HOUSE 3rd Reading Unamended April 22, 2015 HOUSE Amended 2nd Reading April 17, 2015First Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED CORRECTED ENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 15-0508.01 Julie Pelegrin x2700 HOUSE BILL 15-1001 HOUSE SPONSORSHIP Pettersen and Garnett, SENATE SPONSORSHIP Todd, House Committees Senate Committees Education Appropriations A BILL FOR AN ACT Concerning distribution of moneys for scholarship programs that assist early childhood education professionals in obtaining postsecondary credentials in early childhood education, and, in connection therewith, making an appropriation. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill repeals the early childhood educator development scholarship program that exists within the department of education. The bill creates the early childhood educator development fund (fund) within the department of human services (state department). The fund consists of general fund appropriations and gifts, grants, or donations that the state department may receive. The state department must distribute the moneys in the fund to tax-exempt nonprofit corporations or institutions of higher education (qualifying entities) for scholarship programs to assist early childhood education professionals in obtaining a postsecondary credential in early childhood education. A qualifying entity may apply for a scholarship grant as provided in rules of the state board of human services (state board). The state department will review the applications and make recommendations to the state board. The state board will award scholarship grants to qualifying entities based on criteria established in rules. At a minimum, the state department and the state board must consider whether the qualifying entity's scholarship program aligns with state priorities for professional development for early childhood education professionals. The state department will annually submit a report to the state board, the governor, and the general assembly concerning the use of the moneys in the fund. The state department may enter into a contract or interagency agreement with an entity, including another state agency, to exercise the duties assigned to the state department in the bill. The amount the entity receives cannot exceed the amount of direct and indirect administrative costs that the state department is authorized to expend. The bill creates the department of education administrative cash fund to enable the department of education to accept and receive appropriations of payments for administrative costs that it receives for operating a grant program pursuant to an interagency agreement. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 4 to article 6.5 of title 26 as follows: PART 4 EARLY CHILDHOOD EDUCATOR DEVELOPMENT FUND 26-6.5-401. Definitions. As used in this part 4, unless the context otherwise requires: (1) "Early childhood education professional" means an individual who is employed in the profession of providing early childhood education and an individual who is enrolled in an institution of higher education and pursuing a postsecondary credential leading to certification as an early childhood education teacher or program director. (2) "Institution of higher education" means: (a) A not-for-profit college or university that maintains its primary place of business in the state of Colorado, that offers general baccalaureate degrees in arts and sciences, and that is institutionally accredited on the basis of an on-site review in Colorado by one of the six nationally recognized regional accrediting associations or by an accrediting agency determined by the Colorado commission on higher education to be appropriate to its educational purposes and programs; (b) A state institution of higher education, as defined in section 23-18-102 (10), C.R.S.; or (c) A junior college that is part of a junior college district organized pursuant to article 71 of title 23, C.R.S. (3) "Postsecondary credential" means: (a) A certificate recognized by the department of education or the department of human services that leads to certification as an early childhood education teacher, early childhood special education teacher, or early childhood education program director; or (b) An associate, bachelor's, or higher degree in early childhood education or early childhood special education. (4) "Qualifying entity" means a nonprofit or not-for-profit corporation that holds tax-exempt status under 26 U.S.C. sec. 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, or an institution of higher education. (5) "Scholarship grant" means moneys that the state board awards to a qualifying entity as provided in this part 4. (6) "State board" means the state board of human services created and authorized to act in accordance with section 26-1-107. (7) "State department" means the department of human services created and existing pursuant to section 24-1-120, C.R.S. 26-6.5-402. Scholarship grants - qualifying entities - rules - report. (1) (a) Subject to available appropriations, the state department shall annually accept applications from qualifying entities for scholarship grants. A qualifying entity that receives a scholarship grant must use the grant moneys to provide scholarships for early childhood education professionals and early childhood special education professionals to assist them in attaining a postsecondary credential in early childhood education or early childhood special education. An early childhood education professional or early childhood special education professional who receives a scholarship that is funded by moneys that a qualifying entity receives pursuant to this section must use the scholarship to attend an institution of higher education. (b) After reviewing the applications received, the state department shall recommend to the state board the qualifying entities that should receive scholarship grants and the amount of each grant. Subject to available appropriations, the state board shall annually distribute moneys to qualifying entities, taking into consideration the department's recommendations. (2) The state board shall promulgate rules to establish, at a minimum: (a) The procedures and timelines by which a qualifying entity may apply for a scholarship grant; (b) The criteria that the state department shall apply in reviewing the grant applications and making recommendations to the state board and that the state board shall apply in awarding scholarship grants. At a minimum, the criteria must include: (I) Consideration of whether an applicant's scholarship program or proposed scholarship program aligns with the early childhood education or early childhood special education professional development priorities set by the state department; (II) If the qualifying entity operates a scholarship program at the time of application, its record of success in administering the program; (III) The qualifying entity's ability to leverage additional resources if the scholarship program or proposed scholarship program is funded; and (IV) Evidence that the qualifying entity is capable of successfully implementing the proposed scholarship program, which may include demonstrated experience in administering a scholarship program for early childhood professionals. (c) The information that each qualifying entity that receives a scholarship grant must submit to the state department to enable the state department to prepare the annual program report. (3) For each year that it awards scholarship grants, the state department shall submit to the state board, the governor, and the education committees of the house of representatives and the senate, or any successor committees, a report that includes, at a minimum: (a) The name of each qualifying entity that received a scholarship grant, the amount of each scholarship grant, and the total amount of scholarship grants distributed for the fiscal year; (b) A description of the qualifying entities that received scholarship grants, including the number of early childhood education or early childhood special education professionals who received scholarships from the qualifying entities; the amounts of the scholarships; and the postsecondary credential programs in which the scholarship recipients enrolled; and (c) The total number and type of postsecondary credentials in early childhood education and early childhood special education that were issued for the fiscal year and, of the credentials issued, the number and type that were funded in whole or in part by scholarship grants. 26-6.5-403. Operation of grant program - authority to contract. Notwithstanding any provision of this part 4 to the contrary, the state department may enter into a contract or interagency agreement with a public or private entity, including another state executive branch agency, to perform all or a portion of the state department's duties described in this part 4; except that the state board shall not delegate the duty of awarding scholarship grants as provided in this part 4. An entity with which the state department contracts pursuant to this section must apply the criteria adopted by the state board pursuant to section 26-6.5-402 (2) in reviewing applications and recommending scholarship grant recipients. SECTION 2. In Colorado Revised Statutes, repeal article 9.7 of title 22. SECTION 3. Appropriation. (1) For the 2015-16 state fiscal year, $125,000 is appropriated to the department of human services for use by the division of early care and learning. This appropriation is from the general fund and is based on an assumption that the division will require an additional 0.2 FTE. To implement this act, the division may use the appropriation for grant program administration and scholarship grant awards. (2) For the FY 2015-16 state fiscal year, $11,553 is appropriated to the department of education. This appropriation is from reappropriated funds received from the department of human services under subsection (1) of this section. SECTION 4. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 5, 2015, if adjournment sine die is on May 6, 2015); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.