CHILDCARE PROGRAM USE OF FUNDS

HB 269 restricts how licensed childcare programs in New Mexico can use state funds received through contracts with the Early Childhood Education and Care Department. It prohibits using these funds to pay parent company fees, executive bonuses for investment firms, or for operations outside New Mexico, and bans paying dividends to investors or selling real property to lease back to other entities. The bill also requires these programs to submit annual reports to the legislature detailing ownership structures, executive pay, debt levels, acquisitions, and real estate transactions. These provisions directly affect all licensed childcare programs receiving state contracts under the Early Childhood Education and Care Department. The bill aims to ensure state funds are used solely for childcare services within New Mexico.