(a) The state, acting by and in the discretion of the Commissioner of Social Services or the Commissioner of Early Childhood, as appropriate, may enter into a contract with a municipality or a qualified private, nonprofit corporation for state financial assistance for the planning, construction, renovation, site preparation and purchase of improved or unimproved property as part of a capital development project for neighborhood facilities. Such facilities may include, but need not be limited to, child care centers, elderly centers, multipurpose human resource centers, emergency shelters for the homeless and shelters for victims of domestic violence. The financial assistance shall be in the form of state grants-in-aid equal to (1) all or any portion of the cost of such capital development project if the grantee is a qualified private nonprofit corporation, or (2) up to two-thirds of the cost of such capital development project if the grantee is a municipality, as determined by the Commissioner of Social Services or the Commissioner of Early Childhood, as appropriate.

(b) The state, acting by and in the discretion of the Commissioner of Early Childhood, may enter into a contract with a municipality, a group child care home or family child care home, as described in § 19a-77, a human resource development agency or a nonprofit corporation for state financial assistance in developing and operating child care centers, group child care homes and family child care homes for children disadvantaged by reasons of economic, social or environmental conditions, provided no such financial assistance shall be available for the operating costs of any such child care center, group child care home or family child care home unless it has been licensed by the Commissioner of Early Childhood pursuant to § 19a-80. Such financial assistance shall be available for a program of a municipality, of a group child care home or family child care home, of a human resource development agency or of a nonprofit corporation which may provide for personnel, equipment, supplies, activities, program materials and renovation and remodeling of the physical facilities of such child care centers, group child care homes or family child care homes. Such contract shall provide for state financial assistance, within available appropriations, in the form of a state grant-in-aid (1) for a portion of the cost of such program, as determined by the Commissioner of Early Childhood, if not federally assisted, (2) equal to one-half of the amount by which the net cost of such program, as approved by the Commissioner of Early Childhood, exceeds the federal grant-in-aid thereof, or (3) in an amount not less than (A) the per child cost as described in subdivision (1) of subsection (b) of § 10-16q, for each child in such program that is three or four years of age and each child that is five years of age who is not eligible to enroll in school, pursuant to § 10-15c, while maintaining services to children under three years of age under this section, and (B) thirteen thousand five hundred dollars for each child three years of age or under who is in infant or toddler care and not in a preschool program. Any such contract entered into on or after July 1, 2022, shall include a provision that at least sixty per cent of the children enrolled in such child care center, group child care home or family child care home are members of families that are at or below seventy-five per cent of the state median income. For the fiscal year ending June 30, 2024, and each fiscal year thereafter, the amount per child pursuant to subdivision (3) of this subsection that is over the amount of the per child cost that was prescribed pursuant to the contract under said subdivision (3) for the fiscal year ending June 30, 2023, shall be used exclusively to increase the salaries of early childhood educators employed at the child care center. The Commissioner of Early Childhood may authorize child care centers, group child care homes and family child care homes receiving financial assistance under this subsection to apply a program surplus to the next program year. The Commissioner of Early Childhood shall consult with directors of child care centers in establishing fees for the operation of such centers. For the fiscal year ending June 30, 2023, the Commissioner of Early Childhood shall, within available appropriations, enter into contracts under this section for the purpose of expanding the number of spaces available to children three years of age or under who are in infant or toddler care and not in a preschool program.

(c) The Office of Early Childhood, in consultation with representatives from child care centers, group child care homes and family child care homes, within available appropriations, shall develop guidelines for programs provided at state-contracted child care centers, group child care home and family child care homes. The guidelines shall include standards for program quality and design and identify short and long-term outcomes for families participating in such programs. The Office of Early Childhood, within available appropriations, shall provide a copy of such guidelines to each state-contracted child care center, group child care home and family child care home. Each state-contracted child care center, group child care home and family child care home shall use the guidelines to develop a program improvement plan for the next twelve-month period and shall submit the plan to the Office of Early Childhood. The plan shall include goals to be used for measuring such improvement. The Office of Early Childhood shall use the plan to monitor the progress of such child care center, group child care home or family child care home.

(d) The state, acting by and in the discretion of the Commissioner of Early Childhood, may enter into a contract with a municipality, a group child care home or family child care home, a human resource development agency or a nonprofit corporation for state financial assistance for a project of renovation of any child care center, group child care home or family child care home receiving assistance under this section, to make such center accessible to persons with physical disabilities, in the form of a state grant-in-aid equal to (1) the total net cost of the project, as approved by the Commissioner of Early Childhood, or (2) the total amount by which the net cost of the project, as approved by the Commissioner of Early Childhood, exceeds the federal grant-in-aid thereof.

(e) Any municipality, group child care home or family child care home, human resource development agency or nonprofit corporation that enters into a contract pursuant to this section for state financial assistance for a child care center, group child care home or family child care home shall have sole responsibility for the development of the budget of the program provided at such child care center, group child care home or family child care home, including, but not limited to, personnel costs, purchases of equipment, supplies, activities and program materials, within the resources provided by the state under such contract. Upon local determination of a change in the type of child care services required in the area, a municipality, group child care home or family child care home, human resource development agency or nonprofit corporation may, within the limits of its annual budget and subject to the provisions of this subsection and sections 19a-77 to 19a-80, inclusive, and 19a-82 to 19a-87a, inclusive, change its child care service. An application to change the type of child care service provided shall be submitted to the Commissioner of Early Childhood. Not later than forty-five days after the Commissioner of Early Childhood receives the application, the Commissioner of Early Childhood shall advise the municipality, human resource development agency or nonprofit corporation of the Commissioner of Early Childhood’s approval, denial or approval with modifications of the application. If the Commissioner of Early Childhood fails to act on the application not later than forty-five days after the application’s submittal, the application shall be deemed approved.

(f) The Commissioner of Early Childhood may (1) with the approval of the Secretary of the Office of Policy and Management, authorize the expenditure of such funds for the purposes of this section as shall enable the Commissioner of Early Childhood to apply for, qualify for and provide the state’s share of federally assisted child care services, and (2) expend an amount not to exceed two per cent of the amount appropriated for purposes of this section in a manner consistent with the provisions of § 10-509.

(g) For the fiscal years ending June 30, 2022, and June 30, 2023, the Office of Early Childhood shall permit any family that meets the eligibility requirements described in subdivision (1) or (2) of subsection (a) of § 17b-749 or subdivision (2) of subsection (d) of § 17b-749 to participate in a program provided at a state-contracted child care center under this section.