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S 372

Establishes the "no severance ultimatums act"

2025 Regular Session Introduced by Mike Gianaris and 2 co-sponsors

Creates a dedicated fund to provide annual, proportional operating payments to eligible high-poverty, center-based childcare providers in gateway municipalities.

REFERRED TO CODES
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WeVote Research Nonpartisan
Bill Summary · S 372

Bill Summary — S.372: "Disproportionate Share Childcare Provider Fund" (Gómez)

Purpose

Creates a dedicated fund under the Massachusetts Department of Early Education and Care (DEEC) — the "Disproportionate Share Childcare Provider Fund" — to provide supplemental operating support to licensed childcare providers that serve a disproportionate share of very low‑income, high‑risk children and operate in designated “gateway municipalities.”

Key provisions

  • Establishes the Disproportionate Share Childcare Provider Fund within DEEC (Section 1).
  • Requires that at least 50% of annual DEEC licensing fees be deposited into the Fund (Section 2).
  • Sets detailed eligibility criteria for providers to receive supplemental payments (Section 3).
  • Directs that eligible providers receive annual payments from the Fund, paid bi‑annually and allocated in proportion to each provider’s licensed capacity; unspent funds carry forward and do not revert to the General Fund (Section 4).
  • Implementation and payment procedures are to be prescribed by the DEEC Commissioner.
  • Effective upon passage (Section 5).

Eligibility (all criteria must be met)

A childcare provider agency must:
- Offer center‑based, family and/or after‑school programs with a licensed capacity of more than 150 children;
- Have at least 95% of their capacity serving children whose families live at or below the federal poverty level;
- Not be a Head Start provider or be eligible for federal Community Anti‑Poverty Agency funding;
- Receive at least 90% of its early education and care revenue from DEEC;
- Operate in a “gateway municipality” as defined in M.G.L. c.23A, §3A.

Funding and distribution mechanics

  • Funding source: minimum 50% of DEEC licensing fees annually.
  • Distribution: annual entitlement, disbursed bi‑annually, proportional to licensed capacity of eligible agencies.
  • Unexpended funds remain in the Fund (no reversion to General Fund).
  • DEEC Commissioner prescribes payment timing and method.

Who is affected

  • Eligible licensed childcare providers meeting the strict criteria (likely a small subset of high‑capacity, high‑poverty providers in gateway cities).
  • DEEC (administration, licensing fee allocation).
  • Families served by eligible providers (potentially improved financial stability of providers).
  • State finances: dedicates a portion of licensing fee revenue to a new restricted fund.

Procedural status & timeline (selected)

  • Filed in Senate (Senate Docket No. 1330) — filed 01/16/2025; introduced 02/03/2025.
  • Passed Senate and delivered to the House (March–June 2025 activity); amended (372A) and referred to Committee on Codes (most recent status listed: REFERRED TO CODES).
  • Hearing scheduled: 09/02/2025, 1:00–5:00 PM (A‑2).
  • Effective date: upon passage.

Potential impacts and considerations

  • Positive: targets supplemental support to providers serving extremely low‑income children in high‑need municipalities; may improve provider stability and access to care in gateway cities.
  • Limitations/concerns: very narrow eligibility thresholds (capacity >150; ≥95% at/below poverty; ≥90% DEEC revenue; exclusion of Head Start/federally eligible agencies) will limit the number of recipients; dedicating half of DEEC licensing fee revenue reduces those funds’ availability for other DEEC uses unless licensing revenue grows; fiscal impact depends on total licensing fee receipts (no dollar amount specified).
  • Administrative: DEEC must establish rules for payments and implement fund management.

For more detail, see the bill text (Senate No. 372) and related legislative docket entries.

Compiled from official sources — confirm details with the bill’s official record.

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