LCO No. 4915 1 of 16 General Assembly Raised Bill No. 1369 January Session, 2025 LCO No. 4915 Referred to Committee on COMMITTEE ON CHILDREN Introduced by: (KID) AN ACT CONCERNING CHILD CARE SUPPORT FOR CONNECTICUT'S WORKFORCE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2025) (a) There is established the 1 Workforce Child Care Program to assist working families with the cost 2 of child care and to provide financial assistance to early care and 3 education program providers to support operational and workforce 4 needs. The program shall be administered by the Workforce Child Care 5 Board, established pursuant to section 2 of this act, and the board shall 6 authorize the expenditure of funds from the Workforce Child Care 7 Fund, established pursuant to section 3 of this act in accordance with the 8 provisions of this section. 9 (b) Eligibility for participation in the program shall be limited to the 10 following: 11 (1) Any family (A) with a child or children under thirteen years of 12 age, (B) with an individual who is employed and has been employed for 13 (i) at least twenty-six consecutive weeks if such individual regularly 14 works twenty or more hours per week, or (ii) at least one hundred 15 Raised Bill No. 1369 LCO No. 4915 2 of 16 seventy-five days if such individual works fewer than twenty hours per 16 week, and (C) that is not currently receiving a subsidy or other financial 17 assistance from or enrolled in (i) a Head Start or Early Head Start 18 program, (ii) the child care subsidy program, established pursuant to 19 section 17b-749 of the general statutes, (iii) an early care and education 20 program receiving financial assistance under Early Start CT pursuant to 21 section 10-550b of the general statutes, (iv) a preschool program under 22 the Connecticut Smart Start competitive grant program, pursuant to 23 section 10-506 of the general statutes, (v) the temporary family 24 assistance program pursuant to section 17b-112 of the general statutes, 25 (vi) foster care placements or certified relative foster care placements 26 through the Department of Children and Families, or (vii) any other 27 state or federal program from which the family is receiving a subsidy or 28 financial assistance for child care; and 29 (2) Any licensed provider of an early care and education program in 30 the state that is providing child care services, as described in section 19a-31 77 of the general statutes. 32 (c) As part of the program, the cost of child care charged by a 33 participating early care and education program provider to an eligible 34 family shall not exceed seven per cent of the annual household income 35 of such eligible family. 36 (d) The board shall authorize payments from the Workforce Child 37 Care Fund established pursuant to section 3 of this act as follows: 38 (1) For grants to participating early care and education program 39 providers, in accordance with sliding scale subsidy guidelines 40 developed by the board, in order to implement the provisions of 41 subsection (c) of this section. 42 (2) To implement the early childhood care and education salary 43 enhancement grant program in accordance with the provisions of 44 sections 6 and 7 of this act. 45 Raised Bill No. 1369 LCO No. 4915 3 of 16 (3) For grants to employees of early care and education programs for 46 (A) professional development, (B) scholarships for associate and 47 bachelor's degrees, certifications and advanced training, and (C) 48 retention incentives, including, but not limited to, performance-based 49 bonuses and retention grants. 50 (4) For capital improvements, including renovations, structural 51 upgrades and purchasing equipment and materials, in order for child 52 care facilities to meet health and safety standards, expand capacity and 53 enhance educational resources. 54 (5) To develop and maintain the Workforce Child Care Program 55 enrollment portal, as described in section 5 of this act. 56 (e) On and after July 1, 2026, the Workforce Child Care Board may 57 expand the program to authorize payments from the Workforce Child 58 Care Fund for enrollment in before-school and after-school programs, 59 summer camps and youth camps and for emergency access to parents 60 and guardians who are not employed for one-quarter of coverage, 61 provided the fund will maintain solvency in the subsequent fiscal year 62 following such program expansion. 63 (f) Not later than January 1, 2027, and annually thereafter, the 64 Workforce Child Care Board shall prepare a report on the 65 implementation of the program. Such report shall include, but need not 66 be limited to, (1) the number of eligible families and participating 67 providers in the program, an analysis of how the program has impacted 68 the child care workforce and child care accessibility and if the program 69 has had an effect on economic growth in the state, and (2) any 70 recommendations for improvements or enhancements to the program. 