1 Short Title. This act shall be known as the "Early Childhood Education Act."

2 New Subparagraph; New Hampshire Employment Program and Family Assistance Program; Rulemaking. Amend RSA 167:83, II by inserting after subparagraph (q) the following new subparagraph:

(r) Modification of reimbursement for the early childhood education account program, pursuant to 194-F:13, as follows:

(1) Allow transfer of annual childcare grant amounts per child to the entity designated by the department of education to administer the Early Childhood Education Account (ECEA), in accordance with the Child Care and Development Block Grant Act, 42 U.S.C. section 9858, as amended, and section 418 of the Social Security Act, 42 U.S.C. section 618, as amended;

(2) Implement adjustments federally permitted by the Office of Child Care to the market rate survey which more equitably account for geographic differences, inflation, off-hours care, and other costs of child care which are not currently captured in the market rate survey; and upon implementation, the department of health and human services shall develop and engage in training of all staff on program eligibility and reimbursement changes to the ECEA grant program.

3 New Subdivision; Early Childhood Education Account Program. Amend RSA 194-F by inserting after section 12 the following new subdivision:

Early Childhood Education Account Program

194-F:13 Early Childhood Education Account Program Established.

I. There is hereby established an early childhood education account program for eligible New Hampshire children. "Eligible child" means a resident of this state who is between 4 and 5 years old and whose annual household income at the time the child applies for the program is less than or equal to 500 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902 (2). Beginning July 1, 2028, "Eligible child" shall mean a resident of this state who is between 3 and 5 years old and whose annual household income at the time the child applies for the program is less than or equal to 500 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902 (2). No income threshold need be met in subsequent years, provided the child otherwise qualifies.

II. The early childhood education account program funding shall be non-lapsing and continually appropriated to the department of education for the purposes of the early childhood education account (ECEA) program grants under this section. The fund shall consist of transfers from the education trust and appropriations of general funds, if needed, to implement the program, and shall allow contributions from individuals, communities, and businesses. The state treasurer shall invest the moneys deposited in the fund as provided by law. Interest earned on moneys deposited in the fund shall be deposited into the fund. Businesses making donations or contributions to the early childhood education account grants shall be eligible for tax credits against state business taxes the same as provided for in RSA chapter 77-G.

III. The commissioner of the department of education shall issue a request for proposal to select a third party fiscal intermediary organization to manage and distribute the grant funds established under this subdivision. The selected fiscal intermediary shall have the duties, obligations, and authority as in RSA 194-F:4 and RSA 194-F:6.

IV. The amount of annual grants to children shall be equal to the cost of an opportunity for an adequate education determined pursuant to RSA 198:40-a.

V. Parents of an ECEA child shall agree to use the grant funds deposited in their child's ECEA only for the following qualifying expenses to educate the early childhood education child in accordance with the Child Care and Development Block Grant Act, 42 U.S.C. section 9858, as amended, and section 418 of the Social Security Act, 42 U.S.C. section 618, as amended:

(a) A high quality, community-based, mixed delivery public or private pre-kindergarten program.

(b) Tuition and fees at a licensed childcare provider, family childcare provider, or private school with independence under RSA 194-F:7, providing pre-kindergarten programs.

(c) Services contracted for and provided by a district public school, chartered public school, public academy, or independent school, including, but not limited to, childcare, individual classes and curricular activities and programs.

(d) Textbooks, curriculum, or other instructional materials, including educational software and applications.

(e) Tuition and fees for summer education programs and specialized education programs.

(f) Educational services and therapies, including, but not limited to, occupational, behavioral, physical, speech-language, and audiology therapies.

(g) Any other pre-kindergarten educational expense approved by the third party fiscal intermediary organization or the department of education.

VI. ECEA funds shall not be refunded, rebated, or shared with a parent or pre-kindergarten EFA student in any manner. Any refund or rebate for goods or services purchased with ECEA funds shall be credited directly to the student's ECEA.

