Assembly Bill A11613

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11613
 
                           I N  A S S E M B L Y
 
                               July 29, 2026
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Rosenthal)
   -- read once and referred to the Committee on Children and Families
 
 AN ACT to amend the social services law, in relation to  private  equity
   in child care
 
   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-p to read as follows:
   §  390-P.  CHILD  CARE  PROVIDERS;  PRIVATE EQUITY. 1. AS USED IN THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "AFFILIATE" SHALL MEAN:
   (I) A PERSON, ENTITY, OR ORGANIZATION THAT  DIRECTLY,  INDIRECTLY,  OR
 THROUGH  ONE  OR  MORE  INTERMEDIARIES CONTROLS, IS CONTROLLED BY, OR IS
 UNDER COMMON CONTROL OR OWNERSHIP OF ANOTHER PERSON, ENTITY,  OR  ORGAN-
 IZATION;
   (II)  A  PERSON,  ENTITY,  OR  ORGANIZATION WHOSE BUSINESS IS OPERATED
 UNDER A LEASE, MANAGEMENT OR OPERATING AGREEMENT BY ANOTHER ENTITY, OR A
 PERSON SUBSTANTIALLY ALL OF WHOSE PROPERTY IS OPERATED UNDER  A  MANAGE-
 MENT OR OPERATING AGREEMENT WITH ANOTHER ENTITY;
   (III) AN ENTITY THAT OPERATES THE BUSINESS OF SUBSTANTIALLY ALL OF THE
 PROPERTY OF ANOTHER ENTITY UNDER A LEASE OR OPERATING AGREEMENT; AND
   (IV) ANY OUT OF STATE OPERATIONS AND CORPORATE AFFILIATES OF AN AFFIL-
 IATE  AS  DEFINED  IN SUBPARAGRAPH (I), (II) OR (III) OF THIS PARAGRAPH,
 INCLUDING SIGNIFICANT EQUITY INVESTORS, REAL ESTATE  INVESTMENT  TRUSTS,
 AND MANAGEMENT SERVICES ORGANIZATIONS.
   (B)  "BENEFICIAL  OWNER"  SHALL  MEAN  ANY INDIVIDUAL WHO, DIRECTLY OR
 INDIRECTLY, EITHER (I) EXERCISES SUBSTANTIAL CONTROL  OVER  A  REPORTING
 COMPANY,  OR  (II)  OWNS OR CONTROLS AT LEAST TWENTY-FIVE PERCENT OF THE
 OWNERSHIP INTERESTS OF SUCH REPORTING COMPANY.
   (C) "CAPITAL DISTRIBUTION" SHALL MEAN:
   (I) A CASH OR SHARE DIVIDEND;
   (II) A SHARE REPURCHASE;
   (III) A SHARE REDEMPTION;
   (IV) A SHARE BUYBACK;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16134-01-6
 A. 11613                            2
 
   (V) A PAYMENT OF INTEREST OR FEE ON A SHARE OF STOCK; AND
   (VI)  ANY  OTHER  TRANSACTION  SIMILAR  TO  A TRANSACTION DESCRIBED IN
 SUBPARAGRAPH (I), (II), (III), (IV), OR (V) OF THIS PARAGRAPH.
   (D) "CHANGE OF CONTROL" SHALL MEAN AN ARRANGEMENT IN WHICH  ANY  OTHER
 PERSON OR ENTITY ACQUIRES DIRECT OR INDIRECT CONTROL OVER THE OPERATIONS
 OF  A  CHILD CARE PROVIDER IN WHOLE OR IN SUBSTANTIAL PART. FOR PURPOSES
 OF THIS DEFINITION, "ARRANGEMENT" SHALL INCLUDE ANY  AGREEMENT,  ASSOCI-
 ATION,   PARTNERSHIP,  JOINT  VENTURE,  MANAGEMENT  SERVICES  AGREEMENT,
 PROFESSIONAL SERVICES AGREEMENT, STAFFING  AGREEMENT,  OR  OTHER  SCHEME
 THAT  RESULTS  IN  A  CHANGE  IN  GOVERNANCE  OR CONTROL OF A CHILD CARE
 PROVIDER.
   (E) "CHILD CARE FACILITY" SHALL MEAN ANY PLACE OR PROGRAM OPERATED  AS
 A  BUSINESS  OR  SERVICE  ON  A REGULAR OR CONTINUOUS BASIS, WHETHER FOR
 COMPENSATION OR NOT, WHOSE PRIMARY FUNCTION IS THE PROTECTION, CARE  AND
 SUPERVISION  OF CHILDREN UNDER THIRTEEN YEARS OF AGE OUTSIDE THE CHILD'S
 HOME FOR A PERIOD OF FEWER THAN TWENTY-FOUR HOURS  A  DAY  BY  A  PERSON
 OTHER  THAN  THE  PARENT,  STEP-PARENT, GUARDIAN, OR RELATIVE WITHIN THE
 THIRD DEGREE OF CONSANGUINITY OF THE  PARENTS  OR  STEP-PARENTS  OF  THE
 CHILD.
