1.1 	A bill for an act
1.2 	relating to human services; providing for public assistance and child care assistance 
1.3 	program fraud prevention; establishing penalties for certain theft offenses; 
1.4 	modifying eligibility for early learning scholarships; requiring a report; 
1.5 	appropriating money;amending Minnesota Statutes 2018, sections 13.46, 
1.6 	subdivisions 2, 3; 13.461, subdivision 28; 119B.02, subdivision 6, by adding a 
1.7 	subdivision; 119B.09, subdivisions 4, 7, 9a; 119B.125, subdivisions 6, 9, by adding 
1.8 	subdivisions; 119B.13, subdivisions 6, 7; 124D.142; 124D.165, subdivisions 2, 4, 
1.9 	by adding a subdivision; 245.095; 245A.07, subdivisions 2, 2a, 3; 245E.03, 
1.10 	subdivision 2; 245E.04; 256.98, subdivision 8, by adding a subdivision; 256.984, 
1.11 	subdivision 1; 256B.02, by adding a subdivision; 256B.056, subdivisions 3, 4; 
1.12 	256J.08, subdivision 47; 256J.21, subdivision 2; 256L.01, subdivision 5; 256P.04, 
1.13 	subdivision 4; 256P.06, subdivision 3; 609.27, subdivision 2; 609.48, subdivision 
1.14 	1; proposing coding for new law in Minnesota Statutes, chapters 245A; 256; 609; 
1.15 	proposing coding for new law as Minnesota Statutes, chapter 245I.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	CHILD CARE ASSISTANCE PROGRAM FRAUD PREVENTION

1.19 	Section 1. Minnesota Statutes 2018, section 13.46, subdivision 2, is amended to read:
1.20 		Subd. 2.General. (a) Data on individuals collected, maintained, used, or disseminated 
1.21 	by the welfare system are private data on individuals, and shall not be disclosed except:
1.22 	(1) according to section 13.05;
1.23 	(2) according to court order;
1.24 	(3) according to a statute specifically authorizing access to the private data;
1.25 	(4) to an agent of the welfare system and an investigator acting on behalf of a county, 
1.26 	the state, or the federal government, including a law enforcement person or attorney in the 
2.1 	investigation or prosecution of a criminal, civil, or administrative proceeding relating to the 
2.2 	administration of a program;
2.3 	(5) to personnel of the welfare system who require the data to verify an individual's 
2.4 	identity; determine eligibility, amount of assistance, and the need to provide services to an 
2.5 	individual or family across programs; coordinate services for an individual or family; 
2.6 	evaluate the effectiveness of programs; assess parental contribution amounts; and investigate 
2.7 	suspected fraud;
2.8 	(6) to administer federal funds or programs;
2.9 	(7) between personnel of the welfare system working in the same program;
2.10 	(8) to the Department of Revenue to assess parental contribution amounts for purposes 
2.11 	of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs 
2.12 	and to identify individuals who may benefit from these programs. The following information 
2.13 	may be disclosed under this paragraph: an individual's and their dependent's names, dates 
2.14 	of birth, Social Security numbers, income, addresses, and other data as required, upon 
2.15 	request by the Department of Revenue. Disclosures by the commissioner of revenue to the 
2.16 	commissioner of human services for the purposes described in this clause are governed by 
2.17 	section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not limited 
2.18 	to, the dependent care credit under section 290.067, the Minnesota working family credit 
2.19 	under section 290.0671, the property tax refund and rental credit under section 290A.04, 
2.20 	and the Minnesota education credit under section 290.0674;
2.21 	(9) between the Department of Human Services, the Department of Employment and 
2.22 	Economic Development, and when applicable, the Department of Education, for the following 
2.23 	purposes:
2.24 	(i) to monitor the eligibility of the data subject for unemployment benefits, for any 
2.25 	employment or training program administered, supervised, or certified by that agency;
2.26 	(ii) to administer any rehabilitation program or child care assistance program, whether 
2.27 	alone or in conjunction with the welfare system;
2.28 	(iii) to monitor and evaluate the Minnesota family investment program or the child care 
2.29 	assistance program by exchanging data on recipients and former recipients of food support, 
2.30 	cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter 
2.31 	119B, medical programs under chapter 256B or 256L, or a medical program formerly 
2.32 	codified under chapter 256D; and
3.1 	(iv) to analyze public assistance employment services and program utilization, cost, 
3.2 	effectiveness, and outcomes as implemented under the authority established in Title II, 
3.3 	Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. 
3.4 	Health records governed by sections 144.291 to 144.298 and "protected health information" 
3.5 	as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code 
3.6 	of Federal Regulations, title 45, parts 160-164, including health care claims utilization 
3.7 	information, must not be exchanged under this clause;
3.8 	(10) to appropriate parties in connection with an emergency if knowledge of the 
3.9 	information is necessary to protect the health or safety of the individual or other individuals 
3.10 	or persons;
3.11 	(11) data maintained by residential programs as defined in section 245A.02 may be 
3.12 	disclosed to the protection and advocacy system established in this state according to Part 
3.13 	C of Public Law 98-527 to protect the legal and human rights of persons with developmental 
3.14 	disabilities or other related conditions who live in residential facilities for these persons if 
3.15 	the protection and advocacy system receives a complaint by or on behalf of that person and 
3.16 	the person does not have a legal guardian or the state or a designee of the state is the legal 
3.17 	guardian of the person;
3.18 	(12) to the county medical examiner or the county coroner for identifying or locating 
3.19 	relatives or friends of a deceased person;
3.20 	(13) data on a child support obligor who makes payments to the public agency may be 
3.21 	disclosed to the Minnesota Office of Higher Education to the extent necessary to determine 
3.22 	eligibility under section 136A.121, subdivision 2, clause (5);
3.23 	(14) participant Social Security numbers and names collected by the telephone assistance 
3.24 	program may be disclosed to the Department of Revenue to conduct an electronic data 
3.25 	match with the property tax refund database to determine eligibility under section 237.70, 
3.26 	subdivision 4a;
3.27 	(15) the current address of a Minnesota family investment program participant may be 
3.28 	disclosed to law enforcement officers who provide the name of the participant and notify 
3.29 	the agency that:
3.30 	(i) the participant:
3.31 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
3.32 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
3.33 	jurisdiction from which the individual is fleeing; or
4.1 	(B) is violating a condition of probation or parole imposed under state or federal law;
4.2 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
4.3 	official duties; and
4.4 	(iii) the request is made in writing and in the proper exercise of those duties;
4.5 	(16) the current address of a recipient of general assistance may be disclosed to probation 
4.6 	officers and corrections agents who are supervising the recipient and to law enforcement 
4.7 	officers who are investigating the recipient in connection with a felony level offense;
4.8 	(17) information obtained from food support applicant or recipient households may be 
4.9 	disclosed to local, state, or federal law enforcement officials, upon their written request, for 
4.10 	the purpose of investigating an alleged violation of the Food Stamp Act, according to Code 
4.11 	of Federal Regulations, title 7, section 272.1(c);
4.12 	(18) the address, Social Security number, and, if available, photograph of any member 
4.13 	of a household receiving food support shall be made available, on request, to a local, state, 
4.14 	or federal law enforcement officer if the officer furnishes the agency with the name of the 
4.15 	member and notifies the agency that:
4.16 	(i) the member:
4.17 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
4.18 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
4.19 	(B) is violating a condition of probation or parole imposed under state or federal law; 
4.20 	or
4.21 	(C) has information that is necessary for the officer to conduct an official duty related 
4.22 	to conduct described in subitem (A) or (B);
4.23 	(ii) locating or apprehending the member is within the officer's official duties; and
4.24 	(iii) the request is made in writing and in the proper exercise of the officer's official duty;
4.25 	(19) the current address of a recipient of Minnesota family investment program, general 
4.26 	assistance, or food support may be disclosed to law enforcement officers who, in writing, 
4.27 	provide the name of the recipient and notify the agency that the recipient is a person required 
4.28 	to register under section 243.166, but is not residing at the address at which the recipient is 
4.29 	registered under section 243.166;
4.30 	(20) certain information regarding child support obligors who are in arrears may be 
4.31 	made public according to section 518A.74;
5.1 	(21) data on child support payments made by a child support obligor and data on the 
5.2 	distribution of those payments excluding identifying information on obligees may be 
5.3 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
5.4 	actions undertaken by the public authority, the status of those actions, and data on the income 
5.5 	of the obligor or obligee may be disclosed to the other party;
5.6 	(22) data in the work reporting system may be disclosed under section 256.998, 
5.7 	subdivision 7;
5.8 	(23) to the Department of Education for the purpose of matching Department of Education 
5.9 	student data with public assistance data to determine students eligible for free and 
5.10 	reduced-price meals, meal supplements, and free milk according to United States Code, 
5.11 	title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state 
5.12 	funds that are distributed based on income of the student's family; and to verify receipt of 
5.13 	energy assistance for the telephone assistance plan;
5.14 	(24) the current address and telephone number of program recipients and emergency 
5.15 	contacts may be released to the commissioner of health or a community health board as 
5.16 	defined in section 145A.02, subdivision 5, when the commissioner or community health 
5.17 	board has reason to believe that a program recipient is a disease case, carrier, suspect case, 
5.18 	or at risk of illness, and the data are necessary to locate the person;
5.19 	(25) to other state agencies, statewide systems, and political subdivisions of this state, 
5.20 	including the attorney general, and agencies of other states, interstate information networks, 
5.21 	federal agencies, and other entities as required by federal regulation or law for the 
5.22 	administration of the child support enforcement program;
5.23 	(26) to personnel of public assistance programs as defined in section 256.741, for access 
5.24 	to the child support system database for the purpose of administration, including monitoring 
5.25 	and evaluation of those public assistance programs;
5.26 	(27) to monitor and evaluate the Minnesota family investment program by exchanging 
5.27 	data between the Departments of Human Services and Education, on recipients and former 
5.28 	recipients of food support, cash assistance under chapter 256, 256D, 256J, or 256K, child 
5.29 	care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a 
5.30 	medical program formerly codified under chapter 256D;
5.31 	(28) to evaluate child support program performance and to identify and prevent fraud 
5.32 	in the child support program by exchanging data between the Department of Human Services, 
5.33 	Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b), 
5.34 	without regard to the limitation of use in paragraph (c), Department of Health, Department 
6.1 	of Employment and Economic Development, and other state agencies as is reasonably 
6.2 	necessary to perform these functions;
6.3 	(29) counties and the Department of Human Services, including licensing staff, operating 
6.4 	child care assistance programs under chapter 119B may disseminate data on program 
6.5 	participants, applicants, and providers to the commissioner of education;
6.6 	(30) child support data on the child, the parents, and relatives of the child may be 
6.7 	disclosed to agencies administering programs under titles IV-B and IV-E of the Social 
6.8 	Security Act, as authorized by federal law;
6.9 	(31) to a health care provider governed by sections 144.291 to 144.298, to the extent 
6.10 	necessary to coordinate services;
6.11 	(32) to the chief administrative officer of a school to coordinate services for a student 
6.12 	and family; data that may be disclosed under this clause are limited to name, date of birth, 
6.13 	gender, and address; or
6.14 	(33) to county correctional agencies to the extent necessary to coordinate services and 
6.15 	diversion programs; data that may be disclosed under this clause are limited to name, client 
6.16 	demographics, program, case status, and county worker information.
6.17 	(b) Information on persons who have been treated for drug or alcohol abuse may only 
6.18 	be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 
6.19 	2.1 to 2.67.
6.20 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), 
6.21 	(17), or (18), or paragraph (b), are investigative data and are confidential or protected 
6.22 	nonpublic while the investigation is active. The data are private after the investigation 
6.23 	becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).
6.24 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are 
6.25 	not subject to the access provisions of subdivision 10, paragraph (b).
6.26 	For the purposes of this subdivision, a request will be deemed to be made in writing if 
6.27 	made through a computer interface system.

6.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

6.29 	Sec. 2. Minnesota Statutes 2018, section 13.461, subdivision 28, is amended to read:
6.30 		Subd. 28.Child care assistance program. Data collected, maintained, used, or 
6.31 	disseminated by the welfare system pertaining to persons selected as legal nonlicensed child 
6.32 	care providers by families receiving child care assistance are classified under section 119B.02, 
7.1 	subdivision 6, paragraph (a). Child care assistance program payment data are classified 
7.2 	under section 119B.02, subdivision 6, paragraph (b).

7.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.4 	Sec. 3. Minnesota Statutes 2018, section 119B.02, subdivision 6, is amended to read:
7.5 		Subd. 6.Data. (a) Data collected, maintained, used, or disseminated by the welfare 
7.6 	system pertaining to persons selected as legal nonlicensed child care providers by families 
7.7 	receiving child care assistance shall be treated as licensing data as provided in section 13.46, 
7.8 	subdivision 4.
7.9 	(b) For purposes of this paragraph, "child care assistance program payment data" means 
7.10 	data for a specified time period showing (1) that a child care assistance program payment 
7.11 	under this chapter was made, and (2) the amount of child care assistance payments made 
7.12 	to a child care center. Child care assistance program payment data may include the number 
7.13 	of families and children on whose behalf payments were made for the specified time period. 
7.14 	Any child care assistance program payment data that may identify a specific child care 
7.15 	assistance  recipient or benefit paid on behalf of a specific child care assistance recipient, 
7.16 	as determined by the commissioner, is private data on individuals as defined in section 
7.17 	13.02, subdivision 12. Data related to a child care assistance payment is public if the data 
7.18 	relates to a child care assistance payment made to a licensed child care center or a child 
7.19 	care center exempt from licensure and:
7.20 	(1) the child care center receives payment of more than $100,000 from the child care 
7.21 	assistance program under this chapter in a period of one year or less; or
7.22 	(2) when the commissioner or county agency either:
7.23 	(i) disqualified the center from receipt of a payment from the child care assistance 
7.24 	program under this chapter for wrongfully obtaining child care assistance under section 
7.25 	256.98, subdivision 8, paragraph (c);
7.26 	(ii) refused a child care authorization, revoked a child care authorization, stopped 
7.27 	payment, or denied payment for a bill for the center under section 119B.13, subdivision 6, 
7.28 	paragraph (d); or
7.29 	(iii) made a finding of financial misconduct under section 245E.02.

7.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.1 	Sec. 4. Minnesota Statutes 2018, section 119B.02, is amended by adding a subdivision to 
8.2 	read:
8.3 		Subd. 8.Provider billing forms. The commissioner shall include a notice on the billing 
8.4 	form advising providers that the child care provider, center owner, director, manager, license 
8.5 	holder, or other controlling individual and the employee responsible for submitting billing 
8.6 	forms may each be held liable for intentionally providing materially false information on 
8.7 	the provider's billing forms.

8.8 	EFFECTIVE DATE. This section is effective for billing forms issued on or after July 
8.9 	1, 2020.

8.10 	Sec. 5. Minnesota Statutes 2018, section 119B.09, subdivision 7, is amended to read:
8.11 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child care 
8.12 	assistance under this chapter is the later of the date the application was received by the 
8.13 	county; the beginning date of employment, education, or training; the date the infant is born 
8.14 	for applicants to the at-home infant care program; or the date a determination has been made 
8.15 	that the applicant is a participant in employment and training services under Minnesota 
8.16 	Rules, part 3400.0080, or chapter 256J.
8.17 	(b) Payment ceases for a family under the at-home infant child care program when a 
8.18 	family has used a total of 12 months of assistance as specified under section 119B.035. 
8.19 	Payment of child care assistance for employed persons on MFIP is effective the date of 
8.20 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
8.21 	assistance for MFIP or DWP participants in employment and training services is effective 
8.22 	the date of commencement of the services or the date of MFIP or DWP eligibility, whichever 
8.23 	is later. Payment of child care assistance for transition year child care must be made 
8.24 	retroactive to the date of eligibility for transition year child care.
8.25 	(c) Notwithstanding paragraph (b), payment of child care assistance for participants 
8.26 	eligible under section 119B.05 may only be made retroactive for a maximum of six three
8.27 	months from the date of application for child care assistance.

8.28 	EFFECTIVE DATE. This section is effective for applications processed on or after 
8.29 	July 1, 2019.

8.30 	Sec. 6. Minnesota Statutes 2018, section 119B.09, subdivision 9a, is amended to read:
8.31 		Subd. 9a.Child care centers authorizations; assistance dependents of employees 
8.32 	and controlling individuals. (a) A child care center may must not receive authorizations 
9.1 	for 25 or fewer children more than ten percent of total licensed capacity of children who 
9.2 	are dependents of the center's employees or controlling individuals. If a child care center is 
9.3 	authorized for more than 25 children who are dependents of center employees, the county 
9.4 	cannot authorize additional dependents of an employee until the number of children falls 
9.5 	below 25.
9.6 	(b) Funds paid to providers during the period of time when a center is authorized for 
9.7 	more than 25 children who are dependents of center employees must not be treated as 
9.8 	overpayments under section 119B.11, subdivision 2a, due to noncompliance with this 
9.9 	subdivision.
9.10 	(c) (b) Nothing in this subdivision precludes the commissioner from conducting fraud 
9.11 	investigations relating to child care assistance, imposing sanctions, and obtaining monetary 
9.12 	recovery as otherwise provided by law.

9.13 	Sec. 7. Minnesota Statutes 2018, section 119B.125, is amended by adding a subdivision 
9.14 	to read:
9.15 		Subd. 1c.Declaration and penalty. (a) At the time of initial authorization and at each 
9.16 	reauthorization, each child care provider receiving reimbursement for services provided 
9.17 	under this chapter, and all employees of a provider, shall sign the following declaration:
9.18 	"I declare under the penalties of perjury that this registration has been examined by me 
9.19 	and to the best of my knowledge is a true and correct statement of every material point. I 
9.20 	understand that a person convicted of perjury may be sentenced to imprisonment of not 
9.21 	more than five years or to payment of a fine of not more than $10,000, or both."
9.22 	(b) Any person who willfully and falsely makes the declaration in paragraph (a) is guilty 
9.23 	of perjury and shall be subject to the penalties prescribed in section 609.48.
9.24 	(c) Signing registration to receive reimbursement under this chapter pursuant to paragraph 
9.25 	(a) constitutes "verification upon oath or affirmation" as defined in section 358.52, without 
9.26 	administration of an oath under section 358.07, provided that the signature is affixed 
9.27 	immediately below the required declaration.

9.28 	EFFECTIVE DATE. This section is effective for child care assistance program provider 
9.29 	authorizations and reauthorizations completed on or after July 1, 2019.

9.30 	Sec. 8. Minnesota Statutes 2018, section 119B.125, subdivision 6, is amended to read:
9.31 		Subd. 6.Record-keeping requirement. (a) As a condition of payment, all providers 
9.32 	receiving child care assistance payments must: (1) keep accurate and legible daily attendance 
10.1 	records at the site where services are delivered for children receiving child care assistance;
10.2 	and (2) must make those records available immediately to the county or the commissioner 
10.3 	upon request. Attendance records that are not immediately made available to the county or 
10.4 	the commissioner upon request are not valid for purposes of establishing proof that a child 
10.5 	was present during the time period in question.
10.6 	The (b) As a condition of payment, attendance records must be completed daily and 
10.7 	include the date, the first and last name of each child in attendance, and the times when 
10.8 	each child is dropped off and picked up. To the extent possible, the times that the child was 
10.9 	dropped off to and picked up from the child care provider must be entered by the person 
10.10 	dropping off or picking up the child.
10.11 	(c) The daily attendance records must be retained at the site where services are delivered 
10.12 	for six years after the date of service.
10.13 	(d) A county or the commissioner may deny or revoke a provider's authorization as a 
10.14 	child care provider to any applicant, rescind authorization of any provider to receive child 
10.15 	care assistance payments under section 119B.13, subdivision 6, paragraph (d), pursue a 
10.16 	fraud disqualification under section 256.98, take an action against the provider under chapter 
10.17 	245E, or establish an attendance record overpayment claim in the system under paragraph 
10.18 	(f) against a current or former provider, when the county or the commissioner knows or has 
10.19 	reason to believe that the provider has not complied with the record-keeping requirement 
10.20 	in this subdivision.
10.21 	(e) If an attendance record is found to be insufficient to support the information submitted 
10.22 	on a billing form, a county or the commissioner may establish an overpayment claim in the 
10.23 	system against a current or former provider, regardless of whether a child was eligible for 
10.24 	an absent day payment under section 119B.13, subdivision 7.
10.25 	A provider's failure to produce attendance records as requested on more than one occasion 
10.26 	constitutes grounds for disqualification as a provider. (f) To calculate an attendance record 
10.27 	overpayment under this subdivision, the commissioner or county agency shall subtract the 
10.28 	maximum daily rate from the total amount paid to a provider for each day that a child's 
10.29 	attendance record is missing, unavailable, incomplete, illegible, inaccurate, or otherwise 
10.30 	inadequate.
10.31 	(g) The commissioner shall develop criteria for a county to determine an attendance 
10.32 	record overpayment under this subdivision.

10.33 	EFFECTIVE DATE. This section is effective July 1, 2019.

11.1 	Sec. 9. Minnesota Statutes 2018, section 119B.125, subdivision 9, is amended to read:
11.2 		Subd. 9.Reporting required for child's part-time attendance. (a) A provider must 
11.3 	report to the county and report on the billing form as required when a child's attendance in 
11.4 	child care falls to less than half of the child's authorized hours or days for a four-week 
11.5 	period. If requested by the county or the commissioner, the provider must provide additional 
11.6 	information to the county or commissioner on the attendance of specific children.
11.7 	(b) A county may rescind authorization of a provider for up to three months if the county 
11.8 	knows or has reason to believe that the provider has not met the reporting requirements 
11.9 	under paragraph (a).
11.10 	(c) The commissioner or county may impose an administrative penalty of $1,000 against 
11.11 	any provider who intentionally violates the requirements in paragraph (a). The provider 
11.12 	must receive notice of their right to appeal the administrative penalty.

11.13 	Sec. 10. Minnesota Statutes 2018, section 119B.125, is amended by adding a subdivision 
11.14 	to read:
11.15 		Subd. 10.Proof of surety bond coverage. All licensed child care centers authorized 
11.16 	for reimbursement under this chapter that received child care assistance program revenue 
11.17 	equal to or greater than $250,000 in the previous calendar year must provide to the 
11.18 	commissioner at least once per year proof of surety bond coverage of $100,000 in a format 
11.19 	determined by the commissioner. The surety bond must be in a form approved by the 
11.20 	commissioner, be renewed annually, and allow for recovery of costs and fees in pursuing 
11.21 	a claim on the bond.

11.22 	EFFECTIVE DATE. This section is effective January 1, 2020.

11.23 	Sec. 11. Minnesota Statutes 2018, section 119B.13, subdivision 6, is amended to read:
11.24 		Subd. 6.Provider payments. (a) The provider shall bill for services provided within 
11.25 	ten days of the end of the service period. Payments under the child care fund shall be made 
11.26 	within 21 days of receiving a complete bill from the provider. Counties or the state may 
11.27 	establish policies that make payments on a more frequent basis.
11.28 	(b) If a provider has received an authorization of care and been issued a billing form for 
11.29 	an eligible family, the bill must be submitted within 60 30 days of the last date of service 
11.30 	on the bill. A bill submitted more than 60 30 days after the last date of service must be paid 
11.31 	if the county determines that the provider has shown good cause why the bill was not 
11.32 	submitted within 60 30 days. Good cause must be defined in the county's child care fund 
12.1 	plan under section 119B.08, subdivision 3, and the definition of good cause must include 
12.2 	county error. Any bill submitted more than a year after the last date of service on the bill 
12.3 	must not be paid.
12.4 	(c) If a provider provided care for a time period without receiving an authorization of 
12.5 	care and a billing form for an eligible family, payment of child care assistance may only be 
12.6 	made retroactively for a maximum of six three months from the date the provider is issued 
12.7 	an authorization of care and billing form.
12.8 	(d) The provider shall receive a notice on the billing form advising providers that the 
12.9 	child care provider, center owner, director, manager, license holder, or other controlling 
12.10 	individual and the employee responsible for submitting billing forms may each be held 
12.11 	liable for intentionally providing materially false information on the provider's billing forms.
12.12 	(d) (e) A county or the commissioner may refuse to issue a child care authorization to 
12.13 	a licensed or legal nonlicensed provider, revoke an existing child care authorization to a 
12.14 	licensed or legal nonlicensed provider, stop payment issued to a licensed or legal nonlicensed 
12.15 	provider, or refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:
12.16 	(1) the provider admits to intentionally giving the county materially false information 
12.17 	on the provider's billing forms;
12.18 	(2) a county or the commissioner finds by a preponderance of the evidence that the 
12.19 	provider intentionally gave the county materially false information on the provider's billing 
12.20 	forms, or provided false attendance records to a county or the commissioner;
12.21 	(3) the provider is in violation of child care assistance program rules, until the agency 
12.22 	determines those violations have been corrected;
12.23 	(4) the provider is operating after:
12.24 	(i) an order of suspension of the provider's license issued by the commissioner;
12.25 	(ii) an order of revocation of the provider's license; or
12.26 	(iii) a final order of conditional license issued by the commissioner for as long as the 
12.27 	conditional license is in effect;
12.28 	(5) the provider submits false attendance reports or refuses to provide documentation 
12.29 	of the child's attendance upon request; or
12.30 	(6) the provider gives false child care price information.
13.1 	(e) (f) For purposes of paragraph (d) (e), clauses (3), (5), and (6), the county or the 
13.2 	commissioner may withhold the provider's authorization or payment for a period of time 
13.3 	not to exceed three months beyond the time the condition has been corrected.
13.4 	(f) (g) A county's payment policies must be included in the county's child care plan under 
13.5 	section 119B.08, subdivision 3. If payments are made by the state, in addition to being in 
13.6 	compliance with this subdivision, the payments must be made in compliance with section 
13.7 	16A.124.

13.8 	EFFECTIVE DATE. This section is effective for billing forms submitted on or after 
13.9 	July 1, 2019, except paragraph (d) is effective for billing forms issued on or after July 1, 
13.10 	2020.

13.11 	Sec. 12. Minnesota Statutes 2018, section 119B.13, subdivision 7, is amended to read:
13.12 		Subd. 7.Absent days. (a) Licensed child care providers and license-exempt centers 
13.13 	must not be reimbursed for more than 25 full-day absent days per child, excluding holidays, 
13.14 	in a fiscal calendar year, or for more than ten consecutive full-day absent days. "Absent 
13.15 	day" means any day that the child is authorized and scheduled to be in care with a licensed 
13.16 	provider or license exempt center and the child is absent from the care for the entire day. 
13.17 	Legal nonlicensed family child care providers must not be reimbursed for absent days. If a 
13.18 	child attends for part of the time authorized to be in care in a day, but is absent for part of 
13.19 	the time authorized to be in care in that same day, the absent time must be reimbursed but 
13.20 	the time must not count toward the absent days limit. Child care providers must only be 
13.21 	reimbursed for absent days if the provider has a written policy for child absences and charges 
13.22 	all other families in care for similar absences.
13.23 	(b) Notwithstanding paragraph (a), children with documented medical conditions that 
13.24 	cause more frequent absences may exceed the 25 absent days limit, or ten consecutive 
13.25 	full-day absent days limit. Absences due to a documented medical condition of a parent or 
13.26 	sibling who lives in the same residence as the child receiving child care assistance do not 
13.27 	count against the absent days limit in a fiscal calendar year. Documentation of medical 
13.28 	conditions must be on the forms and submitted according to the timelines established by 
13.29 	the commissioner. A public health nurse or school nurse may verify the illness in lieu of a 
13.30 	medical practitioner. If a provider sends a child home early due to a medical reason, 
13.31 	including, but not limited to, fever or contagious illness, the child care center director or 
13.32 	lead teacher may verify the illness in lieu of a medical practitioner.
13.33 	(c) Notwithstanding paragraph (a), children in families may exceed the absent days limit 
13.34 	if at least one parent: (1) is under the age of 21; (2) does not have a high school diploma or 
14.1 	commissioner of education-selected high school equivalency certification; and (3) is a 
14.2 	student in a school district or another similar program that provides or arranges for child 
14.3 	care, parenting support, social services, career and employment supports, and academic 
14.4 	support to achieve high school graduation, upon request of the program and approval of the 
14.5 	county. If a child attends part of an authorized day, payment to the provider must be for the 
14.6 	full amount of care authorized for that day.
14.7 	(d) Child care providers must be reimbursed for up to ten federal or state holidays or 
14.8 	designated holidays per year when the provider charges all families for these days and the 
14.9 	holiday or designated holiday falls on a day when the child is authorized to be in attendance. 
14.10 	Parents may substitute other cultural or religious holidays for the ten recognized state and 
14.11 	federal holidays. Holidays do not count toward the absent days limit.
14.12 	(e) A family or child care provider must not be assessed an overpayment for an absent 
14.13 	day payment unless (1) there was an error in the amount of care authorized for the family, 
14.14 	(2) all of the allowed full-day absent payments for the child have been paid, or (3) the family 
14.15 	or provider did not timely report a change as required under law.
14.16 	(f) The provider and family shall receive notification of the number of absent days used 
14.17 	upon initial provider authorization for a family and ongoing notification of the number of 
14.18 	absent days used as of the date of the notification.
14.19 	(g) For purposes of this subdivision, "absent days limit" means 25 full-day absent days 
14.20 	per child, excluding holidays, in a fiscal calendar year; and ten consecutive full-day absent 
14.21 	days.
14.22 	(h) For purposes of this subdivision, "holidays limit" means ten full-day holidays per 
14.23 	child, excluding absent days, in a calendar year.
14.24 	(i) If a day meets the criteria of an absent day or a holiday under this subdivision, the 
14.25 	provider must bill that day as an absent day or holiday. A provider's failure to properly bill 
14.26 	an absent day or a holiday results in an overpayment, regardless of whether the child reached, 
14.27 	or is exempt from, the absent days limit or holidays limit for the calendar year.

14.28 	EFFECTIVE DATE. This section is effective July 1, 2019.

14.29 	Sec. 13. [245A.24] MANDATORY REPORTING.
14.30 	All licensors whether employed by a county or the Department of Human Services must 
14.31 	immediately report any suspected fraud to the appropriate authorities.

15.1 	Sec. 14. Minnesota Statutes 2018, section 245E.03, subdivision 2, is amended to read:
15.2 		Subd. 2.Failure to provide access. (a) Failure to provide access may shall result in 
15.3 	denial or termination of authorizations for or payments to a recipient, provider, license 
15.4 	holder, or controlling individual in the child care assistance program.
15.5 	(b) The intentional failure to provide access as required by subdivision 1 is punishable 
15.6 	as a misdemeanor. Notwithstanding any other law, when a court sentences a person for a 
15.7 	violation of this subdivision, it must impose a fine of not less than 50 percent of the maximum 
15.8 	fine authorized by law nor more than the maximum fine authorized by law. The minimum 
15.9 	fine required by this subdivision is in addition to the surcharge or assessment required by 
15.10 	section 357.021, subdivision 6, and is in addition to any sentence of imprisonment or 
15.11 	restitution imposed or ordered by the court. The provisions of section 609.101, subdivision 
15.12 	5, apply to a fine imposed under this subdivision.

15.13 	EFFECTIVE DATE. This section is effective August 1, 2019, and applies to crimes 
15.14 	committed on or after that date.

15.15 	Sec. 15. Minnesota Statutes 2018, section 245E.04, is amended to read:
15.16 	245E.04 HONEST AND TRUTHFUL STATEMENTS.
15.17 	(a) It shall be unlawful a gross misdemeanor for a provider, license holder, controlling 
15.18 	individual, or recipient to:
15.19 	(1) falsify, conceal, or cover up by any trick, scheme, or device a material fact;
15.20 	(2) make any materially false, fictitious, or fraudulent statement or representation; or
15.21 	(3) make or use any false writing or document knowing the same to contain any materially 
15.22 	false, fictitious, or fraudulent statement or entry related to any child care assistance program 
15.23 	services that the provider, license holder, or controlling individual supplies or in relation to 
15.24 	any child care assistance payments received by a provider, license holder, or controlling 
15.25 	individual or to any fraud investigator or law enforcement officer conducting a financial 
15.26 	misconduct investigation.
15.27 	(b) Notwithstanding any other law, when a court sentences a person for a violation of 
15.28 	this section, it must impose a fine of not less than 50 percent of the maximum fine authorized 
15.29 	by law nor more than the maximum fine authorized by law. The minimum fine required by 
15.30 	this section is in addition to the surcharge or assessment required by section 357.021, 
15.31 	subdivision 6, and is in addition to any sentence of imprisonment or restitution imposed or 
16.1 	ordered by the court. The provisions of section 609.101, subdivision 5, apply to a fine 
16.2 	imposed under this section.

16.3 	EFFECTIVE DATE. This section is effective August 1, 2019, and applies to crimes 
16.4 	committed on or after that date.

16.5 	Sec. 16. DIRECTION TO COMMISSIONER; CHILD CARE ASSISTANCE 
16.6 	PROGRAM PROVIDER BILLING.
 16.7 	The commissioner of human services shall propose legislation for the 2020 legislative 
16.8 	session necessary to ensure that the child care provider, center owner, director, manager, 
16.9 	license holder, or other controlling individual and the employee responsible for submitting 
16.10 	billing forms are each held liable if materially false information is intentionally provided 
16.11 	to a county on a child care assistance program billing form.

16.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.13 	ARTICLE 2
16.14 	EARLY LEARNING PROGRAMS FRAUD PREVENTION

16.15 	Section 1. Minnesota Statutes 2018, section 13.461, subdivision 28, is amended to read:
16.16 		Subd. 28.Child care assistance program. (a) Data collected, maintained, used, or 
16.17 	disseminated by the welfare system pertaining to persons selected as legal nonlicensed child 
16.18 	care providers by families receiving child care assistance are classified under section 119B.02, 
16.19 	subdivision 6.
16.20 	(b) Data related to child care assistance program disqualification is governed by section 
16.21 	124D.165, subdivision 4a.

16.22 	Sec. 2. Minnesota Statutes 2018, section 124D.142, is amended to read:
16.23 	124D.142 QUALITY RATING AND IMPROVEMENT SYSTEM.
16.24 	(a) There is established a quality rating and improvement system (QRIS) framework to 
16.25 	ensure that Minnesota's children have access to high-quality early learning and care programs 
16.26 	in a range of settings so that they are fully ready for kindergarten by 2020. Creation of a
16.27 	The standards-based voluntary quality rating and improvement system includes:
16.28 	(1) quality opportunities in order to improve the educational outcomes of children so 
16.29 	that they are ready for school. The framework shall be based on the Minnesota quality rating 
16.30 	system rating tool and a common set of child outcome and program standards and informed 
16.31 	by evaluation results;
17.1 	(2) a tool to increase the number of publicly funded and regulated early learning and 
17.2 	care services in both public and private market programs that are high quality. If a program 
17.3 	or provider chooses to participate, the program or provider will be rated and may receive 
17.4 	public funding associated with the rating. The state shall develop a plan to link future early 
17.5 	learning and care state funding to the framework in a manner that complies with federal 
17.6 	requirements; and
17.7 	(3) tracking progress toward statewide access to high-quality early learning and care 
17.8 	programs, progress toward the number of low-income children whose parents can access 
17.9 	quality programs, and progress toward increasing the number of children who are fully 
17.10 	prepared to enter kindergarten.
17.11 	(b) In planning a statewide quality rating and improvement system framework in 
17.12 	paragraph (a), the state shall use evaluation results of the Minnesota quality rating system 
17.13 	rating tool in use in fiscal year 2008 to recommend:
17.14 	(1) a framework of a common set of child outcome and program standards for a voluntary 
17.15 	statewide quality rating and improvement system;
17.16 	(2) a plan to link future funding to the framework described in paragraph (a), clause (2); 
17.17 	and
17.18 	(3) a plan for how the state will realign existing state and federal administrative resources 
17.19 	to implement the voluntary quality rating and improvement system framework. The state 
17.20 	shall provide the recommendation in this paragraph to the early childhood education finance 
17.21 	committees of the legislature by March 15, 2011.
17.22 	(c) Prior to the creation of a statewide quality rating and improvement system in paragraph 
17.23 	(a), the state shall employ the Minnesota quality rating system rating tool in use in fiscal 
17.24 	year 2008 in the original Minnesota Early Learning Foundation pilot areas and additional 
17.25 	pilot areas supported by private or public funds with its modification as a result of the 
17.26 	evaluation results of the pilot project.
17.27 	(b) A child care provider who has a quality rating under this section and is disqualified 
17.28 	from receiving child care assistance program reimbursement under chapter 119B, as provided 
17.29 	under section 256.98, subdivision 8, paragraph (c), must also have the quality rating 
17.30 	rescinded.

17.31 	Sec. 3. Minnesota Statutes 2018, section 124D.165, subdivision 2, is amended to read:
17.32 		Subd. 2.Family eligibility. (a) For a family to receive an early learning scholarship, 
17.33 	parents or guardians must meet the following eligibility requirements:
18.1 	(1) have an eligible child; and
18.2 	(2) have income equal to or less than 185 percent of federal poverty level income in the 
18.3 	current calendar year, or be able to document their child's current participation in the free 
18.4 	and reduced-price lunch program or Child and Adult Care Food Program, National School 
18.5 	Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution 
18.6 	Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections 
18.7 	2011-2036; Head Start under the federal Improving Head Start for School Readiness Act 
18.8 	of 2007; Minnesota family investment program under chapter 256J; child care assistance 
18.9 	programs under chapter 119B; the supplemental nutrition assistance program; or placement 
18.10 	in foster care under section 260C.212.; and
18.11 	(3) must not currently be disqualified from the child care assistance program under 
18.12 	chapter 119B, as provided under section 256.98, subdivision 8, paragraph (b).
18.13 	(b) An "eligible child" means a child who has not yet enrolled in kindergarten and is:
18.14 	(1) at least three but not yet five years of age on September 1 of the current school year;
18.15 	(2) a sibling from birth to age five of a child who has been awarded a scholarship under 
18.16 	this section provided the sibling attends the same program as long as funds are available;
18.17 	(3) the child of a parent under age 21 who is pursuing a high school degree or a course 
18.18 	of study for a high school equivalency test; or
18.19 	(4) homeless, in foster care, or in need of child protective services.
18.20 	(c) A child who has received a scholarship under this section must continue to receive 
18.21 	a scholarship each year until that child is eligible for kindergarten under section 120A.20 
18.22 	and as long as funds are available.
18.23 	(d) Early learning scholarships may not be counted as earned income for the purposes 
18.24 	of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota 
18.25 	family investment program under chapter 256J, child care assistance programs under chapter 
18.26 	119B, or Head Start under the federal Improving Head Start for School Readiness Act of 
18.27 	2007.
18.28 	(e) A child from an adjoining state whose family resides at a Minnesota address as 
18.29 	assigned by the United States Postal Service, who has received developmental screening 
18.30 	under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district, 
18.31 	and whose family meets the criteria of paragraph (a) is eligible for an early learning 
18.32 	scholarship under this section.

19.1 	EFFECTIVE DATE. This section is effective July 1, 2019.

19.2 	Sec. 4. Minnesota Statutes 2018, section 124D.165, subdivision 4, is amended to read:
19.3 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept an
19.4 	for early learning scholarship funds, a program must:
19.5 	(1) participate in the quality rating and improvement system under section 124D.142; 
19.6 	and
19.7 	(2) beginning July 1, 2020, have a three- or four-star rating in the quality rating and 
19.8 	improvement system.
19.9 	(b) Any program accepting scholarships must use the revenue to supplement and not 
19.10 	supplant federal funding.
19.11 	(c) Notwithstanding paragraph (a), all Minnesota early learning foundation scholarship 
19.12 	program pilot sites are eligible to accept an early learning scholarship under this section.
19.13 	(d) A program is not eligible for early learning scholarship funds if:
19.14 	(1) it is disqualified from receiving payment for child care services from the child care 
19.15 	assistance program under chapter 119B, as provided under section 256.98, subdivision 8, 
19.16 	paragraph (c); or
19.17 	(2) the commissioner of human services refuses to issue a child care authorization, 
19.18 	revokes an existing child care authorization, stops payment issued to a program, or refuses 
19.19 	to pay a bill under section 119B.13, subdivision 6, paragraph (d), clause (2).

19.20 	EFFECTIVE DATE. This section is effective July 1, 2019.

19.21 	Sec. 5. Minnesota Statutes 2018, section 124D.165, is amended by adding a subdivision 
19.22 	to read:
19.23 		Subd. 4a.Data sharing. The commissioner of human services may disseminate to the 
19.24 	commissioner of education data on child care assistance program disqualification for purposes 
19.25 	of determining family eligibility under subdivision 2, paragraph (a), clause (3), and program 
19.26 	eligibility under subdivision 4, paragraph (d). The commissioner of education may 
19.27 	disseminate the data to an early learning scholarship area administrator.

19.28 	EFFECTIVE DATE. This section is effective July 1, 2019.

20.1 	ARTICLE 3
20.2 	PUBLIC ASSISTANCE FRAUD PREVENTION

20.3 	Section 1. Minnesota Statutes 2018, section 13.46, subdivision 3, is amended to read:
20.4 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
20.5 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
20.6 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
20.7 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
20.8 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
20.9 	shall not be disclosed except:
20.10 	(1) pursuant to section 13.05;
20.11 	(2) pursuant to statute or valid court order;
20.12 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
20.13 	preparation of defense; or
20.14 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
20.15 	state, or federal government, including a law enforcement officer or attorney in the 
20.16 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
20.17 	commissioner of human services determines that disclosure may compromise a department 
20.18 	of human services ongoing investigation; or
20.19 	(4) (5) to provide notices required or permitted by statute.
20.20 	The data referred to in this subdivision shall be classified as public data upon submission 
20.21 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
20.22 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
20.23 	(b) Notwithstanding any other provision in law, the commissioner of human services 
20.24 	shall provide all active and inactive investigative data, including the name of the reporter 
20.25 	of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental 
20.26 	health and developmental disabilities upon the request of the ombudsman.
20.27 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
20.28 	by the commissioner of human services of possible overpayments of public funds to a service 
20.29 	provider or recipient may be disclosed if the commissioner determines that it will not 
20.30 	compromise the investigation.

21.1 	Sec. 2. Minnesota Statutes 2018, section 245.095, is amended to read:
21.2 	245.095 LIMITS ON RECEIVING PUBLIC FUNDS.
21.3 		Subdivision 1.Prohibition. (a) If a provider, vendor, or individual enrolled, licensed, 
21.4 	or receiving funds under a grant contract, or registered in any program administered by the 
21.5 	commissioner, including under the commissioner's powers and authorities in section 256.01,
21.6 	is excluded from any that program administered by the commissioner, including under the 
21.7 	commissioner's powers and authorities in section 256.01, the commissioner shall:
21.8 	(1) prohibit the excluded provider, vendor, or individual from enrolling or, becoming 
21.9 	licensed, receiving grant funds, or registering in any other program administered by the 
21.10 	commissioner.; and
21.11 	(2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, 
21.12 	vendor, or individual in any other program administered by the commissioner.
21.13 	(b) The duration of this prohibition, disenrollment, revocation, suspension, 
21.14 	disqualification, or debarment must last for the longest applicable sanction or disqualifying 
21.15 	period in effect for the provider, vendor, or individual permitted by state or federal law.
21.16 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
21.17 	meanings given them.
21.18 	(b) "Excluded" means disenrolled, subject to license revocation or suspension, 
21.19 	disqualified, or subject to vendor debarment disqualified, having a license that has been 
21.20 	revoked or suspended under chapter 245A, or debarred or suspended under Minnesota Rules, 
21.21 	part 1230.1150, or excluded pursuant to section 256B.064, subdivision 3.
21.22 	(c) "Individual" means a natural person providing products or services as a provider or 
21.23 	vendor.
21.24 	(d) "Provider" means includes any entity or individual receiving payment from a program 
21.25 	administered by the Department of Human Services, and an owner, controlling individual, 
21.26 	license holder, director, or managerial official of an entity receiving payment from a program 
21.27 	administered by the Department of Human Services.

21.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.29 	Sec. 3. Minnesota Statutes 2018, section 245A.07, subdivision 2, is amended to read:
21.30 		Subd. 2.Temporary immediate suspension. (a) The commissioner shall act immediately 
21.31 	to temporarily suspend a license issued under this chapter if:
22.1 	(1) the license holder's actions or failure to comply with applicable law or rule, or the 
22.2 	actions of other individuals or conditions in the program, pose an imminent risk of harm to 
22.3 	the health, safety, or rights of persons served by the program; or
22.4 	(2) while the program continues to operate pending an appeal of an order of revocation, 
22.5 	the commissioner identifies one or more subsequent violations of law or rule which may 
22.6 	adversely affect the health or safety of persons served by the program.;
22.7 	(3) a child care license holder fails to comply with the child care assistance fraud 
22.8 	investigation requirements under chapter 245E; or
22.9 	(4) the license holder is criminally charged in state or federal court with an offense that 
22.10 	involves fraud or theft against a program administered by the commissioner.
22.11 	(b) No state funds shall be made available or be expended by any agency or department 
22.12 	of state, county, or municipal government for use by a license holder regulated under this 
22.13 	chapter while a license issued under this chapter is under immediate suspension. A notice 
22.14 	stating the reasons for the immediate suspension and informing the license holder of the 
22.15 	right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 
22.16 	1400.8612, must be delivered by personal service to the address shown on the application 
22.17 	or the last known address of the license holder. The license holder may appeal an order 
22.18 	immediately suspending a license. The appeal of an order immediately suspending a license 
22.19 	must be made in writing by certified mail or, personal service, or other means expressly set 
22.20 	forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the 
22.21 	commissioner within five calendar days after the license holder receives notice that the 
22.22 	license has been immediately suspended. If a request is made by personal service, it must 
22.23 	be received by the commissioner within five calendar days after the license holder received 
22.24 	the order. A license holder and any controlling individual shall discontinue operation of the 
22.25 	program upon receipt of the commissioner's order to immediately suspend the license.

22.26 	EFFECTIVE DATE. This section is effective January 1, 2020.

22.27 	Sec. 4. Minnesota Statutes 2018, section 245A.07, subdivision 2a, is amended to read:
22.28 		Subd. 2a.Immediate suspension expedited hearing. (a) Within five working days of 
22.29 	receipt of the license holder's timely appeal, the commissioner shall request assignment of 
22.30 	an administrative law judge. The request must include a proposed date, time, and place of 
22.31 	a hearing. A hearing must be conducted by an administrative law judge within 30 calendar 
22.32 	days of the request for assignment, unless an extension is requested by either party and 
22.33 	granted by the administrative law judge for good cause. The commissioner shall issue a 
23.1 	notice of hearing by certified mail or personal service at least ten working days before the 
23.2 	hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary 
23.3 	immediate suspension should remain in effect pending the commissioner's final order under 
23.4 	section 245A.08, regarding a licensing sanction issued under subdivision 3 following the 
23.5 	immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the 
23.6 	burden of proof in expedited hearings under this subdivision shall be limited to the 
23.7 	commissioner's demonstration that reasonable cause exists to believe that the license holder's 
23.8 	actions or failure to comply with applicable law or rule poses, or the actions of other 
23.9 	individuals or conditions in the program poses an imminent risk of harm to the health, safety, 
23.10 	or rights of persons served by the program. "Reasonable cause" means there exist specific 
23.11 	articulable facts or circumstances which provide the commissioner with a reasonable 
23.12 	suspicion that there is an imminent risk of harm to the health, safety, or rights of persons 
23.13 	served by the program. When the commissioner has determined there is reasonable cause 
23.14 	to order the temporary immediate suspension of a license based on a violation of safe sleep 
23.15 	requirements, as defined in section 245A.1435, the commissioner is not required to 
23.16 	demonstrate that an infant died or was injured as a result of the safe sleep violations. For 
23.17 	suspensions under subdivision 2, paragraph (a), clause (2), the burden of proof in expedited 
23.18 	hearings under this subdivision shall be limited to the commissioner's demonstration by a 
23.19 	preponderance of evidence that, since the license was revoked, the license holder committed 
23.20 	additional violations of law or rule which may adversely affect the health or safety of persons 
23.21 	served by the program.
23.22 	(b) The administrative law judge shall issue findings of fact, conclusions, and a 
23.23 	recommendation within ten working days from the date of hearing. The parties shall have 
23.24 	ten calendar days to submit exceptions to the administrative law judge's report. The record 
23.25 	shall close at the end of the ten-day period for submission of exceptions. The commissioner's 
23.26 	final order shall be issued within ten working days from the close of the record. When an 
23.27 	appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner 
23.28 	shall issue a final order affirming the temporary immediate suspension within ten calendar 
23.29 	days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days 
23.30 	after a final order affirming an immediate suspension, the commissioner shall make a 
23.31 	determination regarding whether a final licensing sanction shall be issued under subdivision 
23.32 	3. The license holder shall continue to be prohibited from operation of the program during 
23.33 	this 90-day period.
23.34 	(c) When the final order under paragraph (b) affirms an immediate suspension, and a 
23.35 	final licensing sanction is issued under subdivision 3 and the license holder appeals that 
24.1 	sanction, the license holder continues to be prohibited from operation of the program pending 
24.2 	a final commissioner's order under section 245A.08, subdivision 5, regarding the final 
24.3 	licensing sanction.
24.4 	(d) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof 
24.5 	in expedited hearings under this subdivision shall be limited to the commissioner's 
24.6 	demonstration by a preponderance of evidence that a criminal complaint and warrant or 
24.7 	summons was issued for the license holder that was not dismissed, and that the criminal 
24.8 	charge is an offense that involves fraud or theft against a program administered by the 
24.9 	commissioner.

24.10 	Sec. 5. Minnesota Statutes 2018, section 245A.07, subdivision 3, is amended to read:
24.11 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
24.12 	or revoke a license, or impose a fine if:
24.13 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
24.14 	limited to the requirements of this chapter and chapter 245C;
24.15 	(2) a license holder, a controlling individual, or an individual living in the household 
24.16 	where the licensed services are provided or is otherwise subject to a background study has 
24.17 	a been disqualified and the disqualification which has was not been set aside under section 
24.18 	245C.22 and no variance has been granted;
24.19 	(3) a license holder knowingly withholds relevant information from or gives false or 
24.20 	misleading information to the commissioner in connection with an application for a license, 
24.21 	in connection with the background study status of an individual, during an investigation, 
24.22 	or regarding compliance with applicable laws or rules; or
24.23 	(4) after July 1, 2012, and upon request by the commissioner, a license holder fails to 
24.24 	submit the information required of an applicant under section 245A.04, subdivision 1, 
24.25 	paragraph (f) or (g). a license holder is excluded from any program administered by the 
24.26 	commissioner under section 245.095; or
24.27 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (e).
24.28 	A license holder who has had a license issued under this chapter suspended, revoked, 
24.29 	or has been ordered to pay a fine must be given notice of the action by certified mail or 
24.30 	personal service. If mailed, the notice must be mailed to the address shown on the application 
24.31 	or the last known address of the license holder. The notice must state in plain language the 
24.32 	reasons the license was suspended or revoked, or a fine was ordered.
25.1 	(b) If the license was suspended or revoked, the notice must inform the license holder 
25.2 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
25.3 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
25.4 	a license. The appeal of an order suspending or revoking a license must be made in writing 
25.5 	by certified mail or personal service. If mailed, the appeal must be postmarked and sent to 
25.6 	the commissioner within ten calendar days after the license holder receives notice that the 
25.7 	license has been suspended or revoked. If a request is made by personal service, it must be 
25.8 	received by the commissioner within ten calendar days after the license holder received the 
25.9 	order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits a 
25.10 	timely appeal of an order suspending or revoking a license, the license holder may continue 
25.11 	to operate the program as provided in section 245A.04, subdivision 7, paragraphs (g) and 
25.12 	(h), until the commissioner issues a final order on the suspension or revocation.
25.13 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
25.14 	holder of the responsibility for payment of fines and the right to a contested case hearing 
25.15 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
25.16 	order to pay a fine must be made in writing by certified mail or personal service. If mailed, 
25.17 	the appeal must be postmarked and sent to the commissioner within ten calendar days after 
25.18 	the license holder receives notice that the fine has been ordered. If a request is made by 
25.19 	personal service, it must be received by the commissioner within ten calendar days after 
25.20 	the license holder received the order.
25.21 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
25.22 	If the license holder fails to fully comply with the order, the commissioner may issue a 
25.23 	second fine or suspend the license until the license holder complies. If the license holder 
25.24 	receives state funds, the state, county, or municipal agencies or departments responsible for 
25.25 	administering the funds shall withhold payments and recover any payments made while the 
25.26 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
25.27 	until the commissioner issues a final order.
25.28 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
25.29 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
25.30 	commissioner determines that a violation has not been corrected as indicated by the order 
25.31 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
25.32 	the license holder by certified mail or personal service that a second fine has been assessed. 
25.33 	The license holder may appeal the second fine as provided under this subdivision.
25.34 	(4) Fines shall be assessed as follows:
26.1 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
26.2 	child under section 626.556 or the maltreatment of a vulnerable adult under section 626.557 
26.3 	for which the license holder is determined responsible for the maltreatment under section 
26.4 	626.556, subdivision 10e, paragraph (i), or 626.557, subdivision 9c, paragraph (c);
26.5 	(ii) if the commissioner determines that a determination of maltreatment for which the 
26.6 	license holder is responsible is the result of maltreatment that meets the definition of serious 
26.7 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
26.8 	$5,000;
26.9 	(iii) for a program that operates out of the license holder's home and a program licensed 
26.10 	under Minnesota Rules, parts 9502.0300 to 9502.0495 9502.0445, the fine assessed against 
26.11 	the license holder shall not exceed $1,000 for each determination of maltreatment;
26.12 	(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
26.13 	governing matters of health, safety, or supervision, including but not limited to the provision 
26.14 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
26.15 	requirements under chapter 245C; and
26.16 	(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
26.17 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
26.18 	For purposes of this section, "occurrence" means each violation identified in the 
26.19 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
26.20 	provide home and community-based services, as identified in section 245D.03, subdivision 
26.21 	1, and a community residential setting or day services facility license under chapter 245D
26.22 	where the services are provided, may be assessed against both licenses for the same 
26.23 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
26.24 	this clause for that occurrence.
26.25 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
26.26 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
26.27 	license holder will be personally liable for payment. In the case of a corporation, each 
26.28 	controlling individual is personally and jointly liable for payment.
26.29 	(d) Except for background study violations involving the failure to comply with an order 
26.30 	to immediately remove an individual or an order to provide continuous, direct supervision, 
26.31 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
26.32 	violation to a license holder who self-corrects a background study violation before the 
26.33 	commissioner discovers the violation. A license holder who has previously exercised the 
26.34 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
27.1 	a fine for a subsequent background study violation unless at least 365 days have passed 
27.2 	since the license holder self-corrected the earlier background study violation.

27.3 	EFFECTIVE DATE. This section is effective January 1, 2020.

27.4 	Sec. 6. [245I.01] OFFICE OF INSPECTOR GENERAL.
27.5 	The Office of Inspector General is created as a standalone office outside of the 
27.6 	Department of Human Services. The governor shall appoint the executive director of the 
27.7 	Office of Inspector General under section 15.06. The executive director shall develop and 
27.8 	maintain licensing, background studies, and fraud prevention services in a manner consistent 
27.9 	with sections 256.98 to 256.9861; 256B.0705, subdivision 4; 256B.0949, subdivision 16; 
27.10 	256B.85, subdivision 16; and chapters 245A, 245C, 245D, 245E, and 245H. Office of 
27.11 	Inspector General services shall be provided in coordination with counties and other vendors. 
27.12 	Office of Inspector General services shall include licensing, background studies, fraud 
27.13 	prevention and investigations, and other services consistent with the mission of the Office 
27.14 	of Inspector General. The administrative structure of the Office of Inspector General must 
27.15 	be statewide in character.

27.16 	EFFECTIVE DATE. This section is effective July 1, 2019.

27.17 	Sec. 7. [245I.05] TRANSFER OF DUTIES.
27.18 	(a) Section 15.039 applies to the transfer of duties required by this chapter.
27.19 	(b) The commissioner of administration, with the approval of the governor, may issue 
27.20 	reorganization orders under section 16B.37 as necessary to carry out the transfer of duties 
27.21 	required by this chapter. The provision of section 16B.37, subdivision 1, stating that transfers 
27.22 	under section 16B.37 may be made only to an agency that has been in existence for at least 
27.23 	one year does not apply to transfers to an agency created by this chapter.
27.24 	(c) The initial salary for the executive director of the Office of Inspector General is the 
27.25 	same as the salary for the commissioner of health. The salary may be changed in the manner 
27.26 	specified in section 15A.0815.
27.27 	(d) The commissioner of management and budget must ensure that the aggregate cost 
27.28 	for the executive director of the Office of Inspector General is not more than the aggregate 
27.29 	cost of the primary executives in the Department of Human Services responsible for 
27.30 	management of licensing, background studies, and fraud prevention and investigations 
27.31 	immediately before the effective date of this section.

27.32 	EFFECTIVE DATE. This section is effective July 1, 2019.

28.1 	Sec. 8. [256.0113] ELIGIBILITY VERIFICATION.
28.2 		Subdivision 1.Verification required; vendor contract. (a) The commissioner shall 
28.3 	ensure that medical assistance, MinnesotaCare, child care assistance programs under chapter 
28.4 	119B, and Supplemental Nutrition Assistance Program (SNAP) eligibility determinations 
28.5 	through the MNsure information technology system and through other agency eligibility 
28.6 	determination systems include the computerized verification of income, residency, identity, 
28.7 	and, when applicable, assets and compliance with SNAP work requirements.
28.8 	(b) The commissioner shall contract with a vendor to verify the eligibility of all enrollees 
28.9 	of medical assistance, MinnesotaCare, child care assistance programs, and SNAP during a 
28.10 	specified audit period. This contract shall be exempt from sections 16C.08, subdivision 2, 
28.11 	clause (1); 16C.09, paragraph (a), clause (1); 43A.047, paragraph (a); and any other law to 
28.12 	the contrary.
28.13 	(c) The contract must require the vendor to comply with enrollee data privacy 
28.14 	requirements and to use encryption to safeguard enrollee identity. The contract must also 
28.15 	provide penalties for vendor noncompliance.
28.16 	(d) The contract must include a revenue-sharing agreement, under which vendor 
28.17 	compensation is limited to a portion of any savings to the state resulting from the vendor's 
28.18 	implementation of eligibility verification initiatives under this section.
28.19 	(e) The commissioner shall use existing resources to fund any agency administrative 
28.20 	and technology-related costs incurred as a result of implementing this section.
28.21 	(f) All state savings resulting from implementation of the vendor contract under this 
28.22 	section, minus any payments to the vendor made under the terms of the revenue sharing 
28.23 	agreement, shall be deposited into the health care access fund.
28.24 		Subd. 2.Verification process; vendor duties. (a) The verification process implemented 
28.25 	by the vendor must include but is not limited to data matches of the name, date of birth, 
28.26 	address, and Social Security number of each medical assistance, MinnesotaCare, child care 
28.27 	assistance programs, and SNAP enrollee against relevant information in federal and state 
28.28 	data sources, including the federal data hub established under the Affordable Care Act. In 
28.29 	designing the verification process, the vendor, to the extent feasible, shall incorporate 
28.30 	procedures that are compatible and coordinated with, and build upon or improve, existing 
28.31 	procedures used by the MNsure information technology system and other agency eligibility 
28.32 	determination systems.
29.1 	(b) The vendor, upon preliminary determination that an enrollee is eligible or ineligible, 
29.2 	shall notify the commissioner. Within 20 business days of notification, the commissioner 
29.3 	shall accept the preliminary determination or reject the preliminary determination with a 
29.4 	stated reason. The commissioner shall retain final authority over eligibility determinations. 
29.5 	The vendor shall keep a record of all preliminary determinations of ineligibility submitted 
29.6 	to the commissioner.
29.7 	(c) The vendor shall recommend to the commissioner an eligibility verification process 
29.8 	that allows ongoing verification of enrollee eligibility under the MNsure information 
29.9 	technology system and other agency eligibility determination systems.
29.10 	(d) An eligibility verification vendor contract shall be awarded for an initial one-year 
29.11 	period beginning January 1, 2020. The commissioner shall renew the contract for up to 
29.12 	three additional one-year periods and require additional eligibility verification audits if the 
29.13 	commissioner or the legislative auditor determines that the MNsure information technology 
29.14 	system and other agency eligibility determination systems cannot effectively verify the 
29.15 	eligibility of medical assistance, MinnesotaCare, child care assistance programs under 
29.16 	chapter 119B, and SNAP enrollees.

29.17 	Sec. 9. Minnesota Statutes 2018, section 256.98, is amended by adding a subdivision to 
29.18 	read:
29.19 		Subd. 1a.Unauthorized transfer. A person who violates subdivision 1 with the intent 
29.20 	to transfer any payments or other benefits to an individual or organization in a foreign 
29.21 	country whose residents are subject to travel restrictions under federal law or executive 
29.22 	order based on information-sharing practices that have been determined to be inadequate 
29.23 	is guilty of a crime and may be sentenced as follows:
29.24 	(1) to imprisonment for not more than 25 years or to payment of a fine of not more than 
29.25 	$125,000, or both if the value of the payments or benefits wrongfully obtained exceeds 
29.26 	$35,000;
29.27 	(2) to imprisonment for not more than 15 years or to payment of a fine of not more than 
29.28 	$75,000, or both if the value of the payments or benefits wrongfully obtained is more than 
29.29 	$5,000 but not more than $35,000;
29.30 	(3) to imprisonment for not more than ten years or to payment of a fine of not more than 
29.31 	$50,000, or both if the value of the payments or benefits wrongfully obtained is more than 
29.32 	$1,000 but not more than $5,000;
30.1 	(4) to imprisonment for not more than five years or to payment of a fine of not more 
30.2 	than $15,000, or both if the value of the payments or benefits wrongfully obtained is more 
30.3 	than $500 but not more than $1,000; and
30.4 	(5) to imprisonment for not more than two years or to payment of a fine of not more 
30.5 	than $5,000, or both if the value of the payments or benefits wrongfully obtained is $500 
30.6 	or less.

30.7 	EFFECTIVE DATE. This section is effective August 1, 2019, and applies to offenses 
30.8 	committed on or after that date.

30.9 	Sec. 10. Minnesota Statutes 2018, section 256.98, subdivision 8, is amended to read:
30.10 		Subd. 8.Disqualification from program. (a) Any person found to be guilty of 
30.11 	wrongfully obtaining assistance by a federal or state court or by an administrative hearing 
30.12 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
30.13 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
30.14 	carries with it any probationary or other conditions, in the Minnesota family investment 
30.15 	program and any affiliated program to include the diversionary work program and the work 
30.16 	participation cash benefit program, the food stamp or food support program, the general 
30.17 	assistance program, housing support under chapter 256I, or the Minnesota supplemental 
30.18 	aid program shall be disqualified from that program. In addition, any person disqualified 
30.19 	from the Minnesota family investment program shall also be disqualified from the food 
30.20 	stamp or food support program. The needs of that individual shall not be taken into 
30.21 	consideration in determining the grant level for that assistance unit:
30.22 	(1) for one year after the first offense;
30.23 	(2) for two years after the second offense; and
30.24 	(3) permanently after the third or subsequent offense, or for a violation of subdivision 
30.25 	1a.
30.26 	The period of program disqualification shall begin on the date stipulated on the advance 
30.27 	notice of disqualification without possibility of postponement for administrative stay or 
30.28 	administrative hearing and shall continue through completion unless and until the findings 
30.29 	upon which the sanctions were imposed are reversed by a court of competent jurisdiction. 
30.30 	The period for which sanctions are imposed is not subject to review. The sanctions provided 
30.31 	under this subdivision are in addition to, and not in substitution for, any other sanctions that 
30.32 	may be provided for by law for the offense involved. A disqualification established through 
30.33 	hearing or waiver shall result in the disqualification period beginning immediately unless 
31.1 	the person has become otherwise ineligible for assistance. If the person is ineligible for 
31.2 	assistance, the disqualification period begins when the person again meets the eligibility 
31.3 	criteria of the program from which they were disqualified and makes application for that 
31.4 	program.
31.5 	(b) A family receiving assistance through child care assistance programs under chapter 
31.6 	119B with a family member who is found to be guilty of wrongfully obtaining child care 
31.7 	assistance by a federal court, state court, or an administrative hearing determination or 
31.8 	waiver, through a disqualification consent agreement, as part of an approved diversion plan 
31.9 	under section 401.065, or a court-ordered stay with probationary or other conditions, is 
31.10 	disqualified from child care assistance programs. The disqualifications must be for periods 
31.11 	of one year and two years for the first and second offenses, respectively. Subsequent 
31.12 	violations must result in be permanent disqualification. During the disqualification period,
31.13 	Disqualification from any child care program must extend to all child care programs and 
31.14 	must be immediately applied.
31.15 	(c) A provider caring for children receiving assistance through child care assistance 
31.16 	programs under chapter 119B is disqualified from receiving payment for child care services 
31.17 	from the child care assistance program under chapter 119B when the provider is found to 
31.18 	have wrongfully obtained child care assistance by a federal court, state court, or an 
31.19 	administrative hearing determination or waiver under section 256.046, through a 
31.20 	disqualification consent agreement, as part of an approved diversion plan under section 
31.21 	401.065, or a court-ordered stay with probationary or other conditions. The disqualification 
31.22 	must be for a period of one year for the first offense and two years for the second offense. 
31.23 	Any subsequent violation must result in permanent disqualification. The disqualification 
31.24 	period must be imposed immediately after a determination is made under this paragraph. 
31.25 	During the Upon disqualification period, the provider is disqualified from receiving payment 
31.26 	from any child care program under chapter 119B.
31.27 	(d) Any person found to be guilty of wrongfully obtaining MinnesotaCare for adults 
31.28 	without children and upon federal approval, all categories of medical assistance and 
31.29 	remaining categories of MinnesotaCare, except for children through age 18, by a federal or 
31.30 	state court or by an administrative hearing determination, or waiver thereof, through a 
31.31 	disqualification consent agreement, or as part of any approved diversion plan under section 
31.32 	401.065, or any court-ordered stay which carries with it any probationary or other conditions, 
31.33 	is disqualified from that program. The period of disqualification is one year after the first 
31.34 	offense, two years after the second offense, and permanently after the third or subsequent 
31.35 	offense. The period of program disqualification shall begin on the date stipulated on the 
32.1 	advance notice of disqualification without possibility of postponement for administrative 
32.2 	stay or administrative hearing and shall continue through completion unless and until the 
32.3 	findings upon which the sanctions were imposed are reversed by a court of competent 
32.4 	jurisdiction. The period for which sanctions are imposed is not subject to review. The 
32.5 	sanctions provided under this subdivision are in addition to, and not in substitution for, any 
32.6 	other sanctions that may be provided for by law for the offense involved.

32.7 	EFFECTIVE DATE. This section is effective August 1, 2019.

32.8 	Sec. 11. Minnesota Statutes 2018, section 256.984, subdivision 1, is amended to read:
32.9 		Subdivision 1.Declaration. (a) Every application for public assistance under this chapter 
32.10 	or chapters 256B, 256D, 256J, and 256L; child care programs under chapter 119B; and food 
32.11 	stamps or food support under chapter 393 shall be in writing or reduced to writing as 
32.12 	prescribed by the state agency and shall contain the following declaration which shall be 
32.13 	signed by the applicant:
32.14 	"I declare under the penalties of perjury that this application has been examined by me 
32.15 	and to the best of my knowledge is a true and correct statement of every material point. 
32.16 	I understand that a person convicted of perjury may be sentenced to imprisonment of 
32.17 	not more than five years or to payment of a fine of not more than $10,000, or both."
32.18 	(b) Signing an application for public assistance pursuant to paragraph (a) constitutes 
32.19 	"verification upon oath or affirmation" as defined in section 358.52, without administration 
32.20 	of an oath under section 358.07, provided that the signature is affixed immediately below 
32.21 	the required declaration.

32.22 	Sec. 12. Minnesota Statutes 2018, section 609.27, subdivision 2, is amended to read:
32.23 		Subd. 2.Sentence. Whoever violates subdivision 1 may be sentenced as follows:
32.24 	(1) to imprisonment for not more than 90 days or to payment of a fine of not more than 
32.25 	$1,000, or both if neither the pecuniary gain received by the violator nor the loss suffered 
32.26 	by the person threatened or another as a result of the threat exceeds $300, or the benefits 
32.27 	received or harm sustained are not susceptible of pecuniary measurement; or
32.28 	(2) to imprisonment for not more than five years or to payment of a fine of not more 
32.29 	than $10,000, or both, if such pecuniary gain or loss is more than $300 but less than $2,500; 
32.30 	or
32.31 	(3) to imprisonment for not more than ten years or to payment of a fine of not more than 
32.32 	$20,000, or both, if such pecuniary gain or loss is $2,500, or more, or if the person violates 
33.1 	subdivision 1 with the intent to involve another person in financial misconduct as defined 
33.2 	in section 245E.01, subdivision 8.

33.3 	Sec. 13. Minnesota Statutes 2018, section 609.48, subdivision 1, is amended to read:
33.4 		Subdivision 1.Acts constituting. Whoever makes a false material statement not believing 
33.5 	it to be true in any of the following cases is guilty of perjury and may be sentenced as 
33.6 	provided in subdivision 4:
33.7 	(1) in or for an action, hearing or proceeding of any kind in which the statement is 
33.8 	required or authorized by law to be made under oath or affirmation;
33.9 	(2) in any writing which is required or authorized by law to be under oath or affirmation;
33.10 	(3) in any writing made according to section 358.115;
33.11 	(4) in any writing made according to section 358.116; or
33.12 	(5) in any writing made according to sections 119B.125 or 256.984; or
33.13 	(6) in any other case in which the penalties for perjury are imposed by law and no specific 
33.14 	sentence is otherwise provided.

33.15 	Sec. 14. [609.817] CRIMINAL PENALTIES FOR ACTS INVOLVING HUMAN 
33.16 	SERVICES PROGRAMS.
33.17 		Subdivision 1.Payments made relating to human services programs. A person who 
33.18 	intentionally offers or pays any remuneration, including any kickback, bribe, or rebate, 
33.19 	directly or indirectly, overtly or covertly, in cash or in kind, to a person is guilty of a crime 
33.20 	and may be sentenced as provided in subdivision 3 if such offer or payment is made to 
33.21 	induce the person:
33.22 	(1) to apply for, receive, or induce another person to apply for or receive a human services 
33.23 	benefit, service, or grant related to a program funded in whole or in part by the Department 
33.24 	of Human Services or administered by the commissioner of human services, including but 
33.25 	not limited to a human services benefit, service, or grant funded in whole or in part by a 
33.26 	local social services agency, the Department of Human Services, or the United States 
33.27 	Department of Health and Human Services; or
33.28 	(2) to apply for or to use a particular vendor providing a service administered or funded 
33.29 	in whole or in part by the Department of Human Services, a local social services agency, 
33.30 	or the United States Department of Health and Human Services.
34.1 		Subd. 2.Payments received relating to human services programs. A person who 
34.2 	intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate, 
34.3 	directly or indirectly, overtly or covertly, in cash or in kind is guilty of a crime and may be 
34.4 	sentenced as provided in subdivision 3 if the remuneration is solicited or received:
34.5 	(1) in return for applying for or receiving a human services benefit, service, or grant 
34.6 	administered or funded in whole or in part by the Department of Human Services or 
34.7 	administered by the commissioner of human services, including but not limited to a human 
34.8 	services benefit, service, or grant funded in whole or in part by a local social services agency, 
34.9 	the Department of Human Services, or the United States Department of Health and Human 
34.10 	Services;
34.11 	(2) in return for applying for or using a particular vendor providing a service administered 
34.12 	or funded in whole or in part by the Department of Human Services, a local social services 
34.13 	agency, or the United States Department of Health and Human Services; or
34.14 	(3) in return for receiving or agreeing to receive payments in excess of fair and reasonable 
34.15 	market value for services or supplies provided to a company or person who is being paid 
34.16 	in whole or in part by the Department of Human Services, a local social services agency, 
34.17 	or the United States Department of Health and Human Services to provide a human services 
34.18 	benefit to a person.
34.19 		Subd. 3.Sentence. Whoever violates subdivision 1 or 2 may be sentenced to 
34.20 	imprisonment for not more than ten years or to payment of a fine of not more than $20,000, 
34.21 	or both.
34.22 		Subd. 4.Defense. It is not a defense under this section for the person or company 
34.23 	receiving or making the payments in excess of fair and reasonable market value to claim 
34.24 	the person did not have knowledge of the source of the payments.
34.25 		Subd. 5.Persons exempt. This section does not apply if:
34.26 	(1) the employee receiving the remuneration is a bona fide employee of the company 
34.27 	receiving payment for providing care or services;
34.28 	(2) the remuneration received by the employee is for work performed by the employee 
34.29 	and is paid via a standard payroll check or a direct deposit from the company payroll account 
34.30 	to the bank designated by the employee; and
34.31 	(3) the company making the payment complies with all state and federal laws relating 
34.32 	to tax withholding, Social Security and Medicare withholding, and wage reporting to the 
34.33 	Department of Employment and Economic Development.
35.1 		Subd. 6.Additional sanctions. (a) Claims or payments for any service rendered or 
35.2 	claimed to have been rendered by a provider or individual who violated this section in regard 
35.3 	to the person for whom such services were rendered or claimed to have been rendered are 
35.4 	noncompensable, unenforceable as a matter of law, and constitute the value of any restitution 
35.5 	owed to the Department of Human Services, a county, or the United States Department of 
35.6 	Health and Human Services.
35.7 	(b) For the purposes of this section, service includes any benefit, service, or grant 
35.8 	administered or funded in whole or in part by the Department of Human Services, a county, 
35.9 	or the United States Department of Health and Human Services.
35.10 	(c) A person convicted under this section is subject to prohibitions described under 
35.11 	section 245.095.

