HB549 SD1

SECTION 1. The legislature finds that quality learning experiences during a child's earliest years improve long-term, multi-general outcomes and contribute to a strong, skilled workforce. High-quality early learning programs support the growth and development of children, help working families to secure and sustain employment and economic vitality, promote the creation of jobs and workforce support, and generate substantial revenue for the State.

The legislature notes that despite the growing demand for well-trained early learning professionals, the field is experiencing a shortage of qualified and well-compensated workers. Therefore, the legislature recognizes that it is necessary to support the recruitment, retention, and professional development of early learning professionals as an investment in a workforce that supports the State's youngest children and working families, which will contribute to the current and future prosperity of the State.

The legislature further finds that registered apprenticeship programs are proven models that create skilled workforces tailored to the specialized needs of their respective industries while fostering economic growth. Registered apprenticeship programs are high-quality, industry-driven career pathways that combine on-the-job training with classroom instruction to prepare workers for skilled careers. Registered apprenticeship programs ensure businesses have access to well‑trained and qualified employees while also ensuring that employees are fairly compensated commensurate to the necessary qualifications. Furthermore, apprenticeship programs offer an accessible pathway to stable careers, assist in developing technical skills, upskill the existing workforce, and encourage a culture of lifelong learning and continuous professional development.

The legislature also finds that the first federally‑approved early learning apprenticeship program recently launched to serve as a critical recruitment and retention pathway for prospective early learning professionals and increase access to early learning opportunities. However, the legislature recognizes that due to the significant labor costs required of the industry, many early learning program service providers have difficulty maintaining the federal compensation requirement and are therefore disincentivized from participating in early learning apprenticeship programs.

The legislature declares that the establishment of an early learning apprenticeship grant program is a matter of statewide concern.

The purpose of this Act is to establish an early learning apprenticeship grant program, to be administered by the university of Hawaii, to assist publicly- or privately‑run early learning program service providers participating in state- and federally-approved early learning apprenticeship programs.

SECTION 2. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart M of part IV to be appropriately designated and to read as follows:

"§304A- Early learning apprenticeship grant program; established. (a) There is established an early learning apprenticeship grant program to be administered by the university to provide financial support for early learning program service providers in the State to participate in early learning apprenticeship programs.

(b) The university shall award grants to an early learning program service provider licensed or registered to provide child care in the State that participates in a state- or federally‑approved early learning apprenticeship program as an employer or sponsor; provided that priority shall be given to an early learning program service provider that:

(1) Is licensed or registered to provide care for infants and toddlers; and

(2) Enrolls children under the age of three.

(c) The university shall determine the grant amount per license; provided that the university shall consider the following factors when determining the grant amount:

(1) The size of an early learning program service provider participating in a state- or federally-approved early learning apprenticeship program as an employer;

(2) The difference between the statutorily-required wage rates or prevailing industry standard wage rates, whichever is higher, and the early learning program service provider's current wage rates; and

(3) Other factors, including but not limited to stipend bonuses or wage supplements.

(d) The university shall award grants based on criteria developed by the university in consultation with the executive office on early learning.

(e) The grant program shall provide financial assistance to eligible early learning program service providers to cover the costs associated with their participation in a state- or federally-approved early learning apprenticeship program, including:

(1) Personnel expenses and wages;

(2) Training expenses;

(3) Mentorship stipends;

(4) Administrative costs; and

(5) Wage or salary increases, wage supplements, or other compensation enhancements as needed to attract and retain qualified employees within the state- or federally-approved apprenticeship framework, including apprentices and other early learning employees;

provided that the wages shall match statutorily-required wage

requirements or prevailing industry standards, whichever is

higher.

(f) The university may collaborate with the counties to administer the grant program.

(g) The university shall submit a report of its findings and recommendations, including any proposed legislation regarding the grant program, to the legislature no later than twenty days prior to the convening of each regular session. The report shall include at minimum:

(1) The number of early learning program service providers receiving grants pursuant to the program;

(2) The number of apprentices hired by early learning program service providers receiving grants under the program;

(3) The total amount of funds awarded to early learning program service providers pursuant to the program; and

(4) The purposes for which the early learning program service providers used the awarded grants, including documentation on wages paid or wage increases given to qualified employees within the state- or federally‑approved apprenticeship framework, including apprentices and other early learning employees.

(h) For the purposes of this section:

"Early learning" has the same meaning as defined in section 302L-1.

"Early learning program" means a publicly- or privately-run program within the State's early learning system governed pursuant to chapter 302L. "Early learning program" includes center-based programs, family child care programs, family-child interaction learning programs, and home-based instruction programs.

"Grant program" means the early learning apprenticeship grant program."

SECTION 3. 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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the university of Hawaii to implement and administer the early learning apprenticeship grant program.

The sums appropriated shall be expended by the university of Hawaii for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 31, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	549
THIRTY-THIRD LEGISLATURE, 2025		H.D. 3
STATE OF HAWAII		S.D. 1