STAND. COM. REP. NO. 154

Honolulu, Hawaii

, 2025

RE: H.B. No. 238

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Human Services & Homelessness, to which was referred H.B. No. 238 entitled:

"A BILL FOR AN ACT RELATING TO EARLY CHILD CARE,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the Department of Human Services to establish and implement a Child Care Provider Subsidy and Bonus Program to provide subsidies to retain the existing child care workforce in licensed infant and toddler child care centers, group child care centers, and group child care homes and bonuses to registered family child care homes; and

(2) Appropriate funds for the program, including administrative staff.

Your Committee received testimony in support of this measure from the American Association of University Women of Hawaii; Puakalehua Early Learning Consortium; Association for Infant Mental Health in Hawai‘i; Early Childhood Action Strategy; Chamber of Commerce Hawaii; Hawai‘i Children's Action Network Speaks!; Commit to Keiki; and two individuals. Your Committee received comments on this measure from the Department of Human Services and Executive Office on Early Learning.

Your Committee finds that a strong child care and early education workforce is essential to supporting Hawaii's children, working families, and communities. However, the demand for quality child care far exceeds the number of qualified professionals available, making it difficult to maintain and expand affordable child care programs. This measure establishes a Child Care Provider Subsidy and Bonus Program to ensure fair compensation, improve retention, and strengthen the early education workforce, ultimately benefiting families and children across the State.

Your Committee notes the request by the Department of Human Services, in its testimony before your Committee, for an effective date of January 31, 2026, or later, to have sufficient time to establish and implement the Child Care Provider Subsidy and Bonus Program.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 238, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 238, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,

____________________________

LISA MARTEN, Chair