71 The board shall submit such report to the joint standing committee of 72 the General Assembly having cognizance of matters relating to children 73 in accordance with the provisions of section 11-4a of the general statutes. 74 Sec. 2. (NEW) (Effective July 1, 2025) (a) (1) There is established the 75 Workforce Child Care Board. The board shall administer the Workforce 76 Raised Bill No. 1369 LCO No. 4915 4 of 16 Child Care Program, established pursuant to section 1 of this act, and 77 review and report on the financial health and status of the Workforce 78 Child Care Fund, established pursuant to section 3 of this act. 79 (2) The board shall consist of the following members: 80 (A) Two appointed by the speaker of the House of Representatives, 81 (i) one of whom shall be a parent, and (ii) one of whom shall be currently 82 employed in the early childhood workforce; 83 (B) Two appointed by the president pro tempore of the Senate, (i) one 84 of whom shall be a representative from the Service Employees' 85 International Union, Local 2001, and (ii) one of whom shall be a member 86 of the Connecticut Early Childhood Alliance; 87 (C) Two appointed by the majority leader of the House of 88 Representatives, (i) one of whom shall be a representative of an early 89 childhood education program operator in the state, and (ii) one of whom 90 shall be a representative of a family resource center described under 91 section 10-4o of the general statutes; 92 (D) Two appointed by the majority leader of the Senate, (i) one of 93 whom shall be a representative of a philanthropic organization that is 94 (I) engaged in early childhood education issues or child care issues in 95 the state, and (II) a member of the Early Childhood Funder 96 Collaborative, and (ii) one of whom shall be a representative of a 97 business organization that is (I) engaged in early childhood education 98 issues or child care issues in the state, and (II) a member of the 99 Connecticut Business Industry Association; 100 (E) Two appointed by the minority leader of the House of 101 Representatives, (i) one of whom shall be a representative of a non-102 home-based child care services provider in the state, and (ii) one of 103 whom shall be a parent; 104 (F) Two appointed by the minority leader of the Senate, (i) one of 105 Raised Bill No. 1369 LCO No. 4915 5 of 16 whom shall be a representative of a corporation with a significant 106 physical presence in the state and that employs individuals who may 107 benefit from early childhood education and state child care initiatives, 108 and (ii) one of whom shall be a member of the parent cabinet established 109 by the Office of Early Childhood pursuant to section 10-500 of the 110 general statutes; 111 (G) The Commissioner of Early Childhood, or the commissioner's 112 designee; 113 (H) The Secretary of the Office of Policy and Management, or the 114 secretary's designee; 115 (I) The Treasurer, or the Treasurer's designee; and 116 (J) The Comptroller, or the Comptroller's designee. 117 (3) Each appointed member shall serve in accordance with the 118 provisions of section 4-1a of the general statutes and the appointing 119 authorities shall appoint members to ensure representation on the board 120 of all geographic areas in the state, to the extent practicable. 121 (4) The Commissioner of Early Childhood shall schedule the first 122 meeting of the board, which shall be held not later than October 1, 2025. 123 The members shall elect the chairperson at the first meeting. The board 124 shall meet as often as deemed necessary by the chairperson or a majority 125 of the board. Any appointed member who fails to attend three 126 consecutive meetings or who fails to attend fifty per cent of all meetings 127 held during any calendar year shall be deemed to have resigned from 128 the board. 129 (5) Any vacancy shall be filled by the appointing authority. Any 130 vacancy occurring other than by expiration of term shall be filled for the 131 balance of the unexpired term. 132 (6) A majority of the board shall constitute a quorum for the 133 transaction of any business. 134 Raised Bill No. 1369 LCO No. 4915 6 of 16 (b) The board shall have the following powers and duties: 135 (1) Review and monitor the Workforce Child Care Fund to assess its 136 financial sustainability; 137 (2) Obtain from any executive department, board or other agency of 138 the state such assistance and data as necessary and available to carry out 139 the purposes of this section; and 140 (3) Perform such other acts as may be necessary and appropriate to 141 carry out the duties described in this section. 