Hawaii-2024-HB1958-Introduced

SECTION 1. The legislature finds that Hawaii's business community is experiencing a shortage of qualified employees to fill critical roles in every industry. The workforce shortage is a significant obstacle in starting new businesses as well as expanding existing businesses, thus stifling economic development in the State. Many employees, especially women, either cannot enter the workforce or cannot remain in the workforce because they are the primary caregiver for a child or an adult, or both.

The legislature further finds that an average of $1,700 per month for child care for one child can equate to twenty-nine per cent or more of an average worker's salary in Hawaii. Affordable and accessible child care eases the struggle for working families and improves retention and productivity for the State's workforce. However, during the COVID-19 pandemic, Hawaii lost twelve per cent of its child care facilities.

The legislature additionally finds that Hawaii has the fastest aging population and highest life expectancy in the country. According to the department of business, economic development, and tourism, from 2020 to 2030, the percentage of people aged sixty-five and older is expected to go from 10.1 per cent of the State's population to 22.5 per cent. The segment of population aged eighty-five and older will rise to 3.6 per cent. By 2035, nearly one in three Hawaii residents will be over the age of sixty.

The legislature also finds that the average cost of a nursing home in Hawaii is $150,000 per year, the highest in the nation. Hawaii's birthrate continues to decline, and younger families are moving to other states that offer more affordable living. In 2016, there was an average of about five potential family caregivers for every senior aged eighty or older; by 2030, the ratio will decline to three to one.

Accordingly, the purpose of this Act is to strengthen economic develop in Hawaii by establishing a child care and caregiving pilot grant program aimed at assisting employers in offering child care or caregiving support to their employees. The pilot grant program will help to alleviate the burden on working families by enabling employers to provide necessary child care support, thereby enhancing workforce retention and productivity.

SECTION 2. (a) There is established in the department of labor and industrial relations a three-year child care and caregiving pilot grant program to award grants to qualified employers with employees who are in need of child care or who provide caregiving.

(b) The department of labor and industrial relations shall select an eligible nonprofit organization through a competitive bid process to administer the child care and caregiving pilot grant program. Once selected, the eligible nonprofit organization shall establish a process for employers to apply to the program and the criteria for approval for participation in the program.

(c) The eligible nonprofit organization shall request from employers participating in the child care and caregiving pilot grant program:

(1) Periodic reports on the utilization of funds, the impact of the funds on the employer's workforce, and the effectiveness of the child care and caregiving support provided, which shall be used to determine the success of the program and potential improvements; and

(2) Periodic reviews and assessments of the program, which shall be used to evaluate the program's effectiveness; provided that recommendations for improvements or potential expansion of the program or increased funding may be considered based on the submitted reviews and assessments.

(d) The eligible nonprofit organization shall submit the following to the department of labor and industrial relations no later than three months prior to the regular sessions of 2025, 2026, and 2027:

(1) A list of all employers who applied for the child care and caregiving pilot grant program;

(2) A list of employers approved for participation in the program;

(3) Information collected pursuant to subsection (c).

(e) The department of labor and industrial relations shall submit interim reports on the child care and caregiving pilot grant program to the legislature no later than twenty days prior to the convening of the regular sessions of 2025 and 2026. The interim reports shall include:

(1) The total value of grants awarded for each taxable year;

(2) The total number of employers the grant was awarded to for each taxable year;

(3) Information on the eligible nonprofit organization's process in administering the grant program; and

(4) An analysis on the effectiveness of the grant program as an incentive to encourage individuals who provide child care or caregiver support to seek and retain employment.

(f) The department of labor and industrial relations shall submit a final report of its findings and recommendations, including proposed legislation, on the child care and caregiving pilot grant program to the legislature no later than twenty days prior to the convening of the regular session of 2027.

(g) The child care and caregiving pilot grant program shall cease to exist on July 1, 2027.

(h) As used in this section:

"Eligible nonprofit organization" means an organization that:

(1) Has the status of a tax-exempt organization under section 501(c)(3) of the federal Internal Revenue Code of 1986, as amended; and

(2) Is registered to do business in the State in accordance with chapter 414D, Hawaii Revised Statutes.

"Qualified employer" means a business who:

(1) Demonstrates commitment to assisting their employees with costs of child care or caregiving support;

(2) Is in good standing with all state regulations, laws, and standards; and

(3) Provides a clear plan outlining how the grant funds will be utilized to enhance or establish child care or caregiving support for the employer's workforce.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment and implementation of the child care pilot grant program established pursuant to section 2 of this Act.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriation contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act.

SECTION 5. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1958
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII