A09201 Summary:

BILL NO    A09201 

SAME AS    
SAME AS S03247

SPONSOR    Richardson

COSPNSR    

MLTSPNSR   


Add 390-j, Soc Serv L


Requires day care providers to escrow security deposits in excess of the
value
of two weeks of provided services.
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A09201 Actions:

BILL NO    A09201 

02/03/2016 referred to children and families
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A09201 Votes:

There are no votes for this bill in this legislative session.
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A09201 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9201
 
SPONSOR: Richardson
  TITLE OF BILL: An act to amend the social services law, in relation to security deposits collected by child day care providers   PURPOSE OR GENERAL IDEA OF BILL: Requires day care providers to escrow security deposits in excess of the value of two weeks of provided services.   SUMMARY OF SPECIFIC PROVISIONS: Amends the social services law to require child day care providers to escrow security deposits of an amount in excess of, but not equal to, the fee for two weeks of child care services into an escrow account which shall not be mingled with the personal monies or become an asset of the day care provider. The child day care provider must comply with this requirement and, prior to termination of services by the child's parent or guardian, must: a) provide child care services equal to the amount of time covered by the total amount of the security deposit; or b) return the excess security deposit plus accrued interest; or c) return the total amount of the security deposit plus accrued interest on the excess security deposit.   JUSTIFICATION: Before agreeing to provide child day care services, providers commonly request a deposit from a child's parent or guardian equal to the fee for two weeks of service. The deposit helps provide fiscal stability for the center in the event that parents discontinue service without providing the requested two weeks of notice. This request for a deposit is reason- able. Occasionally, parents are required to deposit a sum larger than the fee for two weeks of service. In one instance this year, a parent provided a deposit of over $800 to her child day care provider. The provider later declared bankruptcy and closed without providing the services covered by the deposit and without returning any of the deposit to the parent. The provider claimed the money had already been used to cover business expenses. The law should protect parents or guardians who are required to give deposits larger than the typical amount required equal to the fee for two weeks of service. This legislation would require the child day care provider to deposit the difference between the fee for two weeks of services and the total amount of the required security deposit into an escrow account which shall not be mingled with the personal monies or become an asset of the day care provider. For example, if a center charges $250 per week of child day care services but requires a deposit of $1,000, then the difference of $500 between the total deposit and the fee for two weeks of service would be deposited into an escrow account, similar to that required for apartment rentals. The center would be required to a) provide child care services equal to the amount of time covered by the total amount of the security deposit; or b) return the excess security deposit plus accrued interest; or c) return the total amount of the security deposit plus accrued interest on the excess security deposit.   PRIOR LEGISLATIVE HISTORY: First introduced in 2009-10 2011-2012: S.2355 - Died in Committee; 2013-2014-Referred to Children and Families.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect 60 days after becoming law
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A09201 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9201
 
                   IN ASSEMBLY
 
                                    February 3, 2016
                                       ___________
 
        Introduced  by  M.  of  A.  RICHARDSON  -- read once and referred to the
          Committee on Children and Families
 
        AN ACT to amend the social services law, in relation to security  depos-
          its collected by child day care providers
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1. The social services law is amended by adding a new  section
     2  390-j to read as follows:
     3    § 390-j. Requiring child day care providers to escrow certain security
     4  deposits.   1. Child day care providers, licensed or registered pursuant
     5  to this title, that collect advance security deposits of  an  amount  in
     6  excess  of,  but  not  equal  to,  the  fee  for two weeks of child care
     7  services are required to deposit the difference between the fee for  two
     8  weeks  of services and the total amount of the required security deposit
     9  into an escrow account which shall not  be  mingled  with  the  personal
    10  monies or become an asset of the day care provider.
    11    2.  The  child  day care provider must comply with the requirements of

    12  subdivision one of this section and, prior to termination of services by
    13  the child's parent or guardian must:
    14    (a) provide child care services equal to the amount of time covered by
    15  the total amount of the security deposit; or
    16    (b) return the excess security deposit plus accrued interest; or
    17    (c) return the total amount  of  the  security  deposit  plus  accrued
    18  interest on the excess security deposit.
    19    §  2.  This  act  shall take effect on the sixtieth day after it shall
    20  have become a law.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03033-01-5
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