1. A. Licensure is required. No person or entity shall establish, maintain or operate an assisted living facility without first obtaining a license.

2. B. Application for licensure. An initial or renewal application shall be made on the forms (paper or electronic) prescribed by and available from the licensing authority. The issuance of an application form is not a guarantee that the completed application will be accepted, or that the authority will issue a license. Information provided by the facility and used by the licensing authority for the licensing process shall be accurate and truthful. The licensing authority will not issue a new license if the applicant has had a health facility license revoked or renewal denied or has surrendered a license under threat of revocation or denial of renewal. The licensing authority may not issue a new license if the applicant has been cited repeatedly for violations of applicable rules found to be class A or class B deficiencies as defined in health facility sanctions and civil monetary penalties, 8.370.4 NMAC or has been non-compliant with plans of correction. The licensing authority will not issue a license until the applicant has supplied all of the information that is required by this rule. Any facility that fails to participate in good faith by falsifying information presented in the licensing process shall be denied licensure by the authority. The following information shall be submitted to the licensing authority for approval:

   1. (1) a letter of intent that includes the proposed physical address, the primary population of the facility and a summary of the proposed services; after the letter of intent has been received, an application packet including; the application form, fee schedule and the licensing rule will be issued to the applicant by the licensing authority;
   2. (2) the completed application and the appropriate non-refundable fee(s);

   3. (3) a program narrative identifying and detailing the geographic service area, the primary population including any special needs requirements, along with a full description of the services that the applicant proposes to provide including:

      1. (a) a description of the characteristics of the proposed population of the facility;
      2. (b) a description of the services and care that will be provided to the residents;
      3. (c) a description of the anticipated professional services to be offered to the residents; and
      4. (d) a description of the facility’s relationship to other services and related programs in the service area and how the applicant will collaborate with them to achieve a system of care for the residents.
   4. (4) policies and procedures annotated to this rule;
   5. (5) evidence to establish that the applicant has sufficient financial assets to permit operation of the facility for a period of six months; the evidence shall include a credit report from one of the three recognized credit bureaus with a minimum credit score of 650 or above;

   6. (6) copies of organizational documents to include the following list of items:

      1. (a) the names of all persons or business entities that have at least five percent ownership interest in the facility, whether direct or indirect and whether in profits, land or building; this includes the owners of any business entity which owns all or part of the land or building;
      2. (b) the identities of all creditors that hold a security interest in the premises, whether land or building;
      3. (c) in cases in which the owner is organized as a partnership, the identity of each partner and a copy of the partnership agreement.
   7. (7) a statement from the administrator of the facility, acknowledging that the facility is responsible for any funds that are handled for the residents by the facility or its staff, including personal allowance funds, together with an acknowledgement that the failure to make restitution within ten working days for lost or stolen funds will result in non-renewal of licensure, or other sanctions;
   8. (8) building plans as required at 8.370.14.42 NMAC;
   9. (9) fire authority approval as required at 8.370.14.61 NMAC;
   10. (10) a letter of approval or exemption from the local health authority having jurisdiction for the food service and the kitchen facility;
   11. (11) a copy of liquid waste disposal and treatment system permit from local health authority having jurisdiction;
   12. (12) approval from local zoning authority;
   13. (13) building approval (certificate of occupancy);
   14. (14) copy of appropriate drug permit issued by the state board of pharmacy, if applicable: and
   15. (15) any other information that the applicant wishes to provide or that the licensing authority may request.
3. C. Annual license: An annual license is issued for one year for a facility that has met all the requirements of this rule.

4. D. Application for amended license: A licensee shall submit an application for an amended license and the required non-refundable fee to the licensing authority prior to a change with the facility. An amended license is required for a change of: location, administrator, facility name, capacity or any modification or addition to the building.

   1. (1) An application for a change of the facility administrator or change of the administrator’s name shall be submitted to the licensing authority within 10 business days of the change.
   2. (2) An application for increase in capacity shall be accompanied by a building plan pursuant to 8.370.14.41 NMAC of this rule. A facility shall not increase census until the licensing authority has reviewed and approved the increase and has issued a new license that reflects the approved increase in capacity.

5. E. Application for license renewal: Each facility shall apply for a renewal of the annual license within 30 business days prior to the license expiration date by submitting the following items:

   1. (1) an application and the required fee;
   2. (2) an updated program narrative, if the facility has changed the program or the focus of services;
   3. (3) the annual fire inspection report; and
   4. (4) the licensing authority may not issue a new license if the applicant has been cited repeatedly for violations of this rule or has been noncompliant with plans of correction or payment of civil monetary penalties.

6. F. License: Any person or entity that establishes, maintains or operates an assisted living facility shall obtain a license as required in this rule before accepting residents for care or providing services.

   1. (1) Each facility that provides care or treatment shall obtain a separate license. The license is non-transferable and is only valid for the facility to which it is originally issued and for the owner or operator to whom it is issued. It shall not be sold, reassigned or transferred.
   2. (2) The maximum capacity specified on the license shall not be exceeded.
   3. (3) If the facility is closed and the residents are removed from the facility, the license shall be returned to the licensing authority. Written notification shall be issued to all residents or the residents’ surrogate decision maker and the licensing authority at least 30 calendar days prior to the closure.

7. G. Change of ownership: When a change of ownership occurs, the new owner must submit an initial license application pursuant to the requirements in this section. The new owner must demonstrate compliance with these regulations at the time it takes responsibility of the facility. The licensing authority may, at its sole discretion, approve a change of ownership. In addition to the requirements in subsection B - Application for licensure, the new owner must submit the following at least 60 days prior to completion of the change of ownership:

   1. (1) a letter of intent that explains the terms of the change of ownership and the date the ownership will change;
   2. (2) documents evidencing the change of ownership such as proof of sale or donation, lease of any portion of the facility, or other relevant documents;
   3. (3) building plans of the current structure with any modifications known to the current or new owner;

   4. (4) a continuity of care transition plan that describes how the new owner will keep residents safe and meet the requirements of these regulations at the time it takes responsibility of the facility. The plan must state the actions that will occur, the party responsible for taking each action, and the expected date of completion for each action. The plan must include the following:

      1. (a) a list of all residents at the time of notice to the licensing authority;
      2. (b) a current and accurate review and update of all resident assessments;
      3. (c) review and update of all individual service plans. All plans must be current and accurate;
      4. (d) staffing ratios as required in 8.370.14.19 NMAC and the number and positions of current staff that will be hired by the new owner;
      5. (e) staff training as required in 8.370.14.17 NMAC;
      6. (f) transfer of resident accounts;
      7. (g) identification of all waivers or variances held by the current owner, and submission of any necessary waivers or variances for the new owner because all waivers or variances held by the current owner are void upon the change of ownership.
      8. (h) a waiver to have more than three residents under a temporary license, if applicable.
   5. (5) record of notification of residents and families of the proposed change; and
   6. (6) record of notification of the state long-term care ombudsman.

8. H. Temporary license:

   1. (1) A temporary license may be issued to a new facility before residents are admitted provided that the facility has met all of the life safety code requirements as stated in this rule and policies and procedures for the facility have been reviewed and approved.
   2. (2) Upon receipt of a temporary license, the facility may begin to admit up to three residents.
   3. (3) After the facility has admitted up to three residents, the facility operator or owner shall request an initial health survey from the licensing authority.
   4. (4) Following a determination of compliance with this rule by the licensing authority, an annual license will be issued. The renewal date of the annual license is based on the initial date of the first temporary license.
   5. (5) The licensing authority has the right to determine compliance or noncompliance.
   6. (6) A temporary license shall cover a period of time, not to exceed 120 calendar days.
   7. (7) No more than two consecutive temporary licenses shall be issued. If a second temporary license is issued, an additional non-refundable fee is required. If all requirements are not met within the 240 day time frame, the applicant shall repeat the application process.
9. I. Display of license: The facility shall display the license in a conspicuous public place that is visible to residents, staff and visitors.

10. J. Unlicensed facilities: Any person or entity that opens or maintains an assisted living facility without a license is subject to the imposition of civil monetary penalties by the licensing authority. Failure to comply with the licensure requirements of this rule within 10 days of notice by the licensing authority may result in the following penalties pursuant to health facility sanctions and civil monetary penalties, 8.370.4 NMAC.

    1. (1) A civil monetary penalty not to exceed $5,000 per day.
    2. (2) A base civil monetary penalty, plus a per-day civil monetary penalty, plus the doubling of penalties as applicable, that continues until the facility is in compliance with the licensing requirements in this rule.
    3. (3) A cease and desist order to discontinue operation of a facility that is operating without a license.
    4. (4) Additional criminal penalties may apply and shall be imposed as necessary.

[8.370.14.8 NMAC - Rp, 8.370.14.8 NMAC, 12/23/2025]