Regulating Child Care Center Fees
SB004 regulates certain fees that licensed child care programs may charge families in Colorado. The bill defines three fee types: application fees, deposit fees, and wait list fees. It requires that if a prospective family pays one of those fees and is not enrolled after six months, the fee becomes refundable, minus a reasonable administrative fee set by the department in consultation with stakeholders. Families must submit a written request to receive the refund, and families who decline an offered child care slot are not entitled to a refund.
The bill also allows child care programs to charge a deposit fee to secure a guaranteed child care position, but requires that the deposit be credited toward tuition once services begin. It excludes from the new rules fees governed by an enrolled family’s signed contract and fees charged to hold a slot that has already been offered. In addition, child care programs must provide fee schedules and refund procedures to prospective and enrolled families, and may post that information on their websites.
For enforcement, the Department of Early Childhood may review compliance during inspections or through complaints about fees. If a program is found out of compliance, it has 30 days to correct the issue before the department may take further disciplinary action. The bill directs the department not to penalize good-faith administrative errors or first-time noncompliance, and to focus enforcement on deliberate violations. The act is scheduled to take effect January 1, 2026, unless referred to and approved by voters.
The bill’s impact is to add a new section to Colorado law governing child care licensing and fee practices, creating refund rights and disclosure obligations for child care centers, family child care homes, and neighborhood youth organizations. It gives families more protection against nonrefundable wait list and application fees while preserving providers’ ability to charge certain deposits and contract-based fees. It also expands the department’s oversight role by tying fee practices to inspections, complaints, and possible discipline under existing child care enforcement statutes.
Overall sentiment appears mixed but generally supportive of consumer protections, with the bill advancing through both chambers despite notable opposition on final votes. Committee and floor votes show substantial support for moving the bill forward, but also meaningful dissent in the Senate and House, suggesting concern about regulatory burden or the effect on child care providers. The bill’s enforcement language and refund requirements appear to be the main areas where supporters and opponents may differ, particularly around administrative costs, provider flexibility, and how strictly the state should police fee practices.
The bill adds section 26.5-5-332 to the Colorado Revised Statutes, creating new statewide rules for child care program application, deposit, and wait list fees. It requires refunds after six months if a family has not enrolled, mandates fee disclosures, and authorizes the Department of Early Childhood to investigate and enforce compliance through inspections, complaints, and existing disciplinary authority. Child care providers will need to update fee schedules, refund procedures, and family notices, while families gain a statutory right to request refunds in specified circumstances.
The bill appears to have received broad but not unanimous support. It passed committee and both chambers, but several floor votes were close enough to show real division, especially in the Senate and House third-reading votes. That pattern suggests general agreement with the goal of protecting families from unfair child care fees, alongside concern from some legislators about how the rules would affect providers and the child care market.
The main points of contention are likely the refund requirement after six months, the department’s role in setting a reasonable administrative fee, and whether the new rules impose too much compliance burden on child care providers. Opponents may be concerned that refundable fees and disclosure mandates reduce provider flexibility or create administrative costs, while supporters likely view the bill as necessary consumer protection for families seeking scarce child care slots. The bill’s carve-outs for signed contracts and offered slots suggest an effort to balance those interests.