senate Bill S1425

2013-2014 Legislative Session

Requires day care providers to escrow security deposits exceeding the value of two weeks of provided services

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to children and families
Jun 21, 2013 committed to rules
Jun 03, 2013 advanced to third reading
May 30, 2013 2nd report cal.
May 29, 2013 1st report cal.784
Jan 09, 2013 referred to children and families

Votes

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May 29, 2013 - Children and Families committee Vote

S1425
6
0
committee
6
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Children and Families Committee Vote: May 29, 2013

Co-Sponsors

S1425 - Bill Details

Current Committee:
Senate Children And Families
Law Section:
Social Services Law
Laws Affected:
Add ยง390-i, Soc Serv L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2355
2009-2010: S4513

S1425 - Bill Texts

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

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BILL NUMBER:S1425

TITLE OF BILL:
An act
to amend the social services law, in relation to security deposits
collected by child day care providers

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

SUMMARY OF 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 reasonable.

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.

LEGISLATIVE HISTORY:
First introduced in 2009-10
2011-2012: S.2355 - Died in Committee

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect 60 days after becoming law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1425

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  MONTGOMERY  -- read twice and ordered printed, and
  when printed to be committed 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:

  Section 1. The social services law is amended by adding a new  section
390-i to read as follows:
  S 390-I. REQUIRING CHILD DAY CARE PROVIDERS TO ESCROW CERTAIN SECURITY
DEPOSITS.   1. CHILD DAY CARE PROVIDERS, LICENSED OR REGISTERED PURSUANT
TO THIS TITLE, THAT COLLECT ADVANCE SECURITY DEPOSITS OF  AN  AMOUNT  IN
EXCESS  OF,  BUT  NOT  EQUAL  TO,  THE  FEE  FOR TWO WEEKS OF CHILD CARE
SERVICES ARE REQUIRED 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.
  2.  THE  CHILD  DAY CARE PROVIDER MUST COMPLY WITH THE REQUIREMENTS OF
SUBDIVISION ONE OF THIS SECTION 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.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04014-01-3

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