142 (c) The board shall: 143 (1) Not later than January 1, 2026, submit a five-year plan, in 144 accordance with the provisions of section 11-4a of the general statutes, 145 to the joint standing committees of the General Assembly having 146 cognizance of matters relating to appropriations and the budgets of state 147 agencies, finance, revenue and bonding, education and children of 148 recommendations of expenditures from said fund that would best 149 support working families in reducing the cost and access to child care 150 in the state. The board shall, in developing such plan, consider reports 151 on the state of early childhood care and education in the state, as well as 152 best practices in other states. The board shall update such plan at least 153 annually and submit such updated plan annually to said committees; 154 (2) Commencing with the fiscal year ending June 30, 2026, hold an 155 annual public hearing on the state of the fund and of the cost of early 156 childhood education and child care in the state; and 157 (3) Not later than January 1, 2027, and annually thereafter, submit a 158 report, in accordance with the provisions of section 11-4a of the general 159 statutes, to the joint standing committees of the General Assembly 160 having cognizance of matters relating to appropriations and the budgets 161 of state agencies, finance, revenue and bonding, education and children 162 on the financial health and status of the Workforce Child Care Fund, 163 Raised Bill No. 1369 LCO No. 4915 7 of 16 including, but not limited to, (A) the amounts on deposit in said fund, 164 (B) disbursements made or expected to be made from said fund for the 165 applicable fiscal year, (C) the rates of return on investments made by the 166 Treasurer pursuant to subsection (c) of section 3 of this act, (D) a 167 statement as to the sufficiency of the amounts on deposit in said fund to 168 achieve the purposes of said fund, and (E) any recommendations for 169 policy changes and amendments to the general statutes necessary to 170 further the purposes of said fund; 171 (d) The Workforce Child Care Board shall be within the Office of 172 Early Childhood for administrative purposes only. 173 Sec. 3. (NEW) (Effective July 1, 2025) (a) There is established the 174 Workforce Child Care Fund. Said fund may contain any moneys 175 required or permitted by law to be deposited in the fund and shall 176 receive and hold all payments and deposits for contributions intended 177 for said fund, as well as gifts, bequests, endowments or federal, state or 178 local grants and any other funds from any public or private source and 179 all earnings until disbursed in accordance with the provisions of this 180 section. 181 (b) The amounts on deposit in said fund shall not constitute property 182 of the state and said fund shall not be construed to be a department, 183 institution or agency of the state. Amounts on deposit in said fund shall 184 not be commingled with state funds and the state shall have no claim to 185 or against, or any interest in, such deposits. Any contract entered into 186 by or any obligation of said fund shall not constitute a debt or obligation 187 of the state and the state shall have no obligation to any person on 188 account of said fund and all amounts obligated to be paid from said 189 fund shall be limited to amounts available for such obligation on deposit 190 in said fund. Said fund shall continue in existence as long as it holds any 191 deposits or has any obligations and until its existence is terminated by 192 law. 193 (c) The Treasurer shall invest the amounts on deposit in said fund in 194 Raised Bill No. 1369 LCO No. 4915 8 of 16 a manner reasonable and appropriate to achieve the objectives of said 195 fund, exercising the discretion and care of a prudent person in similar 196 circumstances with similar objectives. The Treasurer shall give due 197 consideration to rate of return, risk, term or maturity, diversification of 198 the total portfolio within said fund, liquidity, the projected 199 disbursements and expenditures and the expected payments, deposits, 200 contributions and gifts to be received. The Treasurer shall not require 201 said fund to invest directly in obligations of the state or any political 202 subdivision of the state or in any investment or other fund administered 203 by the Treasurer. The assets of said fund shall be continuously invested 204 and reinvested in a manner consistent with the objectives of said fund 205 until disbursed by the Comptroller in accordance with the provisions of 206 this section. 207 (d) The Treasurer, on behalf of said fund and for purposes of said 208 fund, may: 209 (1) Receive and invest moneys in said fund in any instruments, 210 obligations, securities or property in accordance with this section; 211 (2) Enter into one or more contractual agreements, including 212 contracts for legal, actuarial, accounting, custodial, advisory, 213 management, administrative, advertising, marketing and consulting 214 services for said fund and pay for such services from the assets of said 215 fund; 216 (3) Procure insurance in connection with said fund's property, assets, 217 activities or deposits to said fund; 218 (4) Apply for and accept gifts, grants or donations from public or 219 private sources to enable said fund to carry out its objectives; 220 (5) Adopt regulations in accordance with chapter 54 of the general 221 statutes for purposes of this section; 222 (6) Sue and be sued; 223 Raised Bill No. 1369 LCO No. 4915 9 of 16 (7) Establish one or more accounts within said fund; and 224 (8) Take any other action necessary to carry out the purposes of this 225 section and incidental to the duties imposed on the Treasurer pursuant 226 to this section. 