NOTICE OF RULEMAKING AND PUBLIC RULE HEARING for NMAC 8.9.3 and 8.9.4

Do families need to pay copayments now? 

• No. As of September 2026, copayments are still waived for all families. Universal Child Care is still completely free for all families in New Mexico.  

Will providers and families be notified if and when copayments go into effect? 

• Yes. ECECD is required by law to provide at least 90 days’ notice before any copayments go into effect. ECECD will give this notice to both providers and families.  

Are undocumented families still eligible for Child Care Assistance under the new rules? 

• Yes. Eligible children qualify for state Child Care Assistance regardless of immigration status. ECECD uses state child care funds to pay for care for these children instead of more restrictive federal funds.  

What roles and positions are included in the wage and benefits spending requirement? 

• The new rules for 8.9.3 NMAC include a requirement that child care providers receiving child care assistance spend at least 50% of revenue from child care assistance on wages, mandatory taxes, and benefits for certain employee positions. These include directors, assistant directors, teachers, substitute teachers, floaters, administrative support, cooking personnel, transportation staff, and custodial staff. Child care providers may also apply for a waiver to include other staff members that are not explicitly included in this list.  

Do the roles included in the wage and benefit spending requirement align with positions in the Wage Scale and Career Lattice? 

• ECECD expanded the list of included positions based on public comment from the provider community. Some roles are explicitly included in the Wage Scale and Career Lattice, and some are not. Click here to read a copy of the Wage Scale and Career Lattice report. 

How do home-based providers implement the wage and benefit spending requirement? 

• Home-based providers should also make sure that at least 50% of their child care assistance revenue goes to wages, benefits, and mandatory employment taxes for themselves and their employees. Home-based providers with no other employees should pay themselves a salary that meets these requirements.  

Will the required percentage to spend on wages and benefits be changed in the future? 

• ECECD has the authority to amend the rules in the future pending policy implementation, evaluation, and analysis. 

Should providers consider NM PreK revenue when calculating the wages and benefits requirement? 

• Revenue associated with NM PreK programs should not be included when calculating compliance with the 50% wage and benefits requirement. This requirement applies only to revenue received through the Child Care Assistance (CCA) program. Providers should calculate the 50% requirement based solely on CCA revenue and the corresponding wages, mandatory taxes, and benefits paid to eligible staff positions supported by those funds. 

Why are families with incomes over 600% of the Federal Poverty Line (FPL) limited to the hours of care supported by their qualifying activity, while families under 600% FPL are not?  

• The hours of care requirement for families over 600% FPL is a new requirement in the law. The Legislature set this requirement to help balance available resources so that all families can benefit from universal child care. 

For families below 600% FPL, can providers limit the number of hours a child attends each day?  

• Providers should work together with families to plan a predictable schedule of care that meets the needs of families and their program. This may include talking together about the family’s daily schedule, the program’s policies and operating schedule, and the unique needs of the child. However, providers may not grant families less time than the family was approved for on their Child Care Assistance Placement Agreement. If a family was approved for full-time care, and the program offers full-time care, the program cannot limit the number of hours a child attends.  

If a family qualifies for part-time hours but requests a full day of care, may the provider charge the family private-pay tuition for the additional hours? 

• Yes. If a family was approved by ECECD only for a part-time care contract and needs occasional full-day care, the provider may charge only for the hours not covered by the placement agreement. Families should contact the department to discuss any needed changes to their placement agreements to make sure they are able to take full advantage of universal child care. 

What reporting requirements apply to providers, and what reporting period should providers use (e.g., calendar year or fiscal year)? 

• Reporting requirements for providers are found at 8.9.3.17(J) NMAC in the new rules and will begin on July 1, 2027. ECECD will release detailed guidance to help providers prepare for these new requirements, including what to report and where to report it.  Annual reporting will be based on the calendar year (January 1 – December 31).  

Where and how should providers submit student attendance and other required reports? 

• New reporting requirements will ask providers to submit various types of information to ECECD, including daily attendance records. ECECD is developing ways to work with existing information systems to make new reporting as simple and streamlined as possible, and will release detailed instructions and technical assistance to providers on how to submit information.   

What do the daily attendance reporting requirements entail? Does the attendance need to be reported for each child, and how will attendance reporting affect payments or potentially result in overpayments for part-time school-age children who attend only during school breaks or holidays, or for children who are temporarily absent after their families have notified the provider? 

• Daily attendance reporting will help ECECD monitor program participation as well as improve program integrity and accountability. The new rules do not change ECECD’s payment, enrollment, and non-attendance policies: payment is based on a child’s enrollment with the provider as reflected in the child care placement agreement, rather than on daily attendance. ECECD stops payment when notified that a child has disenrolled from a program or has not attended for 14 calendar days. If the department is notified that a child has a planned absence longer than 14 days, ECECD will pay for up to six weeks of non-attendance.  You can review the payment policies for non-attendance and enrollment in the new rules at 8.9.3.19(A-B) NMAC. ECECD will release detailed guidance and technical assistance on daily attendance reporting before reporting is due on July 1, 2027.  

What records are subject to the five-year records retention requirement, including child care assistance contracts, CACFP records, and employee personnel records? 

• Providers participating in the Child Care Assistance program must maintain all documentation related to the Child Care Assistance program for at least five years after termination of the child care assistance contract and make the documentation available for inspection upon request by ECECD. This includes records that document the provider’s participation in and receipt of Child Care Assistance program payments, such as child care placement agreements/contracts, supporting documentation related to those services, and employee personnel records maintained in connection with the provider’s participation with the Child Care Assistance program.  The five-year requirement in 8.9.3 NMAC applies specifically to Child Care Assistance program related documentation. The rule does not establish a five-year retention period for all provider records or Child and Adult Care Food Program (CACFP) records that are maintained independently of the Child Care Assistance program. Providers should continue to follow any separate federal, state, or program-specific record retention requirements that apply to those records. 

Are providers required to maintain printed copies of child care assistance contracts if the contracts are maintained electronically in EPICS? 

• No. The regulation requires providers to maintain the documentation related to the Child Care Assistance program for at least five years after termination of the contract; it does not require that the documentation be maintained in paper form. Therefore, if a child care assistance contract or placement agreement is maintained electronically in EPICS and is accessible and can be produced for inspection upon request by ECECD, a separate printed copy is not required to satisfy the five-year retention requirement. 

How long are providers required to retain personnel files for employees who are no longer employed by the program? 

• Employee personnel records maintained in connection with the provider’s participation in the Child Care Assistance program are subject to the five-year records retention requirement. Providers must retain these records for at least five years after termination of the child care assistance contract, even if the employee is no longer employed by the program during that period. Providers should also comply with any other applicable federal or state employment requirements that may require personnel records to be retained for a longer or different period of time.   

• Providers who do not participate in the Child Care Assistance program must follow the records retention requirements set forth in the child care licensing regulations. Licensing regulations require personnel records be retained for at least one year from the last day of employment.  

Which employees are required to be entered into PDIS, including substitute employees? 

• All early childhood professionals working in licensed child care programs who are required to have a background clearance are required to create and maintain a profile in ECECD’s Professional Development Information System (PDIS). This includes employees who work directly with children, regardless of their specific job title or position. Substitute employees are required to have a PDIS profile if they work more than six hours in any week and have direct contact with children. Volunteers who work more than six hours in any week and have direct contact with children are also subject to the PDIS personnel record requirements. 

Will ECECD provide a comprehensive list of all documents and information that must be entered and uploaded to PDIS? 

• The comprehensive list of personnel information and documentation that must be maintained in PDIS is provided in the Child Care Licensing regulations at 8.9.4 NMAC. The applicable requirements are found in 8.9.4.22(F) for licensed child care centers, 8.9.4.32(E) for licensed child care homes, and 8.9.4.41(F) for out-of-school time programs. These sections identify the minimum personnel records that must be maintained in PDIS, such as the staff member’s name, current position, dates of hire and termination, background check and employment history verification, documentation of required training, professional development plan, personnel handbook acknowledgment, and other required documentation. Child care providers should review the licensing regulations applicable to their program to ensure that they are in compliance with PDIS requirements. 

