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Colorado dad and mom and lecturers might get 60 days’ discover about workers layoffs or enrollment modifications if their baby care facilities are acquired by chains backed by personal fairness companies.
That’s one of many provisions in a invoice that cleared its first legislative hurdle final week, with an 8-5 vote within the Home Well being and Human Companies committee.
The invoice, sponsored by three Democratic representatives, seeks new guardrails for baby care facilities backed by institutional buyers equivalent to personal fairness or enterprise capital companies. Consultants say such companies intention to generate large earnings for his or her buyers, typically on the expense of kids, households, and staff. Corporations do that by slicing prices and charging charges.
The invoice, which was considerably watered down from its unique model, represents Colorado’s first foray into baby care rules centered on for-profit baby care chains with institutional buyers. Different states, together with Massachusetts, Vermont, and New Jersey have just lately taken comparable steps.
