HB 5002 — AN ACT CONCERNING EARLY CHILDHOOD CARE AND EDUCATION.

5945002 5operator sHB5002and Fileis No.compensated by such program operator on an hourly basis;

594 (iv) AnThe operator or a representative of a home-basednon-home-based child care services provider, provided such representative is an employee of such provider.provider and is compensated by such provider on an hourly basis;

(B) The time spent by a member under subparagraphs (A)(i) to (A)(iv), inclusive, of this subdivision to travel to and from(v)The suchoperator meetingor shallrepresentative notofahome-based bechildcare countedservices forprovider,providedsuchrepresentativeisanemployeeofsuchprovider. purposes of calculating the stipend under this subdivision.

(B) The time spent by a member under subparagraph (A)(i) to (A)(v), inclusive, of this subdivision to travel to and from such meeting shall not be counted for purposes of calculating the stipend under this subdivision.

(1) Not later than January 1, 2026, and annually thereafter, submit a report,Public inAct accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance ofmattersrelatingtoappropriationsandthebudgets of state agencies, finance, revenue and bonding, education and children, on the financial health and status of the Early Childhood Care and Education Fund, including, but not limited to, (A) the amounts on deposit in said fund, (B) disbursements made or expected to be made from said fund for the applicable fiscal year, (C) the rates of return on sHB5002 / File No.

59424-91 67 sHB5002of File18 Substitute House Bill No.

5945002 report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance ofmattersrelatingtoappropriationsandthebudgets of state agencies, finance, revenue and bonding, education and children, on the financial health and status of the Early Childhood Care and Education Fund, including, but not limited to, (A) the amounts on deposit in said fund, (B) disbursements made or expected to be made from said fund for the applicable fiscal year, (C) the rates of return on investments made by the Treasurer pursuant to subsection (c) of this section, (D) a statement as to the sufficiency of the amounts on deposit in said fund to achieve the purposes of said fund, and (E) any recommendations for policy changes and amendments to the general statutes necessary to further the purposes of said fund;

(2) Not later than January 1, 2026, submit a ten-yearfive-year plan, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizanceofmattersrelatingtoappropriationsandthebudgetsofstate agencies, finance, revenue and bonding, education and children, of recommendations of expenditures from said fund that would best support early childhood education in, and child care needs of, the state.

(NEW) (Effective July 1, 2024) (a) For the purposes described in section 10-511 of the general statutes, as amended by this act, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate fifty million dollars.

(b) The proceeds of thesale of such bonds, to the extent of theamount statedinsubsection(a)ofthissection,shallbeusedbytheOfficeofEarly Childhood for the purpose of implementing programs and initiatives enacted to support early childhood education in, and child care needs of, the state.

(c)Allprovisionsofsection3-20ofthegeneralstatutes,ortheexercise of any right or power granted thereby, that are not inconsistent with the sHB5002 / File No.

594 7 sHB5002 File No.

594 provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section.

Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 of the general statutes and from time to time renewed.

Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds.

None of such bonds shall be authorized except upon a finding by the State Bond Commission that therehasbeenfiledwithitarequestforsuchauthorizationthatissigned by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require.

Such bonds issued pursuant to this section shall begeneralobligationsofthestateandthefullfaithandcredit ofthestate of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

Sec.

4.

(Effective July 1, 2024) Not later than June 30, 2025, fifty million dollars shall be transferred from the General Fund to the Early Childhood Care and Education Fund, established pursuant to section 10-511 of the general statutes, as amended by this act.

Sec.

5.

Under such program, costsPublic forAct childNo. care provided by duly licensed child care facilities in the state shall be shared equally among participating employers, employees and the state.

(b)24-91 (1)8 The program shall be established for a minimum of two18 yearsSubstitute andHouse theBill office shall select a regional or state-wide organization as the sHB5002 / File No.

5945002 8costs sHB5002for Filechild No.care provided by duly licensed child care facilities in the state shall be shared equally among participating employers, employees and the state.

594(b) (1) The program shall be established for a minimum of two years and the office shall select a regional or state-wide organization as the administrator of the program.