How do providers upload employee information or documents into PDIS? Are there designated fields or upload locations in PDIS for required information? 

• PDIS allows you to upload different types of documents and information into the system.  ECECD has created guides to assist users in navigating PDIS, including managing documents and uploading required information. You can find all resources, guides, and sign up for PDIS by clicking here for the PDIS webpage. 

• In addition, ECDCD is working to expand PDIS functionality to capture new reporting requirements and make the user experience simpler. Users can report bugs or suggest features by reaching out to PDIS-Support@ececd.nm.gov or by submitting a request through the “Help and Support” feature within PDIS.  

• Click here to view the Agency Admins User Guide in English or click here to view in Spanish.  

• Click here to view the Early Childhood Professionals User Guide in English or click here to view in Spanish.  

What technical assistance and support resources are available to providers using PDIS? 

• Click here to visit ECECD’s PDIS Webpage. This webpage has many resources designed to help you navigate and troubleshoot using PDIS, including user guides in English and in Spanish, frequently asked questions, and tips for getting started. You can also reach out to ECECD at PDIS-Support@ececd.nm.gov with questions or feedback.  

• There are also resources available on the “Help and Support” menu in PDIS. 

How can providers submit feedback about the PDIS interface and recommend improvements to the system’s functionality? 

• Users can reach out to PDIS Support via email at PDIS-Support@ececd.nm.gov. Alternatively, users can submit feedback or requests through the PDIS system by visiting the “Help and Support” hub on the main menu and filling out the “Ask ECECD” form.  

If a provider does not participate in the Child and Adult Care Food Program (CACFP), who should they contact regarding reimbursement for meals and snacks? 

• The new rules allow providers who do not participate in CACFP to charge clients a reasonable fee to reimburse the cost of meals served during operating hours. These providers should work with their families and program policies to establish a reasonable fee. If you are interested in participating in or learning more about CACFP, click here to visit the CACFP program webpage.  

Where can providers find information about the process and required documentation for charging families the difference between the CACFP reimbursement amount and the provider’s meal and snack costs?  

• The new rules allow providers who participate in the CACFP pricing program to charge the difference between the highest USDA reimbursement rate and the reimbursement rate for children eligible for the reduced-price or paid rate. These providers should reach out to the CACFP program to verify their program’s eligibility and applicable rules. Click here for the CACFP program webpage.  

• Providers who participate in the CACFP non-pricing program shall not charge any additional fees for meals or snacks. 

What are the transportation requirements for out-of-school time programs, including transporting children to and from field trips? 

• Out-of-school time programs that transport children, including field trips, must comply with the transportation requirements in 8.9.4.46 NMAC. These requirements are listed below. ECECD recommends that providers who wish to utilize transportation reach out to their regional licensing contact for an inspection to ensure that their vehicle is compliant. 

• • Vehicles must have an operable, fully charged fire extinguisher, first-aid kit and manual, water, and a blanket. 

• • Children must be loaded and unloaded at the curbside of the vehicle or in a protected parking area or driveway. Programs must ensure children do not cross a street unsupervised after leaving the vehicle. 

• • Smoking, e-cigarettes, and vaporizers are prohibited in vehicles used to transport children. 

• • Vehicles must be properly licensed, registered, insured, enclosed, and maintained, and must comply with applicable state vehicle laws. Vehicles must be cleaned and inspected inside and out at least weekly. 

• • Children must be properly secured in an appropriate child passenger restraint device or by a safety belt, based on the child’s age and weight. School buses that are not equipped with passenger restraint devices are exempt from the restraint requirement. 

• • Vehicles must be air-conditioned when the outside temperature exceeds 82 degrees Fahrenheit and heated when the outside temperature falls below 50 degrees Fahrenheit. 

• • Drivers must have a current driver’s license and comply with all motor vehicle and traffic laws. Individuals convicted of a misdemeanor or felony DWI/DUI within the previous seven years may not transport children on behalf of a licensed facility or program. 

• • At least one adult transporting children must have current CPR certification that includes a pediatric component. 

• • Programs must conduct frequent head counts during trips and when children are loaded into or unloaded from the vehicle. 

• • Drivers must have a means of communicating with the facility about the number of children being transported and must maintain a transportation log identifying the children transported and their pick-up and drop-off times. The log must be retained for at least 12 months. 

When will the career lattice be in effect for child care providers? 

• ECECD is launching a pilot of the Wage Scale and Career Lattice targeted to early childhood professionals in Family Infant Toddler (FIT) and Home Visiting. ECECD anticipates that this pilot will launch during the 2027 fiscal year. 

• ECECD is also engaged in early analysis estimating the compensation impacts of enhanced reimbursement rates for Child Care Assistance. This policy, enacted in November 2025, sets salary minimums for frontline educators and who work at participating programs. These salary minimums are informed by the wage scale and career ladder framework, and represent the first time programs have been required to pay specific wages as a condition of their Child Care Assistance funds.   

What happens to a child care home registration or child care home license when there is a change in ownership? Is the process different from a change in ownership for a child care center? 

• A child care license or registration is issued to a specific licensee or primary caregiver and is not transferable to another person or home. For a licensed child care facility, including a licensed child care home, a change in ownership or licensee requires the new owner or licensee to obtain a new license. The existing license does not transfer to the new owner, as provided in 8.9.4.11(C) NMAC. For a registered family child care home, the registration is personal to the primary caregiver and is also not transferable to another person or location, as provided in 8.9.5.14 NMAC. The new caregiver must complete the registration process rather than assuming the existing caregiver’s registration. ECECD recognizes that an ownership or caregiver change can affect continuity of care for children and families. Providers should notify ECECD’s Regulatory Oversight Unit as early as possible if anticipating a sale, ownership change, or other planned transition so ECECD can work with the provider to minimize disruption to services. 

Must the new owner reside in the home to maintain the license following a change in ownership? 

• Yes. To operate a licensed or registered child care home, you must be living in the home, which is defined as a private residence where the licensee and primary educator or primary caregiver reside. You cannot operate a licensed or registered child care home while living elsewhere.  

• For licensed homes, regulations require that licensees reside in the home and be the primary educator. For registered homes, regulations also require that the home be the primary caregiver’s own residence and that the primary caregiver reside in the home. A primary caregiver is defined as a person who provides care in their own residence.  

• Child care centers are licensed as non-residential facilities and are not private residences. If you purchase or rent a building with the intention of turning it into a child care center, please contact ECECD’s Regulatory Oversight Unit to determine whether there is an appropriate licensing and zoning pathway for the facility. 

What is the process for transferring or obtaining a license following a change in ownership? 

• A license or registration cannot be transferred from one owner or caregiver to another. For a licensed child care facility, the prospective new owner should contact ECECD’s Regulatory Oversight Unit before the ownership change occurs. The new owner must complete the applicable licensing application and meet all requirements before operating under the new license. For a registered family child care home, the registration is personal to the primary caregiver and is not transferable. A new caregiver must submit a new registration application and complete the applicable registration requirements. If the primary caregiver is moving to a new location, 8.9.5.14 NMAC specifically requires the caregiver to register again by submitting a new application, reporting the new location before the move, and receiving a new onsite health and safety inspection. For any planned sale, purchase, or change in the person operating a child care facility or home, providers and prospective owners should contact ECECD’s Regulatory Oversight Unit as early as possible. Starting the process early allows ECECD to identify the applicable requirements and work with the parties to reduce disruption to children and families. 

Are families with a parent who receives disability benefits eligible for CCA? 

• Yes. If a parent is unable to work due to incapacitation, such as a disability, physical or mental impairment, illness, or rehabilitation, the parent can submit a demonstration of incapacity when they apply for Child Care Assistance. ECECD accepts a statement or letter from a medical professional, federal government agency that provides disability benefits, or state vocational rehabilitation agency; records or letters from a treatment facility or counselor; or certification from a private vocational rehabilitee or other counselor that provides disability benefits as proof of incapacitation. 

Are foster parents required to provide birth certificates when applying for CCA? 

• Foster parents qualify for Child Care Assistance and may have reduced application requirements.  

• Foster parents will need to show an official record or license from the Children, Youth, and Families Department (CYFD), court order, or other similar legal documents evidencing a foster parent relationship.  

Where can families access the digital application for Child Care Assistance? 

• Families can access the digital Child Care Assistance application through the Early Childhood Education & Care Department (ECECD) website. To access the online application: 

• • Visit the ECECD Universal Child Care website: Universal Child Care | Early Childhood Education & Care Department 

• • Select “Apply for Universal Child Care” at the top of the webpage. This will direct families to the ECECD application portal. 

• • Create or log in to an account using a valid email address. Families who do not already have an account will need to register before beginning the application. 

• • Complete the online application. Families can save their progress and return to the application later if they are unable to complete it in one session. 

• Families who need assistance completing the application can also contact ECECD at 1-800-832-1321 or ECECD.CCA-South@ececd.nm.gov for counties: Dona Ana, Chaves, Guadalupe, Lea, Eddy, Otero, Sierra, De Baca, Curry, Grant, Luna, Lincoln, Hidalgo, Catron, Quay, Roosevelt; ECECD.CCA-North@ececd.nm.gov for counties: San Juan, McKinley, Rio Arriba, Taos, Sandoval, Santa Fe, San Miguel, Bernalillo, Colfax, Union, Cibola, Los Alamos, Mora, Harding, Valencia, Socorro, Torrance. 

Will foster care contracts and payment records be moved to EPICS? If so, when? 

• ECECD is currently working with the Children, Youth and Families Department (CYFD) to explore ways to better support child care for CYFD involved families, including potential future integration of foster child care arrangements into ECECD’s systems and processes. At this time, a specific timeline for moving foster child care contracts into EPICS has not been established. ECECD will provide additional information to providers if and when changes are made to the system or process for managing foster child care contracts and payments. 

What are providers’ responsibilities for referring children to Child Find, including when a parent must make the referral? What documentation is required in the child’s file to demonstrate that the provider informed or supported the family in making a referral? 

• Under 8.9.3.17(I)(3)-(4) NMAC, child care providers participating in the Child Care Assistance Program are required to identify and refer at-risk children, including children with special needs, to appropriate programs of the department and, when applicable, an appropriate tribal department for services. Providers must also complete required training to identify and refer at-risk children, including children with special needs, to the department’s Home Visiting and Family, Infant and Toddler (FIT) programs and applicable tribal programs. For Child Find referrals specifically, the provider’s role is to identify a concern, inform the parent or legal guardian about the available Child Find process, and support the family in accessing the appropriate services. Parents retain the choice to make a Child Find referral and may self-refer their child. Providers should not make a referral on behalf of a parent when the Child Find process requires the parent or legal guardian to initiate the referral. Provider support may include discussing the child’s developmental or other identified needs with the parent or legal guardian, providing information about Child Find and how to initiate a referral, and assisting the family with the referral process at the family’s request. Providers should respect parental choice throughout this process. Providers should document in the child’s file that they informed the parent or legal guardian of the concern and provided information or support regarding the referral. A dated record of the communication or other documentation maintained in the child’s file is sufficient to demonstrate that the provider informed or supported the family. 

• For questions about referrals or assistance supporting a family through the referral process, providers may contact ECECD’s 619 Coordinator for additional guidance and support. Click here to email the 619 Coordinator at 619Coordinator@ececd.nm.gov. 

Can a licensed group home transition to or become a licensed child care center? 

• No. Licensed homes and licensed centers have different licensing, zoning, and building requirements. Licensed homes are defined as private residences where the licensee resides in the home and is the primary educator. Centers are non-residential facilities and must meet state and local building and safety codes for commercial facilities.