Researcher: RP Page 1 5/5/24
OLR Bill Analysis
sHB 5002 (as amended by House "A")*
AN ACT CONCERNING EARLY CHILDHOOD CARE AND
EDUCATION.
TABLE OF CONTENTS:
SUMMARY
§§ 1-2 & 13 — EARLY CHILDHOOD CARE AND E DUCATION FUND
Renames the Early Childhood Education Fund created in the FY 24-25 budget act the
Early Childhood Care and Education Fund and establishes a framework for the fund’s
deposits and investments and the state treasurer’s authority and powers on behalf of the
fund; creates a 23-member advisory commission within the Legislative Department to,
among other things, review and report on the fund’s financial health and status and
prepare a five-year plan for its expenditures
§ 3 — TRI-SHARE CHILD CARE MATCHING PROG RAM
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
§ 4 — WAGE SUPPLEMEN T PAYMENT PROGRAM
Requires OEC, for FY 25, to set up and administer a wage supplement payment program
that provides one-time payments of at least $1,800 to eligible early childhood education
teachers and teacher assistants; requires OEC to use $9 million of its FY 25 General Fund
appropriation for Early Care and Education used for school readiness and child day care
purposes for the payments
§ 5 — SURPLUS LAND FOR EARLY CHILDHOOD C ARE AND EARLY
CHILDHOOD EDUCATION PROGRAMS
Requires the OEC commissioner to notify the OPM secretary if certain surplus state
property can be used to provide early childhood care and education programs
§ 6 — OEC LIABILITY INSURANCE COVERAGE D OCUMENT FOR
CHILD CARE CENTERS
Requires the OEC commissioner to consult with a nonprofit organization to develop a
document that explains the benefits of child care centers and homes maintaining liability
insurance coverage and potential consequences of not having coverage; requires the
document to be electronically distributed to child care facilities
§ 7 — OEC DEVELOPMEN TAL MILESTONES DOCUM ENT
Eliminates the requirement that child care centers and homes that exclusively serve
school-age children post a copy of an OEC-developed developmental milestones document
in the center or home 2024HB-05002-R01-BA.DOCX
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§§ 8-9, 11 & 12 — CARE 4 KIDS
Adds children under the care of a caregiver who receives subsidies under the subsidized
guardianship program to the Care 4 Kids protective service class; repeals the Care 4 Kids
program regulations and instead requires the OEC commissioner to (1) administer the
program by implementing the federal Child Care Development Fund program’s
regulations and (2) develop policies and procedures necessary to do so; requires the
secretary of the state to correspondingly update the online compilation of state regulations
§ 10 — BIRTH-TO-THREE SERVICES
Requires child care centers to allow a child with an individualized family service plan who
is eligible to receive Birth-to-Three services to receive them on-site at a child care center or
home
SUMMARY
This bill makes various changes relating to early childhood care and
education. A section-by-section analysis follows.
*House Amendment “A”:
1. changes the composition of the Early Childhood Care and
Education Fund advisory commission’s membership by, among
other things, adding the Finance, Revenue and Bonding
Committee’s chairpersons and ranking members and two
additional legislators appointed by the House speaker and
Senate president pro tempore;
2. increases the frequency with which the advisory commission
must submit and update its plan on fund expenditures, from
every 10 years to every five;
3. makes additional commission members eligible for the bill’s
stipend;
4. eliminates a provision authorizing up to $50 million in state
general obligation bonds for the Office of Early Childhood (OEC)
to implement programs and initiatives supporting the state’s
early childhood education and child care needs;
5. eliminates a provision transferring $50 million from the General
Fund to the Early Childhood Care and Education Fund in FY 25; 2024HB-05002-R01-BA.DOCX
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6. makes various changes to the Tri -Share program’s
administration, eligibility, and required reporting, including
eliminating the requirement that employees have incomes below
a specified threshold published by the United Way of
Connecticut to qualify for the program;
7. eliminates the requirement that OEC set up and administer, for
FY 26, a wage supplement and child care program enhancement
grant program for eligible early childhood education program
operators and child care services providers and instead requires
OEC to set up and administer a one-time wage supplement
payment program for FY 25 for eligible early childhood teachers
and teacher assistants;
8. adds provisions that require the OEC commissioner to (a) add
children under the care of a caregiver who receives subsidies
under the subsidized guardianship program to the Care 4 Kids
protective service class; (b) develop a document for child care
centers and homes that explains the benefits of maintaining and
potential consequences of not maintaining liability insurance
coverage; and (c) notify the Office of Policy and Management
(OPM) secretary if certain state property can be used to provide
early childhood care and education programs;
9. adds a provision that requires child care centers to allow a child
with an individualized family service plan who is eligible to
receive Birth-to-Three services to receive these services on-site at
a child care center or home; and
10. eliminates the requirement that child care centers and homes
exclusively serving school-age children post a copy of an OEC-
developed developmental milestones document.