   (F)  "CHILD CARE PROVIDER" OR "PROVIDER" SHALL MEAN A PERSON OR ENTITY
 LICENSED, REGISTERED OR OTHERWISE AUTHORIZED BY THE  OFFICE  TO  PROVIDE
 CHILD  CARE  SERVICES IN THIS STATE, INCLUDING BUT NOT LIMITED TO FAMILY
 DAY CARE HOMES, GROUP FAMILY DAY CARE HOMES, AND CHILD DAY CARE CENTERS.
   (G) "CHILD CARE SERVICES" SHALL MEAN THE  DEVELOPMENTALLY  APPROPRIATE
 CARE  AND  SUPERVISION OF CHILDREN UNDER THIRTEEN YEARS OF AGE FOR FEWER
 THAN TWENTY-FOUR HOURS A DAY BY A CHILD CARE PROVIDER.
   (H) "CONTROL" INCLUDING THE TERMS "CONTROLLING", "CONTROLLED  BY"  AND
 "UNDER  COMMON  CONTROL WITH" SHALL MEAN THE DIRECT OR INDIRECT POWER TO
 DIRECT OR CAUSE THE DIRECTION, MANAGEMENT OR POLICIES OF A PERSON, ENTI-
 TY OR ORGANIZATION THROUGH OWNERSHIP, CONTRACTUAL  AGREEMENT,  OR  OTHER
 RELATIONSHIP/ARRANGEMENT.  A  PERSON  OR ENTITY THAT DIRECTLY OR BENEFI-
 CIALLY OWNS TEN PERCENT OR MORE EQUITY INTEREST, OR THE EQUIVALENT THER-
 EOF, OF ANOTHER PERSON OR ENTITY SHALL BE DEEMED TO CONTROL  THE  PERSON
 OR ENTITY OWNED.
   (I)  "EMPLOYEE" SHALL MEAN AN INDIVIDUAL WHO PERFORMS SERVICES FOR AND
 UNDER THE CONTROL AND DIRECTION OF AN EMPLOYER FOR WAGES OR OTHER REMUN-
 ERATION, INCLUDING FORMER EMPLOYEES,  OR  NATURAL  PERSONS  EMPLOYED  AS
 INDEPENDENT  CONTRACTORS  TO CARRY OUT WORK IN FURTHERANCE OF AN EMPLOY-
 ER'S BUSINESS ENTERPRISE WHO ARE NOT THEMSELVES EMPLOYERS.
   (J) "EMPLOYER" SHALL MEAN ANY PERSON, FIRM, PARTNERSHIP,  INSTITUTION,
 CORPORATION, OR ASSOCIATION THAT EMPLOYS ONE OR MORE EMPLOYEES.
   (K)  "LICENSEE" SHALL MEAN A PERSON OR ENTITY THAT THE OFFICE APPROVES
 TO RECEIVE ASSISTANCE FOR CHILD CARE SERVICES PURSUANT TO THE  NEW  YORK
 STATE CHILD CARE ASSISTANCE PROGRAM AND A PROVIDER RATE AGREEMENT.
   (L)  "MATERIAL CHANGE TRANSACTION" SHALL MEAN THE OCCURRENCE OF ANY OF
 THE FOLLOWING EVENTS DURING A SINGLE  TRANSACTION  OR  IN  A  SERIES  OF
 RELATED  TRANSACTIONS  THAT AFFECTS COMPETITION OR ACCESS IN ONE OR MORE
 GEOGRAPHIC REGIONS OF THE STATE INVOLVING A CHILD CARE  PROVIDER  WITHIN
 THE STATE:
   (I) A CORPORATE MERGER INCLUDING ONE OR MORE CHILD CARE PROVIDERS;
   (II)  AN  ACQUISITION  OF  ONE  OR  MORE CHILD CARE PROVIDERS. FOR THE
 PURPOSES OF THIS DEFINITION, "ACQUISITION" SHALL INCLUDE THE  DIRECT  OR
 INDIRECT  PURCHASE  IN  ANY  MANNER, INCLUDING BUT NOT LIMITED TO LEASE,
 TRANSFER, EXCHANGE, OPTIONS, RECEIPT OF  A  CONVEYANCE,  CREATION  OF  A
 JOINT  VENTURE,  OR  ANY  OTHER  MANNER OF PURCHASE SUCH AS BY A PRIVATE
 EQUITY GROUP, HEDGE FUND, PUBLICLY TRADED COMPANY, REAL  ESTATE  INVEST-
 A. 11613                            3
 
 MENT  TRUST,  OR  ANY  SUBSIDIARIES THEREOF, OF A MATERIAL AMOUNT OF THE
 ASSETS OR OPERATIONS OF A CHILD CARE PROVIDER AS DEFINED IN  REGULATIONS
 ESTABLISHED BY THE OFFICE PURSUANT TO THE STATE ADMINISTRATIVE PROCEDURE
 ACT;
   (III)  ANY  AFFILIATION,  ARRANGEMENT,  OR  CONTRACT THAT RESULTS IN A
 CHANGE OF CONTROL OF A CHILD CARE PROVIDER;
   (IV) THE FORMATION OF A PARTNERSHIP, JOINT VENTURE, OR  PARENT  ORGAN-
 IZATION;
   (V)  A SALE, PURCHASE, LEASE, AFFILIATION, OR TRANSFER OF CONTROL OF A
 BOARD OF DIRECTORS OR OTHER GOVERNING BODY OF A CHILD CARE PROVIDER;
   (VI) A REAL ESTATE SALE OR LEASE AGREEMENT INVOLVING A MATERIAL AMOUNT
 OF ASSETS OF A CHILD CARE PROVIDER; OR
   (VII) THE CLOSURE OF A CHILD CARE FACILITY OR THE CLOSURE,  DISCONTIN-
 UANCE, OR SIGNIFICANT REDUCTION OF ANY ESSENTIAL CHILD CARE SERVICE BY A
 CHILD CARE PROVIDER.
   (M)  "NET  OPERATING  PROFIT"  SHALL MEAN THE PROFIT FROM A CHILD CARE
 PROVIDER'S CORE BUSINESS ACTIVITIES, CALCULATED AS SUCH PROVIDER'S GROSS
 REVENUE MINUS OPERATING  EXPENSES,  TAXES,  INTEREST,  DEPRECIATION  AND
 AMORTIZATION.
   (N) "OFFICE" SHALL MEAN THE OFFICE OF CHILDREN AND FAMILY SERVICES.
   (O)  "OWNERSHIP  OR INVESTMENT INTEREST" SHALL MEAN ANY OF THE FOLLOW-
 ING:
   (I) DIRECT OR INDIRECT POSSESSION OF EQUITY IN THE CAPITAL, STOCK,  OR
 PROFITING TOTALING MORE THAN FIVE PERCENT OF AN ENTITY;
   (II) INTEREST HELD BY AN INVESTOR OR GROUP OF INVESTORS WHO ENGAGES IN
 THE  RAISING  OF CAPITAL OR RETURNING OF CAPITAL AND WHO INVESTS, DEVEL-
 OPS, OR DISPOSES OF SPECIFIED ASSETS; OR
   (III) INTEREST HELD BY A POOL OF FUNDS BY INVESTORS, INCLUDING A  POOL
 OF  FUNDS MANAGED OR CONTROLLED BY PRIVATE LIMITED PARTNERSHIPS, IF SUCH
 INVESTORS OR THE MANAGEMENT OF SUCH POOL OR PRIVATE LIMITED  PARTNERSHIP
 EMPLOY  INVESTMENT  STRATEGIES OF ANY KIND TO EARN A RETURN ON SUCH POOL
 OF FUNDS.
   (P) "PRINCIPAL" SHALL MEAN:
   (I) THE PRESIDENT, VICE PRESIDENT, SECRETARY, TREASURER,  MANAGER,  OR
 SIMILAR OFFICERS OF A CORPORATION, NONPROFIT CORPORATION, COOPERATIVE OR
 WORKER COOPERATIVE CORPORATION;
   (II)  A  DIRECTOR  OF  A CORPORATION, NONPROFIT, COOPERATIVE OR WORKER
 COOPERATIVE CORPORATION;
   (III) A MEMBER OF A MEMBER-MANAGED LIMITED LIABILITY COMPANY;
   (IV) A MANAGER OF A MANAGER-MANAGED LIMITED LIABILITY COMPANY; OR
   (V) A PARTNER OF A PARTNERSHIP OR A GENERAL PARTNER OF A LIMITED PART-
 NERSHIP.
   (Q) "PRIVATE EQUITY FUND" SHALL MEAN A PUBLICLY TRADED OR NON-PUBLICLY
 TRADED COMPANY THAT COLLECTS CAPITAL  INVESTMENTS  FROM  INDIVIDUALS  OR
 ENTITIES  AND PURCHASES A DIRECT OR INDIRECT OWNERSHIP SHARE OR CONTROL-
 LING INTEREST OF A CHILD CARE PROVIDER.
   (R) "SIGNIFICANT EQUITY INVESTOR" OR "SIGNIFICANT  EQUITY  INVESTMENT"
 SHALL MEAN:
   (I)  ANY  PRIVATE  EQUITY  FUND WITH A DIRECT OR INDIRECT OWNERSHIP OR
 INVESTMENT INTEREST IN A CHILD CARE PROVIDER;
   (II) AN INVESTOR, GROUP OF INVESTORS, OR OTHER ENTITY THAT DIRECTLY OR
 INDIRECTLY POSSESSES EQUITY IN FIVE PERCENT  OR  MORE  OF  THE  CAPITAL,
 STOCK, OR PROFITS OF A CHILD CARE PROVIDER; AND
   (III)  ANY  PRIVATE EQUITY FUND, INVESTOR, GROUP OF INVESTORS OR OTHER
 ENTITY WITH A DIRECT OR INDIRECT CONTROLLING INTEREST IN  A  CHILD  CARE
 PROVIDER OR THAT OPERATES THE BUSINESS OR SUBSTANTIALLY ALL OF THE PROP-
 A. 11613                            4
 
 ERTY  OF  A  CHILD CARE PROVIDER UNDER A LEASE, MANAGEMENT, OR OPERATING
 AGREEMENT.
   (S)  "ULTIMATE  PARENT"  SHALL  MEAN AN ENTITY THAT IS AT THE TOP OF A
 CORPORATE OR ORGANIZATIONAL HIERARCHY, IS NOT CONTROLLED  BY  ANY  OTHER
 ENTITY  OR  PERSON,  AND EXERCISES CONTROL, DIRECTLY OR INDIRECTLY, OVER
 ALL OTHER ENTITIES IN ITS CHAIN OF COMMAND.
   2. (A) EVERY CHILD CARE PROVIDER SHALL REPORT TO THE OFFICE, IN A FORM
 AND MANNER TO BE DETERMINED BY THE OFFICE, THE FOLLOWING INFORMATION:
   (I) THE LEGAL NAME OF SUCH PROVIDER;
   (II) THE BUSINESS ADDRESS OF SUCH PROVIDER;
   (III) AN EMAIL ADDRESS FOR THE DIRECTOR OR OTHER PERSON DESIGNATED  TO
 RECEIVE COMMUNICATIONS FROM THE OFFICE;
   (IV)  BUSINESS IDENTIFICATION NUMBERS OF SUCH PROVIDER, AS APPLICABLE,
 INCLUDING EITHER:
   (A) TAXPAYER IDENTIFICATION NUMBER; OR
   (B) EMPLOYER IDENTIFICATION NUMBER;
   (V) NAME AND CONTACT INFORMATION FOR A REPRESENTATIVE OF SUCH  PROVID-
 ER;
   (VI) THE NAME AND BUSINESS ADDRESS OF THE OWNER OF SUCH PROVIDER;
   (VII)  WHETHER A SIGNIFICANT EQUITY INVESTOR HOLDS AN OWNERSHIP INTER-
 EST IN SUCH PROVIDER;
   (VIII) THE LOCATIONS OF SUCH PROVIDER'S OPERATIONS;
   (IX) SUCH PROVIDER'S TOTAL LICENSED CAPACITY, WHICH SHALL BE THE MAXI-
 MUM NUMBER OF CHILDREN THAT CAN BE CARED FOR AT  ANY  GIVEN  TIME.  SUCH
 PROVIDER'S CAPACITY SHALL BE SPECIFIED BY GROUP SIZE BASED ON THE AGE OF
 CHILDREN TO BE SERVED BY SUCH PROVIDER;
   (X)  SUCH  PROVIDER'S  TUITION  AND  FEE  ARRANGEMENT  FOR  CHILD CARE
 SERVICES, DETAILED BY THE AGE OF THE CHILD AND TYPE OF ENROLLMENT; AND
   (XI) WHETHER SUCH PROVIDER PARTICIPATES IN THE NEW  YORK  STATE  CHILD
 CARE ASSISTANCE PROGRAM THROUGH MEANS WHICH SHALL INCLUDE, BUT SHALL NOT
 BE  LIMITED TO, ACCEPTING VOUCHERS FOR PAYMENTS THROUGH THE SELECTION BY
 AN ELIGIBLE FAMILY AND THROUGH PAYMENT OR REIMBURSEMENT FOR  A  SLOT  OR
 SLOTS FOR WHICH SUCH PROVIDER CONTRACTS DIRECTLY WITH THE OFFICE.
   (B)  THE  INFORMATION  OUTLINED  IN  PARAGRAPH (A) OF THIS SUBDIVISION
 SHALL BE REPORTED AT LEAST ANNUALLY AND WITHIN TWO DAYS OF  THE  CONSUM-
 MATION OF A MATERIAL CHANGE TRANSACTION INVOLVING THE PROVIDER.
   (C)  CHILD CARE PROVIDERS LOCATED IN PUBLIC SCHOOL BUILDINGS CURRENTLY
 USED FOR ELEMENTARY, MIDDLE OR SECONDARY PUBLIC EDUCATION  PROGRAMS  AND
 APPROVED  AND  OPERATED  BY  THE DEPARTMENT OF EDUCATION SHALL BE EXEMPT
 FROM THE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION.
   (D) NOTWITHSTANDING THE REQUIREMENTS SET FORTH  IN  PARAGRAPH  (A)  OF
 THIS  SUBDIVISION,  AT  THE  TIME OF FILING OF THE REPORT REQUIRED UNDER
 SUCH PARAGRAPH (A), A CHILD CARE PROVIDER THAT PARTICIPATES IN  OR  AIMS
 TO  PARTICIPATE  IN  THE NEW YORK STATE CHILD CARE ASSISTANCE PROGRAM IN
 THE ENSUING YEAR, ACCEPTS PUBLIC FUNDING UNDER A PROGRAM FINANCED BY THE
 STATE TO IMPROVE THE  COMPENSATION  OF  THE  CHILD  CARE  WORKFORCE,  OR
 RECEIVES  PUBLICLY-SUPPORTED  FINANCING FOR THE CONSTRUCTION, RENOVATION
 OR OTHER CAPITAL IMPROVEMENT OF A CHILD CARE FACILITY  SHALL  REPORT  TO
 THE  OFFICE,  IN  A  FORM  AND  MANNER  TO BE DEFINED BY THE OFFICE, THE
 FOLLOWING ADDITIONAL INFORMATION:
   (I) THE SCHEDULE OF COPAYMENTS AND  ANY  ADDITIONAL  FEES  CHARGED  TO
 FAMILIES,  INCLUDING BUT NOT LIMITED TO FAMILIES FOR WHOM THE CHILD CARE
 PROVIDER ACCEPTS VOUCHERS FOR  PAYMENTS  AND  FAMILIES  FOR  WHICH  SUCH
 PROVIDER RECEIVES PAYMENT OR REIMBURSEMENT FOR A SLOT OR SLOTS FOR WHICH
 SUCH PROVIDER CONTRACTS DIRECTLY WITH THE OFFICE;
 A. 11613                            5
 
   (II)  A SCHEDULE OF THE WAGES, SALARY, EMPLOYEE BENEFITS AND ANY OTHER
 COMPENSATION PROVIDED TO EMPLOYEES OF  SUCH  PROVIDER  AT  THE  TIME  OF
 FILING OF THE REPORT;
   (III)  AN  ACCOUNTING, ON A TEMPLATE TO BE DEVELOPED BY THE OFFICE, OF
 SUCH PROVIDER'S NET OPERATING PROFIT FOR  THE  PREVIOUS  CALENDAR  YEAR,
 INCLUDING  A  REPORT  DETAILING  ANY AND ALL MANAGEMENT, MONITORING, AND
 FRANCHISE FEES THAT SUCH PROVIDER INCURRED; AND
   (IV) AN ANALYSIS OF STAFF TURNOVER FOR  THE  PREVIOUS  CALENDAR  YEAR,
 DETAILED BY POSITION AND TENURE.
   (E)  A  CHILD  CARE  PROVIDER SUBJECT TO THE REQUIREMENTS SET FORTH IN
 PARAGRAPH (D) OF THIS SUBDIVISION THAT  INCLUDES  A  SIGNIFICANT  EQUITY
 INVESTOR  SHALL  ADDITIONALLY REPORT, IN A FORM AND MANNER TO BE DEFINED
 BY THE OFFICE, THE FOLLOWING INFORMATION:
   (I) THE TOTAL FUNDS RECEIVED FROM THE OFFICE, INCLUDING THE AMOUNT  OF
 LOANS, GRANTS OR OTHER BENEFITS RECEIVED IN THE PREVIOUS CALENDAR YEAR;
   (II)  THE  USE  OF THE PROCEEDS IDENTIFIED IN SUBPARAGRAPH (I) OF THIS
 PARAGRAPH;
   (III) ANY LOANS FORGIVEN OR DISCHARGED;
   (IV) SUCH PROVIDER'S DEBT TO ASSET RATIO AT THE TIME OF FILING OF  THE
 REPORT REQUIRED UNDER THIS PARAGRAPH;
   (V)  THE COMPENSATION PROVIDED TO A PRINCIPAL IN THE PREVIOUS CALENDAR
 YEAR;
   (VI) THE PAY RATIO BETWEEN THE CHIEF EXECUTIVE OFFICER AND THE  MEDIAN
 PAY OF EMPLOYEES;
   (VII) THE BENEFICIAL OWNER OR OWNERS OF SUCH PROVIDER;
   (VIII) ANY ACQUISITIONS OR CLOSURES OF CHILD CARE PROGRAMS AND RELATED
 SERVICES  IN  THE  STATE  BY SUCH PROVIDER'S ULTIMATE PARENT IN THE PAST
 YEAR;
   (IX) THE WORKFORCE DEMOGRAPHICS OF SUCH PROVIDER; AND
   (X) FOR CHILD CARE PROVIDERS OPERATING  UNDER  A  FRANCHISE  MODEL  OR
 MANAGEMENT  OR MONITORING AGREEMENT, ANY CHANGES TO SUCH AGREEMENTS THAT
 AFFECT:
   (A) OWNERSHIP OR CONTROL OF SUCH PROVIDER;
   (B) FINANCIAL ARRANGEMENTS, INCLUDING FEE STRUCTURES OR  REVENUE-SHAR-
 ING MODELS;
   (C)  OPERATIONAL  STANDARDS,  POLICIES,  OR PRACTICES DICTATED BY SUCH
 AGREEMENT; OR
   (D) TERMS IMPACTING WORKFORCE  POLICIES,  INCLUDING  STAFFING  LEVELS,
 WAGES, OR BENEFITS.
