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sSB514 / File No. 699 1
General Assembly File No. 699
February Session, 2026 Substitute Senate Bill No. 514
Senate, April 20, 2026
The Committee on Finance, Revenue and Bonding reported
through SEN. FONFARA of the 1st Dist., Chairperson of the
Committee on the part of the Senate, that the substitute bill
ought to pass.
AN ACT CONCERNING COMMUNITY PARTNERSHIP OPPORTUNITY
AGREEMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) As used in this section: 1
(1) "Certified community development corporation" has the same 2
meaning as provided in section 32-7s of the general statutes; 3
(2) "Community partnership opportunity agreement" means a 4
written agreement entered into pursuant to this section among the 5
Department of Economic and Community Development, participating 6
investors, certified community development corporations and 7
implementing organizations and independent evaluators to implement 8
the provisions of this section; 9
(3) "Early childhood implementing organization" means any school 10
or for-profit or nonprofit organization, with the professional capacity to 11
provide preschool or early childhood instruction designed to increase 12
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kindergarten-readiness; 13
(4) "Implementing organization" means an early childhood 14
implementing organization, a literacy implementing organization or a 15
workforce implementing organization, as applicable, that is responsible 16
for delivering services or interventions to achieve the performance 17
metrics set forth in a community opportunity partnership agreement; 18
(5) "Independent evaluator" means an individual or entity that is 19
responsible for measuring performance metrics and progress milestones 20
using methodologies set forth in a community opportunity partnership 21
agreement and verifying that such metrics and milestones have been 22
met and (A) is an academic institution, a professional evaluative 23
consultant or an organization with a documented history of verifying 24
performance-based program outcomes, (B) possesses expertise in the 25
specific subject matter of the community opportunity partnership 26
agreement, including educational assessment metrics or workforce 27
development metrics or both, and (C) has no financial interest in the 28
outcome of the agreement other than the fee for evaluation services; 29
(6) "Literacy implementing organization" means any school or for -30
profit or nonprofit organization, with the professional capacity to 31
provide intensive tutoring or reading interventions designed to ensure 32
grade-level reading proficiency by grade three; 33
(7) "Participating investor" means a private, philanthropic or mission-34
driven investor that provides the necessary capital to fund the initiatives 35
set forth in a community opportunity partnership agreement; and 36
(8) "Workforce implementing organization" means an institution of 37
higher education or a for -profit or nonprofit organization, with the 38
capacity to provide training in specialized skills, such as in health care, 39
manufacturing or other high-demand fields. 40
(b) (1) There is established a program under which the Department 41
of Economic and Community Development shall enter into community 42
partnership opportunity agreements to expand, in communities in the 43
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state that are experiencing persistent economic disadvantages, (A) 44
educational achievement, pursuant to an educational outcome 45
community partnership opportunity agreement, or (B) workforce skills, 46
pursuant to a workforce outcome community partnership opportunity 47
agreement, or both. Upon verification by the independent evaluator that 48
all the performance metrics set forth in the community partnership 49
opportunity agreement have been met, each participating investor shall 50
receive a repayment of the amount of invested capital, plus a 51
performance-based premium in accordance with the terms of the 52
community partnership opportunity agreement. 53
(2) Each community partnership opportunity agreement shall 54
include, at a minimum: 55
(A) A five-year performance period from the date such agreement is 56
executed that includes an implementation period during which 57
interventions are delivered, an outcome measurement period during 58
which performance metrics are evaluated by an independent evaluator 59
and the timing of baseline and performance progress measurements; 60
(B) Performance metrics and progress milestones, evaluation 61
methodologies to measure such metrics and milestones and the timing 62
of the conduct of evaluations; 63
(C) The participating investors and the amount of capital committed 64
by such investors; 65
(D) The certified community development corporation that will serve 66
as the coordinator of the initiatives undertaken to achieve the 67
performance metrics and progress milestones and the fee for such 68
services; 69
(E) The implementing organization or organizations that will carry 70
out such initiatives and the fee for such services; 71
(F) The independent evaluator that will conduct evaluations of 72
performance metrics and progress milestones and verify that the 73
