House committee advances bill to require refunds for childcare wait‑list and deposit fees

Senate Bill 4, a bill to require refundable wait‑list, application or deposit fees at licensed child care providers after six months if a family has not received a spot, moved forward from the House Health and Human Services Committee to the Committee of the Whole with a favorable recommendation.

Sponsors said the proposal aims to reduce an up‑front cost burden on families while preserving child care businesses’ ability to cover administrative costs. "Senate Bill 4 makes these fees, wait‑list fees refundable ensuring that families don't have to choose between paying for other necessities and getting their child enrolled in care," said Melissa Maris, director of early childhood at the Colorado Children's Campaign.

Representatives who backed the bill said it strikes a balance between family protections and provider solvency by allowing a reasonable administrative retention and directing the Colorado Department of Early Childhood (CDEC) to determine appropriate administrative fees in rulemaking. Sponsor Representative Wilford described stories from parents who paid multiple wait‑list fees and never received a placement, and said insurers and state programs were not the target — the bill addresses private and nonprofit licensed providers that collect deposits or wait‑list fees.

Opponents among providers told the committee they fear increased administrative burdens and loss of flexibility. Jillian Snell, who operates a private childcare business, opposed the bill on the grounds that requiring publicized pricing and refund rules could conflict with private business practices and fixed margins: "We are a private business and feel that the state doesn't have the jurisdiction to regulate our fees in this manner," she said. Family child care providers told the committee many do not charge wait‑list fees and that the bill should not impose additional paperwork on small operators.

Committee members pressed sponsors on rulemaking and whether CDEC’s rulemaking process would include providers. Representative Garcia said CDEC would use the usual stakeholder rulemaking process, including public comment periods, and that the fiscal note for the bill was zero.

Votes at a glance: the committee voted 9–4 to send SB 4 to the Committee of the Whole.

The committee’s action sends SB 4 to the next floor committee where floor debate and a full House vote would be scheduled if it continues to advance.