227 (e) The amounts on deposit in said fund shall be used for the 228 purposes of (1) implementing the Workforce Child Care Program, 229 established pursuant to section 1 of this act, (2) supporting the 230 establishment and maintenance of the enrollment portal, as described in 231 section 5 of this act, (3) implementing the early childhood care and 232 education salary enhancement grant program in accordance with the 233 provisions of sections 6 and 7 of this act, and (4) providing financial 234 assistance to early care and education program providers for other 235 operational and workforce needs. 236 Sec. 4. (NEW) (Effective July 1, 2025) (a) As used in this section: 237 (1) "Employer" means an employer required to deduct and withhold 238 tax from wages pursuant to section 12-705 of the general statutes. 239 "Employer" does not include any early care and education program 240 provider; and 241 (2) "Payroll expense" means (A) wages, as defined in Section 3121 of 242 the Internal Revenue Code of 1986, or any subsequent corresponding 243 internal revenue code of the United States, as amended from time to 244 time, without regard to Section 3121(a)(1) of said code, and (B) 245 compensation, as defined in Section 3231 of said code, without regard 246 to Section 3231(e)(2)(A)(i) of said code, that are paid to all covered 247 employees. 248 (b) On and after January 1, 2026, each employer shall pay a tax on 249 such employer's payroll expense at the following rate: For the taxable 250 year commencing January 1, 2026, one and one-half per cent of such 251 employer's payroll expense during the year. 252 Raised Bill No. 1369 LCO No. 4915 10 of 16 (c) All amounts collected under this section shall be deposited in the 253 Workforce Child Care Fund, established pursuant to section 3 of this act. 254 Sec. 5. (NEW) (Effective July 1, 2025) (a) The Workforce Child Care 255 Board, in collaboration with the Office of Early Childhood, shall develop 256 a centralized online enrollment portal for families to apply for (1) 257 participation in the Workforce Child Care Program, established 258 pursuant to section 1 of this act, and (2) a subsidy or other state or 259 federal financial assistance for child care under (A) a Head Start or Early 260 Head Start program, (B) the child care subsidy program, established 261 pursuant to section 17b-749 of the general statutes, (C) an early care and 262 education program receiving financial assistance under Early Start CT 263 pursuant to section 10-550b of the general statutes, (D) a preschool 264 program under the Connecticut Smart Start competitive grant program, 265 pursuant to section 10-506 of the general statutes, (E) temporary family 266 assistance program pursuant to section 17b-112 of the general statutes, 267 (F) foster care placements or certified relative foster care placements 268 through the Department of Children and Families, or (G) any other state 269 or federal program for child care assistance. 270 (b) For applicants seeking participation in the Workforce Child Care 271 Program, the enrollment portal shall (1) enable families seeking to 272 participate in the program to determine eligibility and apply for a 273 subsidy, (2) allow early care and education program providers to 274 participate in the program, (3) facilitate the connection of participating 275 providers and eligible families by providing opportunities for eligible 276 families to enroll in participating provider programs, (4) ensure secure 277 data management to protect applicant information and privacy and 278 system integrity, and (5) include provisions for special enrollment 279 periods for life events, including job loss, income changes and new 280 parenthood. 281 (c) Any child who is enrolled in an early care and education program 282 through the enrollment portal shall be assigned a state-assigned student 283 identifier. 284 Raised Bill No. 1369 LCO No. 4915 11 of 16 Sec. 6. (NEW) (Effective July 1, 2025) (a) As used in this section and 285 section 7 of this act: 286 (1) "Compensation schedule" means the early childhood educator 287 compensation schedule developed by the Office of Early Childhood 288 pursuant to section 10-531 of the general statutes, as amended by this 289 act; 290 (2) "Early childhood care and education program" means a child care 291 services provider, early childhood education program or license-exempt 292 early childhood provider; 293 (3) "Child care services provider" means a child care center or a group 294 child care home, as such terms are described in section 19a-77 of the 295 general statutes; 296 (4) "Early childhood education program" means a private preschool 297 program or an early care and education program under Early Start CT, 298 pursuant to section 10-550b of the general statutes; 299 (5) "License-exempt early childhood provider" means any child care 300 services provider or an early care and education program under Early 301 Start CT that is not required to be licensed pursuant to subsection (b) of 302 section 19a-77 of the general statutes and is located in a public school 303 building but is not administered by a public school system; 304 (6) "Employee" means a person who is employed by an early 305 childhood care and education program and meets the eligibility criteria 306 described in the compensation schedule and policy developed by the 307 Office of Early Childhood pursuant to subsection (e) of this section; 308 (7) "Base salary" means the annual salary that an employee was paid 309 for a position on December 31, 2024, or, if the position was vacant on 310 December 31, 2024, the starting annual salary for such position on said 311 date; 312 (8) "Benefits amount" means seven thousand five hundred dollars; 313 Raised Bill No. 1369 LCO No. 4915 12 of 16 (9) "Individual employee salary enhancement amount" means, for 314 any fiscal year, the sum of (A) the difference between (i) the salary 315 prescribed in the compensation schedule for an employee, and (ii) the 316 amount of such employee's base salary, and (B) the benefits amount; 317 (10) "Salary enhancement amount" means the sum of the total 318 individual employee salary enhancement amounts for all employees of 319 an early childhood care and education program for the fiscal year; and 320 (11) "Family child care home" has the same meaning as provided in 321 section 19a-77 of the general statutes. 322 (b) For the fiscal year ending June 30, 2026, and each fiscal year 323 thereafter, the Office of Early Childhood, in collaboration with the 324 Workforce Child Care Board established pursuant to section 2 of this 325 act, shall administer the early childhood care and education salary 326 enhancement grant program. The office shall annually pay to each early 327 childhood care and education program a salary enhancement grant in 328 the amount of such program's salary enhancement amount. Such 329 program shall distribute such grant funds to its employees in 330 accordance with the policy developed by the Commissioner of Early 331 Childhood pursuant to subsection (e) of this section. 332 (c) For the fiscal year ending June 30, 2026, and each fiscal year 333 thereafter, the office shall annually pay to each family child care home 334 a salary enhancement grant as follows: (1) Twenty thousand dollars for 335 each licensee of a family child care home, (2) six thousand dollars for 336 each full-time assistant or substitute staff member approved by the 337 Commissioner of Early Childhood pursuant to section 19a-87b of the 338 general statutes, and (3) three thousand dollars for each part-time 339 assistant or substitute staff member approved by the commissioner 340 pursuant to section 19a-87b of the general statutes, and employed by the 341 family child care home. The licensee shall distribute such grant funds in 342 accordance with the policy developed by the commissioner pursuant to 343 subsection (e) of this section. 344 Raised Bill No. 1369 LCO No. 4915 13 of 16 (d) Each early childhood care and education program shall register, 345 at such time and in such manner as prescribed by the commissioner, 346 with the Office of Early Childhood to receive a grant under the program. 347 Upon registration, such program shall provide any information 348 required by the office, in accordance with the policy developed by the 349 commissioner pursuant to subsection (e) of this section. 350 (e) Not later than October 1, 2025, the commissioner shall develop a 351 policy for the administration of the early childhood care and education 352 salary enhancement grant program. The policy shall include, but need 353 not be limited to, eligibility criteria for the program, the registration 354 process for the program, the distribution requirements of the grant and 355 any other requirements the commissioner deems necessary. 356 Sec. 7. (NEW) (Effective July 1, 2025) On and after July 1, 2025, each 357 employee of an early childhood care and education program shall be 358 paid an annual salary as prescribed in the compensation schedule 359 developed pursuant to section 10-531 of the general statutes, as 360 amended by this act, except if the amount of an employee's salary is 361 greater than the amount prescribed in such compensation schedule, 362 such employee shall be paid such greater amount. 363 Sec. 8. Section 10-531 of the general statutes is repealed and the 364 following is substituted in lieu thereof (Effective July 1, 2025): 365 (a) As used in this section: 366 (1) "Early childhood education program" means any child care or 367 school readiness program that accepts state funds for infant, toddler and 368 preschool spaces associated with such program; 369 (2) "Employee" means any person who is employed by an early 370 childhood [education program and meets the applicable staff 371 qualifications requirement, as defined in section 10-16p] care and 372 education program and meets the eligibility criteria described in the 373 compensation schedule and policy developed by the Office of Early 374 Raised Bill No. 1369 LCO No. 4915 14 of 16 Childhood pursuant to subsection (e) of section 1 of this act; 375 (3) "Compensation" means the salary, wages, benefits and other 376 forms of valuable consideration earned by and provided to an employee 377 in remuneration for services rendered; [and] 378 (4) "Compensation schedule" means a list or lists specifying a series 379 of compensation steps and ranges; 380 (5) "Early childhood care and education program" means (A) a child 381 care center or a group child care home, as such terms are described in 382 section 19a-77, or (B) a private preschool program or an early care and 383 education program under Early Start CT, pursuant to section 10-550b. 384 (b) The Office of Early Childhood shall establish, after notice and 385 opportunity for public comment, a proposed early childhood educator 386 compensation schedule for employees of early childhood education 387 programs. 388 (c) (1) The office shall consider the following factors in developing the 389 proposed early childhood educator compensation schedule: (A) Level 390 of education, (B) training in early childhood education or child 391 development, (C) relevant employment experience, including the 392 number of years an individual has been employed in an early childhood 393 education program, (D) compensation levels for certified teachers 394 employed in a preschool program operated by a local or regional board 395 of education or regional educational service center, and (E) cost of living 396 in the state. 397 (2) In developing the proposed early childhood educator 398 compensation schedule, the office may (A) consider the findings and 399 recommendations provided in "A Plan to Assist Early Education State 400 Funded Providers to Degree Attainment and Increased Compensation" 401 created by the office, pursuant to section 4 of public act 15-134, to create 402 a standardized salary scale and incentive package for early childhood 403 educators, (B) utilize state and federal funding, and (C) examine existing 404 Raised Bill No. 1369 LCO No. 4915 15 of 16 programs that address early childhood educator compensation and staff 405 retention through financial incentives, such as bonuses for degree or 406 course completion. 407 (3) The office shall establish a recommended minimum salary for 408 employees as part of the proposed early childhood educator 409 compensation schedule. 410 (d) Not later than January 1, 2021, the office shall submit the proposed 411 early childhood educator compensation schedule and a report to the 412 joint standing committees of the General Assembly having cognizance 413 of matters relating to education and appropriations and the budgets of 414 state agencies, in accordance with the provisions of section 11-4a. Such 415 report shall include: (1) Any recommendations for legislation relating to 416 state-wide implementation of the proposed early childhood educator 417 compensation schedule, (2) an estimate of the cost of implementing the 418 proposed early childhood educator compensation schedule state-wide, 419 (3) an analysis of the effect of the state-wide implementation of the 420 proposed early childhood educator compensation schedule on the 421 number of available preschool seats, and (4) an explanation of how the 422 proposed early childhood educator compensation schedule will be 423 included in any quality rating and improvement system developed by 424 the office, pursuant to subdivision (15) of subsection (b) of section 10-425 500. 426 (e) Not later than January 1, 2026, the office shall amend the 427 compensation schedule to include employees of early childhood care 428 and education programs. 429 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 New section Sec. 2 July 1, 2025 New section Sec. 3 July 1, 2025 New section Sec. 4 July 1, 2025 New section Raised Bill No. 1369 LCO No. 4915 16 of 16 Sec. 5 July 1, 2025 New section Sec. 6 July 1, 2025 New section Sec. 7 July 1, 2025 New section Sec. 8 July 1, 2025 10-531 Statement of Purpose: To establish the Workforce Child Care Fund to assist working families in the cost of child care and to cap the cost of child care at seven per cent of a family's annual household income. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]