Referred to the Committee on Financial Services, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill requires the Securities and Exchange Commission to collect detailed information about private equity firms that own and operate childcare centers. Specifically, it targets large private equity funds with over $150 million in assets under management that control childcare facilities at 25 or more locations, requiring them to report their ownership, purchases, and sales of childcare businesses to the SEC within one year of enactment. The legislation also imposes a four-year freeze on private equity firms that newly acquire childcare centers, prohibiting them from selling their stake or extracting profits through dividends and buybacks during that period, ostensibly to protect the stability and quality of childcare services. Additionally, the bill directs the Government Accountability Office to conduct a two-year study examining how private equity ownership affects childcare quality, availability, tuition costs, and worker wages, with findings reported to Congress. The SEC must also issue annual reports to Congress with anonymized data on private equity childcare ownership trends.
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