§ 410-bb. Grants to not-for-profit facilities providing day care for
children for employee salary and benefit enhancements. 1. The
legislature finds and declares that a crisis exists in the availability
and quality of child day care in New York state and that this crisis
poses a danger both to the welfare and safety of the children and to the
productivity of this state's workforce; that inadequate salaries and in
many cases nonexistent benefit packages have substantially contributed
to the existing crisis by precluding day care centers from recruiting
and retaining necessary teaching and supervisory staff; that an
extremely high turnover rate has interfered in many instances with the
ability of day care centers to comply with regulatory requirements and
to properly serve the children in their care; and that because of these
extraordinary circumstances New York state must intervene and provide
assistance for recruitment and retention of child care workers. The
legislature recognizes that a long-term solution to this crisis will
require cooperative efforts among the business community, local and
state governments and families.

2. Within amounts appropriated specifically therefor, and after
deducting funds as specified in subdivision three of this section the
commissioner shall allocate funds to local social services districts for
grants to eligible not-for-profit day care centers for retention and
recruitment of teaching and supervisory staff, as follows:

(a) a city social services district with a population in excess of one
million shall be allocated a portion of such funds based on an equal
weighting of:

(i) its proportion of the state population of children aged five and
under, and

(ii) its proportion of total claims for reimbursement received by the
department by May thirty-first, nineteen hundred eighty-eight for the
low income, transitional and teen parent day care programs authorized by
chapter fifty-three of the laws of nineteen hundred eighty-seven.

(b) all other eligible local social services districts shall be
allocated the remaining portion of funds based on each district's
proportionate share of licensed not-for-profit day care capacity
relative to the total capacity of all such other eligible districts.

3. Five percent of the funds appropriated for such recruitment and
retention purposes shall be reserved for administration of the program
and allocated as follows:

(a) each local social services district shall be allocated an amount
equivalent to five percent of the funds it receives under paragraphs (a)
and (b) of subdivision two of this section, provided that no district
shall receive an amount less than twenty-five hundred dollars nor
greater than one hundred fifty thousand dollars, and

(b) remaining funds shall be allocated to the department. In the event
that a not-for-profit child care resource and referral agency or the
department distributes funds in an eligible district, as provided
herein, such agency or department may retain the amount that otherwise
would be available to the eligible district.

4. Not later than thirty days following the effective date of this
section, the commissioner shall notify local social services districts
of the amounts allocated to each district and provide forms for the
collecting of information pursuant to this section.

5. For the purposes of this section, an eligible district shall mean a
local social services district that is providing, as of the effective
date of this section, or which shall agree to provide in such written
form and by such date as shall be acceptable to the department,
subsidized day care services under the special day care services program
authorized by chapter fifty-three of the laws of nineteen hundred
eighty-eight.

6. Eligible districts may apply on or before the ninetieth day
following the effective date of this section to receive such allocated
funds by submitting to the department a plan on forms provided by the
department. Such plan shall be developed by the local social services
commissioner in consultation with directors of participating eligible
day care centers, as such term is defined herein. Such plan shall
include: methods to increase the amount of day care provided for
families having an income at or below two hundred percent of the federal
proverty level in such district; proposed steps to be taken to sustain
gains in recruitment and retention of staff achieved by funds provided
herein; information specified in paragraph (c) of subdivision seven of
this section; and a proposed allocation of funds to eligible day care
centers based on the following factors:

(a) forty percent of the funds allocated to such district shall be
distributed to each eligible center based on such center's share of the
total full time equivalent teaching and supervisory staff of such
centers in the district as a whole;

(b) forty percent of the funds allocated to such district shall be
distributed to each eligible center based on such center's share of the
number of children from families having an income at or below two
hundred percent of the federal poverty level receiving day care services
in all such centers in the district, regardless of whether such children
are receiving subsidized care; and

(c) notwithstanding any other provision of this subdivision, twenty
percent of the funds allocated to such district shall be distributed to
some or all eligible centers in a manner to further improve recruitment
and retention of qualified staff. Distributions under this paragraph
shall be based on factors including, but not be limited to seniority;
educational qualifications; worker income; benefit levels, vacancy and
turnover rates; or enhancement of distributions pursuant to paragraph
(a) or (b) of this subdivision.

The commissioner shall make copies of proposals available to the
public upon request.

7. For the purposes of this section, an eligible day care center means
a not-for-profit center which provides services for children in single
or double sessions for six or more hours per day for five or more days
per week and holds a permit or certificate issued pursuant to (i) the
provisions of section three hundred ninety of this article, or (ii) the
New York city health code as authorized by section five hundred
fifty-eight of the New York city charter; provided, however, that:

(a) a center whose permit has been denied, suspended or revoked, or
which is found in any twelve month period preceding or following the
date of the allocation of funds made pursuant to subdivision two of this
section to be in violation of section three hundred ninety of this
article after a hearing conducted as provided therein or after decision
by any court of competent jurisdiction, shall not be eligible to receive
funds pursuant to this section;

(b) the existence of a current contract for purchase of day care
services between an eligible district and a center may not be required
as a precondition to receive such funds, but such center shall agree to
accept children subsidized by the district in the next available space
after receipt of a request from the district to place a child in such
center;

(c) each such center must provide to the local social services
district the following information on forms provided by the department:

(i) child care capacity, by ages of children;

(ii) the number of children in such center, by ages, whose families
have incomes at or below two hundred percent of the federal poverty
level, regardless of whether such children are receiving subsidized
care;

(iii) the number of children specified in subparagraph (ii) of this
paragraph receiving subsidies and the type of subsidy;

(iv) a schedule of fees charged for services;

(v) the total annual revenue from all sources, including fees,
donations, grants, revenue from local governments and revenue from state
agencies;

(vi) the total annual expenditures for rent or mortgage payments;
equipment, property, liability and other insurance; utilities; food;
supplies and materials; and

(vii) total annual expenditures for salaries and benefits, including
the number, title, qualifications and salary levels of existing staff
and types and amounts of benefits; and

(d) each eligible day care center must agree, to the maximum extent
feasible, to enhance its future revenues to sustain the level of staff
salary and benefits as provided herein.

8. Should an eligible district not apply for such funds, the
commissioner may contract with a not-for-profit child care resource and
referral agency as such term is defined in title five-B of this article
which is serving such district to distribute such funds allocated to the
district in the same manner as is required of an eligible district in
accordance with the other provisions of this section. If two or more
not-for-profit child care resource and referral agencies are serving
such district, preference shall be given to the agency or agencies with
existing contracts with the commissioner. If such agency does not exist
or declines to participate, the department shall disburse funds in the
manner as is required of an eligible district pursuant to this section.

9. A plan developed and submitted to the department pursuant to the
provisions of this section shall be considered approved unless, within
thirty days of the receipt of such plan, the department notifies the
eligible district or agency that the plan is not approved and specifies
in writing the basis for such disapproval. The commissioner shall make
allocated funds and administrative funds available as advances to
eligible districts whose plans have been approved pursuant to this
section.

10. Eligible districts shall make allocated funds available as
advances to eligible day care centers in accordance with the plan
approved by the department. Such districts shall notify the department
when all such funds have been disbursed but all such funds must be
disbursed not later than October first, nineteen hundred eighty-nine.

11. Any funds allocated to eligible districts or day care centers
which cannot be used in the manner as provided herein shall be
reallocated among other eligible districts as provided in paragraph (b)
of subdivision two of this section.

12. Funds received by eligible day care centers shall be used solely
for employee benefits and salary enhancements for teaching and
supervisory staff, and shall not be used to supplant or substitute for
any other funding available for day care services, or to provide
services which eligible day care centers are required to provide
pursuant to contracts with the state, local social services districts,
authorized agencies, individuals or other organizations.

13. Nothing contained herein shall prevent an eligible district, or
any other person or entity, at its discretion, from contributing funds,
including administrative funds received pursuant to subdivision three of
this section, to the program established pursuant to this section.