VII. Parents may make payments for the costs of childcare and educational goods and services not covered by the funds in their child's ECEA. However, personal deposits into an ECEA shall not be permitted.

VIII. Funds deposited in a ECEA shall not constitute taxable income to the parent or the ECEA child.

IX. An ECEA shall remain in force, and any unused funds shall roll over from quarter-to-quarter and from year-to-year until the parent withdraws the ECEA child from the program, or an ECEA converts to an EFA pursuant to RSA 194-F upon entering kindergarten, unless the EFA is closed because of a substantial misuse of funds. Any unused funds shall revert to the education trust fund established in RSA 198:39 and be available to fund other EFAs.

X. Nothing in this subdivision shall require that an ECEA child must be enrolled, full or part-time, with either a licensed childcare provider, family childcare provider, or private school.

XI. If any provision of this subdivision, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this subdivision which can be given effect without the invalid provision or application, and to this end the provisions of this subdivision are declared to be severable.

XII. For the fiscal year ending June 30, 2025, and every fiscal year thereafter, the amount necessary to fund the grants under this section is hereby appropriated to the department from the education trust fund established in RSA 198:39. If the balance in the education trust fund is less than zero, the governor is authorized to draw a warrant for sufficient funds to eliminate such deficit out of any money in the treasury not otherwise appropriated. The commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of grants under this section.

194-F:14 Rulemaking.

I. The commissioner of the department of education, in collaboration with the commissioner of the department of health and human services, shall:

(a) Develop a detailed, publicly available rubric for approving quality pre-kindergarten programs eligible for funding under this subdivision, in line with the Early Learning New Hampshire standards. The departments shall consult with a variety of stakeholders, including families, when developing the standards and benchmarks of a quality pre-kindergarten program.

(b) Develop a technical assistance and monitoring program of pre-kindergarten programs receiving funding under this subdivision. Monitoring and technical assistance shall focus on the standards and benchmarks of quality approved under this subdivision.

(c) Identify the variety of federal, state, and private funding streams to be used in the implementation of this subdivision and how these various funding streams will be combined to fund pre-kindergarten under this subdivision.

(d) Identify the stackable versus exclusionary grants per student available for ECEA eligible students.

(e) Collaborate to leverage all available funds at the child level to support pre-kindergarten.

(f) Develop outcome measures for pre-kindergarten programs receiving funding under this subdivision.

(g) Build off work done by New Hampshire's preschool development grant and Kindergarten Entry Assessment when designing, implementing, and monitoring the availability of pre-kindergarten in New Hampshire.

II. The commissioner of the department of education shall, in collaboration with the department of health and human services, approve programs eligible for funding that meet the requirements of the rubric established in subparagraph I(a).

III. The departments shall prioritize special education services, as well as regions where access to quality pre-school programs or Pre-K services is limited when designing, implementing, and monitoring this subdivision.

IV. The commissioner of the department of education, in collaboration with the department of health and human services, shall adopt rules under RSA 541-A to implement the provisions of this subdivision.

V. The commissioner of the department of education shall submit a report every 2 years, with the initial report due by September 1, 2026, and subsequent reports due on September 1 in even numbered years thereafter, to the governor, speaker of the house, president of the senate, and the chairs of the house and senate education committees. The report shall:

(a) Detail the grants provided under this subdivision, the localities and districts, the duration of the program, and a summary report of students and families served.

(b) Highlight high-performing programs, including those that have improved student and family outcomes.

(c) Provide descriptions and analysis of practices that contributed to the improvements described in paragraph II.

(d) Provide information on the development of the report, to include information solicited from pre-kindergarten programs, with descriptions and explanations of strategies, services, and programs that they have implemented, and evidence demonstrating their effectiveness.

(e) Include specific requests and outlines of legislative action needed, including budget requests.

(f) Summarize non-identifiable demographic and economic data on grant recipients.

