Bill > HB1011

This bill addresses private equity investment in child care centers by establishing new requirements for institutional investment entities that own multiple child care centers. Specifically, the bill defines an "institutional investment entity" as an investment company or venture capital fund that owns at least 20% of a child care center or child care center company. The bill requires such entities that own 5 or more child care centers to: (1) allow child care centers to maintain ownership of their operating property, (2) post accurate and up-to-date child care pricing on their websites, (3) limit wait list fees to no more than $25, and (4) provide at least 60 days' notice to employees and enrolled families if the entity plans to lay off staff or change enrollment requirements. The legislative declaration emphasizes concerns about large for-profit child care center chains prioritizing investor profits over the needs of families and children, and aims to create guardrails to prevent potentially harmful business practices. The bill also gives the state department authority to request financial information from these institutional investment entities and allows for potential disciplinary action against non-compliant child care centers. The requirements are specifically targeted at larger institutional investors to mitigate potential negative impacts on Colorado's child care system.

Budget and Finance, Business and Industry, Health and Social Services

https://leg.colorado.gov/bills/hb25-1011