What's happening
This bill requires child day care providers to place excess security deposits in escrow and outlines rules for their return.
Why it matters
Protects families’ funds by requiring day care providers to keep any security deposit amount over two weeks’ worth of fees in a separate escrow account, rather than mixing it with their own money. This reduces risks of misuse or loss if the provider faces financial trouble.
Mandates that, upon ending services, providers must either deliver care equivalent to the full deposit, return the excess (with interest), or return the entire deposit (with interest on the excess). This gives parents multiple pathways to recoup their money appropriately.
Introduces an accountability mechanism for providers handling large deposits, creating a legal obligation to manage parents’ money responsibly and transparently. This could deter unfair withholding of deposits and give recourse in disputes.
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Who cares
Licensed and registered child day care providers
Providers collecting advance security deposits greater than two weeks of child care fees would have to escrow the excess separately from personal funds and not treat it as an asset.
Parents and guardians paying child care security deposits
Before they terminate services, providers would have to offer care covering the full deposit, return the excess plus accrued interest, or return the full deposit plus accrued interest on the excess.
Children whose families pay security deposits
One option for satisfying the bill’s requirements would be for providers to deliver child care for the full period covered by the deposit.
Headline styles
Escrow Day Care Deposits
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Referred to children and families
- Referred to children and families
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protect Day Care Deposits
In Senate Committee · Children And Families · Sponsor Velmanette Montgomery
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1496
2019-2020 Regular Sessions
IN ASSEMBLY
January 15, 2019
Introduced by M. of A. RICHARDSON, CARROLL, MONTESANO, HYNDMAN, DICKENS, COOK -- Multi-Sponsored by -- M. of A. SIMON -- read once and referred to the Committee on Children and Families
AN ACT to amend the social services law, in relation to security deposits collected by child day care providers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The social services law is amended by adding a new section 390-l to read as follows:
§ 390-l. 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.
§ 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.
LBD02882-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.