Colorado Senate Rejects Committee Report on Childcare Bill Addressing Private Equity Ownership

The Colorado Senate convened on April 7, 2025, for Legislative Day 090, focusing on House Bill 10 11, which addresses childcare regulations in the state. The meeting began with discussions surrounding a committee report aimed at enhancing protections for children and childcare centers across Colorado. The report was intended to ensure transparency and accountability within the childcare sector, particularly concerning private equity ownership.

The committee report faced opposition, with some members arguing that it did not align with the bill's title. However, supporters emphasized that the report was a necessary compromise that would extend consumer protections to all childcare centers, not just a select few. A motion to adopt the committee report was ultimately rejected, signaling a setback for those advocating for broader protections.

Senator Kipp highlighted the pressing issue of childcare affordability in Colorado, noting that the state ranks as the fifth most expensive for childcare in the nation, with a significant shortage of licensed spots. She pointed out that approximately 7.5% of Colorado's childcare capacity is owned by private equity firms, which often prioritize profit over quality care, leading to understaffing and reduced service quality.

Senator Judah echoed these concerns, stating that the childcare industry is not competitive due to a lack of available spots, leaving parents with little choice. He stressed the importance of addressing the unique challenges posed by private equity in the childcare sector to prevent further consolidation and ensure access for families.

The bill aims to implement minimal transparency requirements for childcare providers owned by private equity, mandating that they disclose pricing on their websites and provide notice before making significant changes to services. Supporters of the bill argued that these measures are essential for protecting families and ensuring that public funds are used responsibly.

Opponents, including Senator Bright, expressed concerns that the bill could lead to increased costs and reduced availability of childcare services. They argued that the regulations could burden providers, particularly smaller, family-run centers, which already operate on thin margins.

As the discussion progressed, amendments to the bill were proposed, including one aimed at refining the transparency requirements for childcare centers. However, this amendment was later withdrawn, indicating ongoing negotiations and adjustments to the proposed legislation.

The meeting concluded with a call for further discussion on the bill, highlighting the complexities and differing perspectives surrounding childcare regulation in Colorado. The Senate will continue to deliberate on House Bill 10 11, with implications for families and childcare providers across the state.