HB 5003 — AN ACT CONCERNING EARLY CHILDHOOD CARE AND EDUCATION.

(c) The commission shall:

(1) Not later than January 1, 2026, and annually thereafter, submit a report, in accordance with the provisions of section 11-4a, 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, 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 returnon 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, including recommendations for implementing the findings in the report developed pursuant to section 3 of this act to increase provider payment rates under the child care subsidy program, established pursuant to section 17b-749, as amended by this act;

(2) Not later than January 1, 2026, submit a five-year plan, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, finance, LCO 5268 5 of 15 Committee Bill No.

5003 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.

The commission shall, in developing such plan, consider reports on (A) the state of [(A)] (i) early childhood care and education in the state, and [(B)] (ii) kindergarten readiness in the state, as well as best practices in other states, and (B) increasing provider payment rates developed pursuant to section 3 of this act under the child care subsidy program, established pursuant to section 17b-749, as amended by this act.

The commission shall update such plan at least annually and submit such updated plan annually to said committees;

and (3) Commencing with the fiscal year ending June 30, 2026, hold a public hearing annually on the state of the fund and of early childhood education and child care in the state.

Sec.

5.

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

(1) "Early care and education program" means a program providing child care services, as described in section 19a-77 of the general statutes, that is licensed by the Office of Early Childhood;

(2) "Health benefit plan" has the same meaning as provided in section 38a-1080 of the general statutes;

and (3) "Partnership plan" has the same meaning as provided in section 3- 123aaa of the general statutes.

(b) For the fiscal year ending June 30, 2026, and each fiscal year thereafter, the Comptroller shall establish a program to provide a subsidy,withinavailableappropriations,toanindividualwho(1)opens a health savings account, pursuant to Section 223 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, or is eligible for Medicare and enrolls in a high deductible health plan, and (2) is employed by an early care and education program.

Such subsidy shall be in an amount up to a certain percentage, as specified by the LCO 5268 6 of 15 Committee Bill No.

5003 Comptroller, of the deductible for the health plan in which such individual is enrolled, minus the amount of any employer contributions to a health savings account or health reimbursement account, and not exceeding an amount specified by the Comptroller.

No individual may receive morethanonesubsidy inany fiscalyear pursuant to thissection.

The Comptroller may work with the provider of an early care and education program that employs such individual to distribute such subsidy.

(c) For the fiscal year ending June 30, 2026, and each fiscal year thereafter, the Comptroller shall establish a program to provide a subsidy, from any funds appropriated for such purpose, to providers of early care and education programs that provide coverage to its employees and their dependents under a health benefit plan or a partnership plan for such fiscal year or any portion thereof.

Such subsidy shall be (1) in an amount of not more than ten per cent of the aggregatepremiumcost,inclusiveoftheemployeeandemployershares of such cost, paid by such provider for coverage under such health benefit plan or partnership plan, divided by the number of employees of such provider who are enrolled in health coverage, and (2) used to offset the employee's share of such premium cost that is deducted from the payroll check of each employee of such provider during any pay period during such fiscal year.

The provisions of this subsection shall not apply to any early care and education program provider that provides coverage under a high deductible health plan, as such term is described in subsection (f) of section 38a-520 of the general statutes.

(d) The Comptroller and the Early Childhood Care and Education Fund Advisory Commission, established pursuant to section 10-511a of the general statutes, as amended by this act, shall enter into a memorandum of understanding, in accordance with the provisions of section 4-97b of the general statutes, to allow the Comptroller to utilize the sum of ____ that is appropriated to the Early Childhood Care and Education Fund, established pursuant to section 10-511 of the general statutes, as amended by this act, to implement the provisions of this section.

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5003 Sec.

6.

Subsection (b) of section 17b-749 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):

(b) The commissioner shall establish income standards for applicants and recipients at a level to include a family with gross income up to [fifty] eighty-five per cent of the state-wide median income, except the commissioner:

(1) May increase the income level up to the maximum level allowed under federal law, (2) upon the request of the Commissioner of Children and Families, may waive the income standards for adoptive families so that children adopted on or after October 1, 1999, from the Department of Children and Families are eligible for the child care subsidy program, [and] (3) shall establish a two-tiered income eligibility threshold in accordance with 45 CFR 98.21(b), as amended from time to time, and (4) shall permit recipients whose gross income subsequently exceeds eighty-five per cent of the state-wide median income to continue to receive prorated benefits until such recipients' gross income meets or exceeds one hundred per cent of the state median income.

The commissioner may adopt regulations in accordance with chapter 54 to establish income criteria and durational requirements for such waiver of income standards.

Sec.

7.

(Effective July 1, 2025) For the fiscal year ending June 30, 2026, and each fiscal year thereafter, the Commissioner of Early Childhood shall exempt from the family fee requirement of the child care subsidy program, establishedpursuant to section17b-749ofthegeneralstatutes, as amended by this act, any person or family who is (1) an active participant in the child care subsidy program, and (2) employed by a licensed early care and education program providing child care services, as described in section 19a-77 of the general statutes.

Sec.

8.

(NEW) (Effective July 1, 2025) (a) For the fiscal year ending June 30, 2026, and each fiscal year thereafter, the Office of Early Childhood shall design and administer a competitive grant program to provide grants for capital expenses related to the construction and renovation of early childhood education and child care facilities.

An operator of an LCO 5268 8 of 15 Committee Bill No.

5003 early care and education program that provides child care services, as described in section 19a-77 of the general statutes, may submit an application for a grant to the office, in accordance with the provisions of subsection (b) of this section.

(b) On and after July 1, 2025, an operator of an early care and education program may apply, at such time and in such manner as the commissionerprescribes,totheofficeforacapitalgrantforthepurposes described in subsection (a) of this section.

To be eligible to receive a grant underthissection,anapplicant operator shall(1)demonstratethat it has a need for constructing a new or renovating an existing child care facility, using information requested by the commissioner on a form prescribed by the commissioner, and (2) submit a plan for the expenditure ofgrant fundsreceivedunder thissectionthat outlineshow such operator will use such funds, including, but not limited to, howthe construction or renovation of the child care facility may increase access to child care for families in the community.

The commissioner shall give priority to those operators that demonstrate the greatest need for the construction or renovation of a child care facility.

(c) Each operator of an early care and education program receiving a grant under this section shall submit an annual report, on a form and in a manner prescribed by the commissioner, to the Office of Early Childhood regarding the enrollment and operation of the early care and education program.

(d) The commissioner may contract with nongovernmental entities, including, but not limited to, nonprofit organizations, lending institutions and technical assistance providers, to carry out the provisions of this section.

Sec.

9.

(NEW) (Effective July 1, 2025) There is established an account to be known as the "early care and education program competitive capitalgrantaccount"whichshallbea capitalprojectsfund.Theaccount shall contain the amounts authorized by the State Bond Commission in accordance with section 10 of this act and any other moneys required by LCO 5268 9 of 15 Committee Bill No.

5003 law to be deposited in the account.

Moneys in the account shall be expended by the Office of Early Childhood for the purposes of the competitive grant program established pursuant to section 8 of this act.

Sec.

10.

(NEW) (Effective July 1, 2025) (a) For the purposes described in subsection (b) of this section, 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 one hundred million dollars, provided twenty million dollars of said authorization shall be effective July 1, 2025, twenty million dollars of said authorization shall be effective July 1, 2026, twenty million dollars of said authorization shall be effective July 1, 2027, twenty million dollars of said authorization shall be effective July 1, 2028, and twenty million dollars of said authorization shall be effective July 1, 2029.

The amount authorized for the issuance and sale of such bonds in each of the following fiscal years shall not exceed the corresponding amount for each such fiscal year, provided, to the extent the Office of Early Childhood does not provide for the use of all or a portion of such amount in any such fiscal year, such amount not provided for shall be carried forward and added to the authorized amount for the next succeeding fiscal year, and provided further, the costs of issuance and capitalized interest, if any, may be added to the capped amount in each fiscal year, and each of the authorized amounts shall be effective on July first of the fiscal year indicated.

(b) The proceeds of the sale of said bonds, to the extent of the amount statedinsubsection(a)ofthissection,shallbeusedbytheOfficeofEarly Childhood for the purposes of the competitive grant program established pursuant to section 8 of this act.

(c) The State Bond Commission shall approve a memorandum of understanding between the Commissioner of Early Childhood and the state, acting by and through the Secretary of the Office of Policy and Management and the Treasurer, providing for the issuance of said bonds for the purposes of the competitive grant program established pursuant to section 8 of this act, including provisions regarding the LCO 5268 10 of 15 Committee Bill No.

5003 extent to which federal, private or other moneys then available or thereaftertobemadeavailableforcostsshouldbeaddedtotheproceeds of the bonds authorized pursuant to this section for such project or program.

The memorandum of understanding shall be deemed to satisfy the provisions of section 3-20 of the general statutes and the exercise of any right or power granted thereby that is not inconsistent with the provisions of this section.

(d) All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and 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 said section 3-20 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 said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed 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.

Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said 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.

11.

(NEW) (Effective July 1, 2025) Not later than July 1, 2026, the Office of Early Childhood shall develop and administer a system of presumptive eligibility for applicants to the child care subsidy program, established pursuant to section 17b-749 of the general statutes, as LCO 5268 11 of 15 Committee Bill No.

5003 amended by this act.

Such system shall (1) include a screening tool that will permit applicants to determine presumptive eligibility under the child care subsidy program, (2) provide applicants who have been determined to be presumptively eligible for the child care subsidy program to receive services for a sixty-day trial period, (3) require applicants who receive services under such sixty-day trial period to complete the full application for participation in the child care subsidy program in order to continue to be eligible, and (4) require the office to make a final eligibility determination for such applicant prior to the expiration of such sixty-day trial period.

Sec.

12.

(Effective from passage) Not later than July 1, 2025, the Office of Early Childhood shall implement a prospective payment system for the child care subsidy program, established pursuant to section 17b-749 of the general statutes, as amended by this act, in accordance with federal law.

Sec.

13.

Subsections (f) and (g) of section 17b-749 of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2025):

(f) A provider under the child care subsidy program that qualifies for eligibility and subsequently receives payment for child care services for recipients under this section shall be reimbursed for such services until informed by the office of the recipient's ineligibility.

For the fiscal year ending June 30, 2026, and each fiscal year thereafter, the commissioner shall (1) limit the total amount of payments under this section to any provider that operates, directly or through an affiliate, more than ten child care centers, as described in section 19a-77, to not more than one per cent of the total appropriation under this section for that fiscal year, unless the commissioner determines that making payments to such provider in an amount greater than one per cent of such total annual appropriationisinthe bestinterestsofthestate,and(2)requireanysuch provider to (A) demonstrate a willingness to enroll more children of familieswhoarerecipientsunderthechildcaresubsidyprogramateach child care center location operated by such provider or its affiliate, and LCO 5268 12 of 15 Committee Bill No.

5003 (B) annually provide the office with an audited financial statement detailing how payments received under this section have been expended during that fiscal year.

14.4.

(NEW) (Effective Julyfrom 1,passage) 2025)Not (a)later Forthan theOctober fiscal1, year2025, ending June 30, 2026, and each fiscal year thereafter, each provider of child care services, as described in section 19a-77 of the generalPublic statutes,Act shallNo. annually submit to the Office of Early Childhood the tuition rates being charged to families during the fiscal year and the amount of any change in such tuition rates from the previous fiscal year.

(b)25-82 The2 Office of Early7 ChildhoodHouse shallBill annuallyNo. publish on its Internet web site the information collected pursuant to subsection (a) of this section regarding tuition rates and changes in tuition amounts.

5003 Commissioner of Early Childhood shall enter into a data sharing agreement with the Children's Funding Project for the purpose of the creation of a fiscal map that shows a comprehensive view of state funding and spending for children in the state.

The commissioner shall not be required to enter into such agreement under this section if the Children's Funding Project requires a direct fee for its services.

15.5.

(Effective from passage) Not later than October 1, 2025, the Commissioner of Early Childhood shall enter into a data sharing agreement with the Children's Funding Project for the purpose of the creation of a fiscal map that shows a comprehensive view of state funding and spending for children in the state.

The commissioner shall LCO 5268 13 of 15 Committee Bill No.

5003 not be required to enter into such agreement under this section if the Children's Funding Project requires a direct fee for its services.

Sec.

16.

Not later than JanuaryJuly 1, 2026, the office shall submit a report on the findings of such joint study, and any recommendations, to the joint standing committees of the General Assembly having cognizance of matters relating to children, education and insurance, in accordance with the provisions of section 11-4a of the general statutes.

17.6.

(Effective from passage) The Office of Early Childhood shall conduct a study concerning the prevalence of men in the child care and early childhood education workforce.

Such study shall include, but need not be limited to, an analysis of the factors affecting and reasons why so few men are employed in child care or early childhood educationandrecommendationsfor waysto increase therepresentation of men in such fields.

Not later than January 1, 2026, the office shall submit a report on the findings of such study, and any recommendations, to the joint standing committees of the General Assembly having cognizance of matters relating to children, education and labor, in accordance with the provisions of section 11-4a of the general statutes.

Sec.

18.

Such report shall include, but need not be limited to,(1)anexaminationof(A)theaverageprocessingtimeforbackground checksforearlychildhoodeducators,(B)strategiestoimprovethespeed at which background checks are processed, and (C) strategies to LCOimprove 5268the 14convenience and ease with which early childhood educators are able to be fingerprinted and to submit background check materials for processing, and (2) an assessment of 15whether Committeeit Billis No.possible for an early childhood educator to share his or her fingerprint and background check results with multiple prospective employers.

5003Not improvelater thethan convenienceJuly and1, ease2026, withthe whichoffice earlyshall childhood educators are able to be fingerprinted and to submit backgrounda checkreport materialson forits processing,findings, andPublic (2)Act anNo. assessment of whether it is possible for an early childhood educator to share his or her fingerprint and background check results with multiple prospective employers.

Not25-82 later3 than January 1, 2026, the office shall submit a report on its findings, and any recommendations, to the joint standing committees of the7 GeneralHouse AssemblyBill havingNo. cognizance of matters relating to children, educationandpublicsafety,inaccordancewiththeprovisionsofsection 11-4a of the general statutes.

This5003 actand shallany takerecommendations, effectto asthe followsjoint andstanding shallcommittees amendof the followingGeneral sections:Assembly having cognizance of matters relating to children, educationandpublicsafety,inaccordancewiththeprovisionsofsection 11-4a of the general statutes.

Section 1 from passage New section Sec.

27. July 1, 2025 10-511 Sec.

3Section from19a-87b passageof Newthe sectiongeneral Sec.statutes is amended by adding subsection (m) as follows (Effective July 1, 2025):

4(NEW) July(m) 1,For 2025the 10-511a(c)fiscal Sec.years ending June 30, 2026, to June 30, 2029, inclusive, the Commissioner of Early Childhood may issue, upon receipt of a proper application and following an inspection and approval by the office, a large family child care home endorsement to any family child care home licensee in the state who was issued such license prior to June 30, 2025.

5Such Julyendorsement 1,shall 2025permit Newsuch sectionlicensee Sec.to maintain a family child care home, in accordance with the provisions of this chapter, that provides care for up to twelve children, including the licensee's own children, provided such family child care home isoperated andstaffedinaccordance withregulationsadoptedby the office and, in the case when such licensee is providing care for over ninechildren,withthepresenceandassistanceofanadditionalassistant or substitute staff member approved by the commissioner.

6The Julycommissioner 1,shallnot 2025issue 17b-749(b)more Sec.thanthirtysuchendorsementsin any year under this subsection.

7The Julyfamily 1,child 2025care Newhome sectionfor Sec.which such endorsement has been issued shall have a minimum of thirty-five square feet of useable indoor space and seventy-five square feet per child of outdoor space.

8An Julyapplication 1,for 2025an Newendorsement sectionunder Sec.this subsection shall include a copy of the current fire marshal certificate of compliance with the Fire Safety Code, and written verification of compliance with local zoning and building requirements and local health ordinances.

9The Julycommissioner 1,may 2025require Newan sectionapplicant Sec.for an endorsement under this subsection to comply with additional conditions relating to the health and safety of the children who will be served in such facility.

10Any Julyendorsement 1,issued 2025under Newthis sectionsubsection Sec.Public Act No.

1125-82 July4 1,of 20257 NewHouse sectionBill Sec.No.

125003 fromshall passageexpire Newon June 30, 2029, except the commissioner may suspend or revoke any such endorsement at any time in accordance with the provisions of section Sec.19a-87e.

13 July 1, 2025 17b-749(f) and (g) Sec.

148. July 1, 2025 New section Sec.

15(Effective from passagepassage) New(a) For the fiscal year ending June 30, 2026, the Commissioner of Early Childhood, in consultation with the Commissioner of Social Services, shall, within available appropriations, develop and administer a one-year pilot program to disseminate information concerning child care services, as defined in section Sec.19a-77 of the general statutes, early intervention programs and financial assistance programs available to expectant mothers receiving prenatal care, as defined in section 19a-912 of the general statutes, in hospitals and from providers of obstetric services in the state.

16(b) fromIn passagedeveloping Newthe sectionpilot Sec.program, the Commissioner of Early Childhood shall develop (1) criteria for the selection of hospitals and providers of obstetric services that provide prenatal care in geographically diverse areas of the state, with preference given to hospitals and providers that serve a high proportion of low-income families and are located in areas where the availability of child care services does not meet the demand for such services;

17(2) fromrequirements passageforthedisseminationofthedocuments Newcompiledpursuanttosubsection (c) of this section Sec.to patients receiving prenatal care, including, but not limited to, a requirement that such documents shall be provided during the first trimester of pregnancy whenever possible;

18and from(3) passagea Newsystem sectionfor KIDtracking Jointand Favorablereporting EDthe Jointnumber Favorableof APPsuch Jointdocuments Favorableprovided LCOto 5268patients 15receiving ofcare 15from each selected hospital and provider each month.

(c) The Commissioner of Early Childhood shall select three hospitals and two providers of obstetric services for participation in the pilot program using the criteria developed pursuant to subsection (b) of this section, and compile documents for dissemination to patients receiving prenatalcare fromeachsuchhospitalor provider.Suchdocuments shall Public Act No.

25-82 5 of 7 House Bill No.

5003 be tailored to each individual hospital or provider and contain the followinginformation:(1)Alistofallchildcarecenters,groupchildcare homes and family child care homes, as such terms are described in section 19a-77 of the general statutes, located in the municipalities in which the majority of prenatal patients served by such hospital or provider live, including contact information and Internet web site addresses, if available, for each such center and home;

(2) a list of early intervention programs administered by the Office of Early Childhood, including descriptions of such programs and contact information and Internet web site addresses, if available, for each such program;

and (3) information concerning financial assistance programs available to families, including instructions on how to apply to such programs.

(d) Not later than January 1, 2026, the Commissioner of Early Childhood shall electronically disseminate the documents compiled pursuant to subsection (c) of this section to the administrator of each hospital and office manager or other responsible party employed by each provider selected for participation in thepilot program.

During the period beginning on January 1, 2026, and ending on December 31, 2026, a copy of the documents tailored to a participating hospital or provider shall be distributed to each patient receiving prenatal care from such hospital or provider.

(e) During the period beginning on January 1, 2026, and ending on December 31, 2027, the Commissioner of Early Childhood shall, in a form and manner prescribed by the commissioner, administer a survey to each parent or guardian that enrolls a child in (1) child care services, or (2) an early intervention program administered by the Office of Early Childhood, to determine whether such parent or guardian enrolled in such services or program as a result of the pilot program administered pursuant to this section.

The completion of such survey shall be optional.

(f) Not later than June 1, 2028, the Commissioner of Early Childhood Public Act No.

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5003 shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance ofmattersrelating to children.Suchreport shall include an analysis of the efficacy of the pilot program administered pursuant to this section and any recommendations for legislation to expand such program or implement such program on a state-wide and permanent basis.

Governor's Action:

Approved June 23, 2025 Public Act No.

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