   3.  (A)  A CHILD CARE PROVIDER THAT PARTICIPATES IN THE NEW YORK STATE
 CHILD CARE ASSISTANCE PROGRAM, ACCEPTS PUBLIC FUNDING  UNDER  A  PROGRAM
 FINANCED  BY  THE  STATE  TO  IMPROVE THE COMPENSATION OF THE CHILD CARE
 WORKFORCE,   OR   RECEIVES   PUBLICLY-SUPPORTED   FINANCING   FOR    THE
 CONSTRUCTION,  RENOVATION,  OR OTHER CAPITAL IMPROVEMENT OF A CHILD CARE
 FACILITY SHALL BE REQUIRED TO:
   (I) EXPEND ALL FUNDS TO SUPPORT THE PROVISION OF CHILD  CARE  SERVICES
 AT  SUCH  CHILD CARE FACILITY THAT SERVES THE FAMILY FOR WHOM THE OFFICE
 HAS PROVIDED A VOUCHER OR FOR WHICH THE  PROVIDER  RECEIVES  PAYMENT  OR
 REIMBURSEMENT  FOR  A  SLOT  OR SLOTS UNDER A CONTRACT OR GRANT WITH THE
 OFFICE;
   (II) ADOPT A POSITION OF NEUTRALITY AND COMMIT TO NON-INTERFERENCE  IN
 THE  EVENT THERE IS AN ATTEMPT BY A LABOR ORGANIZATION TO ORGANIZE WORK-
 ERS;
   (III) PARTICIPATE IN THE NEW YORK STATE CHILD CARE ASSISTANCE PROGRAM,
 EITHER BY EXECUTING A CONTRACT OR GRANT WITH THE OFFICE OR BY  ACCEPTING
 A. 11613                            6
 
 A VOUCHER OR CERTIFICATE FOR THE PROVISION OF SERVICES TO SUBSIDY-ELIGI-
 BLE CHILDREN;
   (IV)  ADOPT  POLICIES THAT PROVIDE FOR REASONABLE WORK HOURS AND RELI-
 ABLE WORK SCHEDULES; AND
   (V) WHERE THE OFFICE USES A  COST  MODEL  TO  ESTABLISH  REIMBURSEMENT
 RATES FOR THE NEW YORK STATE CHILD CARE ASSISTANCE PROGRAM, MAXIMIZE THE
 PRODUCTIVITY  AND  EFFECTIVENESS OF THEIR WORKERS BY INVESTING IN TRAIN-
 ING, SAFE WORKPLACES,  FAIR  COMPENSATION,  AND  REASONABLE  HEALTH  AND
 RETIREMENT BENEFITS.
   (B)  A  CHILD  CARE  PROVIDER  THAT PARTICIPATES IN THE NEW YORK STATE
 CHILD CARE ASSISTANCE PROGRAM, ACCEPTS PUBLIC FUNDING  UNDER  A  PROGRAM
 FINANCED  BY  THE  STATE  TO  IMPROVE THE COMPENSATION OF THE CHILD CARE
 WORKFORCE,   OR   RECEIVES   PUBLICLY-SUPPORTED   FINANCING   FOR    THE
 CONSTRUCTION,  RENOVATION  OR  OTHER CAPITAL IMPROVEMENT OF A CHILD CARE
 FACILITY SHALL BE PROHIBITED FROM USING PUBLIC FUNDS TO:
   (I) PROVIDE ANY INCENTIVE COMPENSATION, BONUS, OR SEVERANCE PAYMENT TO
 PRINCIPALS, SENIOR EXECUTIVES,  ANY  OF  THE  NEXT  TWENTY  MOST  HIGHLY
 COMPENSATED  EMPLOYEES,  CONSULTANTS  OF THE PROVIDER, AND DEPARTMENT OR
 DIVISION MANAGERS OF THE PROVIDER;
   (II) COVER MANAGEMENT OR FRANCHISE COSTS OR FEES, OR OTHERWISE  DIRECT
 FUNDS TO A PARENT COMPANY OR OTHER AFFILIATE;
   (III) MAKE A CAPITAL DISTRIBUTION; OR
   (IV) PROVIDE COMPENSATION TO SENIOR EXECUTIVES, ANY OF THE NEXT TWENTY
 MOST  HIGHLY  COMPENSATED  EMPLOYEES,  CONSULTANTS  OF THE PROVIDER, AND
 DEPARTMENT OR DIVISION MANAGERS OF THE PROVIDER IN EXCESS OF AN INDIRECT
 COST RATE AGREEMENT TO BE DETERMINED BY THE OFFICE.
   (C) (I) A CHILD CARE PROVIDER WITH SIGNIFICANT EQUITY INVESTMENT  THAT
 PARTICIPATES  IN  THE  NEW  YORK  STATE  CHILD  CARE ASSISTANCE PROGRAM,
 ACCEPTS PUBLIC FUNDING UNDER A PROGRAM FINANCED BY THE STATE TO  IMPROVE
 THE  COMPENSATION OF THE CHILD CARE WORKFORCE, OR RECEIVES PUBLICLY-SUP-
 PORTED FINANCING FOR  THE  CONSTRUCTION,  RENOVATION  OR  OTHER  CAPITAL
 IMPROVEMENT OF A CHILD CARE FACILITY SHALL BE PROHIBITED FROM:
   (A)  INITIATING  OR EXECUTING PROGRAM CLOSINGS OR STAFF LAYOFFS WITHIN
 TWENTY-FOUR MONTHS OF THE ORIGINAL RECEIPT OF FUNDS; OR
   (B) PURCHASING OR OTHERWISE SECURING AN EQUITY INVESTMENT  IN  ANOTHER
 CHILD  CARE PROVIDER WITHIN THE STATE FOR A PERIOD OF TWELVE MONTHS FROM
 THE ORIGINAL RECEIPT OF FUNDS.
   (II) FOR THE PURPOSES OF THIS PARAGRAPH, THE ORIGINAL RECEIPT OF FUNDS
 SHALL BE DEFINED AS THE FIRST RECEIPT OF PUBLIC FUNDS  AFTER  COMPLETION
 OF THE ACQUISITION OF THE CHILD CARE PROVIDER.
   (D)  NOTHING  IN  THIS SUBDIVISION SHALL BE CONSTRUED TO SUPERSEDE ANY
 TERMS AND CONDITIONS IMPOSED BY STATUTORY AUTHORITY  FOR  THE  NEW  YORK
 STATE  CHILD  CARE  ASSISTANCE  PROGRAM  OR  OTHERWISE  SPECIFIED IN ANY
 CONTRACT FOR ASSISTANCE EXECUTED BETWEEN THE CHILD CARE PROVIDER AND THE
 OFFICE.
   (E) ANY CONTROLLING PRIVATE FUND, ANY HOLDER OF AN ACTIVE INTEREST  IN
 A  CONTROLLING  PRIVATE  FUND, OR ANY AFFILIATE OF A CHILD CARE PROVIDER
 THAT AIDS, ABETS,  FACILITATES,  SUPPORTS,  OR  INSTRUCTS  A  PROVIDER'S
 VIOLATION  OF  PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL BE JOINTLY
 AND SEVERALLY LIABLE UNDER THIS PARAGRAPH FOR ANY TRANSFER MADE OR OBLI-
 GATION INCURRED, INCLUDING FOR  REASONABLE  ATTORNEYS'  FEES  AND  COSTS
 AWARDED TO A PLAINTIFF PURSUANT TO THIS SECTION.
   4.  (A)  A  CHILD CARE PROVIDER SUBJECT TO THE PROVISIONS SET FORTH IN
 SUBDIVISION THREE OF THIS SECTION SHALL SELF-CERTIFY ITS COMPLIANCE WITH
 THE REQUIREMENTS AND RESTRICTIONS IN A FORM AND MANNER TO BE  DETERMINED
 BY THE OFFICE, PROVIDED THAT:
 A. 11613                            7
 
   (I)  SUCH  SELF-CERTIFICATION SHALL INCLUDE SUBMISSION OF SUCH PROVID-
 ER'S AUDITED FINANCIAL STATEMENT FOR THE TIME  PERIOD  COVERED  BY  SUCH
 CERTIFICATION;
   (II)  THE  OFFICE SHALL ESTABLISH PROCEDURES FOR ELECTRONIC SUBMISSION
 OF SUCH CERTIFICATION AND ANY ACCOMPANYING MATERIALS; AND
   (III) THE OFFICE SHALL PROVIDE TECHNICAL AND OTHER ASSISTANCE TO  MEET
 REPORTING  REQUIREMENTS  TO  ANY  CHILD  CARE  PROVIDER FOR WHICH TWENTY
 PERCENT OR MORE OF THE CHILD CARE SLOTS MAINTAINED BY SUCH PROVIDER  ARE
 SUPPORTED  BY  THE  NEW  YORK  STATE CHILD CARE ASSISTANCE PROGRAM. SUCH
 ASSISTANCE SHALL INCLUDE BUT NOT BE  LIMITED  TO  FINANCIAL  ASSISTANCE,
 SOFTWARE OR TEMPLATES FOR RECORDKEEPING, AND TRAINING RELATED TO MEETING
 REPORTING REQUIREMENTS.
   (B) NOTWITHSTANDING THE REPORTING REQUIREMENTS TRIGGERED BY A MATERIAL
 CHANGE  TRANSACTION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS
 SECTION, ANY CHILD CARE PROVIDER  WITH  FIVE  OR  MORE  EMPLOYEES  SHALL
 PROVIDE  THE  OFFICE WITH NOTICE SIXTY DAYS PRIOR TO THE MERGER, CONSOL-
 IDATION, OR CLOSURE OF ANY CHILD CARE FACILITY.
   (C) IF THE OFFICE IS MADE AWARE OF A FAILURE ON THE PART  OF  A  CHILD
 CARE PROVIDER TO COMPLY WITH THE REQUIREMENTS OF PARAGRAPH (A) OF SUBDI-
 VISION  THREE OF THIS SECTION OR OF A VIOLATION BY A CHILD CARE PROVIDER
 OF THE PROHIBITIONS SET FORTH IN PARAGRAPH (B) OF SUBDIVISION  THREE  OF
 THIS  SECTION,  THE  OFFICE SHALL UNDERTAKE ENFORCEMENT ACTION TO COMPEL
 COMPLIANCE. SUCH ACTION MAY INCLUDE, BUT IS NOT LIMITED TO:
   (I) MEETINGS OR TELEPHONE CONVERSATIONS BETWEEN A CHILD CARE  PROVIDER
 AND THE OFFICE TO DISCUSS CORRECTIVE ACTION PLANS;
   (II)  ISSUANCE  OF  A  WRITTEN REPORT WHICH INCLUDES CORRECTIVE ACTION
 PLANS OR REQUESTS THAT THE  CHILD  CARE  PROVIDER  SUBMIT  A  CORRECTIVE
 ACTION PLAN TO THE OFFICE;
   (III)  NOTICE  OF  THE  INTENTION  TO INITIATE ENFORCEMENT THROUGH THE
 RECOUPMENT OF FUNDS, IMPOSITION OF A FINE, OR  THE  LIMITATION,  SUSPEN-
 SION,  TERMINATION,  REVOCATION,  OR  DENIAL  OF A CHILD CARE LICENSE OR
 REGISTRATION;
   (IV) HOLDING OF A HEARING TO DETERMINE IF A CHILD  CARE  PROVIDER  HAS
 FAILED  TO  COMPLY WITH THE APPLICABLE LAW AND REGULATION WHICH RESULTED
 IN REQUEST FOR REPAYMENT OF  PUBLIC  FUNDS,  THE  ASSESSMENT  OF  FINES,
 SUSPENSION,  LIMITATION,  REVOCATION, OR DENIAL OF THE LICENSE OR REGIS-
 TRATION;
   (V) ISSUANCE OF A DETERMINATION, AFTER A HEARING, THAT CIVIL PENALTIES
 SHOULD BE IMPOSED;
   (VI) DETERMINATIONS TO DENY, REJECT,  REVOKE,  TERMINATE,  SUSPEND  OR
 LIMIT A LICENSE OR REGISTRATION;
   (VII)  ISSUANCE  OF ORDERS TO CEASE AND DESIST OPERATION OF CHILD CARE
 SERVICES;
   (VIII) REQUESTS TO THE ATTORNEY  GENERAL  TO  SEEK  INJUNCTIVE  RELIEF
 AGAINST  A LICENSEE OR REGISTRANT FOR REPEATED VIOLATIONS OF THE STATUTE
 OR REGULATION;
   (IX) REQUESTS TO THE ATTORNEY GENERAL TO TAKE SUCH ACTION AS IS NECES-
 SARY TO COLLECT CIVIL PENALTIES, OR TO BRING ABOUT COMPLIANCE  WITH  ANY
 OUTSTANDING HEARING DECISION OR ORDER; AND
   (X)  PUBLICATION OF THE NAMES AND ADDRESSES OF CHILD CARE LICENSEES OR
 REGISTRANTS WHOSE LICENSES, REGISTRATIONS OR APPLICATIONS FOR  LICENSURE
 OR  REGISTRATION  HAVE BEEN REJECTED, DENIED, LIMITED, SUSPENDED, TERMI-
 NATED OR REVOKED, OR AGAINST WHOM A FINE  HAS  BEEN  ASSESSED  AFTER  AN
 ADMINISTRATIVE  HEARING  FOR  A VIOLATION OF THE PROVISIONS SET FORTH IN
 SUBDIVISION THREE OF THIS SECTION.
 A. 11613                            8
 
   5. (A) ON NO LESS THAN AN ANNUAL BASIS, THE  OFFICE  SHALL  PUBLISH  A
 REPORT  OF  AGGREGATED  DATA DETAILING THE CAPACITY OF THE STATE'S CHILD
 CARE INDUSTRY BY PROGRAM TYPE AND OWNERSHIP ARRANGEMENT. INFORMATION  IN
 SUCH REPORT SHALL BE DISAGGREGATED BY AGE OF CHILD, GEOGRAPHIC LOCATION,
 AND  BASED  ON THE CHILD CARE PROVIDER'S RECEIPT OF PUBLIC FUNDING UNDER
 THE NEW YORK STATE CHILD CARE ASSISTANCE PROGRAM. NOTHING IN THIS SUBDI-
 VISION SHALL BE CONSTRUED TO PREVENT  THE  OFFICE  FROM  INCLUDING  THIS
 INFORMATION  IN  ANY  OTHER  REGULARLY  PUBLISHED REPORT RELATING TO THE
 CHILD CARE INDUSTRY, SO LONG AS THE INFORMATION IS UPDATED NO LESS  THAN
 ANNUALLY.
   (B)  THE  OFFICE  SHALL  ISSUE  A  REPORT  TRACKING  VIOLATIONS OF THE
 REQUIREMENTS SET FORTH IN SUBDIVISION THREE OF  THIS  SECTION  DISAGGRE-
 GATED  BY  PROGRAM  TYPE  AND  OWNERSHIP  ARRANGEMENT. AS INFORMATION IS
 AGGREGATED AT THE CONCLUSION OF  ANY  INVESTIGATION,  THE  OFFICE  SHALL
 UPDATE THE REPORT AUTOMATICALLY ON NO LESS THAN A MONTHLY BASIS.
   (C)  THE STATE SHALL CREATE A PUBLICLY ACCESSIBLE DATABASE OF NON-PRO-
 PRIETARY INFORMATION COLLECTED PURSUANT TO THE REGISTRATION REQUIREMENTS
 SET FORTH IN PARAGRAPH (A), SUBPARAGRAPHS (I) AND (IV) OF PARAGRAPH (D),
 AND SUBPARAGRAPHS (I), (II), (V), (VI) AND (VII)  OF  PARAGRAPH  (E)  OF
 SUBDIVISION TWO OF THIS SECTION. THE INFORMATION CONTAINED IN SUCH DATA-
 BASE  SHALL  BE  MADE  AVAILABLE  IN  AN  OPEN  FORMAT  AND PUBLISHED AS
 MACHINE-READABLE DATA.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.