Colorado lawmakers advance bill that would put guardrails on private equity-backed child care chains
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Colorado parents and teachers could get 60 days’ notice about staff layoffs or enrollment changes if their child care centers are acquired by chains backed by private equity firms.
That’s one of the provisions in a bill that cleared its first legislative hurdle last week, with an 8-5 vote in the House Health and Human Services committee.
The bill, sponsored by three Democratic representatives, seeks new guardrails for child care centers backed by institutional investors such as private equity or venture capital firms. Experts say such firms aim to generate big profits for their investors, often at the expense of children, families, and workers. Firms do this by cutting costs and charging fees.
The bill, which was significantly watered down from its original version, represents Colorado’s first foray into child care regulations focused on for-profit child care chains with institutional investors. Other states, including Massachusetts, Vermont, and New Jersey have recently taken similar steps.
