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 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 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.

(Note: This summary applies to this bill as introduced.)