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Dear Providers,
To comply with C.R.S. 26.5-5-332, which will take effect on January 1, 2026, the Department has determined, in consultation with stakeholders, including families who use child care programs and licensed child care program providers, the reasonable administrative fee that a provider may retain before issuing a refund.
A child care program may retain a reasonable administrative fee of $25.00 for any application, deposit, or wait list fee that is collected, as those terms are defined in section 332. As also stated in the law, “Prospective family pays a child care program application, deposit, or wait list fee(s) and is not enrolled in the child care program after six months of paying the fee(s), the fee(s) is refundable.”
Regarding the effective date and enforcement of these new requirements, SB25-004 has an effective date of January 1, 2026. CDEC will also begin enforcement at the same time as the effective date.
What this means is that all requirements of the bill must be met by anyone covered under the law on January 1st, including but not limited to:
- The transparency and accountability provisions regarding providing a fee schedule and process on fee refunds to families, which are effective January 1st; and
- If a prospective family pays an application fee, deposit fee, or wait list fee on or after January 1st, and the child(ren) are not enrolled in the program after six (6) months of any payment made on or after January 1st, then that fee is refundable.
Please note that CDEC does not provide legal advice, and all providers should familiarize themselves (with their independent counsel if necessary) with all of the new requirements contained in section 26.5-5-332, as there are multiple requirements and exceptions to those requirements that are not discussed in this notice.
This information is available on the CDEC website under Public Notice. These requirements will also be added to the General Rule for Child Care Facilities.
Thank you.
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