A Bill for an Act
Page 1, Line 101Concerning requirements for child care centers owned by an
Page 1, Line 102institutional investment entity.
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 requires a child care center owned by an institutional investment entity to meet the following requirements in order to receive state funding:
- The child care center may only charge a wait list fee of no more than $25; and
- The child care center shall post and update accurate child care pricing on the child care center's website.
- Allow a child care center to maintain ownership of the property used to operate the child care center; and
- Upon acquisition of a child care center, provide at least a 60-day notice to all child care center employees and families with children enrolled at the child care center if the institutional investment entity intends to lay off child care center employees or change enrollment or eligibility requirements for the child care center.
The bill requires an institutional investment entity to meet the following requirements in order to receive state funding:
The requirements of the bill apply only to institutional investment entities that own 5 or more child care centers and to child care centers that are owned by an institutional investment entity that owns 5 or more child care centers.
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 26.5-1-118 as
Page 2, Line 3follows:
Page 2, Line 426.5-1-118. Private equity acquisition of child care centers -
Page 2, Line 5applicability - definition. (1) As used in this section, unless the
Page 2, Line 6context otherwise requires, "institutional investment entity"
Page 2, Line 7means a person or company that would be considered an
Page 2, Line 8investment company under the federal "Investment Company
Page 2, Line 9Act of 1940", 15 U.S.C. sec. 80a-3, except for the application of
Page 2, Line 10subsection (c)(1) or (c)(7); or considered a venture capital fund,
Page 2, Line 11as defined in 17 CFR 275.203(I)-1; and that has ownership of at
Page 2, Line 12least twenty percent of a child care center or company that
Page 2, Line 13operates or franchises child care centers. "Institutional
Page 2, Line 14investment entity" includes an entity that holds at least a
Page 2, Line 15twenty percent share of a company that operates or franchises
Page 2, Line 16child care centers and that is publicly traded on a stock
Page 2, Line 17exchange, and also includes an entity that is the beneficial
Page 3, Line 1owner of a franchised child care center regardless of whether
Page 3, Line 2the franchise is independently operated. Any center or company
Page 3, Line 3that is at least twenty percent owned by, or has twenty percent
Page 3, Line 4of its public shares owned by, an institutional investment entity
Page 3, Line 5is an institutional investment entity for purposes of this section.
Page 3, Line 6(2) In order to receive state funding pursuant to this title
Page 3, Line 726.5, a child care center owned by an institutional investment
Page 3, Line 8entity:
Page 3, Line 9(a) May only charge a wait list fee of no more than
Page 3, Line 10twenty-five dollars if the child care center charges a wait list
Page 3, Line 11fee; and
Page 3, Line 12(b) Shall post and update child care pricing on the child
Page 3, Line 13care center's website.
Page 3, Line 14(3) In order for a child care center that is owned by an
Page 3, Line 15institutional investment entity to receive state funding
Page 3, Line 16pursuant to this title 26.5, the institutional investment entity
Page 3, Line 17must:
Page 3, Line 18(a) Allow the child care center to maintain ownership of
Page 3, Line 19the property used to operate the child care center; and
Page 3, Line 20(b) Upon acquisition of a child care center, provide at
Page 3, Line 21least a sixty-day notice to child care center employees and
Page 3, Line 22families who have children enrolled at the child care center if
Page 3, Line 23the institutional investment entity intends to lay off child care
Page 3, Line 24center employees or change enrollment or eligibility
Page 3, Line 25requirements for the child care center as a result of the
Page 3, Line 26institutional investment entity's acquisition.
Page 3, Line 27(4) (a) The requirements described in subsection (2) of this
Page 4, Line 1section apply only to a child care center that is owned by an
Page 4, Line 2institutional investment entity that owns five or more child
Page 4, Line 3care centers.
Page 4, Line 4(b) The requirements described in subsection (3) of this
Page 4, Line 5section apply only to an institutional investment entity that
Page 4, Line 6owns five or more child care centers.
Page 4, Line 7SECTION 2. Safety clause. The general assembly finds,
Page 4, Line 8determines, and declares that this act is necessary for the immediate
Page 4, Line 9preservation of the public peace, health, or safety or for appropriations for
Page 4, Line 10the support and maintenance of the departments of the state and state
Page 4, Line 11institutions.