Bill > HB269

This bill, titled the "Early Childhood Care Accountability Act," amends existing law to place limitations on how funds received by licensed child care programs and licensed early childhood care programs from the early childhood education and care department can be used, particularly when these programs are owned or managed by investment firms or investment funds. Specifically, the bill prohibits the use of these funds for monitoring, franchise, or management fees paid to a program's ultimate parent company, or for executive compensation or bonuses paid to an investment firm or fund. It also restricts the use of funds for operations outside of New Mexico. Furthermore, licensed programs are prohibited from paying out dividend recapitalizations or other capital distributions to investors or owners, and from selling program real estate to extract proceeds and then leasing it back from another business entity. The bill also requires the department to report annually to the legislative health and human services committee on various financial and operational aspects of these programs and their controlling business entities, including executive compensation, debt ratios, acquisitions, closures, fees paid to investors, and real estate transactions.

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=269&year=26