Such administrator shall (A) determine employers' and employees' eligibility for participation in the program, (B) ensure that child care facilities to which payments will be made under the program are licensed by the state, (C) collect and ensure timely payment from participating employers, participating employees and the state, (D) disburse funds to the appropriate child care provider, (E) recruit employers to participate in the program, and (F) coordinate adequateadequatecommunicationbetweenallparties,and(G)collectandsubmit communicationto betweenthe allOffice parties.of Early Childhood data concerning participating employees, including, but not limited to, the annual household income of such employees, provided any such submitted data shall be deidentified.

and (B) An employee shall (i) be employed by a participating employer, (ii) shall reside in the state, (iii) have as such employee's principal workplace a location in New London County, (iv) be part of the asset limited, income constrained, employed population that is below the ALICE threshold, as calculated in the most recent annual report by the United Way of Connecticut and provided(iv) to the administrator by the commissioner, and (v) not be receiving other public assistance for child care costs.

Such agreement shall include, but need not be limited to, (1) a provision that the administrator shall receive, for administrative costs of the program, up toPublic tenAct perNo. cent of the funds allocated by the state for the program, (2) a requirement that the administrator not commingle funds received for purposes of the program, other than funds for administrative costs allowed pursuant to subdivision (1) of this subsection, with other funds held or controlled by the administrator, and (3) penalties for violation of a provision of the agreement or of this section.

(d)24-91 Commencing9 with the fiscal year immediately following the first year of the18 programSubstitute andHouse annuallyBill thereafter, the commissioner shall sHB5002 / File No.

5945002 9to sHB5002ten Fileper No.cent of the funds allocated by the state for the program, (2) a requirement that the administrator not commingle funds received for purposes of the program, other than funds for administrative costs allowed pursuant to subdivision (1) of this subsection, with other funds held or controlled by the administrator, (3) any restrictions or prohibitions on the disclosure of data received or collected by the administrator in the performance of its duties under subdivision (1) of subsection (b) of this section, and (4) penalties for violation of a provision of the agreement or of this section.

594(d) Commencing with the fiscal year immediately following the first year of the program and annually thereafter, the commissioner shall submit to thejoint standing committeesoftheGeneralAssembly having cognizanceofmattersrelatingtoappropriationsandthebudgetsofstate agencies, finance, revenue and bonding, education and children, a reportontheprogram.Suchreportshallinclude,butneednotbelimited to, (1) for the fiscal year immediately preceding, (A) the number of participating employers and participating employees, (B) the percentage of participating employees whose household incomes are below the asset limited, income constrained, employed population threshold, as calculated in the most recent ALICE report by the United Way of Connecticut, and (B)(C) the amounts disbursed by the administrator for child care costs and the amounts retained by the administrator for administrative costs, and (2) any programmatic or legislative changes the commissioner recommends to improve the program or further its purposes.

6.

(Effective July 1, 2025) (a) As used in this section:

(1) "Early childhood education program operator" means a school readiness program, private preschool program or program pursuant to section 8-210 of the general statutes;

and (2) "Child care services provider" means a child care center, group child care home or family child care home, as those terms are described in section 19a-77 of the general statutes.

(b) For the fiscal year ending June 30, 2026, the Office of Early Childhood shall establish and administer a wage supplement and child care program enhancement grant program for early childhood education program operators and child care services providers.

On and after August 1, 2025, the office shall provide grants to early childhood education program operators and child care services providers that meet the eligibility requirements developed by the office pursuant to subsection (d) of this section and submit an application for a grant, in such form and manner as prescribed by the office.

A grant awarded under this section may be used by such early childhood education program operator or child care services provider to supplement the annual salaries of the employees of such operator or provider or to address any other programmatic or administrative needs, in accordance with the guidelines developed by the office pursuant to subsection (d) of this section.

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594 10 sHB5002 File No.

594 (c) In determining whether to award a grant under this section, the commissioner shall give priority to early childhood education program operators and child care services providers that will use such grant exclusively to supplement the annual salaries of the employees of such operator or provider.

(d) The office shall develop (1) eligibility criteria for which early childhood education program operators and child care services providers are eligible to receive a grant under this section, and (2) guidelines for the administration of the program and the expenditure of a grant awarded under this section by a childhood education program operator or child care services provider.

Such eligibility criteria shall limit grants to early childhood education program operators and child care services providers serving high-need populations, as determined by the commissioner, taking into account the findings and recommendations in the 2023 report issued by the Blue-Ribbon Panel on Child Care established by Executive Order Number 23-1 issued by Governor Ned Lamont.

Sec.

7.

Section 10-511a of the 2024 supplement to the general statutes is repealed.

(Effective from passage) This act shall take effect as follows and shall amend the following sections:

Section 1 from passage 10-511 Sec.

2 from passage New section Sec.