performance metrics have been met and the fee for such services; and 74
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(G) A success payment contract that sets forth a schedule of success 75
payments to participating investors, contingent on achievement of the 76
performance metrics set forth in the agreement, including repayment of 77
the amount of invested capital, a performance -based premium on such 78
amount and the maximum success payment obligation under the 79
agreement. Success payments shall be recognition of the acquisition of 80
a high-yield economic asset upon the achievement of the performance 81
metrics and of the projected lifetime value of such achievements to the 82
state. Any success payment shall be made by the Commissioner of 83
Economic and Community Development as an authorized capital 84
expenditure. 85
(3) In addition to the requirements set forth in subdivision (2) of this 86
subsection: 87
(A) An education outcome community partnership opportunity 88
agreement shall focus on achieving measurable improvements in 89
kindergarten-readiness and grade three reading proficiency for children 90
residing in the community serviced by the certified community 91
development corporation. Such agreement shall include (i) for 92
kindergarten-readiness, performance metrics based on an increase in 93
the percentage of such children who meet the state's standard for 94
kindergarten-readiness upon enrollment, and (ii) for grade three 95
literacy-proficiency, performance metrics based on an increase in the 96
percentage of such children, regardless of the specific school attended, 97
who achieve grade-level reading proficiency by grade three; and 98
(B) A workforce outcome community partnership opportunity 99
agreement shall focus on increasing workforce skills attainment and 100
career-linked employment for working-age residents of the community 101
serviced by the certified community development corporation. Such 102
agreement shall include performance metrics such as industry -103
recognized credential attainment and placement in career -path 104
employment with specific wage and retention milestones. 105
(4) Any community partnership opportunity agreement executed 106
pursuant to this section may be amended only by written agreement by 107
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all parties to the community partnership opportunity agreement. 108
(c) (1) Each certified community development corporation shall 109
submit a proposal to the Commissioner of Economic and Community 110
Development to enter into a community partnership opportunity 111
agreement. The commissioner shall assist the certified community 112
development corporation in the preparation of such proposal, which 113
shall include the names and contact information of the other parties 114
required for a community partnership opportunity agreement and 115
sufficient information to demonstrate the following to the 116
commissioner's satisfaction: 117
(A) The implementing organizations possess the necessary 118
experience in delivering evidence -based interventions in early 119
childhood education, literacy or workforce development, as applicable, 120
in distressed municipalities, as defined in section 32 -9p of the general 121
statutes; 122
(B) The proposed intervention model is designed to reach a minimum 123
participation threshold of not less than (i) twenty per cent of children 124
grade three and younger residing in the community serviced by the 125
certified community development corporation, and (ii) twenty per cent 126
of the working-age residents of such community; 127
(C) The proposed intervention model demonstrates a reasonable 128
probability of achieving the applicable agreed -upon performance 129
metrics; 130
(D) Verified commitments of sufficient capital from participating 131
investors to fund the full five -year duration of the performance period 132
without reliance on state appropriations; and 133
(E) The proposed outcomes for kindergarten -readiness, grade three 134
literacy and workforce employment are clearly linked to the 135
longitudinal success of the resident populations in the community 136
serviced by the certified community development corporation. 137
(2) If the commissioner finds that the proposal meets the criteria set 138
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forth in subdivision (1) of this subsection, the commissioner shall 139
execute a community partnership opportunity agreement not later than 140
ninety days after the commissioner receives the proposal. If the 141
commissioner determines such requirements have not been met, the 142
commissioner shall provide a written notice to the person submitting 143
the proposal, identifying the specific requirements that were not met. 144
(d) Upon the execution of a community partnership opportunity 145
agreement, the certified community development corporation may do 146
all things necessary to meet the performance metrics and progress 147
milestones set forth in the agreement, including, but not limited to, 148
collaborating with the implementing organization, independent 149
evaluator and state agencies to measure achievement of such metrics 150
and milestones; collaborating with early childhood education providers, 151
schools and other educational institutions, employers, workforce 152
