SB1125

SECTION 1. The legislature finds that early learning costs in the State have significantly increased, creating barriers for families seeking to enroll their young children in center-based care. According to ProCare Software's 2024 Childcare Cost Analysis, the average annual cost of center-based infant care in the State was approximately $22,585 in 2024, representing approximately 23.2 per cent of the State's median household income. Hawaii's center-based care costs far exceed the United States Department of Health and Human Services' guidelines recommending that childcare costs not exceed seven per cent of a family's income, underscoring the significant financial burden on working families in the State.

The legislature also finds that parent-staff cooperatives offer an innovative and affordable solution by incorporating professional expertise with structured community and parental support. 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. Further, 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 further finds that cooperatives align with the State's unique cultural values by incorporating Native Hawaiian principles such as aloha (love and compassion), malama (care and stewardship), and kuleana (responsibility). By fostering a sense of belonging and culture, cooperative 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 faced by Hawaii's families.

Accordingly, the purpose of this Act is to establish parent-staff early learning cooperatives for early childcare within the department of human services.

SECTION 2. For the purposes of this Act:

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

"Department" means the department of human services.

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

SECTION 3. (a) The department shall facilitate the establishment of early learning cooperatives across the State.

(b) 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 the State's unique heritage and environment by partnering with local cultural practitioners, educators, and community leaders, who may collaborate with the design of the early learning cooperative program;

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

(5) Utilize local resources and environments as components of curriculum; and

(6) Incorporate Hawaiian language and Native Hawaiian cultural practices.

(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 nonprofit organizations to ensure early learning cooperatives are accessible and responsive to community needs; and

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

(d) To ensure the sustainability and scalability of early learning cooperatives, the department shall:

(1) Develop a phased implementation plan for expanding early learning cooperatives, including timelines, resource allocation, and benchmarks for future growth;

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

(A) Enrollment rates that aim to achieve 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 not more than fifteen per cent of household income; and

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

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

(e) The department shall partner with early childhood education experts, community organizations, and existing childcare providers to implement the early learning cooperatives.

(f) The department shall adopt rules in accordance with chapter 91, Hawaii Revised Statutes, to implement early learning cooperatives pursuant to this Act. The rules shall include but not be limited to:

(1) Standards for early learning cooperatives operations;

(2) Eligibility criteria for participating families; and

(3) Procedures for applying for funding and grants.

SECTION 4. (a) The department shall develop and implement a standardized training program for parents participating in early learning cooperatives. 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, with structured opportunities for involvement in daily activities, administration, and program design.

SECTION 5. (a) The department shall secure federal funding through the child care and development block grant to support early learning cooperatives programs. The department shall collaborate with federal agencies to ensure compliance with grant requirements and maximize funding allocation. The department shall establish a dedicated team within the department to oversee the grant application process, manage awarded funds, and ensure efficient use of funding.

(b) The department shall integrate child care and development block grant funds with state appropriations by:

(1) Allocating federal funds toward establishment and operational costs for early learning cooperatives, prioritizing rural and underserved communities;

(2) Utilizing state appropriations to cover costs not eligible for federal funding such as specific cultural and placed-based learning initiatives; and

(3) Ensuring that federal funds are utilized first to offset state appropriations for long-term sustainability.

SECTION 6. (a) There is established an early learning cooperative advisory council to assist the department in the establishment and administration of early learning cooperatives.

(b) The advisory council shall include:

(1) Early childhood education professionals;

(2) Parent representatives; and

(3) Cultural practitioners.

SECTION 7. (a) The department shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of each regular session.

(b) The report shall include:

(1) The number of early learning cooperatives established, including enrollment rates;

(2) Cost reduction on the overall cost of childcare expenses;

(3) Workforce participation improvements;

(4) Federal and state funds utilized to administer the early learning cooperative program; and

(5) Outcomes, including accessibility to early childhood education and educational achievement of early learning cooperative participants.

SECTION 8. 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 administration of the early learning cooperative program established pursuant to this Act; provided that the department shall secure federal funding through the child care and development block grant.

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

SECTION 9. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1125
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII