H.,
My kids 4 and 8 mos go to Kindercare. They follow a similar protocal, and yes it is "legal" to use the cots. A lot of the kids actually sleep better on them because the cribs they use are small.
That being said, at my center children are transitioned from the infant room to the toddler room when they are mobile and WALKING, not immediately at 1years old. I would find out if they are looking to move him to create room for another infant in the infant room, or if they really believe he is ready for the infant room. They should be flexible with his naps and snacking and if he really needs 2 naps and to eat more often than the schedule (usually it is breakfast, 9:30 snack, 11:30 lunch, 2:30 or 3:30 snack and another snack around 5ish for the kids who are still there) he probably isn't ready to be moved. Or maybe he can swing into the infant room for a second nap.
The transition really should be based on development not strictly age. Your son may be ready for more stimulus and activity and my enjoy being in the toddler room. I know my 8 mos old is almost walking and she won't be moved into the toddler room at 9mos, even though walking is the basic criteria for being moved, because she is still too young.
Try to keep an open mind when you talk to the center, but if you really believe he needs to stay in the infant room (for developmental/sleep reasons) say so. My daycare director is great at listening and I have gone to her with concerns where we have done things my way and where she has convinced me that what they wanted to do was best.