development organizations and any other entities necessary to help 153
achieve such metrics and milestones; and engaging with participating 154
investors. 155
(e) There is established an account to be known as the " community 156
partnership opportunity account", which shall be a separate, nonlapsing 157
account. The account shall contain any moneys required by law to be 158
deposited in the account. Moneys in the account shall be expended by 159
the Commissioner of Economic and Community Development for the 160
purposes of making payments for the necessary expenses related to the 161
initiatives implemented to achieve the performance metrics and 162
progress milestones set forth in a community opportunity partnership 163
agreement and evaluation of such metrics and milestones and making 164
success payments in accordance with the provisions of a community 165
opportunity partnership agreement. Any moneys provided by a 166
participating investor pursuant to a community opportunity 167
partnership program under this section shall be deposited in the 168
account. The Treasurer shall invest the moneys in the account, subject 169
to use for purposes of the program. 170
(f) The commissioner shall submit a report, in accordance with the 171
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provisions of section 11 -4a of the general statutes, to the joint standing 172
committees of the General Assembly having cognizance of matters 173
relating to commerce and finance, revenue and bonding for each 174
community opportunity partnership agreement executed. Such report 175
shall be submitted for each year of the five-year period of the agreement, 176
describing the results of any performance metrics or performance 177
progress evaluations conducted in such year and a summary by the 178
certified community development corporation of the initiatives 179
undertaken in such year. 180
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Statement of Legislative Commissioners:
In Subsec. (a)(1), "32-7z" was changed to "32-7s" for accuracy; in Subsec.
(b)(1), "participation investor" was changed to "participating investor"
for accuracy; and in Subsec. (b)(3)(A), "literacy-readiness" was changed
to "literacy-proficiency" for accuracy.
FIN Joint Favorable Subst. -LCO
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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Department of Economic &
Community Development
GF - Cost 103,000 103,000
State Comptroller - Fringe
Benefits1
GF - Cost 43,100 43,100
Department of Economic &
Community Development
Community
partnership
opportunity
account -
Revenue
Gain/Cost
Potential Potential
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill results in a cost of $ 146,100 in FY 27 and annually thereafter
by creating a community partnership opportunity program under the
Department of Economic and Community Development (DECD). It is
anticipated that DECD will require one full -time community
development specialist at an annualized cost of $103,000 in salary and
$43,100 in fringe benefits to administer the program.
The bill also results in a potential revenue gain and potential cost by
creating a “community partnership opportunity" account. The revenue
gain includes the funding received from participating investors in the
1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
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program which, under the bill, is deposited into the account . The bill
also requires the state treasurer to invest those funds in the account for
use in the program.
The revenues in the account are to be used to finance the costs
associated with the program including : (1) implementing the specified
initiatives, (2) evaluating their performance, and (3) making the success
payments.
The actual fiscal impact will be contingent on the number of
agreements and specifics within the agreement.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number and specifics within each
community partnership opportunity agreement.
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OLR Bill Analysis
sSB 514
AN ACT CONCERNING COMMUNITY PARTNERSHIP
OPPORTUNITY AGREEMENTS.
SUMMARY
This bill creates a program within the Department of Economic and
Community Development (DECD ) designed to increase educational
achievement and workforce skills in communities experiencing
persistent economic disadvantages through partnerships between
DECD and specified stakeholders (participating investors, certified
community development corpora tions (CDCs , see BACKGROUND),
service providers, and independent evaluators). These partnerships are
commonly referred to as social impact bonds.
Under the bill, DECD and these stakeholders must enter into
“community partnership opportunity agreements” under which
participating investors commit capital to fund specified education and
workforce development programs offered by eligible service providers.
The programs are tied to specific performance outcomes over a five-year
period and their progress must be measured by an independent
evaluator. If the programs achieve the performance metrics outlined in
the agreement, invest ors are repaid their invest ment plus a
performance-based premium, in the form of a “success payment” from
DECD.