14. The department shall: (a) provide or cause to be provided, to
the maximum extent feasible, technical assistance to eligible day care
centers and districts concerning employee benefit options, long-term
planning, management of funds, responsibilities required pursuant to
this section, maximization of the use of available subsidy funds
including Title XX and Title IV-A of the Federal Social Security Act
and such other matters as may be helpful to sustain the level of staff
salary and benefits as provided herein;

(b) annually examine cost data concerning rates of payment for day
care and establish appropriate recommended fee schedules as guidelines
for use by local social services districts in developing comprehensive
annual social services program plans;

(c) promulgate regulations not later than July first, nineteen
hundred eighty-nine, to establish a maximum rate of payment for day care
centers which shall reflect adjustments in the cost of care since the
establishment of the maximum rate in effect on January first, nineteen
hundred eighty-six. Such maximum rate shall be calculated by applying
thereto increases in the cost of living since January first, nineteen
hundred eighty-six, updated by the department through December
thirty-first, nineteen hundred eighty-nine, and also to the extent
possible and based on the availability of such information, factors such
as changes in the costs of insurance, rent, utilities and labor and
benefits and such other factors the department shall deem appropriate,
which exceed such increases in the cost of living, as updated through
December thirty-first, nineteen hundred eighty-nine; provided, however,
that:

(i) actual payment for day care services rendered shall not exceed the
actual cost of such care;

(ii) nothing contained herein shall prevent the department from
establishing a rate of payment for day care centers greater than that
required pursuant to this subdivision;

(iii) approved rates of payment in excess of the rate established
pursuant to this paragraph in effect prior to July first, nineteen
hundred eighty-nine shall be continued;

(iv) nothing contained herein shall prevent the department from
approving exceptions to the rate of payment established herein to meet
specific identified needs of a local social services district;

(v) such regulations may include a higher maximum rate of payment for
infant care, or care of children with special needs.

d. Notwithstanding any other section of law to the contrary, by April
first, nineteen hundred eighty-nine, the department shall develop
guidelines and may, with the approval of the director of the division of
the budget grant to local districts for one year waivers to income
eligibility standards established pursuant to law for subsidized day
care under the special day care services program. Such waivers shall be
granted to increase eligibility standards up to twenty-five percent of
the federal poverty level above the income eligibility standard
established by law as a percentage of the federal poverty level. Waivers
shall be granted only upon the submission of documentation establishing
that:

(i) the local social services district is serving substantially all
eligible families with incomes at or below the established income
eligibility standard. A district shall be deemed to be serving
substantially all eligible families if it meets the following two
criteria: (a) the percentage of eligible children served in the district
meets or exceeds the percentage of eligible children served statewide
under the special day care services program and (b) the district has
provided day care services to any additional children whose families
have been identified in such district's outreach program as described in
subparagraph (ii) of this paragraph as eligible for and desiring
subsidized day care services;

(ii) the local district has established a district-wide outreach
program which identifies eligible families who are not receiving
subsidized child day care under the special day care services program,
and informs all such families of their availability, and assists such
families desiring subsidized services to obtain them;

(iii) a family receiving a subsidy under the district's waiver
provisions shall be required to contribute a greater amount towards the
cost of care than a family eligible under the established income
eligibility standard;

(iv) the local district has included an estimate of the number of
children who will be served under the waiver provisions;

(v) the local district has submitted claims to income eligible day
care expenses under Title XX of the federal Social Security Act;

(vi) the district has available to it a higher allocation in the
current fiscal year than the amount of reimbursement received by such
district in the previous fiscal year for subsidized care under the
special day care services program.

(e) submit a report to the governor and to the chairmen of the senate
finance committee and the assembly ways and means committee not later
than December thirty-first, nineteen hundred eighty-nine on the program
established pursuant to this section, including the number, amount and
recipients of grants in each eligible district; the purposes and uses of
such grants; an evaluation of any resulting improvements in recruitment
and retention of qualified staff, current local eligibility standards,
any use of the waiver process, state cost of increasing the eligibility
standards established by law up to twenty-five percent and fifty percent
of the federal poverty level on a county by county basis for subsidized
day care under the special day care services program and recommendations
for long-term solutions to the problems of recruitment and retention of
teaching and supervisory staff.