SB239 SD2

PART I

SECTION 1. The legislature finds that preschool and other early learning programs are critical to the development of young children in gaining essential skills, being prepared for school, and charting a course for lifelong success. The legislature also finds that the preschool open doors program established within the department of human services' child care assistance program aims to provide low- and moderate-income families with the opportunity to send their children to preschool by providing eligible families with subsidies to help pay preschool tuition.

The legislature further finds that accreditation from national early learning accrediting organizations is one indicator that a child care program is providing a level of care that meets high-quality standards set by these organizations. The State's preschool open doors program therefore requires service providers who wish to participate in the preschool open doors program to obtain accreditation from national early learning accrediting organizations, and service providers who have not done so by July 1, 2022, must start the accreditation process no later than July 1, 2024, and be accredited by July 1, 2029. The department of human services is required to provide operational and financial support to assist these service providers to obtain accreditation and may contract with a private entity for that purpose.

The purpose of this Act is to:

(1) Establish within the department of human services' child care subsidy program office, a child care accreditation program to support licensed or registered child care providers to obtain accreditation from a national early learning accrediting organization or an accrediting organization approved by the director of human services;

(2) Extend the deadlines by which unaccredited service providers of the preschool open doors program must commence the accreditation process and obtain accreditation;

(3) Appropriate funds for the establishment, implementation, and administration of the child care accreditation program, including funding for one full time equivalent (1.00 FTE) position; and

(4) Appropriate funds to be deposited into the child care grant program special fund to be disbursed and expended to award grants to private child care providers participating in the child care accreditation program for certain costs required to obtain and maintain accreditation.

PART II

SECTION 2. (a) There is established within the department of human services' child care subsidy program office a child care accreditation program to support child care providers in obtaining accreditation from a national early learning accrediting organization or an accrediting organization approved by the director of human services.

(b) The program shall award grant funding to an eligible child care provider who has committed to obtaining accreditation from a national early learning accrediting organization or an accrediting organization approved by the director of human services, which shall be used to pay for the expenses necessary for the child care provider to obtain the accreditation, including:

(1) Expenses to retain technical assistance for the accreditation process; and

(2) Incidental expenses to obtain furniture and equipment and to make minor renovations to the child care provider's facilities required by the national early learning accrediting organization or an accrediting organization approved by the director of human services to issue the accreditation.

(c) The department of human services may contract with a private entity in accordance with chapter 103D, Hawaii Revised Statutes, to administer the program.

(d) The department shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, to carry out the purpose of this Act, including rules on the standards, policies, and procedures for the administration of the child care accreditation program.

(e) The department of human services shall submit a report regarding the implementation and performance of the child care accreditation program, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session. The annual report shall include the status of the program, including:

(1) The total number and general location of child care providers applying for the program;

(2) An aggregated summary of the categories of expenses and amounts of expenses covered for childcare providers under the program; and

(3) The percentage of service providers in the preschool open doors program who:

(A) Have commenced the process of obtaining accreditation; and

(B) Are currently accredited.

(f) For the purposes of this Act:

"Child care provider" means the same as "provider" as defined in section 346-151, Hawaii Revised Statutes, and includes licensed child care centers, licensed infant and toddler centers, registered family child care homes, and licensed group child care centers.

"Eligible child care provider" means a child care facility that is not part of or owned or operated by a private educational institution; provided that an organization or individual that owns or operates both a private educational institution and a child care facility may be deemed an "eligible child care provider" if the organization or individual can provide evidence that the operations and finances of the private educational institution are completely separate from the operations and finances of the child care facility so that it is clear that a child care grant would not support or benefit the private educational institution in violation of article X, section 1 of the Hawaii State Constitution.

"National early learning accrediting organization" means one of the accrediting organizations identified in section 346‑184(b), Hawaii Revised Statutes.

PART III

SECTION 3. Section 346-184, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Each service provider of the preschool open doors program shall be accredited or shall obtain accreditation within seven calendar years of first receiving any funds from the preschool open doors program; provided that any existing service provider unaccredited on July 1, 2022, shall commence the accreditation process no later than July 1, [~~2024,~~] 2029, and obtain accreditation by July 1, [~~2029;~~] 2034; provided further that the director may grant to any service provider one or more extensions to obtain accreditation on a case-by-case basis."

PART IV

SECTION 4. 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 for the establishment, implementation, and administration of the child care accreditation program established pursuant to section 2 of this Act, including paying the cost of annual accreditation fees incurred by eligible child care providers participating in the preschool open doors program.

The sums appropriated shall be expended by the department of human services for the purposes of this Act and may be used for necessary administrative and other costs of implementation, including funding for one full time equivalent (1.0 FTE) position.

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 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 established pursuant to section 346-183, Hawaii Revised Statutes.

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 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be disbursed and expended by the department of human services to award grants to private child care providers participating in the child care accreditation program established pursuant to section 2 of this Act, for the purposes set forth in section 2 of this Act, without regard to section 346-183, Hawaii Revised Statutes.

The sums appropriated shall be expended by the department of human services for the purposes of section 2 of this Act.

PART V

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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

THE SENATE	S.B. NO.	239
THIRTY-SECOND LEGISLATURE, 2023		S.D. 2
STATE OF HAWAII