Under the bill, a community partnership opportunity agreement
must first be proposed by a certified CDC and then approved by DECD
if it meets the bill’s criteria. The bill sets specific requirements for these
agreements, including that they have (1) a five -year performance
period; (2) performance metrics, progress milestones, and evaluation
methodologies; and (3) a success payment contract.
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The bill also establishes the community partnership opportunity
account as a separate, nonlapsing account to hold any moneys the law
requires to be deposited in it. Under the bill, any funds participating
investors provide must be deposited in the account. DECD must use the
account to fund the program and specifically to pay for (1)
implementing the specified initiatives, (2) evaluating their performance,
and (3) making the success payments. The state treasurer must invest
the moneys in the account subject to use for the program’s purposes.
Lastly, the DECD commissioner must annually report to the Finance,
Revenue and Bonding Committee on each of these agreements, for each
year of the agreement’s five-year period. For each year, the reports must
describe the results of any performance metrics or progress evaluations
done and summarize the certified CDC’s initiatives.
EFFECTIVE DATE: Upon passage
COMMUNITY PARTNERSHIP OPPORTUNITY AGREEMENTS
Required Components for All Agreements
Under the bill, the community partnership opportunity agreements
must at least include the following:
1. a five-year performance period that begins when the agreement
is executed and includes (a) specified periods for delivering
services and measuring outcomes and (b) when baseline
performance and progress is measured;
2. performance metrics and progress milestones, including how
and when they are evaluated;
3. participating investors, which can include private, philanthropic,
or mission-driven investors, and their capital commitment;
4. the certified CDC that will coordinate the agreement’s initiatives
to achieve its specified performance metrics and progress
milestones, and the fee for these services;
5. the implementing organization, as described below, and the fee
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for its services;
6. the independent evaluator, which will evaluate the performance
metrics and progress milestones and verify that they have been
met, and the fee for its services; and
7. a success payment contract, as described below.
Any amendments to these agreements must be agreed to, in writing,
by all the parties.
Requirements for Education Outcome Agreements
These agreements must focus on achieving measurable
improvements in kindergarten -readiness and grade -three reading
proficiency for children living in the community the certified CDC
serves. They must include performance metrics for:
1. kindergarten-readiness that are based on increasing the
percentage of these children who meet the state’s standard for
kindergarten-readiness at enrollment and
2. grade three literacy proficiency that are based on increasing the
percentage of these children achieving grade -level reading
proficiency by grade three, regardless of which school they
attend.
Requirements for Workforce Outcome Agreements
These agreements must focus on increasing workforce skills
attainment and career -linked employment for working -age people
living in the community the certified CDC serves. They must include
performance metrics like industry -recognized credential attainment
and placement in career -path jobs with specific wage and retention
milestones.
Implementing Organizations
Under the bill, implementing organizations are responsible for
delivering the services or interventions to achieve the community
partnership agreement’s performance metrics. They can be one of three
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types:
1. an “early childhood implementing organization,” which is any
school or for -profit or nonprofit organization with the
professional capacity to provide preschool or early childhood
instruction designed to increase kindergarten-readiness;
2. a “literacy implementing organization,” which is any school, for-
profit, or nonprofit organization with the professional capacity to
provide intensive tutoring or reading interventions for ensuring
grade-level reading proficiency by grade three; or
3. a “workforce implementing organization,” which is a higher
education institution or for -profit or nonprofit organization
capable of providing training in specialized skills, such as health
care, manufacturing, or other high-demand fields.
Independent Evaluator
An “independent evaluator” is the person or entity responsible for
measuring performance metrics and progress milestones using the
methods laid out in the agreement and verifying that they have been
met. It may be an academic institution, professional cons ultant, or
organization with a documented history of verifying performance -
based program outcomes. It must have expertise in the agreement’s
specific subject matter and may not have a financial interest in the
agreement’s outcome, other than the fee for its evaluation services.
