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Read. Follow. Verify.New York bill regulates private equity in child care and imposes strict financial reporting
Last action · July 29, 2026: REFERRED TO CHILDREN AND FAMILIESSponsor: Linda Rosenthal
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What This Bill Would Do
New York bill A 11613 requires child care providers, particularly those backed by private equity or receiving public funds, to submit detailed operational, financial, and ownership disclosures to the Office of Children and Family Services. The measure restricts how public funds can be spent, prohibits certain executive bonuses and s, and mandates advance notice for mergers or facility closures starting 90 days after becoming law.
Child care providers receiving state subsidies or capital improvement funds face new restrictions on profit distributions, executive pay, and staff layoffs, while private equity firms and affiliates can be held jointly and severally liable for violations.
- Private equity investment in child care facilities has drawn increasing scrutiny from lawmakers concerned about rising costs, facility stability, and workforce conditions. context
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
child care providers
Providers must comply with extensive annual and transactional reporting mandates, self-certifications, and restrictions on the use of public funds.
significant equity investors
Private equity funds and major investors face restrictions on acquisitions, capital distributions, and joint liability for violations.
child care workforce
Workers are affected by provisions promoting wage transparency, limits on executive pay ratios, and union neutrality requirements.
Key Facts
- Child care providers must report legal names, business addresses, capacity, tuition rates, and ownership details to the Office of Children and Family Services at least annually and within two days of a material change transaction.
- Providers participating in state child care assistance or receiving public capital funds must disclose employee wage schedules, net operating profits, and staff turnover analyses.
- Providers with significant equity investments must additionally report debt-to-asset ratios, principal compensation, CEO-to-median-worker pay ratios, and beneficial owners.
- Public funds are strictly prohibited from being used for executive bonuses, severance payments, management fees, capital distributions, or executive compensation exceeding set indirect cost rates.
Show all 8 facts
- Child care providers with significant equity investment are barred from initiating program closures or staff layoffs within 24 months of receiving public funds, or acquiring other providers within 12 months.
- Providers with five or more employees must give 60 days advance notice to the state prior to any merger, consolidation, or facility closure.
- The state will create a publicly accessible, machine-readable database of non-proprietary information collected under the reporting mandates.
- Controlling private funds or affiliates that aid or instruct a provider's violation are made jointly and severally liable for resulting penalties and legal costs.
Frequently Asked Questions
Which child care providers are exempt from the initial reporting requirements?
What information must child care providers with private equity backing report?
What actions can the state take if a child care provider violates the funding restrictions?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
1 action- Jul 29, 2026HouseCommitteeREFERRED TO CHILDREN AND FAMILIES
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Expanded Financial Transparency for Private Equity in Child Care
The bill shifts regulatory oversight by imposing strict financial reporting, profit restrictions, and joint liability on private equity firms operating child care facilities.
Connected Entities
Sources
www.nysenate.gov
Analysis Score
0–100- Significance80How much this matters to a regular citizen
- Controversy75Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz60Current news / social attention level
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