4 Effective Date. This act shall take effect July 1, 2024.

1 Short Title. This act shall be known as the "Early Childhood Education Act."

2 New Subparagraph; New Hampshire Employment Program and Family Assistance Program; Rulemaking. Amend RSA 167:83, II by inserting after subparagraph (q) the following new subparagraph:

(r) Modification of reimbursement for the early childhood education account program, pursuant to 194-F:13, as follows:

(1) Allow transfer of annual childcare grant amounts per child to the entity designated by the department of education to administer the Early Childhood Education Account (ECEA), in accordance with the Child Care and Development Block Grant Act, 42 U.S.C. section 9858, as amended, and section 418 of the Social Security Act, 42 U.S.C. section 618, as amended;

(2) Implement adjustments federally permitted by the Office of Child Care to the market rate survey which more equitably account for geographic differences, inflation, off-hours care, and other costs of child care which are not currently captured in the market rate survey; and upon implementation, the department of health and human services shall develop and engage in training of all staff on program eligibility and reimbursement changes to the ECEA grant program.

3 New Subdivision; Early Childhood Education Account Program. Amend RSA 194-F by inserting after section 12 the following new subdivision:

Early Childhood Education Account Program

194-F:13 Early Childhood Education Account Program Established.

I. There is hereby established an early childhood education account program for eligible New Hampshire children. "Eligible child" means a resident of this state who is between 4 and 5 years old and whose annual household income at the time the child applies for the program is less than or equal to 500 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902 (2). Beginning July 1, 2028, "Eligible child" shall mean a resident of this state who is between 3 and 5 years old and whose annual household income at the time the child applies for the program is less than or equal to 500 percent of the federal poverty guidelines as updated annually in the Federal Register by the United States Department of Health and Human Services under 42 U.S.C. section 9902 (2). No income threshold need be met in subsequent years, provided the child otherwise qualifies.

II. The early childhood education account program funding shall be non-lapsing and continually appropriated to the department of education for the purposes of the early childhood education account (ECEA) program grants under this section. The fund shall consist of transfers from the education trust and appropriations of general funds, if needed, to implement the program, and shall allow contributions from individuals, communities, and businesses. The state treasurer shall invest the moneys deposited in the fund as provided by law. Interest earned on moneys deposited in the fund shall be deposited into the fund. Businesses making donations or contributions to the early childhood education account grants shall be eligible for tax credits against state business taxes the same as provided for in RSA chapter 77-G.

III. The commissioner of the department of education shall issue a request for proposal to select a third party fiscal intermediary organization to manage and distribute the grant funds established under this subdivision. The selected fiscal intermediary shall have the duties, obligations, and authority as in RSA 194-F:4 and RSA 194-F:6.

IV. The amount of annual grants to children shall be equal to the cost of an opportunity for an adequate education determined pursuant to RSA 198:40-a.

V. Parents of an ECEA child shall agree to use the grant funds deposited in their child's ECEA only for the following qualifying expenses to educate the early childhood education child in accordance with the Child Care and Development Block Grant Act, 42 U.S.C. section 9858, as amended, and section 418 of the Social Security Act, 42 U.S.C. section 618, as amended:

(a) A high quality, community-based, mixed delivery public or private pre-kindergarten program.

(b) Tuition and fees at a licensed childcare provider, family childcare provider, or private school with independence under RSA 194-F:7, providing pre-kindergarten programs.

(c) Services contracted for and provided by a district public school, chartered public school, public academy, or independent school, including, but not limited to, childcare, individual classes and curricular activities and programs.

(d) Textbooks, curriculum, or other instructional materials, including educational software and applications.

(e) Tuition and fees for summer education programs and specialized education programs.

(f) Educational services and therapies, including, but not limited to, occupational, behavioral, physical, speech-language, and audiology therapies.

(g) Any other pre-kindergarten educational expense approved by the third party fiscal intermediary organization or the department of education.

VI. ECEA funds shall not be refunded, rebated, or shared with a parent or pre-kindergarten EFA student in any manner. Any refund or rebate for goods or services purchased with ECEA funds shall be credited directly to the student's ECEA.