Success Payment Contract
The agreement’s success payment contract must establish a schedule
of success payments to participating investors that are contingent on the
agreement achieving its performance metrics. The schedule must
include the repayment of the investors’ capital, a p erformance-based
premium on that amount, and the maximum success payment
obligation. The bill specifies that these payments are to recognize the (1)
acquisition of a high-yield economic asset once the performance metrics
are achieved and (2) projected life time value of these achievements to
the state.
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Under the bill, the DECD commissioner must make these payments
as authorized capital expenditures. The legal effect of this provision is
unclear.
PROPOSALS
The bill requires each certified CDC to submit a proposal to the
DECD commissioner to enter into a community partnership
opportunity agreement that includes the names and contact information
of the agreement’s other required stakeholders. The commissioner must
help the CDC prepare the proposal.
The proposal must include enough information to demonstrate, to
the commissioner’s satisfaction, that:
1. the implementing organizations have the necessary experience in
delivering the applicable evidence -based interventions in
distressed municipalities (see BACKGROUND);
2. the proposed intervention model is designed to reach at least 20%
of the people living in the community the certified CDC serves
that are (a) children grade three or younger or (b) working -age
residents;
3. the proposed intervention model demonstrates a reasonable
probability of achieving the applicable performance metrics;
4. participating investors have made verified commitments of
enough capital to fund the full five -years of the agreement’s
performance period without relying on state appropriations; and
5. the proposed outcomes are clearly linked to the longitudinal
success of the people living in the community.
The commissioner must execute the agreement within 90 days after
receiving the proposal if he finds that it meets the bill’s criteria. If he
determines that it does not meet these criteria, he must notify the person
who submitted the proposal in writing and identify the unmet
requirements.
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Once an agreement is executed, the certified CDC may do anything
necessary to meet its performance metrics and progress milestones. This
may include (1) collaborating with the implementing organization,
independent evaluator, and state agencies to measure these metrics and
milestones; (2) collaborating with other entities (such as early childhood
education providers, schools, employers, and workforce development
organizations) needed to help achieve the metrics and milestones; and
(3) engaging with participating investors.
BACKGROUND
CDC Certification Process and Grant Eligibility
Existing law allows nonprofits that meet certain eligibility
requirements to become certified CDCs by applying to DECD’s Office
of Community Economic Development Assistance (OCEDA). To date,
DECD has certified one CDC under this program, the Clay Arsenal
CDC.
To be a certified CDC, the nonprofit must:
1. focus a substantial majority of its efforts on serving one or more
target areas, as described below,
2. have the purpose of engaging and working with local residents
and businesses on community development efforts to
sustainably develop and improve urban communities in a way
that creates and expands economic opportunities for low - and
moderate-income people, and
3. show OCEDA that its constituency is meaningfully represented
on its board in specified ways.
A “target area” is a contiguous geographic area in which the (1)
current unemployment rate exceeds the state’s by at least 25% or (2)
mean household income is 80% or less of the state’s in the most recent
decennial census. OCEDA must identify the eligible target areas and
post them on DECD’s website.
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Distressed Municipalities
DECD annually ranks municipalities based on their relative
economic and fiscal distress and designates the top 25 as “distressed
municipalities.” Most recently, in 2025, DECD designated the following
municipalities as distressed: Bridgeport, Derby, East Ha rtford, East
Haven, Hartford, Killingly, Lisbon, Mansfield, Meriden, New Britain,
New London, North Canaan, Norwich, Plainfield, Plymouth, Putnam,
Sprague, Stafford, Sterling, Torrington, Waterbury, West Haven,
Willington, Winchester, and Windham.
Related Bill
sSB 84, § 33, favorably reported by the Finance, Revenue and Bonding
Committee, contains identical provisions.
sSB 307 (File 561), favorably reported by the Commerce Committee,
eliminates OCEDA and transfers its responsibilities to DECD.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable
Yea 52 Nay 2 (03/30/2026)