3 July 1, 2024 New section Sec.

4 July 1, 2024 New section Sec.

5 July 1, 2024 New section Sec.

6 July 1, 2025 New section Sec.

7 from passage Repealer section FIN Joint Favorable Subst.

sHB5002 / File No.

594 11 sHB5002 File No.

594 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 25 $ FY 26 $ Treasurer GF - Cost Up to - 75,000 Treasurer, Debt Serv.

GF - Cost See Below See Below Resources of the General Fund GF - Revenue 50,000,000 - Loss Treasurer ECCEF - Revenue 50,000,000 - Gain Office of Early Childhood GF - Cost See Below See Below State Comptroller - Fringe GF - Cost At least At least Benefits1 68,000 68,000 Legislative Mgmt.

GF - Potential Minimal Minimal Cost Note:

GF=General Fund;

ECCEF=Early Childhood Care and Education Fund Municipal Impact:

None Explanation Section 1 establishes the Early Childhood Care and Education Fund and requires the Office of the State Treasurer to administer it.

A one- time cost of up to $75,000 is associated with establishing the fund in accordance with the bill's requirements.

Section 2 establishes the Early Childhood Care and Education Fund Advisory Commission within the Office of Legislative Management (OLM) resulting in a potential cost to OLM.

This section allows Commission members to seek travel expense reimbursements or The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.25% of payroll in FY 25.

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594 12 sHB5002 File No.

594 stipends resulting in a potential minimal cost to OLM to the extent these are approved and issued by the agency.

Section 3 authorizes $50 million in General Obligation bonds to be used by the Office of Early Childhood for the purpose of implementing programs and initiatives enacted to support early childhood education and childcare needs in the state.

To the extent bonds are fully allocated and expended, total debt service is expected to be approximately $71.5 million over the 20-year duration of the bonds, with annual payments starting no earlier than FY 26.

Section 4 transfers $50 million from the General Fund to the Early Childhood Care and Education Fund.

Section 5 results in a cost to the Office of Early Childhood (OEC) beginning in FY 25 to establish the Tri-Share Pilot Matching Program serving New London County.

The bill requires OEC to enter into an agreement with an administrator, which would receive up to ten percent ofthefundsallocatedfor theprogramto support administrative costs.

The extent of the costs to establish and operate the program is dependent on the amount of funds allocated by the state.

Section 6 of the bill results in a cost to OEC beginning in FY 26 associated with establishing and administering a wage supplement and childcare program enhancement grant.

The extent of these costs is dependent on the scope of the grant program to be developed by OEC, pursuant to the bill.

OEC will incur additional annual staffing costs of approximately $165,000, with associated fringe benefit costs of approximately $68,000, to support administration of the program.

For context, the annual starting salary of aFiscal Administration Officer and Associate Accountant is $76,386 and $88,106, respectively.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the terms of any bonds issued.

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594 13 sHB5002 File No.

594 OLR Bill Analysis sHB 5002 AN ACT CONCERNING EARLY CHILDHOOD CARE AND EDUCATION.

SUMMARY This bill renames the Early Childhood Education Fund created in the FY 24-25 budget act the Early Childhood Care and Education Fund and transfers $50 million to the fund from the General Fund for FY 25 (§ 4).

It establishes a framework for the fund’s deposits and investments and the state treasurer’s authority and powers on behalf of the fund.

The bill creates a 17-member advisory commission within the Legislative Department to (1) review and report on the fund’s financial health and status, (2) submit and update a 10-year plan to the legislature on fund expenditures that would best support the state’s early childhood education and child care needs, and (3) recommend legislative changes to further the fund’s purposes.

It also authorizes up to $50 million in state general obligation bonds for the Office of Early Childhood (OEC) to implement programs and initiatives to support the state’s early childhood education and child care needs (§ 3).

The bonds are subject to standard statutory bond issuance procedures and repayment requirements.

The bill also does the following:

1.

requires OEC, within available appropriations, to establish a Tri- Share Child Care Matching Program serving New London County in which child care costs are shared equally between participating employers, employees, and the state (§ 5);

2.

requires OEC, for FY 26, to set up and administer a wage supplement and child care program enhancement grant program for eligible early childhood education program operators and sHB5002 / File No.

594 14 sHB5002 File No.

594 child care services providers (§ 6);

and 3.

eliminates the requirement that the OEC commissioner annually report to the legislature on the current Early Childhood Education Fund and the Blue-Ribbon Panel on Child Care’s recommendations (§ 7).

