House Bill No. 6867 establishes the Universal Preschool Endowment (UPE) to fund preschool programs for children aged three to five, particularly those not eligible for kindergarten. The endowment will receive funds from various sources, including public and private contributions, grants, and unappropriated surpluses from the General Fund. For the fiscal year ending June 30, 2025, up to $300 million may be transferred to the UPE, with the entire surplus transferred in subsequent years, contingent on the Budget Reserve Fund's status. The bill also repeals and replaces certain sections of existing law to formally recognize the UPE as a trust fund, ensuring that the funds are not considered state property and that the state has no financial obligations related to it.

The bill outlines the responsibilities of the state treasurer in managing the UPE, including investing its funds separately from other state investments and entering into contracts for necessary services. It prohibits the treasurer from requiring the endowment to invest in government obligations or other funds under his administration, instead mandating that the endowment's assets be continuously invested in alignment with its objectives. The treasurer's investments will be subject to the same oversight as other funds managed by the treasurer, enhancing accountability. Overall, the legislation aims to improve preschool accessibility through a structured financial framework while ensuring prudent management of the endowment's resources.

Statutes affected:
Governor's Bill: 3-13c
ED Joint Favorable Change of Reference: 3-13c
APP Joint Favorable: 3-13c
File No. 858: 3-13c