EFFECTIVE DATE: July 1, 2024, unless otherwise noted below.
§§ 1-2 & 13 — EARLY CHILDHOOD CARE AND E DUCATION FUND
Renames the Early Childhood Education Fund created in the FY 24-25 budget act the
Early Childhood Care and Education Fund and establishes a framework for the fund’s
deposits and investments and the state treasurer’s authority and powers on behalf of the 2024HB-05002-R01-BA.DOCX
Researcher: RP Page 4 5/5/24
fund; creates a 23-member advisory commission within the Legislative Department to,
among other things, review and report on the fund’s financial health and status and
prepare a five-year plan for its expenditures
Fund Requirements (§ 1)
The bill renames the Early Childhood Education Fund created in the
FY 24-25 budget act the Early Childhood Care and Education Fund. As
under current law, the bill requires the Early Childhood Care and
Education Fund to 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, 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 (§ 1)
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:
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; 2024HB-05002-R01-BA.DOCX
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3. obtain insurance for the fund’s property, assets, activities, or
deposits;
4. apply for and accept public or private donations to enable the
fund to achieve its objectives;
5. adopt regulations;
6. sue and be sued;
7. establish accounts within the fund; and
8. take other necessary action to carry out the bill’s purposes and
related to the treasurer’s duties under the bill.
Investments (§ 1)
The bill requires the state treasurer to (1) invest the fund’s deposits in
a reasonable way to achieve its objectives; (2) exercise a prudent
person’s care and discretion; and (3) consider such things as rate of
return, risk, maturity, portfolio diversification, liquidity, projected
disbursements and expenditures, and expected deposits and other gifts.
Under the bill, the state treasurer need not require the fund to invest
in state or municipal bonds or other funds he administers. The 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.
Advisory Commission (§§ 2 & 13)
Membership and Administration. The bill creates a 23-member
Early Childhood Care and Education Fund Advisory Commission
within the Legislative Department to (1) review and report on the fund’s
financial health and status, (2) submit and update a five-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. Under the bill, the
commission consists of the 14 appointed members shown in the table
below; the chairpersons and ranking members of the Finance, Revenue 2024HB-05002-R01-BA.DOCX
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and Bonding Committee; and the following state officials or their
designees: the OPM secretary, state treasurer, state comptroller, and
early childhood and education commissioners.
Table: Early Childhood Care and Education Fund Advisory Commission
Appointing
Authority
Number of
Appointments
Appointee’s Qualifications
House speaker
3
One must be a member of OEC’s parent cabinet who
is a parent
One must be an early childhood teacher
One General Assembly member
Senate
president pro
tempore
3
One must operate or represent a home-based child
care services provider in Connecticut
One must be the parent of a child receiving Birth-to-
Three services
One General Assembly member
House majority
leader
2
One must represent an early childhood education
program operator in Connecticut
One must represent a family resource center and be
an Early Childhood Cabinet member
Senate
majority leader
2
One must represent a philanthropic organization
engaged in early childhood education or child care
issues in Connecticut and be an Early Childhood
Funder Collaborative member
One must represent OEC’s Connecticut Head Start
State Collaboration Office and be a member of the
Early Childhood Cabinet
House minority
leader
2
One must represent a non-home-based child care
services provider in Connecticut
One must be an OEC representative who administers
the Childhood Care and Development Fund and a
member of the Early Childhood Cabinet
Senate
minority leader
2
One must represent a corporation with a significant
physical presence in Connecticut that employs
people who may benefit from early childhood
education and state child care initiatives
One must be an OEC representative who administers
the federal Individuals with Disabilities Education Act
(IDEA) Part C program (i.e., the early intervention
program for infants and toddlers with disabilities and
their families)
Under the bill, appointed members serve at the pleasure of their
appointing authority coterminous with their appointing authority. To 2024HB-05002-R01-BA.DOCX
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the extent practicable, appointing authorities must appoint members to
ensure that the state’s geographic areas are represented. They must also
fill any vacancies, and those occurring other than by term expiration
must be filled for the remainder of the unexpired term.
The commission is chaired by the (1) state comptroller and (2) two
General Assembly members appointed by the House speaker and
Senate president pro tempore. The chairpersons must schedule and hold
the first meeting within 90 days after the bill’s passage. The commission
must meet as often as the chairpersons or a majority of its members
deem necessary, and a majority of members constitutes a quorum.
Members are considered to have resigned from the commission if
they miss three consecutive meetings or 50% of the meetings held
during any calendar year.
The bill requires the Finance, Revenue and Bonding Committee’s
administrative staff to serve as the advisory commission’s
administrative staff.
Travel Expenses and Stipend. Members generally serve without
compensation but must be reimbursed for necessary travel expenses,
within available funds. The exception is for the following commission
members who are eligible, within available funds, for a $25 per hour
stipend for each hour (or part of an hour) that they attend a commission
meeting:
1. parent member of OEC’s parent cabinet,
2. parent of a child receiving Birth-to-Three services,
3. early childhood teacher, and
4. representatives of an early childhood education program
operator and home- and non-home-based child care services
providers if they are employees of the respective operator or
provider and (except for the home-based child care services
provider representative) paid hourly. 2024HB-05002-R01-BA.DOCX
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Under the bill, the travel time to and from the meeting does not count
towards the stipend. Eligible 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 must provide any
documentation the executive director requires to substantiate the
requested amount.
Powers and Duties. The bill authorizes the commission to do the
following:
1. review and monitor the Early Childhood Care and Education
Fund to assess its financial sustainability;
2. get the help and data it needs to carry out its purposes from any
executive department, board, commission, or state agency; and
3. do anything else necessary and appropriate to carry out its
duties.
Reporting Requirement. Annually, starting by January 1, 2026, the
commission must report to the Appropriations; Finance, Revenue and
Bonding; Education; and Children’s committees on the Early Childhood
Care and Education Fund’s financial health and status. The report must
include:
1. the amount deposited in 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 five-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 (1) reports on the 2024HB-05002-R01-BA.DOCX
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state of these needs in Connecticut and kindergarten readiness and (2)
best practices in other states. It must update and submit this plan to
these committees at least annually.
The bill also 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 (§ 13).
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.
EFFECTIVE DATE: Upon passage
§ 3 — TRI-SHARE CHILD CARE MATCHING PROG RAM
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
Program Duration and Administrator
The bill requires OEC, within available appropriations, to create a
Tri-Share Child Care Matching Program for New London County (1) in
which child care costs are shared equally between participating
employers, employees, and the state and (2) that runs for at least two
years. Under the bill, OEC must choose a regional or statewide
organization to administer the program. The administrator must:
1. set the program’s eligibility criteria for employers and employees
(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;
3. collect and ensure timely payment from the state and
participating employers and employees;
4. coordinate adequate communication between all parties; and 2024HB-05002-R01-BA.DOCX
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5. collect and submit data to OEC on participating employees (e.g.,
their annual household income), as long as this data is
deidentified.
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;
3. any restrictions or prohibitions on disclosing data the
administrator received or collected on participating employees;
and
4. penalties for violating any provision of the agreement or the bill’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, and
4. not be receiving other public assistance for child care costs.
