Private Equity Acquisition of Child Care Centers

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;

The bill allows the department to take disciplinary action against a child care center if the child care center does not comply with posting its pricing online.

The bill requires an institutional investment entity to meet the following requirements: in order to receive state funding:

• 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 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 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. The bills allows the department to require an institutional investment entity to annually submit information about the institutional investment entity's financial condition.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)