VII. Parents may make payments for the costs of childcare and educational goods and services not covered by the funds in their child's ECEA. However, personal deposits into an ECEA shall not be permitted.

VIII. Funds deposited in a ECEA shall not constitute taxable income to the parent or the ECEA child.

IX. An ECEA shall remain in force, and any unused funds shall roll over from quarter-to-quarter and from year-to-year until the parent withdraws the ECEA child from the program, or an ECEA converts to an EFA pursuant to RSA 194-F upon entering kindergarten, unless the EFA is closed because of a substantial misuse of funds. Any unused funds shall revert to the education trust fund established in RSA 198:39 and be available to fund other EFAs.

X. Nothing in this subdivision shall require that an ECEA child must be enrolled, full or part-time, with either a licensed childcare provider, family childcare provider, or private school.

XI. If any provision of this subdivision, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this subdivision which can be given effect without the invalid provision or application, and to this end the provisions of this subdivision are declared to be severable.

XII. For the fiscal year ending June 30, 2025, and every fiscal year thereafter, the amount necessary to fund the grants under this section is hereby appropriated to the department from the education trust fund established in RSA 198:39. If the balance in the education trust fund is less than zero, the governor is authorized to draw a warrant for sufficient funds to eliminate such deficit out of any money in the treasury not otherwise appropriated. The commissioner of the department of administrative services shall inform the fiscal committee and the governor and council of such balance. This reporting shall not in any way prohibit or delay the distribution of grants under this section.

194-F:14 Rulemaking.

I. The commissioner of the department of education, in collaboration with the commissioner of the department of health and human services, shall:

(a) Develop a detailed, publicly available rubric for approving quality pre-kindergarten programs eligible for funding under this subdivision, in line with the Early Learning New Hampshire standards. The departments shall consult with a variety of stakeholders, including families, when developing the standards and benchmarks of a quality pre-kindergarten program.

(b) Develop a technical assistance and monitoring program of pre-kindergarten programs receiving funding under this subdivision. Monitoring and technical assistance shall focus on the standards and benchmarks of quality approved under this subdivision.

(c) Identify the variety of federal, state, and private funding streams to be used in the implementation of this subdivision and how these various funding streams will be combined to fund pre-kindergarten under this subdivision.

(d) Identify the stackable versus exclusionary grants per student available for ECEA eligible students.

(e) Collaborate to leverage all available funds at the child level to support pre-kindergarten.

(f) Develop outcome measures for pre-kindergarten programs receiving funding under this subdivision.

(g) Build off work done by New Hampshire's preschool development grant and Kindergarten Entry Assessment when designing, implementing, and monitoring the availability of pre-kindergarten in New Hampshire.

II. The commissioner of the department of education shall, in collaboration with the department of health and human services, approve programs eligible for funding that meet the requirements of the rubric established in subparagraph I(a).

III. The departments shall prioritize special education services, as well as regions where access to quality pre-school programs or Pre-K services is limited when designing, implementing, and monitoring this subdivision.

IV. The commissioner of the department of education, in collaboration with the department of health and human services, shall adopt rules under RSA 541-A to implement the provisions of this subdivision.

V. The commissioner of the department of education shall submit a report every 2 years, with the initial report due by September 1, 2026, and subsequent reports due on September 1 in even numbered years thereafter, to the governor, speaker of the house, president of the senate, and the chairs of the house and senate education committees. The report shall:

(a) Detail the grants provided under this subdivision, the localities and districts, the duration of the program, and a summary report of students and families served.

(b) Highlight high-performing programs, including those that have improved student and family outcomes.

(c) Provide descriptions and analysis of practices that contributed to the improvements described in paragraph II.

(d) Provide information on the development of the report, to include information solicited from pre-kindergarten programs, with descriptions and explanations of strategies, services, and programs that they have implemented, and evidence demonstrating their effectiveness.

(e) Include specific requests and outlines of legislative action needed, including budget requests.

(f) Summarize non-identifiable demographic and economic data on grant recipients.

4 Effective Date. This act shall take effect July 1, 2024.