Reporting Requirement
The bill requires the OEC commissioner, beginning with the fiscal
year immediately following the program’s first year, to annually report
on the program to the Appropriations; Finance, Revenue and Bonding; 2024HB-05002-R01-BA.DOCX
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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;
2. the percentage of participating employees whose household
incomes are below the asset limited, income constrained,
employed population threshold calculated in the United Way of
Connecticut’s most recent ALICE report (see Background —
ALICE Threshold); and
3. the commissioner’s recommendations for programmatic or
legislative changes to improve the program or further its
purposes.
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.
§ 4 — WAGE SUPPLEMEN T PAYMENT PROGRAM
Requires OEC, for FY 25, to set up and administer a wage supplement payment program
that provides one-time payments of at least $1,800 to eligible early childhood education
teachers and teacher assistants; requires OEC to use $9 million of its FY 25 General Fund
appropriation for Early Care and Education used for school readiness and child day care
purposes for the payments
Wage Supplement Payments
The bill requires OEC to set up and administer a wage supplement
program for FY 25 that gives eligible early childhood teachers and
teacher assistants a one-time wage supplement payment of at least 2024HB-05002-R01-BA.DOCX
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$1,800. Under the bill, OEC must provide these payments on a first-
come, first-served basis, up to the amount made available for the
payments, and award all eligible applicants the same payment amount.
The bill requires OEC to use $9 million of its FY 25 General Fund
appropriation for Early Care and Education used for school readiness
and child day care purposes for the payments.
Eligible Applicants
To qualify for the wage supplement payment, “early childhood
teachers” and “teacher assistants” must be in a state-funded school
readiness program or state-funded child care program. “Early
childhood teachers” must have primary responsibility for a classroom
of children for at least 50% of their assigned time, while “teacher
assistants” must have a primary duty to assist an early childhood
teacher in providing early childhood care or as part of a school readiness
program. Both must be regularly scheduled and have been employed in
these respective capacities for at least six months at the time of the
application.
Application Process
The OEC commissioner must determine (1) the application period
and process for eligible applicants to apply to register for a wage
supplement payment and (2) how to disseminate information about the
program to best achieve the bill’s purposes. OEC must review the
submitted applications, confirm each applicant’s eligibility, and, within
30 days of receiving an application, notify applicants of whether or not
they were approved and the reason why if they were not approved.
Income or Asset Disregard
Under the bill, to the extent federal law allows, the wage supplement
payments are not considered income or assets for determining eligibility
for any state-administered public assistance program, including any
HUSKY program.
Legislative Report
The OEC commissioner must report on the program by October 1,
2025, to the Appropriations; Finance, Revenue and Bonding; Education; 2024HB-05002-R01-BA.DOCX
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and Children’s committees. At a minimum, the report must include (1)
the number of eligible early childhood teachers and teacher assistants
that applied and were approved for a payment, (2) the payment
amounts to each group and in total; and (3) a recommendation for
whether the program should be expanded or extended.
EFFECTIVE DATE: Upon passage
§ 5 — SURPLUS LAND F OR EARLY CHILDHOOD CARE AND
EARLY CHILDHOOD EDUC ATION PROGRAMS
Requires the OEC commissioner to notify the OPM secretary if certain surplus state
property can be used to provide early childhood care and education programs
The bill requires the OEC commissioner to notify the OPM secretary
if certain surplus state property can be used to provide early childhood
care and early childhood education programs.
By law, the secretary must notify all state agencies when an agency
informs him it no longer needs a property it controls. The law requires
nine specific commissioners to determine and notify the secretary if the
property can be used for certain purposes related to their agency’s
mission (e.g., commissioners of Economic and Community
Development, Transportation, and Housing). Commissioners who
determine they can use the property must submit a plan describing the
proposed use for the secretary’s review (CGS § 4b-21). The bill adds the
OEC commissioner to this group.
§ 6 — OEC LIABILITY INSURANCE COVERAGE D OCUMENT FOR
CHILD CARE CENTERS
Requires the OEC commissioner to consult with a nonprofit organization to develop a
document that explains the benefits of child care centers and homes maintaining liability
insurance coverage and potential consequences of not having coverage; requires the
document to be electronically distributed to child care facilities
The bill requires the OEC commissioner, by December 1, 2024, to
consult with a nonprofit organization that provides entrepreneurial and
financial education services to women to develop a document that
explains the (1) benefits of child care centers and homes maintaining
liability insurance coverage and (2) potential consequences of not
having this coverage. The OEC commissioner must electronically
distribute the document to licensed child care centers, group child care 2024HB-05002-R01-BA.DOCX
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homes, and family child care homes each year, starting by January 1,
2025.
