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A00711 Summary:

BILL NOA00711
 
SAME ASSAME AS S01709
 
SPONSORClark
 
COSPNSRHevesi, Seawright, Gonzalez-Rojas, Jackson, Simon, Davila, Zinerman, Lupardo, Kelles, Gallagher, Stirpe, McMahon, Magnarelli, Bronson, Maher, Zaccaro, Bichotte Hermelyn
 
MLTSPNSR
 
Amd §§410-x & 410-z, Soc Serv L
 
Requires the office of children and family services to utilize a cost estimation model when determining the actual cost providers incur when providing child care; requires the office to prepare a report detailing such.
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A00711 Actions:

BILL NOA00711
 
01/08/2025referred to children and families
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A00711 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A711
 
SPONSOR: Clark
  TITLE OF BILL: An act to amend the social services law, in relation to implementing a cost estimation model for child care   SUMMARY OF PROVISIONS: Section 1 would require the Office of Children and Family Services (OCFS) to utilize a cost estimation model to determine the actual costs of providing day care in each setting, age group and for each level of quality provided. Section 2 would require OCFS to issue a one-time report to the Governor, the Speaker of the Assembly and the Temporary President of the Senate detailing the results of the cost estimation conducted pursuant to section 1. Section 3 would set an immediate effective date.   JUSTIFICATION: Every two years the Office of Children and Family Services (OCFS) conducts a market rate survey among licensed, registered and legally-ex- empt child care providers. The survey collects data on what child care providers are charging for child care. The data collected is then used to set a payment rate to providers for subsidized care. While useful in setting rates, the market rate survey does not necessarily reflect the actual costs of providing child care. Child care providers have many fixed costs such as maintaining adequate staff, complying with building codes as well as regulatory and licensing requirements; yet they can only charge what the market is willing to pay. When corresponding subsi- dy rates are not high enough, the quality of child care sometimes suffers as providers struggle to make ends meet. This bill would require that a cost estimation model be utilized for each category of care for which a market rate is determined. A cost estimation model can provide valuable data on the actual cost of provid- ing child care, not just what price is charged to parents. Such informa- tion can then be used to determine the adequacy of the rate paid to providers, as well as inform policy decisions to ensure child care providers remain stable. Therefore, this legislation is one step forward in creating a more robust and better quality child care system.   FISCAL IMPACT ON THE STATE: TBD   LEGISLATIVE HISTORY: 2023-24: A.1885 (Clark) - Referred to Ways and Means 2021-22: A.7468-A (Clark) - Referred to Ways and Means 2019-20: A.580 (Jaffee) - Vetoed by Governor 2017-18: A.290 (Jaffee) - Passed Assembly 2015-16: A.9900-A (Jaffee) - Passed Assembly   EFFECTIVE DATE: This act would take effect immediately.
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A00711 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           711
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 8, 2025
                                       ___________
 
        Introduced  by  M. of A. CLARK, HEVESI, SEAWRIGHT, GONZALEZ-ROJAS, JACK-
          SON, SIMON, DAVILA,  ZINERMAN,  LUPARDO,  KELLES,  GALLAGHER,  STIRPE,
          McMAHON,  MAGNARELLI,  BRONSON,  MAHER,  ZACCARO, BICHOTTE HERMELYN --
          read once and referred to the Committee on Children and Families

        AN ACT to amend the social services law, in relation to  implementing  a
          cost estimation model for child care
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 410-x of the social  services  law  is  amended  by
     2  adding a new subdivision 5-a to read as follows:
     3    5-a.  (a)  For  each group for which the office of children and family
     4  services determines a separate payment rate pursuant to subdivision four
     5  of this section, and at the same frequency, such office shall utilize  a
     6  cost  estimation model to determine the actual cost providers incur when
     7  providing child care. The cost estimation model shall identify and  take
     8  into  account  cost drivers including but not limited to employee salary
     9  and benefits, enrollment levels,  facility  costs  and  compliance  with
    10  statutory and regulatory requirements.  Where a quality rating system or
    11  any  quality  indicators  are  being utilized, the cost estimation model
    12  shall also take into account the cost  of  providing  services  at  each
    13  level of quality.
    14    (b)  In  developing  such  model  the  office  of  children and family
    15  services shall consult with stakeholders including, but not limited  to,
    16  representatives of child care resource and referral agencies, child care
    17  providers  and  any  state  advisory  council established pursuant to 42
    18  U.S.C.S. § 9831 et. seq., as amended. The cost estimation model shall be
    19  statistically valid,  using  complete  and  current  data  and  rigorous
    20  collection methods.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02587-02-5

        A. 711                              2
 
     1    §  2. Section 410-z of the social services law, as added by section 52
     2  of part B of chapter 436 of the laws of 1997,  is  amended  to  read  as
     3  follows:
     4    §  410-z.  Reporting  requirements.  1.  Each social services district
     5  shall collect and submit to the  [department]  office  of  children  and
     6  family  services,  in  such  form and at such times as  specified by the
     7  [department] office of children  and  family  services,  such  data  and
     8  information  regarding  child   care assistance provided under the block
     9  grant as the [department] office of children  and  family  services  may
    10  need to comply with federal reporting requirements.
    11    2.  The  office of children and family services shall prepare a report
    12  detailing the actual cost providers incur when providing child  care  in
    13  each  setting, as determined by the cost estimation model established in
    14  paragraph (a) of subdivision five-a of section  four  hundred  ten-x  of
    15  this  title.    The  report shall detail cost data for each setting, age
    16  group, care provided to children  with  special  needs,  and  any  other
    17  grouping  for  which a separate cost estimation is conducted.  Such data
    18  shall include:
    19    (a) the level of quality care as determined by a quality rating system
    20  or any quality indicators utilized by the state;
    21    (b) a description of the major cost drivers for providing care; and
    22    (c) a comparison of the costs of child care for each grouping  to  the
    23  market  rate  determined  by  the office of children and family services
    24  pursuant to subdivision four of  section  four  hundred  ten-x  of  this
    25  title.
    26    The  report  shall  be  submitted  to the governor, the speaker of the
    27  assembly and the temporary president of the senate by  June  first,  two
    28  thousand  twenty-seven. The office of children and family services shall
    29  post the information contained in the report on its website.
    30    § 3. This act shall take effect immediately.
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