STAND. COM. REP. NO. 1076

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 260
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred H.B. No.
260, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to ensure that all of Hawaii's
children will be safe, healthy, and ready to succeed in school by
appropriating funds to improve the affordability, accessibility,
and quality of early childhood services.

     Kama'aina Kids, the Healthy Mothers Healthy Babies Coalition
of Hawaii, and Maui County's Good Beginnings testified in support
of this measure.  The Departments of Human Services and Education
and the Good Beginnings Alliance testified in support of the
intent of this measure.  The Department of Health commented on
this measure.

     Your Committee has amended this measure by:

     (1)  Authorizing rather than mandating the Department of
          Human Services (DHS) to establish a Child Care
          Facilities Revolving Loan Fund;

     (2)  Authorizing DHS to develop child care subsidy
          reimbursement rates on a sliding scale, which reflect
          higher reimbursements for programs that are:

                                 STAND. COM. REP. NO. 1076
                                 Page 2

          (A)  Accredited by a nationally recognized accredited
               organization; and

          (B)  Regulated and licensed under the State;


     (3)  Making technical, nonsubstantive amendments for
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
260, H.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 260, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair