Education (Early Childhood)

In 2022, the general assembly enacted, and the governor subsequently signed into law, House Bill 22-1358 ('Concerning measures to eliminate the presence of lead in the drinking water of certain facilities where children are present, and, in connection therewith, making an appropriation'), which required child care centers, family child care homes, and each public school that serves any of grades preschool through eighth grade to:Test its drinking water sources by having a state-certified laboratory measure the lead content of water drawn from each drinking water source; andSatisfy other requirements concerning the provision of safe drinking water.     House Bill 22-1358 also created the school and child care clean drinking water fund (fund) to help schools, child care centers, and family child care homes comply with House Bill 22-1358.     House Bill 22-1358 included a repeal date of June 30, 2026, for its provisions. The act extends the provisions, with amendments, until June 30, 2029. The act also adds high schools (i.e., schools that serve grades 9 to 12) to the scope of House Bill 22-1358, which means that high schools may receive grants from the fund and must satisfy certain requirements on or before dates specified in the act.     The act requires the department to adopt rules establishing how a child care center shall demonstrate compliance with the requirements concerning the testing for the presence of lead in drinking water.(Note: This summary applies to this bill as enacted.)

The act transfers $10 million from the tobacco education programs fund to the preschool programs cash fund on June 30, 2027.     For the 2026-27 state fiscal year, the act reduces the general fund appropriation to the department of early childhood (department) for the universal preschool program by $10 million and makes a corresponding $10 million appropriation to the department from the preschool programs cash fund for the universal preschool program.(Note: This summary applies to this bill as enacted.)

The act requires the secretary of state to refer a ballot issue at the November 2026 general election to seek voter approval for the state, beginning in the 2026-27 state fiscal year, to retain and spend an amount of state revenue equal to the amount of state public K-12 education funding in excess of the limitation on state fiscal year spending and to increase state public K-12 education funding by up to 2% per year for 10 years.     The act directs legislative council staff to determine the amount of state public K-12 education funding and describes how legislative council staff will make that determination.     The act creates a positive factor to increase state public K-12 education funding. The amount of the positive factor compounds annually for 10 years. The positive factor for the 2026-27 budget year is 2% of the program foundation calculated for the 2025-26 budget year. For the 2027-28 through 2034-35 budget years, it is the sum of 2% of the prior year's program foundation plus the prior year's positive factor. For the 2035-36 budget year and beyond, it is the sum of 2% of the 2034-35 program foundation plus the 2034-35 positive factor.     A district's share of the positive factor is calculated proportionally based on the district's total program under the new school finance formula relative to the statewide total program.     A district may only use its positive factor funding for increasing teacher pay, improving teacher retention, lowering class sizes, and increasing access to career and technical courses.     For the 2026-27 state fiscal year, the children's account consists of an amount of money equal to the amount of state revenues that the state retains for a given fiscal year pursuant to voter approval of the act. For state fiscal years commencing on or after July 1, 2027, the account consists of that same amount minus an amount equal to the total dollar amount of warrants issued by the state treasurer to reimburse local governments for property tax exemptions. Money in the account must first be spent to pay districts their positive factor, then any remaining funds are appropriated for disability services and school services and to increase annual contact hours, and finally to programs prioritizing child care and full-day preschool.     The act directs the state auditor to conduct and publish a report on excess state revenues for each state fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending. That report must include descriptions of:The amount of state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending; andHow the state expended the state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending.     Beginning August 1, 2027, the act requires each local education provider to post, online for free public access in a format that can be downloaded and sorted, its actual expenditures of any positive factor received.     Lastly, the act updates provisions regarding the expanded earned income tax credit, the family affordability tax credit, and the affordable housing financing fund to ensure that voter approval of the act does not adversely impact those programs.(Note: This summary applies to this bill as enacted.)

The act makes changes and clarifications in the provisions related to the department of early childhood (department). The act:Eliminates the scheduled repeal of licensing exemptions for certain in-home child care arrangements in which the children are related to the caregiver, are siblings, or number fewer than five;Updates provisions related to early care and education provider reimbursement for services performed before final eligibility determinations in the Colorado child care assistance program;Lowers the age limit for children served by the early childhood mental health consultation program from 8 years old to 6 years old and adjusts that program's reporting requirements;Clarifies the sources of money appropriated to the universal preschool program;Requires the department to keep confidential identifying records and facts regarding children and their relatives;Clarifies that child care facilities approved, certified, or licensed by tribal governments are exempt from the department's licensing rules; andAdjusts the membership requirements and duties of the early childhood leadership commission and subcommittee membership requirements for the rules advisory council.(Note: This summary applies to this bill as enacted.)

The act requires that school districts test the vision of students in pre-kindergarten, in addition to testing the vision of students in kindergarten and the first, second, third, fifth, seventh, and ninth grades.     The act updates terminology by replacing the word 'sight' with the word 'vision'.(Note: This summary applies to this bill as enacted.)

The act requires the executive director of the Colorado department of early childhood (CDEC) to adopt rules concerning the requirements for licensed child care facilities to maintain up-to-date employee records in the professional development information system currently administered by CDEC.     The act requires CDEC, on or before July 1, 2026, to begin phasing out its reliance on third parties to investigate and inspect facilities applying for certain types of child care licenses where feasible and to prioritize the use of CDEC personnel to conduct the investigations and inspections instead. The act exempts certain health and sanitation inspections from the phase-out. CDEC must establish standardized training, protocols, and supervision for CDEC personnel and authorized or contracted third parties.     A local governing authority that imposes requirements related to the inspection, permitting, licensing, or approval of a child care center or family child care home beyond the state-level licensing standards (local approval process) shall limit associated fees and prioritize concluding a local approval process that has been delayed or disputed.     The act creates the child care licensure task force (task force) to study and report on recommendations for a streamlined child care licensure system in the state. On or before January 1, 2027, the task force must report on its recommendations to the health and human services and education committees of the house of representatives and the senate, the governor, and CDEC. The performance of the task force's work is dependent upon the receipt of sufficient gifts, grants, and donations.(Note: This summary applies to this bill as enacted.)

Under current law, a local education provider is required to ensure that a preschool or kindergarten student receives an individualized readiness plan (plan). The act makes it optional for local education providers to provide plans to students who demonstrate proficiency on specified assessment domains and the kindergarten reading assessment, unless the student's parent requests a plan.     Under current law, a local education provider is required to annually provide information concerning assessments to students' parents. The act requires this written notice to include:The results of the student's specified assessment domains and kindergarten reading assessment;If applicable, information explaining that because of the student's assessment results, the local education provider is not required, and does not intend, to provide a plan for the student; andLanguage indicating that the student's parent may request a plan.     Under current law, the department of education is required to submit an annual report to the education committees of the house of representatives and the senate concerning specified educational accountability requirements. One of the reporting requirements concerns the level of school readiness demonstrated by students enrolled in kindergarten. The act requires the department to report this information on a statewide basis and to disaggregate the information based on specific characteristics.(Note: This summary applies to this bill as enacted.)

Current law establishes a statewide integrated system of early childhood councils (councils) to improve and sustain the availability, accessibility, capacity, and quality of early childhood services. The act expands the powers, functions, and responsibilities of a council in implementing a comprehensive system of early childhood and family support programs and services (programs and services) within the council's community.     Current law establishes local coordinating organizations (LCOs) to increase access to, coordinate, and allocate funding for programs and services through work with the families, program and service providers, and local governments in a community and with the department of early childhood (department). Effective July 1, 2026, the act repeals provisions authorizing the creation and operation of LCOs and transfers the LCO rights, powers, duties, functions, and obligations concerning supporting access to and delivery of programs and services to the councils (transfer). If the transfer requires the consolidation, reassignment, or material modification of the duties of a council or LCO, the department may authorize a one-time extension of the transition period for up to 3 years.     Current law requires a council to develop a community strategic plan based upon an assessment of the early childhood needs in the council's designated service area (community strategic plan). The act requires a community strategic plan to address specified issues, including:Assisting families in applying for programs and services;Coordinating outreach efforts with other local entities and tribal agencies;Recruiting and coordinating providers to form a mixed delivery system that promotes family choice; andSupporting increased recruitment and retention of individuals in the early care and education workforce.     The act requires a council, in partnership with the department, to create, review, and revise a scope of work that reflects the community strategic plan and accurately represents the programs and services within the community, meets families' needs, and aligns with available appropriations and the department's statewide strategic planning process. Associated accountability metrics must also be reviewed and revised to align with the scope of work. The act specifies a council's new obligations regarding improving access to high-quality programs and services, early childhood workforce development, data-sharing agreements, outreach for holistic family services, and auditing.     The act establishes requirements for an agreement that sets forth the respective duties of a council and the department in implementing a community strategic plan (agreement). The act identifies the department's responsibilities for the coordinated distribution of public funding for programs and services; council training and technical assistance; dissemination of information about successful council strategies and innovations; and standards for communication, resolution of disputes, and contracting protocols. The act modifies the process for the department to approve or facilitate a waiver of the rules for the implementation of council projects.     The act requires the department to implement an annual performance review process for each council and solicit community feedback about a council's performance at intervals ranging from 3 to 5 years. If the department determines that a council is not meeting the requirements of the scope of work and accountability metrics contained in the agreement, the department may require the council to implement a performance improvement plan. If a council fails to make substantial progress toward addressing the issues raised in the performance improvement plan, the department may terminate the council's agreement.     The act makes substantive and technical conforming amendments to address the reallocation of responsibilities and functions from LCOs to councils, including administrative and funding provisions related to the Colorado child care assistance program and the Colorado universal preschool program.(Note: This summary applies to this bill as enacted.)