Early Childhood Local System Consolidation

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.)