's enrollment in the program; and

(3) Proof that they have received and understand the program's attendance policy.

(c) Subsidies can only be applied toward tuition and other costs or fees for a child to attend the program that claimed the subsidy.

(d) There shall be no limit on the number of eligible children admitted to a qualifying early learning program.

(e) Subsidies distributed under this section shall be limited to funds appropriated for the purpose of distributing early learning subsidies or funds otherwise matched by external entities. If the student enrollment in the program for a fiscal year exceeds the estimated enrollment upon which the appropriation for that fiscal year is provided, thereby causing a shortfall, any funds appropriated to the program for the subsequent fiscal year shall be used first to fund the shortfall.

(f) The early learning authority shall verify a child's eligibility and an early learning program's fulfillment of all requirements to receive early learning subsidies under this section. The early learning authority shall monitor the program after the subsidy has been given, including monitoring of enrollment and attendance of children for whom subsidies have been given, and shall make annual visits.

If, after receiving the early learning subsidies, an early learning program is found to be in noncompliance with the requirements to receive early learning subsidies, the department of education shall enforce repayment of all amounts received under this section. Enforcement shall include the use of all lawful collection procedures, including private collection agencies.

Any person who knowingly or intentionally procures, obtains, or aids another to procure or obtain an early learning subsidy through fraudulent means shall be disqualified from future receipt of the early learning subsidy and shall be liable to the department of education to repay the early learning subsidy.

(g) The superintendent of education:

(1) Shall prepare forms as may be necessary to claim an early learning subsidy under this section;

(2) Make available to parents information about early learning subsidies and provide lists and profiles of qualifying early learning programs;

(3) Shall prepare an annual report to the governor and legislature containing, in regards to the prior calendar year:

(A) The total number of programs receiving early learning subsidies;

(B) The number of children receiving subsidies in each program;

(D) The amount of subsidy received by each child;

(E) The total amount of subsidies distributed;

(F) The tuition rates, fees, and other costs for each early learning program that claims subsidies; and

(G) The total number of programs found to be in noncompliance with the requirements to receive an early learning subsidy;

and

(4) May adopt rules pursuant to chapter 91 to effectuate this section.

(h) Nothing in this section shall be construed to mean that:

(1) Every child is required to attend an early learning program;

(2) Every early learning program must participate as a qualifying early learning program; or

(3) An early learning program is required to admit every child.

(i) As used in this section:

"Eligible child" means a child who:

(1) Has attained the age of four years on or before August 1 of the school year in which the subsidy is being claimed;

(2) Is a resident of the state of Hawaii; and

(3) Is a dependent in a family with income under three hundred thirty per cent of the federal poverty level.

A child's eligibility does not depend on the child's parents' or guardians' working status or their ability to pay program tuition and other costs or fees.

A child remains eligible until the beginning of the school year for which the child is eligible for admission to kindergarten or until the child is admitted to kindergarten, whichever occurs first.

"Qualifying early learning program" means a program that:

(1) Is licensed under the department of human services, and is currently and historically in compliance with all licensing requirements;

(2) Provides early learning services for a full day, five days a week;

(3) Includes public or private organizations exempt under Section 501(c)(3) of the Internal Revenue Code, private for-profit organizations, family childcare programs, group child care homes, local elementary schools, or head start programs;

(4) Is designed to meet and enhance each child's age- or developmentally-appropriate progress in language, cognitive, social, emotional, and moral development;

(5) Has adopted the Hawaii preschool content standards in its curriculum;

(6) Observes standards for practitioner qualifications based on the department of human services' phased and tiered plan for improving professionalism in early learning programs;

(7) Has observed standards for teacher-child ratios, group size, health and safety, family involvement, and inclusion of special needs children; and

(8) Is in compliance with anti-discrimination requirements, even if the program receives federal financial assistance."

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 for capacity expansion subsidies for early learning programs; provided that any moneys remaining from the appropriation that have not been distributed as subsidies by June 30, 2007, be appropriated to the department of education for the early learning authority's early learning programs.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $8,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 for quality enhancement subsidies for early learning programs; provided that any moneys remaining from the appropriation that have not been distributed as subsidies by June 30, 2007, be appropriated to the department of education for the early learning authority's early learning programs.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2006-2007 for scholarship grants for early learning practitioners; provided that any moneys remaining from the appropriation that have not been distributed as scholarship grants by June 30, 2007, be appropriated to the department of education for other scholarship grants approved by the early learning authority.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $250,000 or so much thereof as may be necessary for fiscal year 2006-2007 to administer practitioner wage supplements.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $3,250,000 or so much thereof as may be necessary for fiscal year 2006-2007 for practitioner wage supplements; provided that any moneys remaining from the appropriation that have not been distributed as wage supplements by June 30, 2007, be appropriated to the department of education for the early learning authority's early learning programs.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 10. There is appropriated out of the general revenues of the State of Hawaii the sum of $11,000,000 or so much thereof as may be necessary for fiscal year 2006-2007 for early learning subsidies for four-year-old children to attend early learning programs; provided that any moneys remaining from the appropriation that have not been distributed as subsidies by June 30, 2007, be appropriated to the department of education for the early learning authority's early learning programs.

The sum appropriated shall be expended by the department of education for the purposes of this part.

SECTION 11. 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 2006-2007 for costs to operate or administer financial incentives for the early learning system in the state, pursuant to this Act.

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

PART IV

SECTION 12. The early learning authority, together with the department of education, shall submit an annual report to the governor and legislature no later than twenty days prior to the convening of each regular session, to include:

(1) A summary of its progress and accomplishments in relation to mission, goals, guiding principles, and duties set out in chapter ;

(2) Standards developed for early learning programs; and

(3) A financial report of funds received and the purposes for which they were used, as specified in this Act.

SECTION 13. The department of education may enter into a contract with a non-profit organization to administer or implement any part of this Act.

SECTION 14. In codifying the new sections added by section 4 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 15. This Act shall take effect on July 1, 2006.

INTRODUCED BY:	_____________________________