EFFECTIVE DATE:

July 1, 2024, except that the (1) fund, advisory commission, and repealer provisions are effective upon passage and (2) wage supplement and grant program provision is effective July 1, 2025.

§ 1 — EARLY CHILDHOOD CARE AND EDUCATION FUND Fund Requirements As under current law, the Early Childhood Care and Education Fund must contain any money required or allowed by law to be deposited in it, including funds received from public or private contributions, gifts, and grants.

The bill explicitly allows it to contain federal, state, or local grants, and additionally allows it to contain any earnings until they are disbursed according to the bill.

The bill requires the fund’s deposits to be used solely to support the state’s early childhood education and child care needs.

They are not state property, they cannot be combined with state funds, and the state has no claim on them.

The fund is not a state department, institution, or agency.

It must continue to exist as long as it has deposits or obligations and until terminated by law.

Under the bill, any contract entered into by the fund, or any obligation of the fund, is not a state debt or obligation, and the state has no obligation on account of the fund.

Amounts that must be paid from the fund are limited to the amount deposited there that is available for the payments.

Treasurer’s Authority and Powers The bill eliminates the requirement that the comptroller establish the fund and instead authorizes the treasurer, on the fund’s behalf and to carry out its purposes, to do the following:

sHB5002 / File No.

594 15 sHB5002 File No.

594 1.

receive and invest the fund’s money in any instruments, obligations, securities, or property as described below;

2.

enter into contractual agreements for services for the fund (e.g., legal, actuarial, administrative, and consulting) and pay for them with the fund’s assets;

3.

obtain insurance for the fund’s property, assets, activities, or deposits;

apply(Effective forfrom andpassage) accept(a) publicAs orused privatein donationsthis tosection: enable the fund to achieve its objectives;

(1) "Early childhood teacher" means an individual in a state-funded school readiness program or in a state-funded child care program, (A) who has primary responsibility for a classroom of children, (B) who is regularly scheduled in such capacity and has been employed in such capacity by such program for at least six months as of the time of Public Act No.

24-91 10 of 18 Substitute House Bill No.

5002 submitting an application under subsection (c) of this section, and (C) whose duties in such capacity equal at least fifty per cent of the assigned time of such individual;

(2) "Teacher assistant" means an individual in a state-funded school readiness program or in a state-funded child care program, (A) whose primary duty is to assist an early childhood teacher in the provision of early childhood care or as part of a school readiness program, and (B) who is regularly scheduled in such capacity and has been employed in such capacity by such program for at least six months as of the time of submitting an application under subsection (c) of this section;

and (3) "School readiness program" has the same meaning as provided in section 10-16p of the general statutes.

(b) (1) For the fiscal year ending June 30, 2025, the Office of Early Childhood shall establish and administer a wage supplement payment program to provide a one-time payment of not less than one thousand eight hundred dollars to eligible early childhood teachers and teacher assistants, provided each eligible applicant receiving a payment under the program shall receive the same payment amount.

Such payments shall be provided on a first-come first-served basis up to the amount made available for such payments pursuant to subsection (d) of this section.

(2) To the extent permissible under federal law, payments made under this section shall not be considered income or an asset for the purposes of determining eligibility for any state-administered public assistance program, including any HUSKY program described in section 17b-290 of the general statutes.

(c) The Commissioner of Early Childhood shall determine (1) an application period for early childhood teachers and teacher assistants to apply to theOffice ofEarly Childhoodto register for awage supplement Public Act No.

24-91 11 of 18 Substitute House Bill No.

5002 payment, (2) the form and manner of such application, and (3) the form and manner of disseminating information about the program to best achieve the purposes of this section.

The office shall review the applications submitted pursuant to this section and confirm the eligibility of the applicant to receive such payment.

Not later than thirty days after the office receives an application, the office shall notify the applicant whether such applicant is approved for such payment and if such applicant is not approved, the office shall provide the reason or reasons why.

(d) The sum of nine million dollars of the amount appropriated in section 1 of public act 23-204 to the Office of Early Childhood for the fiscal year ending June 30, 2025, for Early Care and Education and used by said office for school readiness and child day care purposes, shall be used to fund the wage supplement payments provided pursuant to this section.

(e) Not later than October 1, 2025, the Commissioner of Early Childhood shall submit to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, finance, revenue and bonding, education and children, a report on the program.

Such report shall include, but need not be limited to, (1) the number of early childhood teachers and the number of teacher assistants that submitted applications, (2) the number of such applicants who were approved for a wage supplement payment, (3) the amounts of the payments made to eligible early childhood teachers and to eligible teacher assistants and the total amount disbursed under the program, and (4) a recommendation of whether such program should be expanded or extended.

Sec.

adoptSubsection regulations;(c) of section 4b-21 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

Public Act No.

24-91 12 of 18 Substitute House Bill No.

5002 (c) Not later than thirty days after receipt of such notification from the secretary, the following agencies shall determine and notify the secretary in writing if the land, improvement or interest serves the following needs:

(1) The Commissioner of Economic and Community Development, whether it can be used or adapted for economic development or exchanged for property that can be used for economic development;

(2)theCommissioner ofTransportation,whether it canbe used for transportation purposes;

(3) the Commissioner of Energy and Environmental Protection, whether it can be used for open space purposes or to otherwise support the department's mission;

(4) the Commissioner of Agriculture, whether it can be used for farming or agricultural purposes;

(5) the Commissioner of Veterans Affairs, whether it can be used for veterans' housing;

(6) the Commissioner of Children and Families, whether it can be used to support the department's mission;

(7) the Commissioner of Developmental Services, whether it can be used to support the department's mission;

(8) the Commissioner of Administrative Services, whether it can be used to house state agencies or can be leased;

[and] (9) the Commissioner of Housing, whether it can be used as an emergency shelter or transitional living facility for homeless persons, or used for the construction, rehabilitation or renovation of housing for persons and families of low and moderate income;

and (10) the Commissioner of Early Childhood, whether it can be used for the provision of early childhood care and early childhood education programs.

Not later than thirty days after receipt of such notification from the secretary, any state agency, department or institution that is interested in utilizing the land, improvement or interest shall submit a plan to the secretary that sets forth the proposed use for the land, improvement or interest and a budget and timetable for such use.

If one or more agencies, departments or institutions submit a plan for such land, improvement or interest to the secretary within such thirty-day period, the secretary shall analyze such agency, department or institution plan or plans and determine whether custody and control of the land, improvement or interest shall Public Act No.

24-91 13 of 18 Substitute House Bill No.

5002 be transferred to one of such agencies, departments or institutions, in which case the agency, department or institution having custody of the land, improvement or interest shall make such transfer.

Sec.

sue(NEW) (Effective from passage) Not later than December 1, 2024, the Commissioner of Early Childhood shall, in consultation with a nonprofit organization providing entrepreneurial and befinancial sued;education services to women, develop a document for distribution to each person, group of persons, association, organization, corporation, institution or agency licensed to maintain a child care center or group child care home pursuant to section 19a-80 of the general statutes or family child care home pursuant to section 19a-87b of the general statutes, explaining the benefits of maintaining liability insurance coverage for such center or home and the potential consequences that may result in the absence of such coverage.

Not later than January 1, 2025, and annually thereafter, the commissioner shall distribute such document electronically to each such licensee.

Sec.

establishSection accounts10-514 withinof the fund;general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

(a) Not later than January 1, 2020, the Office of Early Childhood shall create a one-page document that (1) lists important developmental milestones experienced by children ages birth to five years, and 8.(2) contains notice that any parent or guardian who is concerned that such parent or guardian's child has not met one or more such developmental milestones may access the Office of Early Childhood Child Development Infoline for information concerning appropriate services.

takeThe otheroffice necessaryshall actionmake tosuch carrydocument outavailable theon bill’sits purposesInternet andweb relatedsite. to the treasurer’s duties under the bill.

Investments(b) TheOn billand requiresafter the[February state1, treasurer2020] toJuly (1)1, invest2024, theeach fund’soperator depositsof a child care center, group child care home or family child care home, as described in section 19a-77, other than those centers or homes that serve school-age children exclusively, shall post a reasonablecopy wayof tothe achievedocument itsPublic objectives;Act No.

(2)24-91 exercise14 aof prudent18 person’sSubstitute careHouse andBill discretion;No.

and5002 (3)developed considerpursuant suchto thingssubsection as(a) rate of return,this risk,section maturity,in portfolioa diversification,conspicuous liquidity,place projectedon disbursementsthe andpremises expenditures,of andsuch expectedchild depositscare andcenter, othergroup gifts.child care home or family child care home.

UnderSec. the bill, the state treasurer need not require the fund to invest in state or municipal bonds or other funds he administers.

The8. fund’s assets must be continuously invested and reinvested, consistent with the fund’s objectives, until they are disbursed by the comptroller as the bill allows.

§Subsection 2(a) —of ADVISORYsection COMMISSION17b-749 Membershipof andthe Administration2024 Undersupplement to the bill,general statutes is repealed and the Earlyfollowing Childhoodis Caresubstituted andin Educationlieu Fundthereof sHB5002(Effective /July File1, No.2024):

594(a) 16The sHB5002Commissioner Fileof No.Early Childhood shall establish and operate a child care subsidy program to increase the availability, affordability and quality of child care services for families with a parent or caretaker who (1) is (A) working or attending high school, or (B) subject to the provisions of subsection (d) of this section, is enrolled or participating in (i) a public or independent institution of higher education, (ii) a privatecareerschoolauthorizedpursuanttosections10a-22ato10a-22o, inclusive, (iii) a job training or employment program administered by a regional workforce development board, (iv) an apprenticeship program administered by the Labor Department's office of apprenticeship training, (v) an alternate route to certification program approved by the State Board of Education, (vi) an adult education program pursuant to section 10-69 or other high school equivalency program, or (vii) a local Even Start program or other adult education program approved by the Commissioner of Early Childhood;

594or Advisory(2) Commissionreceives consistscash ofassistance under the 12temporary appointedfamily membersassistance shownprogram infrom the tableDepartment belowof Social Services and theis followingparticipating statein officialsan education, training or theirother designees:job preparation activity approved pursuant to subsection (b) of section 17b- 688i or subsection (b) of section 17b-689d.

Services available under the OPMchild secretary,care statesubsidy treasurer,program stateshall comptroller,include andthe earlyprovision childhoodof andchild educationcare commissioners.subsidies for children under the age of thirteen or children under the age of nineteen with special needs.

Table:The Commissioner of Early Childhood may institute a protective service class in which the commissioner may waive eligibility requirements for at-risk populations that meet the guidelines prescribed by the commissioner, Public Act No.

Early24-91 Childhood15 Care and Education Fund Advisory Commission Appointing Number of Appointee’s18 QualificationsSubstitute Authority Appointments House speakerBill 2No. One must be an Early Childhood Cabinet member who is a parent Senate 2 One must represent a corporation with a significant president pro physical presence in Connecticut that employs tempore people who may benefit from early childhood education and state child care initiatives House majority 2 One must represent a philanthropic organization leader engaged in early childhood education or child care issues in Connecticut Senate majority 2 One must represent an early childhood education leader program operator in Connecticut House minority 2 One must represent a non-home-based child care leader services provider in Connecticut Senate minority 2 One must operate or represent a home-based child leader care services provider in Connecticut Under the bill, appointed members may be legislators.

They5002 serveand atsubject theto pleasurereview ofby theirthe appointingSecretary authorityof forthe aOffice termof coterminousPolicy withand theirManagement. appointing authority.

AppointingSuch authoritiesat-risk mustpopulations fillare anychildren vacancies,(A) andplaced thosein occurringa otherfoster thanhome by termthe expirationDepartment mustof beChildren filledand Families and for whom the remainderparent or legal guardian receives foster care payments, (B) adopted [children for one year from the date of adoption and] through the unexpiredDepartment term.of Children and Families, (C) who are homeless children and youths, as defined in 42 USC 11434a, as amended from time to time, and (D) under the care of a caregiver who is a recipient of subsidies under the subsidized guardianship program pursuant to section 17a- 126.

TheAny commissionchild isdescribed chairedin bysubparagraph (1)(B) of this subdivision shall be eligible for a subsidy under this section for a period not to exceed one year from the statedate comptrollerof adoption and (2)any twochild membersdescribed selectedin bysubparagraph (D) of this subdivision shall be eligible for a subsidy under this section for a period not to exceed one year from the Housedate speakerthat andsuch Senatechild presidentis proapproved tempore,for respectively.a subsidy under this section.

The chairpersonsOffice mustof scheduleEarly Childhood shall open and holdmaintain enrollment for the firstchild meetingcare withinsubsidy 90program daysand aftershall administer such program within the bill’sexisting passage.budgetary resources available.

The commissionoffice mustshall meetissue asa oftennotice ason the chairpersonsoffice's Internet web site any time the office closes the program to new applications, changes eligibility requirements, changes program benefits or amakes majorityany ofother itschange membersto deemthe necessary,program's andstatus aor majorityterms, except the office shall not be required to issue such notice when the office expands programeligibility.Any change intheoffice'sacceptance of membersnew constitutesapplications, aeligibility quorum.requirements, program benefits or any other change to the program's status or terms for which the office is required to give notice pursuant to this subsection, shall not be effective until thirty days after the office issues such notice.

MembersSec. are considered to have resigned from the commission if they miss three consecutive meetings or 50% of the meetings held during any calendar year.

sHB50029. / File No.

594Subsection 17(h) sHB5002of Filesection No.17b-749 of the 2024 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

594(h)[Onorafter TheJuly1,2014,thecommissionershalladoptregulations, billPublic requiresAct theNo. Finance, Revenue and Bonding Committee’s administrative staff to serve as the advisory commission’s administrative staff.

Travel24-91 Expenses16 andof Stipend18 MembersSubstitute generallyHouse serveBill withoutNo. compensation but must be reimbursed for necessary travel expenses, within available funds.

The5002 exceptionin isaccordance forwith the (1)provisions parentof memberchapter of54, to implement the Earlyprovisions Childhoodof Cabinetthis andsection] (2)On representativesand ofafter anJuly early1, childhood2024, educationthe programcommissioner operatorshall andimplement home-the andprovisions non-home-of based45 childCFR care98, servicesas provider,amended iffrom theytime areto employeestime, ofto administer the respectivechild providercare andsubsidy paidprogram. hourly.

UnderThe thecommissioner bill,shall thesedevelop memberspolicies areand eligibleprocedures fornecessary ato $25implement perthe hourprovisions stipend for each hour (or part of anthis hour)section. that they attend a commission meeting.

TheSec. travel time to and from the meeting does not count towards the stipend.

Eligible10. members must submit a request to the Office of Legislative Management’s executive director, as he requires, to receive the travel expenses or stipend.

They(NEW) must(Effective provideJuly any1, documentation2024) the(a) executiveAs directorused requiresin tothis substantiatesection: the requested amount.

Powers(1) and"Early Dutiesintervention Theservices" billhas authorizes the commissionsame tomeaning doas provided in section 17a-248 of the following:general statutes;

1.and (2) "Individualized family service plan" has the same meaning as provided in section 17a-248 of the general statutes.

review(b) andA monitorlicensed child care center,group child care homeor family child care home, as such terms are described in section 19a-77 of the Earlygeneral Childhoodstatutes, Careshall allow a child who has an individualized family service plan and Educationis Fundeligible for the birth-to-three program, established under section 17a-248b of the general statutes, to assessreceive itsearly financialintervention sustainability;services at such child care center, group child care home or family child care home from the service provider designated in such individualized family service plan.

2.Sec.

get11. the help and data it needs to carry out its purposes from any executive department, board, commission, or state agency;

(Effective July 1, 2024) Not later than October 1, 2024, the Secretary of the State shall update the official compilation of the regulations of Connecticut state agencies posted on the eRegulations System to comply with the provisions of chapter 54 of the general statutes and 3.section 12 of this act.

doSec. anything else necessary and appropriate to carry out its duties.

Reporting12. Requirement Annually, starting by January 1, 2026, the commission must report to the Appropriations;

Finance,(Effective RevenueJuly and1, Bonding;2024) Notwithstanding the provisions of chapter 54 of the general statutes, sections 17b-749-01 to 17b-749-23, inclusive, of the regulations of Connecticut state agencies are repealed.

Education;Sec.

and13. Children’s committees on the Early Childhood Care and Education Fund’s financial health and status.

TheSection report10-511a mustof include:the 2024 supplement to the general statutes Public Act No.

sHB500224-91 /17 Fileof 18 Substitute House Bill No.

5945002 18is sHB5002repealed. File No.

594(Effective 1.from passage) Approved June 4, 2024 Public Act No.

the24-91 amount18 depositedof in18 the fund and whether it is sufficient to achieve the fund’s purposes, 2.

actual or expected disbursements for the applicable fiscal year, 3.

the fund’s investments’ rates of return, and 4.

any recommendations for policy changes and statutory changes to further the fund’s purposes.

By January 1, 2026, the commission must also submit to these same committees a 10-year plan for the fund’s expenditures that would best support the state’s early childhood education and child care needs.

In developing this plan, the commission must consider reports on the state of (1) these needs in Connecticut, (2) kindergarten readiness here, and (3) best practices in other states.

It must update and submit this plan to these committees at least annually.

Public Hearing Beginning with FY 26, the commission must annually hold a public hearing on the state of the fund and of early childhood education and child care in the state.