EFFECTIVE DATE: Upon passage
Background — Related Bill
sHB 5160 (File 23), favorably reported by the Children’s Committee,
has an identical provision.
§ 7 — OEC DEVELOPMEN TAL MILESTONES DOCUM ENT
Eliminates the requirement that child care centers and homes that exclusively serve
school-age children post a copy of an OEC-developed developmental milestones document
in the center or home
Current law requires each operator of a child care center or group or
family child care home to post a copy of an OEC-developed document
(1) listing key developmental milestones for children from birth to age
five and (2) including information that parents or guardians concerned
that their child has not met any developmental milestones may access
the OEC Child Development Infoline for information on appropriate
services.
Under the bill, beginning on July 1, 2024, centers that exclusively
serve school-age children are no longer required to post a copy of this
document.
Background — Related Bill
SB 152 (File 94), favorably reported by the Children’s Committee, has
a similar provision.
§§ 8-9, 11 & 12 — CARE 4 KIDS
Adds children under the care of a caregiver who receives subsidies under the subsidized
guardianship program to the Care 4 Kids protective service class; repeals the Care 4 Kids
program regulations and instead requires the OEC commissioner to (1) administer the
program by implementing the federal Child Care Development Fund program’s
regulations and (2) develop policies and procedures necessary to do so; requires the
secretary of the state to correspondingly update the online compilation of state regulations
Protective Service Class (§ 9)
The bill adds children under the care of a caregiver who receives
subsidies through the Department of Children and Families’s
subsidized guardianship program to OEC’s protective service class and 2024HB-05002-R01-BA.DOCX
Researcher: RP Page 15 5/5/24
extends eligibility to them for up to one year from the date their subsidy
was approved. These children then become eligible for Care 4 Kids
regardless of the program’s eligibility requirements.
By law, the OEC commissioner may institute a protective service class
in which she may waive current law’s Care 4 Kids e ligibility
requirements for certain at-risk populations, instead applying
guidelines that she prescribes and the Office of Policy and Management
reviews. Under current law, these at-risk populations include (1) certain
foster care children, (2) certain newly adopted children, and (3)
homeless children. The bill also specifies that certain adopted children
are eligible for a subsidy for up to one year from the date of adoption.
Regulations, Policies, and Procedures (§§ 9 & 11-12)
The bill repeals the Care 4 Kids program regulations and the
commissioner’s authority to adopt them, and instead requires the OEC
commissioner to administer the program by implementing the
requirements of the federal Child Care Development Fund, which funds
the Care 4 Kids program (45 C.F.R. § 98). Under the bill, the OEC
commissioner must develop policies and procedures necessary to
implement these federal requirements.
The bill also requires the secretary of the state to correspondingly
update the official online compilation of state regulations by October 1,
2024.
Background — Related Bill
SB 152 (File 94), favorably reported by the Children’s Committee, has
similar provisions.
§ 10 — BIRTH-TO-THREE SERVICES
Requires child care centers to allow a child with an individualized family service plan who
is eligible to receive Birth-to-Three services to receive them on-site at a child care center or
home
The bill requires licensed child care centers and group or family child
care homes to allow a child who is eligible for Birth-to-Three and who
has an individualized family service plan to receive early intervention
services at the center or home from the provider designated in the plan. 2024HB-05002-R01-BA.DOCX
Researcher: RP Page 16 5/5/24
By law and under the bill, individualized family service plans are
written plans for providing early intervention services to an eligible
child and the child’s family. These services must, among other things,
be (1) provided under public supervision, (2) selected in collaboration
with the parents, and (3) designed to meet the infant’s or toddler’s
developmental needs and the family’s needs in certain areas (34 C.F.R.
§ 303.13(a)).
Background — Related Bill
SB 152 (File 94), favorably reported by the Children’s Committee, has
a similar provision.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea 47 Nay 4 (04/03/2024)