A Bill for an Act
Page 1, Line 101Concerning regulating fees licensed child care programs
Page 1, Line 102may charge families.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill limits the amount a licensed child care center, family child care home, or substitute placement agency (child care center) may charge for a wait list fee or an application fee to $25.
A child care center shall use a wait list fee or an application fee to cover only the administrative burdens of managing a wait list or processing an application.
A child care center shall credit a deposit fee toward the family's first month of child care if the family secures a position with the child care center.
For transparency and accountability to families, a child care center shall create and publish a policy for establishing fees. Each child care center shall make the information available to families in a clear and understandable format before families apply to and enroll in the child care center. Each child care center shall display the information in a prominent and conspicuous location:
- On the child care center's website, if applicable;
- In the child care center's facility at all times during operational hours; and
- On the child care center's application.
During the department of early childhood's (department) periodic inspections, or if a complaint is filed regarding fees, the department shall review the information in the child care center's policy for establishing fees to confirm the child care center is complying with the law. If the department finds the child care center is not compliant, the child care center has 30 days after the date of inspection to comply. If the child care center does not comply within 30 days after the date of inspection, the department may take further disciplinary action.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 26.5-5-332 as follows:
Page 2, Line 326.5-5-332. Regulation of child care program fees - complaints
Page 2, Line 4- enforcement - definitions. (1) As used in this section, unless the context otherwise requires:
Page 2, Line 5(a) "Child care program" means a child care center, family child care home, or neighborhood youth organization.
Page 2, Line 6(b) "Child careprogram application fee" or "application
Page 2, Line 7fee" means a sum of money, however denominated, that is
Page 2, Line 8charged or accepted by a child care program from a prospective
Page 2, Line 9family in connection with the prospective family's submission of
Page 2, Line 10a child care program application.
Page 3, Line 1(c) "Child care program deposit fee" or "deposit fee" means
Page 3, Line 2a sum of money, however denominated, that is charged or
Page 3, Line 3accepted by a child care program from a family in connection with the family securing a guaranteed child care position.
Page 3, Line 4(d) "Child care program wait list fee" or "wait list fee"
Page 3, Line 5means a one-time fee charged or accepted by a child care
Page 3, Line 6program from a prospective family in connection with the
Page 3, Line 7prospective family joining a wait list for a potential child care position that is not yet available.
Page 3, Line 8(2) (a) If a prospective family pays a child care program a
Page 3, Line 9child care program application fee, deposit fee, or wait list fee
Page 3, Line 10and is not enrolled in the child care program after six months
Page 3, Line 11of paying the fee, the fee is refundable. A child care program
Page 3, Line 12may retain a reasonable administrative fee from a refundable
Page 3, Line 13fee before issuing a refund to the prospective family. The
Page 3, Line 14department shall determine the amount of a reasonable
Page 3, Line 15administrative fee in consultation with stakeholders, including
Page 3, Line 16families who use child care programs and licensed child care
Page 3, Line 17program providers. Refundsmay be issued only after the
Page 3, Line 18deduction of the reasonable administrative fee. The prospective
Page 3, Line 19family must submit a written request to the child care program to receive a refund.
Page 3, Line 20(b) Upon receiving the written request from the
Page 3, Line 21prospective family as described in subsection (2)(a) of this
Page 3, Line 22section, the child care program shall refund the fees to the
Page 3, Line 23prospective family as described in subsection (2)(a) of this
Page 3, Line 24section and may remove the prospective family from the wait list.
Page 4, Line 1(c) Prospective families who are offered a child care slot
Page 4, Line 2with a child care program and who refuse the child care slot
Page 4, Line 3shall not receive a refund as described in subsections (2)(a) and (2)(b) of this section.
Page 4, Line 4(3) (a) If a family enrolls in a child care program and signs
Page 4, Line 5a contract with the child care program provider, the terms of
Page 4, Line 6the contract, including fees outlined in the contract, are not subject to this section.
Page 4, Line 7(b) A fee to hold a child care slot that has been offered to a family is not subject to this section.
Page 4, Line 9(4) A child care program may charge a child care program
Page 4, Line 10deposit fee to a family to secure a guaranteed child care
Page 4, Line 11position. The child care program shall credit the deposit fee
Page 4, Line 12toward the family's tuition of child care following the acceptance of child care services.
Page 4, Line 13(5) (a) For transparency and accountability to
Page 4, Line 14prospective families, a child care program shall provide a fee
Page 4, Line 15schedule and the process on fee refunds described in subsection (2) of this section to a prospective family upon:
Page 4, Line 16(I) Joining a wait list;
(II) Registration; and
Page 4, Line 17(III) Request of the family.
Page 4, Line 18(b) For transparency and accountability to an enrolled
Page 4, Line 19family, a child care program shall provide a fee schedule and
Page 4, Line 20the process on fee refunds described in subsection (2) of this section to an enrolled family upon:
Page 5, Line 1(I) Enrollment;
(II) Amendments to the fee schedule; and
Page 5, Line 2(III) Amendments to the process on fee refunds.
Page 5, Line 3(c) A child care program may publish the fee schedule
Page 5, Line 4described in subsections (5)(a) and (5)(b) of this section digitally on the child care program's website.
Page 5, Line 6(6) (a) During an inspection conducted pursuant to section
Page 5, Line 726.5-5-316 (1), or if a complaint regarding fees is filed with the
Page 5, Line 8department through the complaint procedures described in
Page 5, Line 9section 26.5-5-316 (1)(b)(II),the department shall determine
Page 5, Line 10whether the child care program is complying with the requirements of this section.
Page 5, Line 11(b) If the department finds the child care program is not
Page 5, Line 12compliant with this section following the inspection described
Page 5, Line 13in subsection (6)(a) of this section, the child care program has
Page 5, Line 14thirty days after the date of inspection to comply with the requirements of this section.
Page 5, Line 15(c) If the child care program does not comply with the
Page 5, Line 16requirements of this section within thirty days after the date of
Page 5, Line 17inspection described in subsection (6)(a) of this section, the
Page 5, Line 18department may take further disciplinary action pursuant to
Page 5, Line 19section 26.5-5-317 (2).The department shall not take disciplinary
Page 5, Line 20action against a child care program that makes a good-faith
Page 5, Line 21administrative error or is not in compliance for the first time.
Page 5, Line 22The department's enforcement shall focus on deliberate violations of this section.
Page 6, Line 1(7) This section does not restrict or affect the powers,
Page 6, Line 2duties, or functions of the department as authorized pursuant to this title 26.5.
Page 6, Line 4SECTION 2. Act subject to petition - effective date. This act
Page 6, Line 5takes effect January 1, 2026; except that, if a referendum petition is filed
Page 6, Line 6pursuant to section 1 (3) of article V of the state constitution against this
Page 6, Line 7act or an item, section, or part of this act within such period, then the act,
Page 6, Line 8item, section, or part will not take effect unless approved by the people
Page 6, Line 9at the general election to be held in November 2026 and, in such case,
Page 6, Line 10will take effect on the date of the official declaration of the vote thereon by the governor.