§ 5 — TRI-SHARE CHILD CARE MATCHING PROGRAM Program Duration and Administrator The bill requires OEC, within available appropriations, to create a Tri-Share Child Care Matching Program for New London County that runs for at least two years.

It must choose a regional or statewide organization to administer the program.

The administrator must:

1.

set theprogram’seligibility criteriafor employersandemployees (although the bill sets specific criteria as described below) and recruit employers to participate, 2.

ensure that the child care facilities receiving program funds are state-licensed and disburse funds to the appropriate providers, sHB5002 / File No.

594 19 sHB5002 File No.

594 3.

collect and ensure timely payment from the state and participating employers and employees, and 4.

coordinate adequate communication between all parties.

OEC must enter into an agreement with its chosen administrator to perform these duties.

This agreement must at least include:

1.

a provision that the administrator must receive, for its administrative costs, up to 10% of the funds the state allocates to the program;

2.

a requirement that the administrator not commingle program funds with any other funds it holds or controls, other than those it receives for administrative costs;

and 3.

penaltiesfor violatingany provisionoftheagreement or thebill’s Tri-Share program provisions.

Eligibility Criteria To participate in the program, employers must have a physical facility in New London County that is its employees’ principal workplace.

Employees must:

1.

be employed by a participating employer;

2.

live in Connecticut;

3.

have a principal workplace in New London County;

4.

be part of the asset limited, income constrained employed population that is below the ALICE threshold, based on the United Way of Connecticut’s most recent annual report (see BACKGROUND);

and 5.

not be receiving other public assistance for child care costs.

Reporting Requirement The bill requires the OEC commissioner, beginning with the fiscal sHB5002 / File No.

594 20 sHB5002 File No.

594 year immediately following the program’s first year, to annually report on the program to the Appropriations;

Finance, Revenue and Bonding;

Education;

and Children’s committees.

The report must at least include:

1.

for the immediately preceding fiscal year, the (a) number of participating employers and employees and (b) amounts the administrator disbursed for child care costs and retained for administrative costs;

and 2.

the commissioner’s recommendations for programmatic or legislative changes to improve the program or further its purposes.

— WAGE SUPPLEMENT AND CHILD CARE PROGRAM ENHANCEMENT GRANT PROGRAM Eligible Program Operators and Providers The bill requires OEC to establish a wage supplement and child care program enhancement grant program for FY 26 and begin awarding the grants starting August 1, 2025.

Under the bill, the grants are for early childhood education program operators (i.e., school readiness programs, private preschool programs, and OEC-contracted child day care programs) and child care services providers (i.e., child care centers and group and family child care homes) that (1) meet the eligibility requirements the agency sets under the bill and (2) submit a grant application in the way OEC requires.

Eligible Uses Grantees may use these grants to either (1) supplement the annual salaries of their employees or (2) address any other programmatic or administrative needs, according to theOECguidelinesdescribed below.

However, in awarding the grants, the OEC commissioner must give priority to program operators and providers that will use the grant exclusively to supplement employee salaries.

Eligibility Criteria and Guidelines Under the bill, OEC must develop (1) eligibility criteria for program operators and providers and (2) guidelines for administering the sHB5002 / File No.

594 21 sHB5002 File No.

594 program and spending the grants.

These eligibility criteria must limit the grants to program operators and providers serving high-need populations, as determined by the OEC commissioner.

In doing so, she must consider the Blue-Ribbon Panel on Child Care’s findings and recommendations issued in its 2023 report.

(The governor’s executive order (EO 23-1, March 17, 2023) established this panel, chaired by the OEC commissioner, to serve as his principal advisor on child care and early childhood issues and coordinate state agencies’ efforts to promote an effective child care and early childhood education system.) BACKGROUND ALICE Threshold The United Way’s ALICE (i.e., asset limited, income constrained, and employed) threshold represents the minimum income level needed for a household to afford an estimated minimum budget (i.e., the ALICE household survival budget).

The threshold is adjusted for household size and composition for each county.

Based on the United Way’s 2023 ALICE report for Connecticut, to cover the household survival budget for 2021, a single adult had to earn $16.56 per hour and a family with two children had to earn a combined $45.71 per hour.

Related Bill sSB 10, favorably reported by the Finance, Revenue and Bonding Committee, contains an identical $50 million general obligation bond authorization for programs and initiatives enacted to support the state’s early childhood education and child care needs.

COMMITTEE ACTION Finance, Revenue and Bonding Committee Joint Favorable Substitute Yea 47 Nay 4 (04/03/2024) sHB5002 / File No.

594 22