§ 410-x. Use of funds. 1. A social services district shall expend its
allocation from the block grant in a manner that provides for equitable
access to child care assistance funds to eligible families, and in
accordance with the applicable provisions in federal law regarding the
portion of the funds which must be spent on families in receipt of
family assistance, families who are attempting through work activities
to transition off of family assistance and families at-risk of becoming
dependent on family assistance and the portion which must be spent on
other working low-income families. Each social services district may
spend no more than five percent of its block grant allocation for
administrative activities. The term "administrative activities" shall
not include the costs of providing direct services.

2. (a) The office of children and family services may establish
priorities for the families which will be eligible to receive funding;
provided that the priorities provide that eligible families will receive
equitable access to child care assistance funds to the extent that these
funds are available. The office of children and family services shall
ensure that families in receipt of child care assistance as of September
thirtieth, two thousand twenty-three who were identified as a priority
population under a local social services district's consolidated
services plan shall continue to be eligible for such assistance,
provided they meet all other applicable eligibility requirements for
such assistance.

(d) Each social services district shall collect and submit to the
commissioner of the office of children and family services in a manner
to be specified by the commissioner of the office of children and family
services information concerning the disbursement of child care
assistance funds showing geographic distribution of children receiving
assistance within the district.

(e) The commissioner of the office of children and family services
shall submit a report to the governor, temporary president of the senate
and the speaker of the assembly on or before August thirty-first, two
thousand one concerning the implementation of this section. This report
shall include information concerning the disbursement of child care
assistance funds showing geographic distribution of children receiving
assistance within the state.

3. Child care assistance funded under the block grant must meet all
applicable standards set forth in section three hundred ninety of this
article or the administrative code of the city of New York, including
child day care in a child day care center, family day care home, group
family day care home, school age child care program, or in home care
which is not subject to licensure, certification or registration, or any
other lawful form of care for less than twenty-four hours per day. The
department also is required to establish, in regulation, minimum health
and safety requirements that must be met by those providers providing
child care assistance funded under the block grant which are not
required to be licensed or registered under section three hundred ninety
of this article or to be licensed under the administrative code of the
city of New York and to those public assistance recipients who are
providing child care assistance as part of their work activities or as
community service under title nine-B of article five of this chapter. A
social services district may submit to the department justification for
a need to impose additional minimum health and safety requirements on
such providers and a plan to monitor compliance with such additional
requirements. No such additional requirements or monitoring may be
imposed without the written approval of the department. Social services
districts shall provide, directly or through referral, technical
assistance and relevant health and safety information to all public
assistance recipients who voluntarily choose to provide child care
assistance as part of their work activities under title nine-B of
article five of this chapter.

4. The amount to be paid or allowed for child care assistance funded
under the block grant shall be the actual cost of care but no more than
the applicable market-related payment rate established by the department
in regulations. The payment rates established by the department shall be
sufficient to ensure equal access for eligible children to comparable
child care assistance in the substate area that are provided to children
whose parents are not eligible to receive assistance under any federal
or state programs. Such payment rates shall take into account the
variations in the costs of providing child care in different settings
and to children of different age groups, and the additional costs of
providing child care for children with special needs.

5. The department shall promulgate regulations under which provision
for child care assistance may be made by providing child care directly;
through purchase of services contracts; by providing cash, vouchers or
reimbursement to the providers of child care or to the parents or
caretaker relatives; or through such other arrangement as the department
finds appropriate. Such regulations shall require the use of at least
one method by which child care arranged by the parent or caretaker
relative can be paid.

6. Pursuant to department regulations, child care assistance shall be
provided on a sliding fee basis based upon the family's ability to pay;
provided, however, that a family receiving assistance pursuant to this
title shall not be required to contribute more than one percent of their
income exceeding the federal poverty level.

7. A social services district may suspend the eligibility of a
provider who is not required to be licensed or registered under section
three hundred ninety of this article to provide child care assistance
funded under the block grant, where the provider is the subject of a
report of child abuse or maltreatment that is under investigation by
child protective services.

8. Notwithstanding any provision of law to the contrary, child care
assistance payments made pursuant to this section may be made by direct
deposit or debit card, as elected by the recipient, and administered
electronically, and in accordance with such guidelines, as may be set
forth by regulation of the office of children and family services. The
office of children and family services may enter into contracts on
behalf of local social services districts for such direct deposit or
debit card services in accordance with section twenty-one-a of this
chapter.

9. Reimbursement for payment on behalf of children who are temporarily
absent from child care shall be paid for up to eighty days per year.
Reimbursement for additional absences may be allowable in the case of
extenuating circumstances, as determined by the office of children and
family services.