SB1120 SD1

SECTION 1. Research demonstrates the critical importance of quality care in a child's first three years of life for enhancing brain development and cognitive abilities. A child who lacks appropriate relationships and stimulation during these years will be less able to learn, cope with stress, handle emotions, and form relationships. The legislature finds that it is in the best interest of our society that each infant and child be nurtured in a quality child care setting.

As the labor force in Hawaii has shifted in recent years, more parents are working, and infant and child care is becoming a critical issue for families. The legislature finds, however, that a shortage of infant and child care providers and facilities exists in Hawaii, making it increasingly difficult for working parents to attain and afford child care. The legislature notes that there are approximately seventy-eight thousand children zero to four years of age in Hawaii, and only approximately twenty-eight thousand child care spaces. While not all parents are seeking infant and child care services, the numbers illustrate that there are still many more infants and children than available child care spaces. The legislature finds that a gap clearly exists between the infant and child care needs of families and available child care services.

Moreover, the cost of infant and child care is steadily increasing, making it more difficult for families to afford quality care. Families in Hawaii now pay an estimated fifteen per cent (based upon state median income), and rising, of their income on child care expenses. Although some financial assistance is available for low-income families, the need for that assistance far surpasses available resources.

The legislature finds that a changing work force has also contributed to a shortage of infant and child care resources in the State. In Hawaii, approximately seventy-seven thousand families with children under six years of age have parents in the labor force. The nuclear family, with a stay-at-home mother, is becoming a thing of the past, as it is estimated that only thirteen per cent of families nationwide now fall into that category. Furthermore, it is estimated that women comprise sixty per cent of all new entrants into the United States' labor market. The current reality is that most new parents are working and must find ways to cope with the conflicting time demands of both work and child care.

The legislature finds that it is well documented that quality child care is an effective tool in supporting working families and helping keep parents in the workforce. However, a lack of quality infant and child care can make it more difficult for parents to obtain employment, retain employment, and move into better jobs. Furthermore, parents who are responsible caretakers may choose to miss work when their children are in unsafe and unhealthy care situations, a choice that may jeopardize the family's economic security and impact the employer's productivity.

The legislature finds, moreover, that problems with infant and child care can adversely affect employers by increasing employee absenteeism, tardiness, and turnover rates and the costs of recruiting and training new workers. In the labor market of the past, these problems did not affect employers on a large-scale, as there were always workers willing to take the place of those leaving. However, in the labor market of today and the near future, a radically different problem exists--locating and retaining workers. Given the changing composition of the labor force in Hawaii and the impact that infant and child care problems can have on employees, the legislature finds that, for employers, employer supported child care is a cost-effective way to control labor costs and enhance worker productivity.

Nationwide, increasing numbers of businesses have already found that employer supported child care is an effective way to attract and retain quality workers. Research demonstrates that employer supported child care generally conveys four benefits on employers:

(1) An enhanced ability to recruit employees;

(2) Lower labor turnover rates;

(3) Higher levels of labor productivity because of greater work experience, low absenteeism, and higher morale in the employees; and

(4) Improved community relations.

The legislature finds that the provision of employer supported child care facilities and services within the workplace encourages new and continued employment on the part of experienced employees.

The legislature finds that addressing the shortage of infant and child care providers in the State is crucial for the well-being of children, families, workers, and employees in Hawaii. The legislature finds that new strategies must be enacted to deal with the increasing demand for child care.

The purpose of this Act is to permit the department of human services to establish a state employee child care pilot program to provide state employees with child care facilities and services; provided that private sector employees may also be permitted to enroll their children.

SECTION 2. (a) The department of human services may:

(1) Establish a state employee child care pilot program. The state employee child care pilot program shall:

(A) Make state facilities available for use as state employee child care facilities;

(B) Provide child care services to state employees during work hours at a cost that is commensurate with the average cost of child care facilities in the private sector; provided that private sector employees may also be permitted to enroll their children; and

(2) Contract with a private organization pursuant to chapter 103F, Hawaii Revised Statutes, to administer the state employee child care pilot program.

(b) The use of state employee child care services by a state employee pursuant to this section shall not result in the reduction or loss of any employment benefit accrued before the date on which the use commenced. Nothing in this section shall be construed to deny to any employee any employment benefit, right, or position to which the employee is entitled as a result of use of state employee child care services pursuant to this section.

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 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for the department of human services to establish a state employee child care pilot program pursuant to section 2 of this Act.

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

SECTION 4. This Act shall take effect on July 1, 2007.

THE SENATE	S.B. NO.	1120
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII