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General Assembly Substitute Bill No. 5002
February Session, 2024
AN ACT CONCERNING EARLY CHILDHOOD CARE AND EDUCATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 10-511 of the 2024 supplement to the general 1
statutes is repealed and the following is substituted in lieu thereof 2
(Effective from passage): 3
[The Comptroller shall establish] (a) There is established the Early 4
Childhood Care and Education Fund. Said fund may contain any 5
moneys required or permitted by law to be deposited in the fund and 6
[any funds received from any public or private contributions, gifts, 7
grants, donations, bequests or devises to the fund.] shall receive and 8
hold all payments and deposits for contributions intended for said fund, 9
as well as gifts, bequests, endowments or federal, state or local grants 10
and any other funds from any public or private source and all earnings 11
until disbursed in accordance with the provisions of this section. 12
(b) The amounts on deposit in said fund shall not constitute property 13
of the state and said fund shall not be construed to be a department, 14
institution or agency of the state. Amounts on deposit in said fund shall 15
not be commingled with state funds and the state shall have no claim to 16
or against, or any interest in, such deposits. Any contract entered into 17
by or any obligation of said fund shall not constitute a debt or obligation 18
of the state and the state shall have no obligation to any person on 19
account of said fund and all amounts obligated to be paid from said 20 Substitute Bill No. 5002
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fund shall be limited to amounts available for such obligation on deposit 21
in said fund. Said fund shall continue in existence as long as it holds any 22
deposits or has any obligations and until its existence is terminated by 23
law. 24
(c) The Treasurer shall invest the amounts on deposit in said fund in 25
a manner reasonable and appropriate to achieve the objectives of said 26
fund, exercising the discretion and care of a prudent person in similar 27
circumstances with similar objectives. The Treasurer shall give due 28
consideration to rate of return, risk, term or maturity, diversification of 29
the total portfolio within said fund, liquidity, the projected 30
disbursements and expenditures and the expected payments, deposits, 31
contributions and gifts to be received. The Treasurer shall not require 32
said fund to invest directly in obligations of the state or any political 33
subdivision of the state or in any investment or other fund administered 34
by the Treasurer. The assets of said fund shall be continuously invested 35
and reinvested in a manner consistent with the objectives of said fund 36
until disbursed by the Comptroller in accordance with the provisions of 37
this section. 38
(d) The Treasurer, on behalf of said fund and for purposes of said 39
fund, may: 40
(1) Receive and invest moneys in said fund in any instruments, 41
obligations, securities or property in accordance with this section; 42
(2) Enter into one or more contractual agreements, including 43
contracts for legal, actuarial, accounting, custodial, advisory, 44
management, administrative, advertising, marketing and consulting 45
services for said fund and pay for such services from the assets of said 46
fund; 47
(3) Procure insurance in connection with said fund's property, assets, 48
activities or deposits to said fund; 49
(4) Apply for and accept gifts, grants or donations from public or 50
private sources to enable said fund to carry out its objectives; 51 Substitute Bill No. 5002
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(5) Adopt regulations in accordance with chapter 54 for purposes of 52
this section; 53
(6) Sue and be sued; 54
(7) Establish one or more accounts within said fund; and 55
(8) Take any other action necessary to carry out the purposes of this 56
section and incidental to the duties imposed on the Treasurer pursuant 57
to this section. 58
(e) The amounts on deposit in said fund shall be used for the 59
purposes of supporting early childhood education in, and child care 60
needs of, the state and shall not be expended for any other purpose. 61
Sec. 2. (NEW) (Effective from passage) (a) (1) There is established the 62
Early Childhood Care and Education Fund Advisory Commission, 63
which shall be part of the Legislative Department. The commission shall 64
review and report on the financial health and status of the Early 65
Education Childhood Fund, submit and update a ten-year plan to the 66
General Assembly on expenditures from said fund that would best 67
support early childhood education in, and child care needs of, the state 68
and make recommendations for legislative changes to further the 69
purposes of said fund. 70
(2) The commission shall consist of the following members: 71
(A) Two appointed by the speaker of the House of Representatives, 72
one of whom shall be a parent who is a member of the Early Childhood 73
Cabinet established pursuant to section 10-16z of the general statutes; 74
(B) Two appointed by the president pro tempore of the Senate, one of 75
whom shall be a representative of a corporation with a significant 76
physical presence in the state and that employs individuals who may 77
benefit from early childhood education and state child care initiatives; 78
(C) Two appointed by the majority leader of the House of 79
Representatives, one of whom shall be a representative of a 80 Substitute Bill No. 5002
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philanthropic organization engaged in early childhood education issues 81
or child care issues in the state; 82
(D) Two appointed by the majority leader of the Senate, one of whom 83
shall be a representative of an early childhood education program 84
operator in the state; 85
(E) Two appointed by the minority leader of the House of 86
Representatives, one of whom shall be a representative of a non-home-87
based child care services provider in the state; 88
(F) Two appointed by the minority leader of the Senate, one of whom 89
shall be an operator or a representative of a home-based child care 90
services provider in the state; 91
(G) The commissioners of Early Childhood and Education, or their 92
designees; 93
(H) The Secretary of the Office of Policy and Management, or the 94
secretary's designee; 95
(I) The Treasurer, or the Treasurer's designee; and 96
(J) The Comptroller, or the Comptroller's designee. 97
(3) Any member of the commission appointed under subparagraph 98
(A), (B), (C), (D), (E) or (F) of subdivision (2) of this subsection may be a 99
member of the General Assembly and each such appointed member 100
shall serve in accordance with the provisions of section 4-1a of the 101
general statutes. 102
(4) The administrative staff of the joint standing committee of the 103
General Assembly having cognizance of matters relating to finance, 104
revenue and bonding shall serve as administrative staff of the 105
commission. 106
(5) The Comptroller and one member of the commission selected by 107
the speaker of the House of Representatives and one member of the 108 Substitute Bill No. 5002
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commission selected by the president pro tempore of the Senate shall 109
serve as the chairpersons of the commission. Such chairpersons shall 110
schedule the first meeting of the commission, which shall be held not 111
later than ninety days after the effective date of this section. The 112
commission shall meet as often as deemed necessary by the 113
chairpersons or a majority of the commission. Any appointed member 114
who fails to attend three consecutive meetings or who fails to attend 115
fifty per cent of all meetings held during any calendar year shall be 116
deemed to have resigned from the commission. 117
(6) Any vacancy shall be filled by the appointing authority. Any 118
vacancy occurring other than by expiration of term shall be filled for the 119
balance of the unexpired term. 120
(7) A majority of the commission shall constitute a quorum for the 121
transaction of any business. 122
(8) (A) The members of the commission shall serve without 123
compensation, but shall, within the limits of available funds, be 124
reimbursed for travel expenses necessarily incurred in travelling to and 125
from a commission meeting, except that the following members shall be 126
eligible, within the limit of available funds, for a stipend of twenty-five 127
dollars for each hour or portion thereof that such member attends a 128
commission meeting: 129
(i) A parent member of the Early Childhood Cabinet; 130
(ii) A representative of an early childhood education program 131
operator, provided such representative is an employee of such program 132
operator and is compensated by such program operator on an hourly 133
basis; 134
(iii) A representative of a non-home-based child care services 135
provider, provided such representative is an employee of such provider 136
and is compensated by such provider on an hourly basis; and 137
(iv) An operator or a representative of a home-based child care 138 Substitute Bill No. 5002
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services provider, provided such representative is an employee of such 139
provider. 140
(B) The time spent by a member under subparagraphs (A)(i) to 141
(A)(iv), inclusive, of this subdivision to travel to and from such meeting 142
shall not be counted for purposes of calculating the stipend under this 143
subdivision. 144
(C) Each member seeking the travel expenses or stipend under this 145
subdivision shall submit a request to the executive director of the Office 146
of Legislative Management, in such form and manner as prescribed by 147
said director, and shall provide any documentation required by said 148
director to substantiate the requested amount. 149
(b) The commission shall have the following powers and duties: 150
(1) Review and monitor the Early Childhood Care and Education 151
Fund to assess its financial sustainability; 152
(2) Obtain from any executive department, board, commission or 153
other agency of the state such assistance and data as necessary and 154
available to carry out the purposes of this section; and 155
(3) Perform such other acts as may be necessary and appropriate to 156
carry out the duties described in this section. 157
(c) The commission shall: 158
(1) Not later than January 1, 2026, and annually thereafter, submit a 159
report, in accordance with the provisions of section 11-4a of the general 160
statutes, to the joint standing committees of the General Assembly 161
having cognizance of matters relating to appropriations and the budgets 162
of state agencies, finance, revenue and bonding, education and children, 163
on the financial health and status of the Early Childhood Care and 164
Education Fund, including, but not limited to, (A) the amounts on 165
deposit in said fund, (B) disbursements made or expected to be made 166
from said fund for the applicable fiscal year, (C) the rates of return on 167
investments made by the Treasurer pursuant to subsection (c) of this 168 Substitute Bill No. 5002
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section, (D) a statement as to the sufficiency of the amounts on deposit 169
in said fund to achieve the purposes of said fund, and (E) any 170
recommendations for policy changes and amendments to the general 171
statutes necessary to further the purposes of said fund; 172
(2) Not later than January 1, 2026, submit a ten-year plan, in 173
accordance with the provisions of section 11-4a of the general statutes, 174
to the joint standing committees of the General Assembly having 175
cognizance of matters relating to appropriations and the budgets of state 176
agencies, finance, revenue and bonding, education and children, of 177
recommendations of expenditures from said fund that would best 178
support early childhood education in, and child care needs of, the state. 179
The commission shall, in developing such plan, consider reports on the 180
state of (A) early childhood care and education in the state, and (B) 181
kindergarten readiness in the state, as well as best practices in other 182
states. The commission shall update such plan at least annually and 183
submit such updated plan annually to said committees; and 184
(3) Commencing with the fiscal year ending June 30, 2026, hold a 185
public hearing annually on the state of the fund and of early childhood 186
education and child care in the state. 187
Sec. 3. (NEW) (Effective July 1, 2024) (a) For the purposes described in 188
section 10-511 of the general statutes, as amended by this act, the State 189
Bond Commission shall have the power from time to time to authorize 190
the issuance of bonds of the state in one or more series and in principal 191
amounts not exceeding in the aggregate fifty million dollars. 192
(b) The proceeds of the sale of such bonds, to the extent of the amount 193
stated in subsection (a) of this section, shall be used by the Office of Early 194
Childhood for the purpose of implementing programs and initiatives 195
enacted to support early childhood education in, and child care needs 196
of, the state. 197
(c) All provisions of section 3-20 of the general statutes, or the exercise 198
of any right or power granted thereby, that are not inconsistent with the 199
provisions of this section are hereby adopted and shall apply to all 200 Substitute Bill No. 5002
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bonds authorized by the State Bond Commission pursuant to this 201
section. Temporary notes in anticipation of the money to be derived 202
from the sale of any such bonds so authorized may be issued in 203
accordance with section 3-20 of the general statutes and from time to 204
time renewed. Such bonds shall mature at such time or times not 205
exceeding twenty years from their respective dates as may be provided 206
in or pursuant to the resolution or resolutions of the State Bond 207
Commission authorizing such bonds. None of such bonds shall be 208
authorized except upon a finding by the State Bond Commission that 209
there has been filed with it a request for such authorization that is signed 210
by or on behalf of the Secretary of the Office of Policy and Management 211
and states such terms and conditions as said commission, in its 212
discretion, may require. Such bonds issued pursuant to this section shall 213
be general obligations of the state and the full faith and credit of the state 214
of Connecticut are pledged for the payment of the principal of and 215
interest on such bonds as the same become due, and accordingly and as 216
part of the contract of the state with the holders of such bonds, 217
appropriation of all amounts necessary for punctual payment of such 218
principal and interest is hereby made, and the State Treasurer shall pay 219
such principal and interest as the same become due. 220
Sec. 4. (Effective July 1, 2024) Not later than June 30, 2025, fifty million 221
dollars shall be transferred from the General Fund to the Early 222
Childhood Care and Education Fund, established pursuant to section 223
10-511 of the general statutes, as amended by this act. 224
Sec. 5. (NEW) (Effective July 1, 2024) (a) The Office of Early Childhood 225
shall, within available appropriations, establish a Tri-Share Child Care 226
Matching Program serving New London County. Under such program, 227
costs for child care provided by duly licensed child care facilities in the 228
state shall be shared equally among participating employers, employees 229
and the state. 230
(b) (1) The program shall be established for a minimum of two years 231
and the office shall select a regional or state-wide organization as the 232
administrator of the program. Such administrator shall (A) determine 233 Substitute Bill No. 5002
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employers' and employees' eligibility for participation in the program, 234
(B) ensure that child care facilities to which payments will be made 235
under the program are licensed by the state, (C) collect and ensure 236
timely payment from participating employers, participating employees 237
and the state, (D) disburse funds to the appropriate child care provider, 238
(E) recruit employers to participate in the program, and (F) coordinate 239
adequate communication between all parties. 240
(2) To be eligible to participate in the program: 241
(A) An employer shall have a physical facility located in New London 242
County that is the principal workplace of its employees; and 243
(B) An employee shall (i) be employed by a participating employer, 244
(ii) shall reside in the state, (iii) have as such employee's principal 245
workplace a location in New London County, (iv) be part of the asset 246
limited, income constrained, employed population that is below the 247
ALICE threshold, as calculated in the most recent annual report by the 248
United Way of Connecticut and provided to the administrator by the 249
commissioner, and (v) not be receiving other public assistance for child 250
care costs. 251
(c) The Commissioner of Early Childhood shall enter into an 252
agreement with such administrator to perform the duties described 253
under subdivision (1) of subsection (b) of this section. Such agreement 254
shall include, but need not be limited to, (1) a provision that the 255
administrator shall receive, for administrative costs of the program, up 256
to ten per cent of the funds allocated by the state for the program, (2) a 257
requirement that the administrator not commingle funds received for 258
purposes of the program, other than funds for administrative costs 259
allowed pursuant to subdivision (1) of this subsection, with other funds 260
held or controlled by the administrator, and (3) penalties for violation 261
of a provision of the agreement or of this section. 262
(d) Commencing with the fiscal year immediately following the first 263
year of the program and annually thereafter, the commissioner shall 264
submit to the joint standing committees of the General Assembly having 265 Substitute Bill No. 5002
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cognizance of matters relating to appropriations and the budgets of state 266
agencies, finance, revenue and bonding, education and children, a 267
report on the program. Such report shall include, but need not be limited 268
to, (1) for the fiscal year immediately preceding, (A) the number of 269
participating employers and participating employees, and (B) the 270
amounts disbursed by the administrator for child care costs and the 271
amounts retained by the administrator for administrative costs, and (2) 272
any programmatic or legislative changes the commissioner 273
recommends to improve the program or further its purposes. 274
Sec. 6. (Effective July 1, 2025) (a) As used in this section: 275
(1) "Early childhood education program operator" means a school 276
readiness program, private preschool program or program pursuant to 277
section 8-210 of the general statutes; and 278
(2) "Child care services provider" means a child care center, group 279
child care home or family child care home, as those terms are described 280
in section 19a-77 of the general statutes. 281
(b) For the fiscal year ending June 30, 2026, the Office of Early 282
Childhood shall establish and administer a wage supplement and child 283
care program enhancement grant program for early childhood 284
education program operators and child care services providers. On and 285
after August 1, 2025, the office shall provide grants to early childhood 286
education program operators and child care services providers that 287
meet the eligibility requirements developed by the office pursuant to 288
subsection (d) of this section and submit an application for a grant, in 289
such form and manner as prescribed by the office. A grant awarded 290
under this section may be used by such early childhood education 291
program operator or child care services provider to supplement the 292
annual salaries of the employees of such operator or provider or to 293
address any other programmatic or administrative needs, in accordance 294
with the guidelines developed by the office pursuant to subsection (d) 295
of this section. 296
(c) In determining whether to award a grant under this section, the 297 Substitute Bill No. 5002
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commissioner shall give priority to early childhood education program 298
operators and child care services providers that will use such grant 299
exclusively to supplement the annual salaries of the employees of such 300
operator or provider. 301
(d) The office shall develop (1) eligibility criteria for which early 302
childhood education program operators and child care services 303
providers are eligible to receive a grant under this section, and (2) 304
guidelines for the administration of the program and the expenditure of 305
a grant awarded under this section by a childhood education program 306
operator or child care services provider. Such eligibility criteria shall 307
limit grants to early childhood education program operators and child 308
care services providers serving high-need populations, as determined 309
by the commissioner, taking into account the findings and 310
recommendations in the 2023 report issued by the Blue-Ribbon Panel on 311
Child Care established by Executive Order Number 23-1 issued by 312
Governor Ned Lamont. 313
Sec. 7. Section 10-511a of the 2024 supplement to the general statutes 314
is repealed. (Effective from passage) 315
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.