STAND. COM. REP. NO. 57

Honolulu, Hawaii

, 2025

RE: H.B. No. 241

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. 241 entitled:

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

begs leave to report as follows:

The purpose of this measure is to require the Department of Human Services to:

(1) Establish a Child Care Classroom Contracts Pilot Program to contract directly with child care center providers in licensed infant and toddler child care centers and group child care centers that meet certain criteria; and

(2) Submit annual reports to the Legislature on the pilot program.

Your Committee received testimony in support of this measure from the Department of Human Services; American Association of University Women of Hawaii; Early Childhood Action Strategy; Hawai‘i Children's Action Network Speaks!; and four individuals. Your Committee received comments on this measure from the Executive Office on Early Learning.

Your Committee finds that access to affordable child care is essential for working families in the State, yet many child care center providers face financial instability due to fluctuating enrollment numbers. Your Committee further finds that child care providers that depend on tuition-based funding are vulnerable to disruptions and potential closures, impacting families and providers. This measure creates a more stable funding model by directly subsidizing classrooms in licensed infant and toddler child care centers and group child care centers, ensuring that the State continues to invest in keiki and working families.

Your Committee has amended this measure by:

(1) Specifying additional requirements for child care centers to be eligible for the pilot program;

(2) Changing the minimum number of required licensed group child care centers in the pilot program from two to one per county;

(3) Clarifying the responsibilities of the Department of Human Services regarding monitoring seat utilization and contract modification;

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

(5) 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. 241, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 241, H.D. 1, and be referred to your Committee on Education.

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

____________________________

LISA MARTEN, Chair