35.12 	Sec. 15. DIRECTION TO COMMISSIONER; REQUIRING ELIGIBILITY 
35.13 	VERIFICATION AUDIT REPORT.
 35.14 	The commissioner and the vendor, following the conclusion of the initial contract period, 
35.15 	shall jointly submit an eligibility verification audit report to the chairs and ranking minority 
35.16 	members of the legislative committees with jurisdiction over health and human services 
35.17 	policy and finance. The report shall include but is not limited to information in the form of 
35.18 	unidentified summary data on preliminary determinations of eligibility or ineligibility 
35.19 	communicated by the vendor, the actions taken on those preliminary determinations by the 
35.20 	commissioner, and the commissioner's reasons for rejecting preliminary determinations by 
35.21 	the vendor. The report must also include the recommendations for ongoing verification of 
35.22 	enrollee eligibility required under Minnesota Statutes, section 256.0113, subdivision 2, 
35.23 	paragraph (c).

35.24 	Sec. 16. APPROPRIATIONS.
 35.25 	(a) $....... in fiscal year 2020 and $....... in fiscal year 2021 are appropriated from the 
35.26 	general fund to the commissioner of human services for purposes of adding four additional 
35.27 	full-time equivalent positions to the Office of Inspector General, Financial Fraud and Abuse 
35.28 	Investigation Division. Of these full-time equivalent positions, three positions must be 
35.29 	investigator positions and the fourth position must be a child care assistance fraud supervisor. 
35.30 	The individuals who fill the positions must have a background in law enforcement.
35.31 	(b) $355,000 in fiscal year 2020 and $105,000 in fiscal year 2021 are appropriated from 
35.32 	the general fund to the commissioner of human services for purposes of implementing and 
36.1 	maintaining a case tracking system in the Office of Inspector General, Financial Fraud and 
36.2 	Abuse Investigation Division.
36.3 	(c) $1,275,000 in fiscal year 2020 and $1,275,000 in fiscal year 2021 are appropriated 
36.4 	from the general fund to the commissioner of human services for the purposes of the fraud 
36.5 	prevention investigation grant program under Minnesota Statutes, section 256.983.

36.6 	Sec. 17. REVISOR INSTRUCTION; CONFORMING STATUTORY CHANGES.
 36.7 	The revisor of statutes, in consultation with House Research Department and Senate 
36.8 	Counsel, Research and Fiscal Analysis, and the commissioner of human services, shall 
36.9 	prepare a bill for introduction in the 2020 legislative session proposing the statutory changes 
36.10 	needed to implement the transfers of duties required by this chapter.

36.11 	EFFECTIVE DATE. This section is effective July 1, 2019.

36.12 	ARTICLE 4
36.13 	PUBLIC ASSISTANCE ELIGIBILITY DETERMINATIONS

36.14 	Section 1. Minnesota Statutes 2018, section 119B.09, subdivision 4, is amended to read:
36.15 		Subd. 4.Eligibility; annual income; calculation. (a) Annual income of the applicant 
36.16 	family is the current monthly income of the family multiplied by 12 or the income for the 
36.17 	12-month period immediately preceding the date of application, or income calculated by 
36.18 	the method which provides the most accurate assessment of income available to the family.
36.19 	(b) Self-employment income must be calculated based on gross receipts less operating 
36.20 	expenses authorized by the Internal Revenue Service.
36.21 	(c) Income changes are processed under section 119B.025, subdivision 4. Included lump 
36.22 	sums counted as income under section 256P.06, subdivision 3, must be annualized over 12 
36.23 	months. Income must be verified with documentary evidence. Income includes all deposits 
36.24 	into accounts owned or controlled by the applicant, including amounts spent on personal 
36.25 	expenses including rent, mortgage, automobile-related expenses, utilities, and food, and 
36.26 	amounts received as salary or draws from business accounts. Income does not include a 
36.27 	deposit specifically identified by the applicant as a loan or gift, for which the applicant 
36.28 	provides the source, date, amount, and repayment terms. If the applicant does not have 
36.29 	sufficient evidence of income, verification must be obtained from the source of the income.

37.1 	Sec. 2. Minnesota Statutes 2018, section 256B.02, is amended by adding a subdivision to 
37.2 	read:
37.3 		Subd. 20.Income. Income is calculated using the adjusted gross income methodology 
37.4 	under the Affordable Care Act. Income includes funds in personal or business accounts 
37.5 	used to pay personal expenses including rent, mortgage, automobile-related expenses, 
37.6 	utilities, food, and other personal expenses not directly related to the business, unless the 
37.7 	funds are directly attributable to an exception to the income requirement specifically 
37.8 	identified by the applicant.

37.9 	Sec. 3. Minnesota Statutes 2018, section 256B.056, subdivision 3, is amended to read:
37.10 		Subd. 3.Asset limitations for certain individuals. (a) To be eligible for medical 
37.11 	assistance, a person must not individually own more than $3,000 in assets, or if a member 
37.12 	of a household with two family members, husband and wife, or parent and child, the 
37.13 	household must not own more than $6,000 in assets, plus $200 for each additional legal 
37.14 	dependent. In addition to these maximum amounts, an eligible individual or family may 
37.15 	accrue interest on these amounts, but they must be reduced to the maximum at the time of 
37.16 	an eligibility redetermination. The accumulation of the clothing and personal needs allowance 
37.17 	according to section 256B.35 must also be reduced to the maximum at the time of the 
37.18 	eligibility redetermination. The value of assets that are not considered in determining 
37.19 	eligibility for medical assistance is the value of those assets excluded under the Supplemental 
37.20 	Security Income program for aged, blind, and disabled persons, with the following 
37.21 	exceptions:
37.22 	(1) household goods and personal effects are not considered;
37.23 	(2) capital and operating assets of a trade or business that the local agency determines 
37.24 	are necessary to the person's ability to earn an income are not considered;. A bank account 
37.25 	that contains personal income or assets, or is used to pay personal expenses, is not a capital 
37.26 	or operating asset of a trade or business;
37.27 	(3) motor vehicles are excluded to the same extent excluded by the Supplemental Security 
37.28 	Income program;
37.29 	(4) assets designated as burial expenses are excluded to the same extent excluded by the 
37.30 	Supplemental Security Income program. Burial expenses funded by annuity contracts or 
37.31 	life insurance policies must irrevocably designate the individual's estate as contingent 
37.32 	beneficiary to the extent proceeds are not used for payment of selected burial expenses;
38.1 	(5) for a person who no longer qualifies as an employed person with a disability due to 
38.2 	loss of earnings, assets allowed while eligible for medical assistance under section 256B.057, 
38.3 	subdivision 9, are not considered for 12 months, beginning with the first month of ineligibility 
38.4 	as an employed person with a disability, to the extent that the person's total assets remain 
38.5 	within the allowed limits of section 256B.057, subdivision 9, paragraph (d);
38.6 	(6) when a person enrolled in medical assistance under section 256B.057, subdivision 
38.7 	9, is age 65 or older and has been enrolled during each of the 24 consecutive months before 
38.8 	the person's 65th birthday, the assets owned by the person and the person's spouse must be 
38.9 	disregarded, up to the limits of section 256B.057, subdivision 9, paragraph (d), when 
38.10 	determining eligibility for medical assistance under section 256B.055, subdivision 7. The 
38.11 	income of a spouse of a person enrolled in medical assistance under section 256B.057, 
38.12 	subdivision 9, during each of the 24 consecutive months before the person's 65th birthday 
38.13 	must be disregarded when determining eligibility for medical assistance under section 
38.14 	256B.055, subdivision 7. Persons eligible under this clause are not subject to the provisions 
38.15 	in section 256B.059; and
38.16 	(7) effective July 1, 2009, certain assets owned by American Indians are excluded as 
38.17 	required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public 
38.18 	Law 111-5. For purposes of this clause, an American Indian is any person who meets the 
38.19 	definition of Indian according to Code of Federal Regulations, title 42, section 447.50.
38.20 	(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 
38.21 	15.

38.22 	Sec. 4. Minnesota Statutes 2018, section 256B.056, subdivision 4, is amended to read:
38.23 		Subd. 4.Income. (a) To be eligible for medical assistance, a person eligible under section 
38.24 	256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of the federal 
38.25 	poverty guidelines. Effective January 1, 2000, and each successive January, recipients of 
38.26 	Supplemental Security Income may have an income up to the Supplemental Security Income 
38.27 	standard in effect on that date.
38.28 	(b) Effective January 1, 2014, to be eligible for medical assistance, under section 
38.29 	256B.055, subdivision 3a, a parent or caretaker relative may have an income up to 133 
38.30 	percent of the federal poverty guidelines for the household size.
38.31 	(c) To be eligible for medical assistance under section 256B.055, subdivision 15, a 
38.32 	person may have an income up to 133 percent of federal poverty guidelines for the household 
38.33 	size.
39.1 	(d) To be eligible for medical assistance under section 256B.055, subdivision 16, a child 
39.2 	age 19 to 20 may have an income up to 133 percent of the federal poverty guidelines for 
39.3 	the household size.
39.4 	(e) To be eligible for medical assistance under section 256B.055, subdivision 3a, a child 
39.5 	under age 19 may have income up to 275 percent of the federal poverty guidelines for the 
39.6 	household size or an equivalent standard when converted using modified adjusted gross 
39.7 	income methodology as required under the Affordable Care Act. Children who are enrolled 
39.8 	in medical assistance as of December 31, 2013, and are determined ineligible for medical 
39.9 	assistance because of the elimination of income disregards under modified adjusted gross 
39.10 	income methodology as defined in subdivision 1a remain eligible for medical assistance 
39.11 	under the Children's Health Insurance Program Reauthorization Act of 2009, Public Law 
39.12 	111-3, until the date of their next regularly scheduled eligibility redetermination as required 
39.13 	in subdivision 7a.
39.14 	(f) In computing income to determine eligibility of persons under paragraphs (a) to (e) 
39.15 	who are not residents of long-term care facilities, the commissioner shall: (1) disregard 
39.16 	increases in income as required by Public Laws 94-566, section 503; 99-272; and 99-509. 
39.17 	For persons eligible under paragraph (a), veteran aid and attendance benefits and Veterans 
39.18 	Administration unusual medical expense payments are considered income to the recipient.; 
39.19 	and (2) include all assets available to the applicant that are considered income according to 
39.20 	the Internal Revenue Service. Income includes all deposits into accounts owned or controlled 
39.21 	by the applicant, including amounts spent on personal expenses including rent, mortgage, 
39.22 	automobile-related expenses, utilities, and food, and amounts received as salary or draws 
39.23 	from business accounts and not otherwise excluded by federal or state laws. Income does 
39.24 	not include a deposit specifically identified by the applicant as a loan or gift, for which the 
39.25 	applicant provides the source, date, amount, and repayment terms.

39.26 	Sec. 5. Minnesota Statutes 2018, section 256J.08, subdivision 47, is amended to read:
39.27 		Subd. 47.Income. "Income" means cash or in-kind benefit, whether earned or unearned, 
39.28 	received by or available to an applicant or participant that is not property under section 
39.29 	256P.02. An applicant must document that the property is not available to the applicant.

39.30 	Sec. 6. Minnesota Statutes 2018, section 256J.21, subdivision 2, is amended to read:
39.31 		Subd. 2.Income exclusions. The following must be excluded in determining a family's 
39.32 	available income:
40.1 	(1) payments for basic care, difficulty of care, and clothing allowances received for 
40.2 	providing family foster care to children or adults under Minnesota Rules, parts 9555.5050 
40.3 	to 9555.6265, 9560.0521, and 9560.0650 to 9560.0654, payments for family foster care for 
40.4 	children under section 260C.4411 or chapter 256N, and payments received and used for 
40.5 	care and maintenance of a third-party beneficiary who is not a household member;
40.6 	(2) reimbursements for employment training received through the Workforce Investment 
40.7 	Act of 1998, United States Code, title 20, chapter 73, section 9201;
40.8 	(3) reimbursement for out-of-pocket expenses incurred while performing volunteer 
40.9 	services, jury duty, employment, or informal carpooling arrangements directly related to 
40.10 	employment;
40.11 	(4) all educational assistance, except the county agency must count graduate student 
40.12 	teaching assistantships, fellowships, and other similar paid work as earned income and, 
40.13 	after allowing deductions for any unmet and necessary educational expenses, shall count 
40.14 	scholarships or grants awarded to graduate students that do not require teaching or research 
40.15 	as unearned income;
40.16 	(5) loans, regardless of purpose, from public or private lending institutions, governmental 
40.17 	lending institutions, or governmental agencies;
40.18 	(6) loans from private individuals, regardless of purpose, provided an applicant or 
40.19 	participant documents that the lender expects provides documentation of the source of the 
40.20 	loan, dates, amount of the loan, and terms of repayment;
40.21 	(7)(i) state income tax refunds; and
40.22 	(ii) federal income tax refunds;
40.23 	(8)(i) federal earned income credits;
40.24 	(ii) Minnesota working family credits;
40.25 	(iii) state homeowners and renters credits under chapter 290A; and
40.26 	(iv) federal or state tax rebates;
40.27 	(9) funds received for reimbursement, replacement, or rebate of personal or real property 
40.28 	when these payments are made by public agencies, awarded by a court, solicited through 
40.29 	public appeal, or made as a grant by a federal agency, state or local government, or disaster 
40.30 	assistance organizations, subsequent to a presidential declaration of disaster;
40.31 	(10) the portion of an insurance settlement that is used to pay medical, funeral, and burial 
40.32 	expenses, or to repair or replace insured property;
41.1 	(11) reimbursements for medical expenses that cannot be paid by medical assistance;
41.2 	(12) payments by a vocational rehabilitation program administered by the state under 
41.3 	chapter 268A, except those payments that are for current living expenses;
41.4 	(13) in-kind income, including any payments directly made by a third party to a provider 
41.5 	of goods and services. In-kind income does not include in-kind payments of living expenses;
41.6 	(14) assistance payments to correct underpayments, but only for the month in which the 
41.7 	payment is received;
41.8 	(15) payments for short-term emergency needs under section 256J.626, subdivision 2;
41.9 	(16) funeral and cemetery payments as provided by section 256.935;
41.10 	(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in a calendar 
41.11 	month;
41.12 	(18) any form of energy assistance payment made through Public Law 97-35, 
41.13 	Low-Income Home Energy Assistance Act of 1981, payments made directly to energy 
41.14 	providers by other public and private agencies, and any form of credit or rebate payment 
41.15 	issued by energy providers;
41.16 	(19) Supplemental Security Income (SSI), including retroactive SSI payments and other 
41.17 	income of an SSI recipient;
41.18 	(20) Minnesota supplemental aid, including retroactive payments;
41.19 	(21) proceeds from the sale of real or personal property;
41.20 	(22) adoption or kinship assistance payments under chapter 256N or 259A and Minnesota 
41.21 	permanency demonstration title IV-E waiver payments;
41.22 	(23) state-funded family subsidy program payments made under section 252.32 to help 
41.23 	families care for children with developmental disabilities, consumer support grant funds 
41.24 	under section 256.476, and resources and services for a disabled household member under 
41.25 	one of the home and community-based waiver services programs under chapter 256B;
41.26 	(24) interest payments and dividends from property that is not excluded from and that 
41.27 	does not exceed the asset limit;
41.28 	(25) rent rebates;
41.29 	(26) income earned by a minor caregiver, minor child through age 6, or a minor child 
41.30 	who is at least a half-time student in an approved elementary or secondary education program;
42.1 	(27) income earned by a caregiver under age 20 who is at least a half-time student in an 
42.2 	approved elementary or secondary education program;
42.3 	(28) MFIP child care payments under section 119B.05;
42.4 	(29) all other payments made through MFIP to support a caregiver's pursuit of greater 
42.5 	economic stability;
42.6 	(30) income a participant receives related to shared living expenses;
42.7 	(31) reverse mortgages;
42.8 	(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title 42, 
42.9 	chapter 13A, sections 1771 to 1790;
42.10 	(33) benefits provided by the women, infants, and children (WIC) nutrition program, 
42.11 	United States Code, title 42, chapter 13A, section 1786;
42.12 	(34) benefits from the National School Lunch Act, United States Code, title 42, chapter 
42.13 	13, sections 1751 to 1769e;
42.14 	(35) relocation assistance for displaced persons under the Uniform Relocation Assistance 
42.15 	and Real Property Acquisition Policies Act of 1970, United States Code, title 42, chapter 
42.16 	61, subchapter II, section 4636, or the National Housing Act, United States Code, title 12, 
42.17 	chapter 13, sections 1701 to 1750jj;
42.18 	(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter 12, part 
42.19 	2, sections 2271 to 2322;
42.20 	(37) war reparations payments to Japanese Americans and Aleuts under United States 
42.21 	Code, title 50, sections 1989 to 1989d;
42.22 	(38) payments to veterans or their dependents as a result of legal settlements regarding 
42.23 	Agent Orange or other chemical exposure under Public Law 101-239, section 10405, 
42.24 	paragraph (a)(2)(E);
42.25 	(39) income that is otherwise specifically excluded from MFIP consideration in federal 
42.26 	law, state law, or federal regulation;
42.27 	(40) security and utility deposit refunds;
42.28 	(41) American Indian tribal land settlements excluded under Public Laws 98-123, 98-124, 
42.29 	and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech Lake, and 
42.30 	Mille Lacs reservations and payments to members of the White Earth Band, under United 
42.31 	States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;
43.1 	(42) all income of the minor parent's parents and stepparents when determining the grant 
43.2 	for the minor parent in households that include a minor parent living with parents or 
43.3 	stepparents on MFIP with other children;
43.4 	(43) income of the minor parent's parents and stepparents equal to 200 percent of the 
43.5 	federal poverty guideline for a family size not including the minor parent and the minor 
43.6 	parent's child in households that include a minor parent living with parents or stepparents 
43.7 	not on MFIP when determining the grant for the minor parent. The remainder of income is 
43.8 	deemed as specified in section 256J.37, subdivision 1b;
43.9 	(44) payments made to children eligible for relative custody assistance under section 
43.10 	257.85;
43.11 	(45) vendor payments for goods and services made on behalf of a client unless the client 
43.12 	has the option of receiving the payment in cash;
43.13 	(46) the principal portion of a contract for deed payment;
43.14 	(47) cash payments to individuals enrolled for full-time service as a volunteer under 
43.15 	AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps 
43.16 	National, and AmeriCorps NCCC;
43.17 	(48) housing assistance grants under section 256J.35, paragraph (a); and
43.18 	(49) child support payments of up to $100 for an assistance unit with one child and up 
43.19 	to $200 for an assistance unit with two or more children.

43.20 	Sec. 7. Minnesota Statutes 2018, section 256L.01, subdivision 5, is amended to read:
43.21 		Subd. 5.Income.  "Income" has the meaning given for modified adjusted gross income, 
43.22 	as defined in Code of Federal Regulations, title 26, section 1.36B-1, and means a household's 
43.23 	current income, or if income fluctuates month to month, the income for the 12-month 
43.24 	eligibility period. Income includes amounts deposited into checking and savings accounts 
43.25 	for personal expenses including rent, mortgage, automobile-related expenses, utilities, and 
43.26 	food.

43.27 	Sec. 8. Minnesota Statutes 2018, section 256P.04, subdivision 4, is amended to read:
43.28 		Subd. 4.Factors to be verified. (a) The agency shall verify the following at application:
43.29 	(1) identity of adults;
43.30 	(2) age, if necessary to determine eligibility;
44.1 	(3) immigration status;
44.2 	(4) income;
44.3 	(5) spousal support and child support payments made to persons outside the household;
44.4 	(6) vehicles;
44.5 	(7) checking and savings accounts;. Verification of checking and savings accounts must 
44.6 	include the source of deposits into accounts; identification of any loans, including the date, 
44.7 	source, amount, and terms of repayment; and identification of deposits for personal expenses 
44.8 	including rent, mortgage, automobile-related expenses, utilities, and food;
44.9 	(8) inconsistent information, if related to eligibility;
44.10 	(9) residence;
44.11 	(10) Social Security number; and
44.12 	(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2), item 
44.13 	(ix), for the intended purpose for which it was given and received.;
44.14 	(12) loans. Verification of loans must include the source, the full amount, and repayment 
44.15 	terms; and
44.16 	(13) direct or indirect gifts of money.
44.17 	(b) Applicants who are qualified noncitizens and victims of domestic violence as defined 
44.18 	under section 256J.08, subdivision 73, clause (7), are not required to verify the information 
44.19 	in paragraph (a), clause (10). When a Social Security number is not provided to the agency 
44.20 	for verification, this requirement is satisfied when each member of the assistance unit 
44.21 	cooperates with the procedures for verification of Social Security numbers, issuance of 
44.22 	duplicate cards, and issuance of new numbers which have been established jointly between 
44.23 	the Social Security Administration and the commissioner.

44.24 	Sec. 9. Minnesota Statutes 2018, section 256P.06, subdivision 3, is amended to read:
44.25 		Subd. 3.Income inclusions. The following must be included in determining the income 
44.26 	of an assistance unit:
44.27 	(1) earned income:
44.28 	(i) calculated according to Minnesota Rules, part 3400.0170, subpart 7, for earned income 
44.29 	from self-employment, except if the participant is drawing a salary, taking a draw from the 
44.30 	business, or using the business account to pay personal expenses including rent, mortgage, 
45.1 	automobile-related expenses, utilities, or food not directly related to the business, the salary 
45.2 	or payment must be treated as earned income; and
45.3 	(ii) excluding expenses listed in Minnesota Rules, part 3400.0170, subpart 8, items A 
45.4 	to I and M to P; and
45.5 	(2) unearned income, which includes:
45.6 	(i) interest and dividends from investments and savings;
45.7 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
45.8 	(iii) proceeds from rent and contract for deed payments in excess of the principal and 
45.9 	interest portion owed on property;
45.10 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
45.11 	(v) interest income from loans made by the participant or household;
45.12 	(vi) cash prizes and winnings;
45.13 	(vii) unemployment insurance income;
45.14 	(viii) retirement, survivors, and disability insurance payments;
45.15 	(ix) nonrecurring income over $60 per quarter unless earmarked and used for the purpose 
45.16 	for which it is intended. Income and use of this income is subject to verification requirements 
45.17 	under section 256P.04;
45.18 	(x) retirement benefits;
45.19 	(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D, 256I, 
45.20 	and 256J;
45.21 	(xii) tribal per capita payments unless excluded by federal and state law;
45.22 	(xiii) income and payments from service and rehabilitation programs that meet or exceed 
45.23 	the state's minimum wage rate;
45.24 	(xiv) income from members of the United States armed forces unless excluded from 
45.25 	income taxes according to federal or state law;
45.26 	(xv) all child support payments for programs under chapters 119B, 256D, and 256I;
45.27 	(xvi) the amount of child support received that exceeds $100 for assistance units with 
45.28 	one child and $200 for assistance units with two or more children for programs under chapter 
45.29 	256J; and
45.30 	(xvii) spousal support.