RELATING TO EARLY LEARNING COOPERATIVES.

HB1377

HOUSE OF REPRESENTATIVES

H.B. NO.

1377

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to early learning cooperatives
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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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.
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This cost represents around 23.2 per cent of
the State's median household income, estimated at $97,360 in 2023, according to
Statista.
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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.

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The legislature further finds that
parent-staff cooperatives offer an innovative and affordable solution by
incorporating professional expertise with structured community and parental
support.
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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.
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Moreover, high‑quality
early childhood education provided through cooperatives improves long-term
educational outcomes, workforce readiness, and the overall economic vitality of
the State.

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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.
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By fostering a sense of belonging and
culture, these programs can meet the diverse needs of local families while
strengthening community ties.
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Developing
innovative childcare models, such as parent-staff cooperatives, will help
address the pressing childcare challenges Hawaii's families face.

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

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

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

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

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

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(3)
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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;

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

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

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

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

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

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

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(c)
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To ensure the sustainability and scalability
of the early learning cooperatives, the office shall:

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

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

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

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(B)
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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

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(C)
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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

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(3)
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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.

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(c)
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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.

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

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(1)
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The number of
early learning cooperatives established;

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

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

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(4)
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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

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

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

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(1)
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Standards for
early learning cooperative operations;

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

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(3)
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Procedures for
applying for funding and grants.

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�302L-B
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Early learning cooperatives; funding.
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(a)
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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:

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(1)
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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;

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

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

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

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

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

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

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

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(1)
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Basic
principles of early childhood education;

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(2)
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Techniques for
supporting professional staff; and

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

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(b)
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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.

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�302L-D
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Early learning cooperatives; advisory
council.
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(a)
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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:

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(1)
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Early childhood
education professionals;

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(2)
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Parent
representatives;

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(3)
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Cultural practitioners;
and

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(4)
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Community leaders.

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(b)
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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:

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

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

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

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

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

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SECTION 4.
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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.

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The sums

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

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SECTION 5.
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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.

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SECTION 6.
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New statutory material is underscored.

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

INTRODUCED BY:

_____________________________

Report Title:

Executive
Office on Early Learning; Early Learning Cooperatives; Advisory Council; Appropriation

Description:

Requires
the Executive Office on Early Learning to establish parent-staff early learning
collectives to combine professional early-learning services with structured
parental involvement.
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Establishes an
Early Learning Cooperative Advisory Council.
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Appropriates funds.

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not legislation or evidence of legislative intent.