S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  492--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by M. of A. HEVESI -- read once and referred to the Committee
   on  Children  and  Families  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the state finance law and the social  services  law,  in
   relation  to  establishing a permanent child care workforce pay equity
   fund and the distribution of such fund; and  making  an  appropriation
   therefor
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 97-bbbbb to read as follows:
   §  97-BBBBB. STATEWIDE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND.
 1.  THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE  COMP-
 TROLLER  AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN
 AS THE "PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND".
   2. THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL CONSIST OF
 MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
 OR SOURCE. ANY UNEXPENDED  AND  UNENCUMBERED  MONEYS  REMAINING  IN  THE
 PERMANENT  CHILD  CARE  WORKFORCE PAY EQUITY FUND AT THE END OF A FISCAL
 YEAR SHALL REMAIN IN THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY  FUND
 AND  SHALL  NOT  BE CREDITED TO ANY OTHER FUND. ANY INTEREST RECEIVED BY
 THE COMPTROLLER ON MONEYS ON DEPOSIT IN THE FUND SHALL  BE  RETAINED  IN
 AND BECOME A PART OF SUCH FUND.
   3.  MONEYS OF THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL
 BE MADE AVAILABLE TO THE COMMISSIONER OF  THE  OFFICE  OF  CHILDREN  AND
 FAMILY  SERVICES  FOR  ACTIVITIES  TO  IMPROVE  WORKFORCE CONDITIONS FOR
 EMPLOYEES OF ELIGIBLE CHILD CARE SERVICES  AND  PROGRAMS,  AND  TO  HELP
 ENSURE  ELIGIBLE  PROGRAMS  CAN  OPERATE  AT HIGH QUALITY AND AT MAXIMUM
 CAPACITY. ALLOWABLE USES OF THESE FUNDS MAY INCLUDE, BUT NOT BE  LIMITED
 TO, SALARY INCREASES, WORKFORCE RETENTION BONUSES AND RECRUITMENT BONUS-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01350-02-5
 A. 492--A                           2
 
 ES,  INDIRECT  COSTS  ASSOCIATED  WITH IMPLEMENTING SALARY INCREASES AND
 BONUSES, COSTS ASSOCIATED WITH EMPLOYEE  HEALTH,  AND  FRINGE  BENEFITS.
 MONEYS  AWARDED  TO A PROGRAM IN ACCORDANCE WITH THIS SECTION SHALL MEET
 THE FOLLOWING REQUIREMENTS:
   (A)  NO  LESS THAN SEVENTY-FIVE PERCENT OF MONEYS AWARDED TO A PROGRAM
 FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL BE USED TO
 INCREASE COMPENSATION AND/OR BENEFITS FOR EMPLOYEES IN A DIRECT CAREGIV-
 ING ROLE WITH CHILDREN;
   (B) NO LESS THAN TEN PERCENT OF MONEYS AWARDED TO A PROGRAM  FROM  THE
 PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND SHALL BE USED TO INCREASE
 COMPENSATION AND/OR BENEFITS FOR EMPLOYEES, ADMINISTRATORS, OWNER-OPERA-
 TORS, WHO ARE NOT IN A DIRECT CAREGIVING ROLE WITH CHILDREN; AND
   (C) ALL REMAINING MONEYS AWARDED TO A PROGRAM FROM THE PERMANENT CHILD
 CARE  WORKFORCE  PAY  EQUITY FUND SHALL BE USED AT PROGRAM DISCRETION TO
 SUPPORT THE WORKFORCE, EXPAND  PROGRAM  CAPACITY,  AND  IMPROVE  PROGRAM
 QUALITY.
   4. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL SUBMIT A REPORT TO
 THE  GOVERNOR  AND THE LEGISLATURE BY JANUARY THIRTY-FIRST, TWO THOUSAND
 TWENTY-SIX AND ANNUALLY THEREAFTER DETAILING ALL EXPENDITURES AWARDED TO
 A PROGRAM FROM THE PERMANENT CHILD CARE WORKFORCE PAY EQUITY  FUND,  AND
 THE  OFFICE'S  PRIORITIES  FOR ALLOCATING FUNDS FROM THE PERMANENT CHILD
 CARE WORKFORCE PAY EQUITY FUND.
   5. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION AND  ANNUALLY
 THEREAFTER,  THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ESTABLISH,
 BY REGULATION, A MINIMUM COMPENSATION SCALE FOR THE CHILD CARE WORKFORCE
 THAT IS INCLUSIVE OF ALL MEMBERS OF THE WORKFORCE,  NOT  JUST  THOSE  IN
 DIRECT  CAREGIVING  ROLES WITH CHILDREN, AND IS STRUCTURED TO NOT INTER-
 FERE WITH EXISTING OR FUTURE COLLECTIVE  BARGAINING.  SUCH  COMPENSATION
 SCALE SHALL SEEK TO ELEVATE WAGES OF CHILD CARE EDUCATORS TO PARITY WITH
 THOSE  OF SIMILARLY SITUATED PUBLIC SCHOOL EDUCATORS AND SHALL BE DEVEL-
 OPED IN CONSULTATION WITH THE DEPARTMENT OF LABOR, THE  STATE  EDUCATION
 DEPARTMENT,  UNIONS  REPRESENTING  CHILD  CARE  WORKERS  AND  PROVIDERS,
 MEMBERS OF THE CHILD CARE ADVOCACY  COMMUNITY,  AND  REPRESENTATIVES  OF
 CHILD  CARE  PROGRAMS  OF  ALL  MODALITIES,  FROM  AROUND THE STATE. ALL
 PARTICIPANTS SHALL BE PERMITTED TO REVIEW AND COMMENT ON THE DRAFT MINI-
 MUM COMPENSATION SCALE, WHICH SHALL BE PUBLISHED ANNUALLY, NO LATER THAN
 DECEMBER THIRTY-FIRST IN ANY GIVEN CALENDAR YEAR FOLLOWING  THE  INITIAL
 REPORT.
   6.  TO  BE ELIGIBLE TO BE AWARDED MONEYS FROM THE PERMANENT CHILD CARE
 WORKFORCE PAY EQUITY FUND, A PROGRAM MUST  ACCEPT  FAMILIES  PAYING  FOR
 CHILD  CARE  BY  MEANS OF THE NEW YORK CHILD CARE ASSISTANCE PROGRAM. IN
 ADDITION,  UPON  IMPLEMENTATION  OF  THE  MINIMUM  COMPENSATION   SCALE,
 PROGRAMS  MUST  AGREE  TO MEET THE MINIMUM COMPENSATION REQUIREMENTS AND
 AGREE TO REASONABLE REPORTING REQUIREMENTS REGARDING  THE  USE  OF  SUCH
 FUNDS.
   7. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL MAINTAIN A FORMULA
 FOR  DISTRIBUTING FUNDS TO CHILD CARE PROVIDERS WHICH SHALL GIVE PREFER-
 ENCE TO PROVIDERS THAT SERVE: (I) HIGH NUMBERS OF CHILDREN RECEIVING NEW
 YORK CHILD CARE ASSISTANCE PROGRAM SUBSIDIES; (II) HIGH NUMBERS OF  HIGH
 NEEDS  CHILDREN;  AND (III) UNIQUE POPULATIONS OR THAT OTHERWISE ADVANCE
 THE INTEREST OF THE PROGRAM AS DETERMINED BY THE DEPARTMENT.
   SUCH FORMULA FOR  DISTRIBUTING  FUNDS  SHALL  CONSIDER:  (I)  LICENSED
 CAPACITY  AND ENROLLMENT INCLUDING THE AGES OF THE CHILDREN ENROLLED AND
 THE AGES OF THE CHILDREN FOR WHOM THE PROVIDER HAS  CAPACITY;  PROVIDED,
 HOWEVER, THAT ENROLLMENT SHALL BE MEASURED BY THE DEPARTMENT USING QUAR-
 TERLY  ENROLLMENT  AVERAGES OR, IF DEEMED APPROPRIATE BY THE DEPARTMENT,
 A. 492--A                           3
 
 USING ENROLLMENT AVERAGES THAT ARE MEASURED LESS FREQUENTLY  THAN  QUAR-
 TERLY; (II) COSTS ASSOCIATED WITH EMPLOYEE COMPENSATION, INCLUDING SALA-
 RIES  AND  BENEFITS; (III) THE NUMBER OF ENROLLED CHILDREN RECEIVING NEW
 YORK  CHILD CARE ASSISTANCE PROGRAM SUBSIDIES; (IV) THE DEMOGRAPHICS AND
 INCOME OF FAMILIES SERVED, INCLUDING THE NUMBER OF CHILDREN ENROLLED AND
 IDENTIFIED AS HIGH NEEDS;  (V)  THE  BUSINESS  STRUCTURE  OF  PROVIDERS;
 PROVIDED,  HOWEVER, THAT LARGER INVESTOR-OWNED PROVIDERS SHALL BE DEPRI-
 ORITIZED AND ONLY ELIGIBLE FOR FUNDING IF THE COMMISSIONER OF THE OFFICE
 OF CHILDREN AND FAMILY SERVICES  PERSONALLY  CERTIFIES  ELIGIBILITY  FOR
 SUCH  FUNDS  AND  IS  PROVIDED AN ASSURANCE AS TO HOW SUCH FUNDS WILL BE
 USED TO SUPPORT THE CHILD CARE WORKFORCE AND THAT SUCH  FUNDS  WILL  NOT
 SERVE TO ENRICH PRIVATE FOR-PROFIT INVESTORS; AND (VI) ANY OTHER FACTORS
 IMPACTING THE COST OF PROVIDING QUALITY EARLY EDUCATION AND CARE INCLUD-
 ING,  BUT  NOT  LIMITED  TO,  SERVING  INFANTS  AND  TODDLERS, PROVIDING
 NONSTANDARD HOURS OF CARE, AND PROVIDING CARE IN  SOCIALLY  AND  ECONOM-
 ICALLY  DISADVANTAGED AND HISTORICALLY UNDERREPRESENTED COMMUNITIES WITH
 SHORTAGES OF EARLY EDUCATION AND CARE SLOTS. THE OFFICE OF CHILDREN  AND
 FAMILY SERVICES SHALL INCORPORATE GEOGRAPHIC EQUITY INTO THE DEVELOPMENT
 OF  THE  FORMULA  AND,  TO THE BEST OF THEIR ABILITY, CALCULATE PAYMENTS
 SUCH THAT ALL FUNDS ARE DISTRIBUTED TO ELIGIBLE PROVIDERS EACH YEAR.
   § 2. Section 153-k of the social services law is amended by  adding  a
 new subdivision 13 to read as follows:
   13.  (A)  THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL IMMEDIATELY
 ESTABLISH RULES AND REGULATIONS FOR THE DISTRIBUTION OF FUNDS  FROM  THE
 PERMANENT CHILD CARE WORKFORCE PAY EQUITY FUND.
   (B)  THE  OFFICE  OF  CHILDREN AND FAMILY SERVICES SHALL ESTABLISH AND
 MAKE WIDELY AVAILABLE A CONSOLIDATED APPLICATION FOR THE PERMANENT CHILD
 CARE WORKFORCE PAY EQUITY FUND NO LATER THAN  ONE  HUNDRED  EIGHTY  DAYS
 AFTER  THE EFFECTIVE DATE OF THIS SUBDIVISION. ELIGIBILITY FOR THE FIRST
 ROUND OF PAYMENTS FROM THE PERMANENT CHILD  CARE  WORKFORCE  PAY  EQUITY
 FUND  SHALL  BE  DETERMINED WITHIN SIXTY DAYS AFTER THE APPLICATIONS ARE
 MADE AVAILABLE, WITH THE FIRST ROUND OF PAYMENTS DISBURSED WITHIN THIRTY
 DAYS OF ELIGIBILITY DETERMINATION. ALL PROVIDERS AND  PROGRAMS  APPROVED
 FOR  FUNDS  PURSUANT  TO  THIS SUBDIVISION SHALL BE PROVIDED PAYMENTS AT
 LEAST QUARTERLY FOR SO LONG AS THE PROGRAM  REMAINS  ELIGIBLE  OR  UNTIL
 FUNDS  ARE  EXHAUSTED.  THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL
 DETERMINE A SIMPLE PROCESS FOR PROGRAMS  TO  RECERTIFY  ELIGIBILITY  FOR
 SUCH FUNDS AT AN INTERVAL OF NO LESS THAN EVERY TWENTY-FOUR MONTHS.
   §   3.   The   sum   of   one  billion  two  hundred  million  dollars
 ($1,200,000,000), or so much thereof as  may  be  necessary,  is  hereby
 appropriated  to  the  office of children and family services out of any
 moneys in the state treasury in the general fund to the  credit  of  the
 permanent  child  care  workforce  pay equity fund account not otherwise
 appropriated for the purposes of carrying out  the  provisions  of  this
 act.  Such moneys shall be payable on the audit and warrant of the state
 comptroller on vouchers certified or approved  by  the  commissioner  of
 children  and  family  services,  or such commissioner's duly designated
 representative in the manner provided by law.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  section  153-k  of  the social services law made by
 section two of this act shall not affect the repeal of such section  and
 shall be deemed repealed therewith.