HB1377

SECTION 1. The legislature finds that the average annual cost of center-based infant care in Hawaii was approximately $22,585 in 2023, as reported by ProCare Solutions in their 2023 Childcare Cost Analysis. This cost represents around 23.2 per cent of the State's median household income, estimated at $97,360 in 2023, according to Statista. These figures far exceed the United States Department of Health and Human Services' guideline recommending that childcare costs not exceed seven per cent of a family's income, underscoring the significant financial burden on working families in Hawaii.

The legislature further finds that parent-staff cooperatives offer an innovative and affordable solution by incorporating professional expertise with structured community and parental support. These cooperatives can reduce operational costs, enabling families to access affordable childcare while stimulating the local economy by allowing more parents, especially mothers, to remain in the workforce. Moreover, high‑quality early childhood education provided through cooperatives improves long-term educational outcomes, workforce readiness, and the overall economic vitality of the State.

The legislature also finds these cooperatives align with Hawaii's unique cultural values by incorporating Native Hawaiian principles such as aloha, or love and compassion; mālama, or care and stewardship; and kuleana, or responsibility. By fostering a sense of belonging and culture, these programs can meet the diverse needs of local families while strengthening community ties. Developing innovative childcare models, such as parent-staff cooperatives, will help address the pressing childcare challenges Hawaii's families face.

Therefore, the purpose of this Act is to establish parent‑staff cooperatives for early childcare in Hawaii.

SECTION 2. Chapter 302L, Hawaii Revised Statutes, is amended by adding four new sections to be appropriately designated and to read as follows:

"§302L-A Early learning cooperative; establishment. (a) The office shall facilitate the establishment of early learning cooperatives across the State. The early learning cooperatives shall:

(1) Blend professional early childcare services with structured parental involvement to create a collaborative and inclusive learning environment;

(2) Provide comprehensive and ongoing training for parents in early childhood education practices, including strategies to support child development, classroom management, and cultural education;

(3) Incorporate cultural and place-based learning to reflect Hawaii's unique heritage and environment by partnering with local cultural practitioners, educators, and community leaders, including incorporating Hawaiian language and cultural practices;

(4) Ensure all cooperatives meet established quality standards, including adequate staff-to-child ratios, certified childcare professionals, and safe learning environments; and

(5) Utilize local resources and environments as part of the curriculum.

(b) The office shall prioritize the establishment of early learning cooperatives in underserved and rural communities by:

(1) Conducting a needs assessment to identify priority areas based on childcare availability, demographic trends, and community input;

(2) Collaborating with local organizations, schools, and nonprofits to ensure early learning cooperatives are accessible and responsive to community needs; and

(3) Offering additional financial and technical support to early learning cooperatives in high-need areas to promote equitable access to high-quality early learning services.

(1) Develop a phased implementation plan for expanding cooperatives, including timelines, resource allocation, and benchmarks for success;

(2) Conduct evaluations at the end of each phase to assess program performance, using the following benchmarks for success:

(A) Enrollment rates, aiming for at least eighty per cent capacity utilization within the first year of operation for each early learning cooperative;

(B) Reduction in childcare costs as a percentage of household income for participating families, with a target of decreasing costs to no more than fifteen per cent of household income; and

(C) Economic impact, measured by the percentage increase in workforce participation among parents benefiting from the cooperatives, with a goal of at least a ten per cent increase; and

(3) Monitor and evaluate the performance of established cooperatives to identify best practices and areas for improvement, with a focus on family satisfaction, educational outcomes, and operational efficiency.

(c) The office shall partner with early childhood education experts, community organizations, and existing childcare providers to implement the early learning cooperatives established pursuant to this section.

(d) In addition to the report required in subsection (b), the office shall submit a report to the legislature prior to each regular session on:

(1) The number of early learning cooperatives established;

(2) Federal and state funds utilized for early learning cooperatives;

(3) Outcomes of the early learning cooperatives, including access, cost savings, and educational achievements;

(4) A summary of the progress and challenges of early learning cooperatives, specific data on enrollment rates, and any recommendations on cost reductions and workforce participation improvements; and

(5) Any other findings, recommendations, and proposed legislation.

(e) The office shall adopt rules pursuant to chapter 91 necessary to implement this section, including rules related to:

(1) Standards for early learning cooperative operations;

(2) Eligibility criteria for families to participate in early learning cooperatives; and

(3) Procedures for applying for funding and grants.

§302L-B Early learning cooperatives; funding. (a) The office shall secure federal funding through the federal Child Care and Development Block Grant for early learning cooperatives established pursuant to section 302L-A by:

(1) Submitting detailed applications that outline the early learning cooperative's objectives, alignment with the federal Child Care and Development Block Grant guidelines, and projected outcomes;

(2) Collaborating with federal agencies to ensure compliance with grant requirements and maximize funding allocation; and

(3) Establishing a dedicated team within the office to oversee the grant application process, manage awarded funds, and ensure efficient use of the funds.

(b) The office shall integrate federal Child Care and Development Block Grant funds with state appropriations by:

(1) Allocating federal funds toward setup and operation costs for early learning cooperatives, particularly in underserved communities;

(2) Using state appropriations to cover early learning cooperative elements not eligible under federal funding, including specific cultural and place-based learning initiatives; and

(3) Ensuring that federal funds are utilized first to offset state expenditures and stretch budget allocations for long‑term sustainability.

§302L-C Early learning cooperatives; standardized training program. (a) The office shall develop and implement a standardized training program for parents participating in early learning cooperatives established pursuant to section 302L-A. The training shall include:

(1) Basic principles of early childhood education;

(2) Techniques for supporting professional staff; and

(3) Best practices for cultural and place-based learning.

(b) Parent participation shall be a core component of the early learning cooperatives established pursuant to section 302L-A, with structured opportunities for involvement in daily activities, administration, and program design.

§302L-D Early learning cooperatives; advisory council. (a) The office shall establish an early learning cooperative advisory council, whose members shall be appointed by the director of the office, comprising of representatives from the following groups:

(1) Early childhood education professionals;

(2) Parent representatives;

(3) Cultural practitioners; and

(4) Community leaders.

(b) The early learning cooperative advisory council shall serve in an advisory capacity to the director of the office on early learning cooperatives established pursuant to section 302L-A, including providing input on:

(1) Best practices to be adopted for early learning cooperatives; and

(2) Recommendations to improve the services of early learning cooperatives."

SECTION 3. Section 302L-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Cultural and place-based learning" means educational practices that integrate the unique cultural heritage, history, and natural environment of Hawaii.

"Early learning cooperative" means a childcare program operated as a parent-staff partnership, combining professional early-learning services with structured parental involvement."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $3,850,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the establishment of four early learning cooperatives pursuant to section 302L-A, Hawaii Revised Statutes, to help with workforce diversification and reducing the cost of childcare.

The sums appropriated shall be expended by the executive office on early learning for the purposes of this Act.

SECTION 5. In codifying the new sections added by section 2 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 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1377
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII