1.1 	A bill for an act
1.2 	relating to children; modifying provisions on child care, child safety and 
1.3 	permanency, child support, licensing, economic assistance, and homelessness; 
1.4 	making forecast adjustments; requiring reports; appropriating money;amending 
1.5 	Minnesota Statutes 2022, sections 4.045; 10.65, subdivision 2; 15.01; 15.06, 
1.6 	subdivision 1; 15A.0815, subdivision 2; 43A.08, subdivision 1a; 119A.52; 
1.7 	119B.011, subdivisions 2, 3, 5, 13, 15, 19a; 119B.02, subdivision 4; 119B.025, 
1.8 	subdivision 4; 119B.03, subdivisions 3, 4, 4a; 119B.05, subdivision 1; 119B.09, 
1.9 	subdivision 7; 119B.095, subdivisions 2, 3; 119B.10, subdivisions 1, 3; 119B.105, 
1.10 	subdivision 2; 119B.125, subdivisions 1, 1a, 1b, 2, 3, 4, 6, 7; 119B.13, subdivisions 
1.11 	1, 4, 6; 119B.16, subdivisions 1a, 1c, 3; 119B.161, subdivisions 2, 3; 119B.19, 
1.12 	subdivision 7; 121A.17, subdivision 3; 121A.19; 124D.13, by adding a subdivision; 
1.13 	124D.141, subdivision 2; 124D.142, subdivision 2; 124D.162; 124D.165, 
1.14 	subdivisions 2, 3, 4, 6; 125A.13; 145.4716, subdivision 3; 168B.07, subdivision 
1.15 	3; 179A.03, subdivision 18; 245.095; 245A.02, subdivisions 2c, 6b, by adding a 
1.16 	subdivision; 245A.03, subdivision 2; 245A.04, subdivision 4; 245A.05; 245A.06, 
1.17 	subdivision 1; 245A.07, subdivisions 1, 3; 245A.11, by adding a subdivision; 
1.18 	245A.14, subdivision 4; 245A.1435; 245A.146, subdivision 3; 245A.16, 
1.19 	subdivisions 1, 9, by adding a subdivision; 245A.18, subdivision 2; 245A.22, by 
1.20 	adding a subdivision; 245A.50, subdivisions 3, 4, 5, 6, 9; 245A.52, subdivisions 
1.21 	1, 3, 5, by adding a subdivision; 245A.66, by adding a subdivision; 245C.04, 
1.22 	subdivision 1; 245C.05, subdivision 4; 245C.17, subdivision 6; 245C.23, 
1.23 	subdivision 2; 245E.06, subdivision 3; 245G.13, subdivision 2; 245H.01, 
1.24 	subdivision 5; 245H.02; 245H.03, by adding a subdivision; 245H.05; 245H.08, 
1.25 	subdivisions 4, 5; 245H.13, subdivisions 3, 7; 256.014, subdivisions 1, 2; 256.046, 
1.26 	subdivisions 1, 3; 256.98, subdivision 8; 256.983, subdivision 5; 256.987, 
1.27 	subdivision 4; 256D.03, by adding a subdivision; 256D.63, subdivision 2; 256E.34, 
1.28 	subdivision 4; 256E.35, subdivisions 1, 2, 3, 4a, 6, 7; 256I.03, subdivision 13; 
1.29 	256I.06, subdivisions 6, 8, by adding a subdivision; 256J.01, subdivision 1; 256J.02, 
1.30 	subdivision 2; 256J.08, subdivisions 65, 71, 79; 256J.09, subdivision 10; 256J.11, 
1.31 	subdivision 1; 256J.21, subdivisions 3, 4; 256J.33, subdivisions 1, 2; 256J.35; 
1.32 	256J.37, subdivisions 3, 3a; 256J.40; 256J.42, subdivision 5; 256J.425, subdivisions 
1.33 	1, 4, 5, 7; 256J.46, subdivisions 1, 2, 2a; 256J.49, subdivision 9; 256J.50, 
1.34 	subdivision 1; 256J.521, subdivision 1; 256J.621, subdivision 1; 256J.626, 
1.35 	subdivisions 2, 3; 256J.751, subdivision 2; 256K.45, subdivisions 3, 7, by adding 
1.36 	a subdivision; 256N.24, subdivision 12; 256P.01, by adding a subdivision; 256P.02, 
1.37 	subdivision 2, by adding a subdivision; 256P.04, subdivisions 4, 8; 256P.06, 
1.38 	subdivision 3; 256P.07, subdivisions 1, 2, 3, 4, 6, 7, by adding subdivisions; 
2.1 	260.761, subdivision 2, as amended; 260C.007, subdivision 14; 260C.221, 
2.2 	subdivision 1; 260C.317, subdivision 3; 260C.451, by adding subdivisions; 
2.3 	260C.704; 260C.708; 260C.80, subdivision 1; 260E.01; 260E.02, subdivision 1; 
2.4 	260E.03, subdivision 22, by adding subdivisions; 260E.14, subdivisions 2, 5; 
2.5 	260E.17, subdivision 1; 260E.18; 260E.20, subdivision 2; 260E.24, subdivisions 
2.6 	2, 7; 260E.33, subdivision 1; 260E.35, subdivision 6; 261.063; 514.972, subdivision 
2.7 	5; 518A.31; 518A.32, subdivisions 3, 4; 518A.34; 518A.41; 518A.42, subdivisions 
2.8 	1, 3; 518A.43, subdivision 1b; 518A.65; 518A.77; proposing coding for new law 
2.9 	in Minnesota Statutes, chapters 119B; 122A; 245A; 256; 256E; 256K; 256P; 260; 
2.10 	260C; proposing coding for new law as Minnesota Statutes, chapters 119C; 143; 
2.11 	repealing Minnesota Statutes 2022, sections 119B.011, subdivision 10a; 119B.03, 
2.12 	subdivision 4; 245C.11, subdivision 3; 256.8799; 256.9864; 256D.63, subdivision 
2.13 	1; 256J.08, subdivisions 10, 24b, 53, 61, 62, 81, 83; 256J.30, subdivisions 5, 7, 8; 
2.14 	256J.33, subdivisions 3, 4, 5; 256J.34, subdivisions 1, 2, 3, 4; 256J.37, subdivision 
2.15 	10; 256J.425, subdivision 6; 256J.95, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 
2.16 	12, 13, 14, 15, 16, 17, 18, 19; 256P.07, subdivision 5; 518A.59.
2.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18 	ARTICLE 1
2.19 	CHILD CARE

2.20 	Section 1. Minnesota Statutes 2022, section 119B.011, subdivision 2, is amended to read:
2.21 		Subd. 2.Applicant. "Child care fund applicants" means all parents,; stepparents,; legal 
2.22 	guardians, or; eligible relative caregivers who are; relative custodians who accepted a transfer 
2.23 	of permanent legal and physical custody of a child under section 260C.515, subdivision 4, 
2.24 	or similar permanency disposition in Tribal code; successor custodians or guardians as 
2.25 	established by section 256N.22, subdivision 10; or foster parents providing care to a child 
2.26 	placed in a family foster home under section 260C.007, subdivision 16b. Applicants must 
2.27 	be members of the family and reside in the household that applies for child care assistance 
2.28 	under the child care fund.

2.29 	EFFECTIVE DATE. This section is effective August 25, 2024.

2.30 	Sec. 2. Minnesota Statutes 2022, section 119B.011, subdivision 5, is amended to read:
2.31 		Subd. 5.Child care. "Child care" means the care of a child by someone other than a 
2.32 	parent,; stepparent,; legal guardian,; eligible relative caregiver,; relative custodian who 
2.33 	accepted a transfer of permanent legal and physical custody of a child under section 
2.34 	260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
2.35 	custodian or guardian as established according to section 256N.22, subdivision 10; foster 
2.36 	parent providing care to a child placed in a family foster home under section 260C.007, 
2.37 	subdivision 16b; or the spouses spouse of any of the foregoing in or outside the child's own 
2.38 	home for gain or otherwise, on a regular basis, for any part of a 24-hour day.

3.1 	EFFECTIVE DATE. This section is effective August 25, 2024.

3.2 	Sec. 3. Minnesota Statutes 2022, section 119B.011, subdivision 13, is amended to read:
3.3 		Subd. 13.Family. "Family" means parents,; stepparents,; guardians and their spouses, 
3.4 	or; other eligible relative caregivers and their spouses,; relative custodians who accepted a 
3.5 	transfer of permanent legal and physical custody of a child under section 260C.515, 
3.6 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
3.7 	custodians or guardians as established by section 256N.22, subdivision 10, and their spouses; 
3.8 	foster parents providing care to a child placed in a family foster home under section 
3.9 	260C.007, subdivision 16b, and their spouses; and their blood related the blood-related
3.10 	dependent children and adoptive siblings under the age of 18 years living in the same home 
3.11 	including as any of the above. Family includes children temporarily absent from the 
3.12 	household in settings such as schools, foster care, and residential treatment facilities or 
3.13 	parents, stepparents, guardians and their spouses, or other relative caregivers and their 
3.14 	spouses and adults temporarily absent from the household in settings such as schools, military 
3.15 	service, or rehabilitation programs. An adult family member who is not in an authorized 
3.16 	activity under this chapter may be temporarily absent for up to 60 days. When a minor 
3.17 	parent or parents and his, her, or their child or children are living with other relatives, and 
3.18 	the minor parent or parents apply for a child care subsidy, "family" means only the minor 
3.19 	parent or parents and their child or children. An adult age 18 or older who meets this 
3.20 	definition of family and is a full-time high school or postsecondary student may be considered 
3.21 	a dependent member of the family unit if 50 percent or more of the adult's support is provided 
3.22 	by the parents,; stepparents,; guardians and their spouses; relative custodians who accepted 
3.23 	a transfer of permanent legal and physical custody of a child under section 260C.515, 
3.24 	subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor 
3.25 	custodians or guardians as established by section 256N.22, subdivision 10, and their spouses; 
3.26 	foster parents providing care to a child placed in a family foster home under section 
3.27 	260C.007, subdivision 16b, and their spouses; or eligible relative caregivers and their spouses 
3.28 	residing in the same household.

3.29 	EFFECTIVE DATE. This section is effective August 25, 2024.

3.30 	Sec. 4. Minnesota Statutes 2022, section 119B.011, subdivision 19a, is amended to read:
3.31 		Subd. 19a.Registration. "Registration" means the process used by a county the 
3.32 	commissioner to determine whether the provider selected by a family applying for or 
3.33 	receiving child care assistance to care for that family's children meets the requirements 
4.1 	necessary for payment of child care assistance for care provided by that provider. The 
4.2 	commissioner shall create a process for statewide registration by April 28, 2025.

4.3 	EFFECTIVE DATE. This section is effective April 28, 2025.

4.4 	Sec. 5. Minnesota Statutes 2022, section 119B.03, subdivision 4a, is amended to read:
4.5 		Subd. 4a.Temporary reprioritization Funding priorities. (a) Notwithstanding 
4.6 	subdivision 4 In the event that inadequate funding necessitates the use of waiting lists, 
4.7 	priority for child care assistance under the basic sliding fee assistance program shall be 
4.8 	determined according to this subdivision beginning July 1, 2021, through May 31, 2024.
4.9 	(b) First priority must be given to eligible non-MFIP families who do not have a high 
4.10 	school diploma or commissioner of education-selected high school equivalency certification 
4.11 	or who need remedial and basic skill courses in order to pursue employment or to pursue 
4.12 	education leading to employment and who need child care assistance to participate in the 
4.13 	education program. This includes student parents as defined under section 119B.011, 
4.14 	subdivision 19b. Within this priority, the following subpriorities must be used:
4.15 	(1) child care needs of minor parents;
4.16 	(2) child care needs of parents under 21 years of age; and
4.17 	(3) child care needs of other parents within the priority group described in this paragraph.
4.18 	(c) Second priority must be given to families in which at least one parent is a veteran, 
4.19 	as defined under section 197.447.
4.20 	(d) Third priority must be given to eligible families who do not meet the specifications 
4.21 	of paragraph (b), (c), (e), or (f).
4.22 	(e) Fourth priority must be given to families who are eligible for portable basic sliding 
4.23 	fee assistance through the portability pool under subdivision 9.
4.24 	(f) Fifth priority must be given to eligible families receiving services under section 
4.25 	119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition 
4.26 	year, or if the parents are no longer receiving or eligible for DWP supports.
4.27 	(g) Families under paragraph (f) must be added to the basic sliding fee waiting list on 
4.28 	the date they complete their transition year under section 119B.011, subdivision 20.

5.1 	Sec. 6. Minnesota Statutes 2022, section 119B.05, subdivision 1, is amended to read:
5.2 		Subdivision 1.Eligible participants. Families eligible for child care assistance under 
5.3 	the MFIP child care program are:
5.4 	(1) MFIP participants who are employed or in job search and meet the requirements of 
5.5 	section 119B.10;
5.6 	(2) persons who are members of transition year families under section 119B.011, 
5.7 	subdivision 20, and meet the requirements of section 119B.10;
5.8 	(3) families who are participating in employment orientation or job search, or other 
5.9 	employment or training activities that are included in an approved employability development 
5.10 	plan under section 256J.95;
5.11 	(4) MFIP families who are participating in work job search, job support, employment, 
5.12 	or training activities as required in their employment plan, or in appeals, hearings, 
5.13 	assessments, or orientations according to chapter 256J;
5.14 	(5) MFIP families who are participating in social services activities under chapter 256J 
5.15 	as required in their employment plan approved according to chapter 256J;
5.16 	(6) families who are participating in services or activities that are included in an approved 
5.17 	family stabilization plan under section 256J.575;
5.18 	(7) MFIP child-only families under section 256J.88, for up to 20 hours of child care per 
5.19 	week for children ages six and under, as recommended by the treating mental health 
5.20 	professional, when the child's primary caregiver has a diagnosis of a mental illness;
5.21 	(7) (8) families who are participating in programs as required in tribal contracts under 
5.22 	section 119B.02, subdivision 2, or 256.01, subdivision 2;
5.23 	(8) (9) families who are participating in the transition year extension under section 
5.24 	119B.011, subdivision 20a;
5.25 	(9) (10) student parents as defined under section 119B.011, subdivision 19b; and
5.26 	(10) (11) student parents who turn 21 years of age and who continue to meet the other 
5.27 	requirements under section 119B.011, subdivision 19b. A student parent continues to be 
5.28 	eligible until the student parent is approved for basic sliding fee child care assistance or 
5.29 	until the student parent's redetermination, whichever comes first. At the student parent's 
5.30 	redetermination, if the student parent was not approved for basic sliding fee child care 
5.31 	assistance, a student parent's eligibility ends following a 15-day adverse action notice.

6.1 	Sec. 7. Minnesota Statutes 2022, section 119B.125, subdivision 1, is amended to read:
6.2 		Subdivision 1.Authorization. A county or The commissioner must authorize the provider 
6.3 	chosen by an applicant or a participant before the county can authorize payment for care 
6.4 	provided by that provider. The commissioner must establish the requirements necessary for 
6.5 	authorization of providers. A provider must be reauthorized every two years. A legal, 
6.6 	nonlicensed family child care provider also must be reauthorized when another person over 
6.7 	the age of 13 joins the household, a current household member turns 13, or there is reason 
6.8 	to believe that a household member has a factor that prevents authorization. The provider 
6.9 	is required to report all family changes that would require reauthorization. When a provider 
6.10 	has been authorized for payment for providing care for families in more than one county, 
6.11 	the county responsible for reauthorization of that provider is the county of the family with 
6.12 	a current authorization for that provider and who has used the provider for the longest length 
6.13 	of time.

6.14 	EFFECTIVE DATE. This section is effective April 28, 2025.

6.15 	Sec. 8. Minnesota Statutes 2022, section 119B.125, subdivision 1a, is amended to read:
6.16 		Subd. 1a.Background study required. (a) This subdivision only applies to legal, 
6.17 	nonlicensed family child care providers.
6.18 	(b) Prior to authorization, and as part of each reauthorization required in subdivision 1, 
6.19 	the county the commissioner shall perform a background study on every member of the 
6.20 	provider's household who is age 13 and older. The county shall also perform a background 
6.21 	study on an individual who has reached age ten but is not yet age 13 and is living in the 
6.22 	household where the nonlicensed child care will be provided when the county has reasonable 
6.23 	cause as defined under section 245C.02, subdivision 15 individuals identified under section 
6.24 	245C.02, subdivision 6a.
6.25 	(c) After authorization, a background study shall also be performed when an individual 
6.26 	identified under section 245C.02, subdivision 6a, joins the household. The provider must 
6.27 	report all family changes that would require a new background study.
6.28 	(d) At each reauthorization, the commissioner must ensure that a background study 
6.29 	through NETStudy 2.0 has been performed on all individuals in the provider's household 
6.30 	for whom a background study is required under paragraphs (b) and (c).
6.31 	(e) Prior to a background study through NETStudy 2.0 expiring, another background 
6.32 	study must be completed on all individuals for whom the background study is expiring.

6.33 	EFFECTIVE DATE. This section is effective April 28, 2025.

7.1 	Sec. 9. Minnesota Statutes 2022, section 119B.125, subdivision 1b, is amended to read:
7.2 		Subd. 1b.Training required. (a) Effective November 1, 2011, Prior to initial 
7.3 	authorization as required in subdivision 1, a legal nonlicensed family child care provider 
7.4 	must complete first aid and CPR training and provide the verification of first aid and CPR 
7.5 	training to the county commissioner. The training documentation must have valid effective 
7.6 	dates as of the date the registration request is submitted to the county commissioner. The 
7.7 	training must have been provided by an individual approved to provide first aid and CPR 
7.8 	instruction and have included CPR techniques for infants and children.
7.9 	(b) Legal nonlicensed family child care providers with an authorization effective before 
7.10 	November 1, 2011, must be notified of the requirements before October 1, 2011, or at 
7.11 	authorization, and must meet the requirements upon renewal of an authorization that occurs 
7.12 	on or after January 1, 2012.
7.13 	(c) (b) Upon each reauthorization after the authorization period when the initial first aid 
7.14 	and CPR training requirements are met, a legal nonlicensed family child care provider must 
7.15 	provide verification of at least eight hours of additional training listed in the Minnesota 
7.16 	Center for Professional Development Registry.
7.17 	(d) (c) This subdivision only applies to legal nonlicensed family child care providers.

7.18 	EFFECTIVE DATE. This section is effective April 28, 2025.

7.19 	Sec. 10. Minnesota Statutes 2022, section 119B.125, subdivision 2, is amended to read:
7.20 		Subd. 2.Persons who cannot be authorized. (a) The provider seeking authorization 
7.21 	under this section shall collect the information required under section 245C.05, subdivision 
7.22 	1, and forward the information to the county agency commissioner. The background study 
7.23 	must include a review of the information required under section 245C.08, subdivisions 2,
7.24 	subdivision 3, and 4, paragraph (b).
7.25 	(b) A legal nonlicensed family child care provider is not authorized under this section 
7.26 	if the commissioner determines that any household member who is the subject of a 
7.27 	background study:
7.28 	(1) is determined to have a disqualifying characteristic under paragraphs (b) to (e) or 
7.29 	under section 245C.14 or 245C.15. If a county has determined that a provider is able to be 
7.30 	authorized in that county, and a family in another county later selects that provider, the 
7.31 	provider is able to be authorized in the second county without undergoing a new background 
7.32 	investigation unless one of the following conditions exists: disqualified from direct contact 
8.1 	with, or from access to, persons served by the program and that disqualification has not 
8.2 	been set aside or a variance has not been granted under chapter 245C;
8.3 	(1) two years have passed since the first authorization;
8.4 	(2) another person age 13 or older has joined the provider's household since the last 
8.5 	authorization;
8.6 	(3) a current household member has turned 13 since the last authorization; or
8.7 	(4) there is reason to believe that a household member has a factor that prevents 
8.8 	authorization.
8.9 	(b) the person (2) has refused to give written consent for disclosure of criminal history 
8.10 	records.;
8.11 	(c) the person (3) has been denied a family child care license or has received a fine or 
8.12 	a sanction as a licensed child care provider that has not been reversed on appeal.;
8.13 	(d) the person (4) has a family child care licensing disqualification that has not been set 
8.14 	aside.; or
8.15 	(e) the person (5) has admitted or a county has found that there is a preponderance of 
8.16 	evidence that fraudulent information was given to the county for child care assistance 
8.17 	application purposes or was used in submitting child care assistance bills for payment.

8.18 	EFFECTIVE DATE. This section is effective April 28, 2025.

8.19 	Sec. 11. Minnesota Statutes 2022, section 119B.125, subdivision 3, is amended to read:
8.20 		Subd. 3.Authorization exception. When a county the commissioner denies a person 
8.21 	authorization as a legal nonlicensed family child care provider under subdivision 2, the 
8.22 	county commissioner later may authorize that person as a provider if the following conditions 
8.23 	are met:
8.24 	(1) after receiving notice of the denial of the authorization, the person applies for and 
8.25 	obtains a valid child care license issued under chapter 245A, issued by a tribe, or issued by 
8.26 	another state;
8.27 	(2) the person maintains the valid child care license; and
8.28 	(3) the person is providing child care in the state of licensure or in the area under the 
8.29 	jurisdiction of the licensing tribe.

8.30 	EFFECTIVE DATE. This section is effective April 28, 2025.

9.1 	Sec. 12. Minnesota Statutes 2022, section 119B.125, subdivision 4, is amended to read:
9.2 		Subd. 4.Unsafe care. A county (a) The commissioner may deny authorization as a child 
9.3 	care provider to any applicant or rescind authorization of any provider when the a county 
9.4 	or commissioner knows or has reason to believe that the provider is unsafe or that the 
9.5 	circumstances of the chosen child care arrangement are unsafe, based on statewide criteria 
9.6 	developed by the commissioner. The county must include the conditions under which a 
9.7 	provider or care arrangement will be determined to be unsafe in the county's child care fund 
9.8 	plan under section 119B.08, subdivision 3
9.9 	(b) The commissioner shall develop and introduce statewide criteria for unsafe care.

9.10 	EFFECTIVE DATE. This section is effective April 28, 2025.

9.11 	Sec. 13. Minnesota Statutes 2022, section 119B.125, subdivision 6, is amended to read:
9.12 		Subd. 6.Record-keeping requirement. (a) As a condition of payment, all providers 
9.13 	receiving child care assistance payments must:
9.14 	(1) keep accurate and legible daily attendance records at the site where services are 
9.15 	delivered for children receiving child care assistance; and
9.16 	(2) make those records available immediately to the county or the commissioner upon 
9.17 	request. Any records not provided to a county or the commissioner at the date and time of 
9.18 	the request are deemed inadmissible if offered as evidence by the provider in any proceeding 
9.19 	to contest an overpayment or disqualification of the provider.
9.20 	(b) As a condition of payment, attendance records must be completed daily and include 
9.21 	the date, the first and last name of each child in attendance, and the times when each child 
9.22 	is dropped off and picked up. To the extent possible, the times that the child was dropped 
9.23 	off to and picked up from the child care provider must be entered by the person dropping 
9.24 	off or picking up the child. The daily attendance records must be retained at the site where 
9.25 	services are delivered for six years after the date of service.
9.26 	(c) A county or the commissioner may deny or revoke a provider's authorization to 
9.27 	receive child care assistance payments under section 119B.13, subdivision 6, paragraph (d), 
9.28 	pursue a fraud disqualification under section 256.98, take an action against the provider 
9.29 	under chapter 245E, or establish an attendance record overpayment under paragraph (d) 
9.30 	against a current or former provider, When the county or the commissioner knows or has 
9.31 	reason to believe that the a current or former provider has not complied with the 
9.32 	record-keeping requirement in this subdivision.:
10.1 	(1) the commissioner may:
10.2 	(i) deny or revoke a provider's authorization to receive child care assistance payments 
10.3 	under section 119B.13, subdivision 6, paragraph (d);
10.4 	(ii) pursue an administrative disqualification under sections 256.046, subdivision 3, and 
10.5 	256.98; or
10.6 	(iii) take an action against the provider under chapter 245E; or
10.7 	(2) a county or the commissioner may establish an attendance record overpayment under 
10.8 	paragraph (d).
10.9 	(d) To calculate an attendance record overpayment under this subdivision, the 
10.10 	commissioner or county agency shall subtract the maximum daily rate from the total amount 
10.11 	paid to a provider for each day that a child's attendance record is missing, unavailable, 
10.12 	incomplete, inaccurate, or otherwise inadequate.
10.13 	(e) The commissioner shall develop criteria for a county to determine an attendance 
10.14 	record overpayment under this subdivision.

10.15 	EFFECTIVE DATE. This section is effective April 28, 2025.

10.16 	Sec. 14. Minnesota Statutes 2022, section 119B.125, subdivision 7, is amended to read:
10.17 		Subd. 7.Failure to comply with attendance record requirements. (a) In establishing 
10.18 	an overpayment claim for failure to provide attendance records in compliance with 
10.19 	subdivision 6, the county or commissioner is limited to the six years prior to the date the 
10.20 	county or the commissioner requested the attendance records.
10.21 	(b) The commissioner or county may periodically audit child care providers to determine 
10.22 	compliance with subdivision 6.
10.23 	(c) When the commissioner or county establishes an overpayment claim against a current 
10.24 	or former provider, the commissioner or county must provide notice of the claim to the 
10.25 	provider. A notice of overpayment claim must specify the reason for the overpayment, the 
10.26 	authority for making the overpayment claim, the time period in which the overpayment 
10.27 	occurred, the amount of the overpayment, and the provider's right to appeal.
10.28 	(d) The commissioner or county shall seek to recoup or recover overpayments paid to 
10.29 	a current or former provider.
10.30 	(e) When a provider has been disqualified or convicted of fraud under section 256.98, 
10.31 	theft under section 609.52, or a federal crime relating to theft of state funds or fraudulent 
11.1 	billing for a program administered by the commissioner or a county, recoupment or recovery 
11.2 	must be sought regardless of the amount of overpayment.

11.3 	EFFECTIVE DATE. This section is effective April 28, 2025.

11.4 	Sec. 15. Minnesota Statutes 2022, section 119B.13, subdivision 1, is amended to read:
11.5 		Subdivision 1.Subsidy restrictions. (a) Beginning November 15, 2021 October 30, 
11.6 	2023, the maximum rate paid for child care assistance in any county or county price cluster 
11.7 	under the child care fund shall be:
11.8 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2021 child 
11.9 	care provider rate survey or the rates in effect at the time of the update; and.
11.10 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
11.11 	2021 child care provider rate survey or the rates in effect at the time of the update.
11.12 	(b) Beginning the first full service period on or after January 1, 2025, and every three 
11.13 	years thereafter, the maximum rate paid for child care assistance in a county or county price 
11.14 	cluster under the child care fund shall be:
11.15 	(1) for all infants and toddlers, the greater of the 40th 75th percentile of the 2024 most 
11.16 	recent child care provider rate survey or the rates in effect at the time of the update; and.
11.17 	(2) for all preschool and school-age children, the greater of the 30th percentile of the 
11.18 	2024 child care provider rate survey or the rates in effect at the time of the update.
11.19 	The rates under paragraph (a) continue until the rates under this paragraph go into effect.
11.20 	(c) For a child care provider located within the boundaries of a city located in two or 
11.21 	more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child 
11.22 	care assistance shall be equal to the maximum rate paid in the county with the highest 
11.23 	maximum reimbursement rates or the provider's charge, whichever is less. The commissioner 
11.24 	may: (1) assign a county with no reported provider prices to a similar price cluster; and (2) 
11.25 	consider county level access when determining final price clusters.
11.26 	(d) A rate which includes a special needs rate paid under subdivision 3 may be in excess 
11.27 	of the maximum rate allowed under this subdivision.
11.28 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
11.29 	county shall pay the provider's full charges for every child in care up to the maximum 
11.30 	established. The commissioner shall determine the maximum rate for each type of care on 
11.31 	an hourly, full-day, and weekly basis, including special needs and disability care.
12.1 	(f) If a child uses one provider, the maximum payment for one day of care must not 
12.2 	exceed the daily rate. The maximum payment for one week of care must not exceed the 
12.3 	weekly rate.
12.4 	(g) If a child uses two providers under section 119B.097, the maximum payment must 
12.5 	not exceed:
12.6 	(1) the daily rate for one day of care;
12.7 	(2) the weekly rate for one week of care by the child's primary provider; and
12.8 	(3) two daily rates during two weeks of care by a child's secondary provider.
12.9 	(h) Child care providers receiving reimbursement under this chapter must not be paid 
12.10 	activity fees or an additional amount above the maximum rates for care provided during 
12.11 	nonstandard hours for families receiving assistance.
12.12 	(i) If the provider charge is greater than the maximum provider rate allowed, the parent 
12.13 	is responsible for payment of the difference in the rates in addition to any family co-payment 
12.14 	fee.
12.15 	(j) Beginning October 30, 2023, the maximum registration fee paid for child care 
12.16 	assistance in any county or county price cluster under the child care fund shall be set as 
12.17 	follows: (1) beginning November 15, 2021, the greater of the 40th 75th percentile of the 
12.18 	2021 most recent child care provider rate survey or the registration fee in effect at the time 
12.19 	of the update; and (2) beginning the first full service period on or after January 1, 2025, the 
12.20 	maximum registration fee shall be the greater of the 40th percentile of the 2024 child care 
12.21 	provider rate survey or the registration fee in effect at the time of the update. The registration 
12.22 	fees under clause (1) continue until the registration fees under clause (2) go into effect.
12.23 	(k) Maximum registration fees must be set for licensed family child care and for child 
12.24 	care centers. For a child care provider located in the boundaries of a city located in two or 
12.25 	more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid 
12.26 	for child care assistance shall be equal to the maximum registration fee paid in the county 
12.27 	with the highest maximum registration fee or the provider's charge, whichever is less.

12.28 	Sec. 16. Minnesota Statutes 2022, section 119B.13, subdivision 4, is amended to read:
12.29 		Subd. 4.Rates charged to publicly subsidized families. Child care providers receiving 
12.30 	reimbursement under this chapter may not charge a rate to clients receiving assistance under 
12.31 	this chapter that is higher than the private, full-paying client rate. This subdivision shall not 
13.1 	prohibit a child care provider receiving reimbursement under this chapter from providing 
13.2 	discounts, scholarships, or other financial assistance to any clients.

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

13.4 	Sec. 17. Minnesota Statutes 2022, section 119B.13, subdivision 6, is amended to read:
13.5 		Subd. 6.Provider payments. (a) A provider shall bill only for services documented 
13.6 	according to section 119B.125, subdivision 6. The provider shall bill for services provided 
13.7 	within ten days of the end of the service period. Payments under the child care fund shall 
13.8 	be made within 21 days of receiving a complete bill from the provider. Counties or the state 
13.9 	may establish policies that make payments on a more frequent basis.
13.10 	(b) If a provider has received an authorization of care and been issued a billing form for 
13.11 	an eligible family, the bill must be submitted within 60 days of the last date of service on 
13.12 	the bill. A bill submitted more than 60 days after the last date of service must be paid if the 
13.13 	county determines that the provider has shown good cause why the bill was not submitted 
13.14 	within 60 days. Good cause must be defined in the county's child care fund plan under 
13.15 	section 119B.08, subdivision 3, and the definition of good cause must include county error. 
13.16 	Any bill submitted more than a year after the last date of service on the bill must not be 
13.17 	paid.
13.18 	(c) If a provider provided care for a time period without receiving an authorization of 
13.19 	care and a billing form for an eligible family, payment of child care assistance may only be 
13.20 	made retroactively for a maximum of three months from the date the provider is issued an 
13.21 	authorization of care and a billing form. For a family at application, if a provider provided 
13.22 	child care during a time period without receiving an authorization of care and a billing form, 
13.23 	a county may only make child care assistance payments to the provider retroactively from 
13.24 	the date that child care began, or from the date that the family's eligibility began under 
13.25 	section 119B.09, subdivision 7, or from the date that the family meets authorization 
13.26 	requirements, not to exceed six months from the date that the provider is issued an 
13.27 	authorization of care and a billing form, whichever is later.
13.28 	(d) A county or The commissioner may refuse to issue a child care authorization to a 
13.29 	certified, licensed, or legal nonlicensed provider, revoke an existing child care authorization 
13.30 	to a certified, licensed, or legal nonlicensed provider, stop payment issued to a certified, 
13.31 	licensed, or legal nonlicensed provider, or refuse to pay a bill submitted by a certified, 
13.32 	licensed, or legal nonlicensed provider if:
14.1 	(1) the provider admits to intentionally giving the county materially false information 
14.2 	on the provider's billing forms;
14.3 	(2) a county or the commissioner finds by a preponderance of the evidence that the 
14.4 	provider intentionally gave the county materially false information on the provider's billing 
14.5 	forms, or provided false attendance records to a county or the commissioner;
14.6 	(3) the provider is in violation of child care assistance program rules, until the agency 
14.7 	determines those violations have been corrected;
14.8 	(4) the provider is operating after:
14.9 	(i) an order of suspension of the provider's license issued by the commissioner;
14.10 	(ii) an order of revocation of the provider's license issued by the commissioner; or
14.11 	(iii) an order of decertification issued to the provider;
14.12 	(5) the provider submits false attendance reports or refuses to provide documentation 
14.13 	of the child's attendance upon request;
14.14 	(6) the provider gives false child care price information; or
14.15 	(7) the provider fails to report decreases in a child's attendance as required under section 
14.16 	119B.125, subdivision 9.
14.17 	(e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the county or the 
14.18 	commissioner may withhold the provider's authorization or payment for a period of time 
14.19 	not to exceed three months beyond the time the condition has been corrected.
14.20 	(f) A county's payment policies must be included in the county's child care plan under 
14.21 	section 119B.08, subdivision 3. If payments are made by the state, in addition to being in 
14.22 	compliance with this subdivision, the payments must be made in compliance with section 
14.23 	16A.124.
14.24 	(g) If the commissioner or responsible county agency suspends or refuses payment to a 
14.25 	provider under paragraph (d), clause (1) or (2), or chapter 245E and the provider has:
14.26 	(1) a disqualification for wrongfully obtaining assistance under section 256.98, 
14.27 	subdivision 8, paragraph (c);
14.28 	(2) an administrative disqualification under section 256.046, subdivision 3; or
14.29 	(3) a termination under section 245E.02, subdivision 4, paragraph (c), clause (4), or 
14.30 	245E.06;
15.1 	then the provider forfeits the payment to the commissioner or the responsible county agency, 
15.2 	regardless of the amount assessed in an overpayment, charged in a criminal complaint, or 
15.3 	ordered as criminal restitution.

15.4 	EFFECTIVE DATE. This section is effective April 28, 2025.

15.5 	Sec. 18. Minnesota Statutes 2022, section 119B.16, subdivision 1a, is amended to read:
15.6 		Subd. 1a.Fair hearing allowed for providers. (a) This subdivision applies to providers 
15.7 	caring for children receiving child care assistance.
15.8 	(b) A provider may request a fair hearing according to sections 256.045 and 256.046 
15.9 	only if a county agency or the commissioner:
15.10 	(1) denies or revokes a provider's authorization, unless the action entitles the provider 
15.11 	to:
15.12 	(i) an administrative review under section 119B.161; or
15.13 	(ii) a contested case hearing under section 245.095, subdivision 4;
15.14 	(2) assigns responsibility for an overpayment to a provider under section 119B.11, 
15.15 	subdivision 2a;
15.16 	(3) establishes an overpayment for failure to comply with section 119B.125, subdivision 
15.17 	6;
15.18 	(4) seeks monetary recovery or recoupment under section 245E.02, subdivision 4, 
15.19 	paragraph (c), clause (2);
15.20 	(5) initiates an administrative fraud disqualification hearing; or
15.21 	(6) issues a payment and the provider disagrees with the amount of the payment.
15.22 	(c) A provider may request a fair hearing by submitting a written request to the 
15.23 	Department of Human Services, Appeals Division. A provider's request must be received 
15.24 	by the Appeals Division no later than 30 days after the date a county or the commissioner 
15.25 	mails the notice.
15.26 	(d) The provider's appeal request must contain the following:
15.27 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
15.28 	dollar amount involved for each disputed item;
15.29 	(2) the computation the provider believes to be correct, if applicable;
15.30 	(3) the statute or rule relied on for each disputed item; and
16.1 	(4) the name, address, and telephone number of the person at the provider's place of 
16.2 	business with whom contact may be made regarding the appeal.

16.3 	Sec. 19. Minnesota Statutes 2022, section 119B.16, subdivision 1c, is amended to read:
16.4 		Subd. 1c.Notice to providers. (a) Before taking an action appealable under subdivision 
16.5 	1a, paragraph (b), a county agency or the commissioner must mail written notice to the 
16.6 	provider against whom the action is being taken. Unless otherwise specified under this 
16.7 	chapter, chapter 245E, or Minnesota Rules, chapter 3400, a county agency or the 
16.8 	commissioner must mail the written notice at least 15 calendar days before the adverse 
16.9 	action's effective date.
16.10 	(b) The notice shall state (1) the factual basis for the county agency or department's 
16.11 	determination, (2) the action the county agency or department intends to take, (3) the dollar 
16.12 	amount of the monetary recovery or recoupment, if known, and (4) the provider's right to 
16.13 	appeal the department's proposed action.

16.14 	EFFECTIVE DATE. This section is effective April 28, 2025.

16.15 	Sec. 20. Minnesota Statutes 2022, section 119B.16, subdivision 3, is amended to read:
16.16 		Subd. 3.Fair hearing stayed. (a) If a county agency or the commissioner denies or 
16.17 	revokes a provider's authorization based on a licensing action under section 245A.07, and 
16.18 	the provider appeals, the provider's fair hearing must be stayed until the commissioner issues 
16.19 	an order as required under section 245A.08, subdivision 5.
16.20 	(b) If the commissioner denies or revokes a provider's authorization based on 
16.21 	decertification under section 245H.07, and the provider appeals, the provider's fair hearing 
16.22 	must be stayed until the commissioner issues a final order as required under section 245H.07.

16.23 	EFFECTIVE DATE. This section is effective April 28, 2025.

16.24 	Sec. 21. Minnesota Statutes 2022, section 119B.161, subdivision 2, is amended to read:
16.25 		Subd. 2.Notice. (a) A county agency or The commissioner must mail written notice to 
16.26 	a provider within five days of suspending payment or denying or revoking the provider's 
16.27 	authorization under subdivision 1.
16.28 	(b) The notice must:
16.29 	(1) state the provision under which a county agency or the commissioner is denying, 
16.30 	revoking, or suspending the provider's authorization or suspending payment to the provider;
17.1 	(2) set forth the general allegations leading to the denial, revocation, or suspension of 
17.2 	the provider's authorization. The notice need not disclose any specific information concerning 
17.3 	an ongoing investigation;
17.4 	(3) state that the denial, revocation, or suspension of the provider's authorization is for 
17.5 	a temporary period and explain the circumstances under which the action expires; and
17.6 	(4) inform the provider of the right to submit written evidence and argument for 
17.7 	consideration by the commissioner.
17.8 	(c) Notwithstanding Minnesota Rules, part 3400.0185, if a county agency or the 
17.9 	commissioner suspends payment to a provider under chapter 245E or denies or revokes a 
17.10 	provider's authorization under section 119B.13, subdivision 6, paragraph (d), clause (1) or 
17.11 	(2), a county agency or the commissioner must send notice of service authorization closure 
17.12 	to each affected family. The notice sent to an affected family is effective on the date the 
17.13 	notice is created.

17.14 	EFFECTIVE DATE. This section is effective April 28, 2025.

17.15 	Sec. 22. Minnesota Statutes 2022, section 119B.161, subdivision 3, is amended to read:
17.16 		Subd. 3.Duration. If a provider's payment is suspended under chapter 245E or a 
17.17 	provider's authorization is denied or revoked under section 119B.13, subdivision 6, paragraph 
17.18 	(d), clause (1) or (2), the provider's denial, revocation, temporary suspension, or payment 
17.19 	suspension remains in effect until:
17.20 	(1) the commissioner or a law enforcement authority determines that there is insufficient 
17.21 	evidence warranting the action and a county agency or the commissioner does not pursue 
17.22 	an additional administrative remedy under chapter 245E or section 256.98; or
17.23 	(2) all criminal, civil, and administrative proceedings related to the provider's alleged 
17.24 	misconduct conclude and any appeal rights are exhausted.

17.25 	EFFECTIVE DATE. This section is effective April 28, 2025.

17.26 	Sec. 23. [119B.162] RECONSIDERATION OF CORRECTION ORDERS.
17.27 	(a) If a provider believes that the contents of the commissioner's correction order issued 
17.28 	under chapter 245E are in error, the provider may ask the commissioner to reconsider the 
17.29 	parts of the correction order that are alleged to be in error. The request for reconsideration 
17.30 	must be made in writing and must be postmarked and sent to the commissioner or submitted 
18.1 	in the provider licensing and reporting hub within 30 calendar days from the date the 
18.2 	correction order was mailed or issued through the hub to the provider, and:
18.3 	(1) specify the parts of the correction order that are alleged to be in error;
18.4 	(2) explain why they are in error; and
18.5 	(3) include documentation to support the allegation of error.
18.6 	(b) Upon implementation of the provider licensing and reporting hub, the provider must 
18.7 	use the hub to request reconsideration.
18.8 	(c) A request for reconsideration does not stay any provisions or requirements of the 
18.9 	correction order. The commissioner's disposition of a request for reconsideration is final 
18.10 	and not subject to appeal under chapter 14. The commissioner's decision is appealable by 
18.11 	petition for writ of certiorari under chapter 606.

18.12 	Sec. 24. Minnesota Statutes 2022, section 119B.19, subdivision 7, is amended to read:
18.13 		Subd. 7.Child care resource and referral programs. Within each region, a child care 
18.14 	resource and referral program must:
18.15 	(1) maintain one database of all existing child care resources and services and one 
18.16 	database of family referrals;
18.17 	(2) provide a child care referral service for families;
18.18 	(3) develop resources to meet the child care service needs of families;
18.19 	(4) increase the capacity to provide culturally responsive child care services;
18.20 	(5) coordinate professional development opportunities for child care and school-age 
18.21 	care providers;
18.22 	(6) administer and award child care services grants;
18.23 	(7) cooperate with the Minnesota Child Care Resource and Referral Network and its 
18.24 	member programs to develop effective child care services and child care resources; and
18.25 	(8) assist in fostering coordination, collaboration, and planning among child care programs 
18.26 	and community programs such as school readiness, Head Start, early childhood family 
18.27 	education, local interagency early intervention committees, early childhood screening, 
18.28 	special education services, and other early childhood care and education services and 
18.29 	programs that provide flexible, family-focused services to families with young children to 
18.30 	the extent possible.; and
19.1 	(9) administer the child care one-stop regional assistance network to assist child care 
19.2 	providers and individuals interested in becoming child care providers with establishing and 
19.3 	sustaining a licensed family child care or group family child care program or a child care 
19.4 	center.

19.5 	Sec. 25. [119B.196] FAMILY, FRIEND, AND NEIGHBOR GRANT PROGRAM.
19.6 		Subdivision 1.Establishment. The commissioner of human services shall establish a 
19.7 	family, friend, and neighbor (FFN) grant program to promote children's social-emotional 
19.8 	learning and healthy development, early literacy, and other skills to succeed as learners and 
19.9 	to foster community partnerships that will help children thrive when they enter school.
19.10 		Subd. 2.Grant awards. The commissioner may award grants under this section to the 
19.11 	following entities working with FFN caregivers: community-based organizations, nonprofit 
19.12 	organizations, local or regional libraries, local public health agencies, and Indian Tribes 
19.13 	and Tribal organizations. Grantees may use grant money received under this section to:
19.14 	(1) provide culturally and linguistically appropriate training, support, and resources to 
19.15 	FFN caregivers and children's families to improve and promote children's health, safety, 
19.16 	nutrition, and learning;
19.17 	(2) connect FFN caregivers and children's families with community resources that support 
19.18 	the families' physical and mental health and economic and developmental needs;
19.19 	(3) connect FFN caregivers and children's families to early childhood screening programs 
19.20 	and facilitate referrals to state and local agencies, schools, community organizations, and 
19.21 	medical providers, as appropriate;
19.22 	(4) provide FFN caregivers and children's families with information about high-quality, 
19.23 	community-based early care and learning programs and financial assistance available to the 
19.24 	families, including but not limited to child care assistance under chapter 119B and early 
19.25 	learning scholarships under section 124D.165;
19.26 	(5) provide FFN caregivers with information about registering as a legal nonlicensed 
19.27 	child care provider under section 119B.011, subdivision 16, and establishing a licensed 
19.28 	family or group family child care program;
19.29 	(6) provide transportation for FFN caregivers and children's families to educational and 
19.30 	other early childhood training activities;
19.31 	(7) translate materials for FFN caregivers and children's families and provide translation 
19.32 	services to FFN caregivers and children's families;
20.1 	(8) develop and disseminate social-emotional learning, health and safety, and early 
20.2 	learning kits to FFN caregivers; and
20.3 	(9) establish play and learning groups for FFN caregivers.
20.4 		Subd. 3.Administration. Applicants must apply for the grants using the forms and 
20.5 	according to timelines established by the commissioner.
20.6 		Subd. 4.Reporting requirements. (a) Grantees shall provide data and program outcomes 
20.7 	to the commissioner in a form and manner specified by the commissioner for the purpose 
20.8 	of evaluating the grant program.
20.9 	(b) Beginning February 1, 2024, and every two years thereafter, the commissioner shall 
20.10 	report to the legislature on program outcomes.

20.11 	Sec. 26. [119B.27] GREAT START COMPENSATION SUPPORT PAYMENTS.
20.12 		Subdivision 1.Establishment. The commissioner of human services shall establish and 
20.13 	administer the great start compensation support payment program to provide eligible child 
20.14 	care and early learning programs with payments to improve access to early care and learning 
20.15 	in Minnesota and to strengthen the ability of child care early learning programs to recruit 
20.16 	and retain qualified early educators to work in early care and learning programs.
20.17 		Subd. 2.Eligible programs. (a) The following programs are eligible to receive  payments 
20.18 	under this section:
20.19 	(1) family and group family child care homes licensed under Minnesota Rules, chapter 
20.20 	9502;
20.21 	(2) child care centers licensed under Minnesota Rules, chapter 9503;
20.22 	(3) certified license-exempt child care centers under chapter 245H;
20.23 	(4) Tribally licensed child care programs; and
20.24 	(5) other programs as determined by the commissioner.
20.25 	(b) To be eligible, programs must not be:
20.26 	(1) the subject of a finding of fraud for which the program or individual is currently 
20.27 	serving a penalty or exclusion;
20.28 	(2) the subject of suspended, denied, or terminated payments to a provider under section 
20.29 	256.98, subdivision 1; 119B.13, subdivision 6, paragraph (d), clauses (1) and (2); or 245E.02, 
20.30 	subdivision 4, paragraph (c), clause (4), regardless of whether the action is under appeal;
21.1 	(3) prohibited from receiving public money under section 245.095, regardless of whether 
21.2 	the action is under appeal; or
21.3 	(4) under license revocation, suspension, temporary immediate suspension, or 
21.4 	decertification, regardless of whether the action is under appeal.
21.5 		Subd. 3.Requirements. (a) As a condition of payment, all providers receiving retention 
21.6 	payments under this section must:
21.7 	(1) complete an application developed by the commissioner for each payment period 
21.8 	for which the eligible program applies for funding;
21.9 	(2) submit data on child enrollment and attendance to the commissioner in the form and 
21.10 	manner specified by the commissioner; and
21.11 	(3) attest and agree in writing that the program was open and operating and served a 
21.12 	minimum number of children, as determined by the commissioner, during the funding 
21.13 	period, with the exceptions of:
21.14 	(i) service disruptions that are necessary to protect the safety and health of children and 
21.15 	child care programs based on public health guidance issued by the Centers for Disease 
21.16 	Control and Prevention, the commissioner of health, the commissioner of human services, 
21.17 	or a local public health agency; and
21.18 	(ii) planned temporary closures for provider vacation and holidays during each payment 
21.19 	period. The maximum allowed duration of vacations and holidays must be established by 
21.20 	the commissioner.
21.21 	(b) Money received under this section must be expended by a provider no later than six 
21.22 	months after the date the payment was received.
21.23 	(c) Recipients must comply with all requirements listed in the application under this 
21.24 	section. Methods for demonstrating that requirements have been met shall be determined 
21.25 	by the commissioner.
21.26 	(d) Recipients must keep accurate and legible records of the following at the site where 
21.27 	services are delivered:
21.28 	(1) use of money;
21.29 	(2) attendance records. Daily attendance records must be completed every day and 
21.30 	include the date, the first and last name of each child in attendance, and the times when 
21.31 	each child is dropped off and picked up. To the extent possible, the times that the child was 
22.1 	dropped off and picked up from the provider must be entered by the person dropping off or 
22.2 	picking up the child; and
22.3 	(3) staff employment, compensation, and benefits records. Employment, compensation, 
22.4 	and benefits records must include time sheets or other records of daily hours worked; 
22.5 	documentation of compensation and benefits; documentation of written changes to employees' 
22.6 	rate or rates of pay and basis thereof as a result of support payments, as required under 
22.7 	section 181.032; and any other records required to be maintained under section 177.30.
22.8 	(e) The requirement to document compensation and benefits only applies to family child 
22.9 	care providers if support payment money is used for employee compensation and benefits.
22.10 	(f) All records must be retained at the site where services are delivered for six years after 
22.11 	the date of receipt of payment and be made immediately available to the commissioner upon 
22.12 	request. Any records not provided to the commissioner at the date and time of the request 
22.13 	are deemed inadmissible if offered as evidence by a provider in any proceeding to contest 
22.14 	an overpayment or disqualification of the provider.
22.15 	(g) Recipients that fail to meet the requirements under this section are subject to 
22.16 	discontinuation of future installment payments, recovery of overpayments, and actions under 
22.17 	chapter 245E. Except when based on a finding of fraud, actions to establish an overpayment 
22.18 	must be made within six years of receipt of the payments. Once an overpayment is 
22.19 	established, collection may continue until money has been repaid in full. The appeal process 
22.20 	under section 119B.16 applies to actions taken for failure to meet the requirements of this 
22.21 	section.
22.22 		Subd. 4.Providing payments. (a) The commissioner shall provide support payments 
22.23 	under this section to all eligible programs on a noncompetitive basis.
22.24 	(b) The commissioner shall award support payments to all eligible programs. The payment 
22.25 	amounts shall be based on the number of full-time equivalent staff who regularly care for 
22.26 	children in the program, including any employees, sole proprietors, or independent 
22.27 	contractors.
22.28 	(c) One full-time equivalent is defined as an individual caring for children 32 hours per 
22.29 	week. An individual can count as more or less than one full-time equivalent staff, but as no 
22.30 	more than two full-time equivalent staff.
22.31 	(d) The amount awarded per full-time equivalent individual caring for children for each 
22.32 	payment type must be established by the commissioner.
23.1 	(e) Payments must be increased by 25 percent for providers receiving payments through 
23.2 	the child care assistance programs under section 119B.03 or 119B.05 or early learning 
23.3 	scholarships under section 124D.165 or whose program is located in a child care access 
23.4 	equity area. Child care access equity areas are areas with low access to child care, high 
23.5 	poverty rates, high unemployment rates, low home ownership rates, and low median 
23.6 	household incomes. The commissioner must develop a method for establishing child care 
23.7 	access equity areas.
23.8 	(f) The commissioner shall make payments to eligible programs under this section in 
23.9 	the form, frequency, and manner established by the commissioner.
23.10 		Subd. 5.Eligible uses of money. (a) Recipients that are child care centers licensed under 
23.11 	Minnesota Rules, chapter 9503; certified license-exempt child care centers under chapter 
23.12 	245H; or Tribally licensed child care centers must use money provided under this section 
23.13 	to pay for increases in compensation, benefits, premium pay, or additional federal taxes 
23.14 	assessed on the compensation of employees as a result of paying increased compensation 
23.15 	or premium pay to all paid employees or independent contractors regularly caring for 
23.16 	children. The increases in this paragraph must occur no less frequently than once per year.
23.17 	(b) Recipients that are family and group family child care homes licensed under 
23.18 	Minnesota Rules, chapter 9502, or are Tribally licensed family child care homes shall use 
23.19 	money provided under this section for one or more of the following uses:
23.20 	(1) paying personnel costs, such as payroll, salaries, or similar compensation; employee 
23.21 	benefits; premium pay; or financial incentives for recruitment and retention for an employee, 
23.22 	a sole proprietor, or an independent contractor;
23.23 	(2) paying rent, including rent under a lease agreement, or making payments on any 
23.24 	mortgage obligation, utilities, facility maintenance or improvements, property taxes, or 
23.25 	insurance;
23.26 	(3) purchasing or updating equipment, supplies, goods, or services;
23.27 	(4) providing mental health supports for children; or
23.28 	(5) purchasing training or other professional development.
23.29 		Subd. 6.Report. By January 1 each year, the commissioner must report to the chairs 
23.30 	and ranking minority members of the legislative committees with jurisdiction over child 
23.31 	care and early learning the number of payments provided to recipients and outcomes of the 
23.32 	support payment program since the last report. This subdivision expires January 31, 2033.
24.1 		Subd. 7.Carryforward authority. Funds appropriated under this section are available 
24.2 	until expended.

24.3 	Sec. 27. [119B.28] SHARED SERVICES GRANTS.
24.4 	(a) The commissioner of human services shall establish a grant program to distribute 
24.5 	money for the planning, establishment, expansion, improvement, or operation of shared 
24.6 	services alliances to allow family child care providers to achieve economies of scale. The 
24.7 	commissioner must develop a process to fund organizations to operate shared services 
24.8 	alliances that includes application forms, timelines, and standards for renewal. For purposes 
24.9 	of this section, "shared services alliances" means networks of licensed family child care 
24.10 	providers that share services to reduce costs and achieve efficiencies.
24.11 	(b) Programs eligible to be a part of the shared services alliances supported through this 
24.12 	grant program include:
24.13 	(1) family child care or group family child care homes licensed under Minnesota Rules, 
24.14 	chapter 9502;
24.15 	(2) Tribally licensed family child care or group family child care; and
24.16 	(3) individuals in the process of starting a family child care or group family child care 
24.17 	home.
24.18 	(c) Eligible applicants include public entities and private for-profit and nonprofit 
24.19 	organizations.
24.20 	(d) Grantees shall use the grant money to deliver one or more of the following services:
24.21 	(1) pooling the management of payroll and benefits, banking, janitorial services, food 
24.22 	services, and other operations;
24.23 	(2) shared administrative staff for tasks such as record keeping and reporting for programs 
24.24 	such as the child care assistance program, Head Start, the child and adult care food program, 
24.25 	and early learning scholarships;
24.26 	(3) coordination of bulk purchasing;
24.27 	(4) management of a substitute pool;
24.28 	(5) support for implementing shared curriculum and assessments;
24.29 	(6) mentoring child care provider participants to improve business practices;
24.30 	(7) provision of and training in child care management software to simplify processes 
24.31 	such as enrollment, billing, and tracking expenditures;
25.1 	(8) support for a group of providers sharing one or more physical spaces within a larger 
25.2 	building; or
25.3 	(9) other services as determined by the commissioner.
25.4 	(e) The commissioner must develop a process by which grantees will report to the 
25.5 	Department of Human Services on activities funded by the grant.

25.6 	EFFECTIVE DATE. This section is effective July 1, 2023.

25.7 	Sec. 28. [119B.29] CHILD CARE PROVIDER ACCESS TO TECHNOLOGY 
25.8 	GRANTS.
25.9 	(a) The commissioner of human services shall distribute money provided by this section 
25.10 	through grants to one or more organizations to offer grants or other supports to child care 
25.11 	providers for technology intended to improve the providers' business practices. The 
25.12 	commissioner must develop a process to fund organizations to provide technology supports 
25.13 	that includes application forms, timelines, reporting requirements, and standards for renewal.
25.14 	(b) Programs eligible to be supported through this grant program include:
25.15 	(1) child care centers licensed under Minnesota Rules, chapter 9503;
25.16 	(2) family or group family child care homes licensed under Minnesota Rules, chapter 
25.17 	9502; and
25.18 	(3) Tribally licensed centers, family child care, and group family child care.
25.19 	(c) Eligible applicants include public entities and private for-profit and nonprofit 
25.20 	organizations with the ability to develop technology products for child care business 
25.21 	management or offer training, technical assistance, coaching, or other supports for child 
25.22 	care providers to use technology products for child care business management.
25.23 	(d) Grantees shall use the grant money, either directly or through grants to providers, 
25.24 	for one or more of the following purposes:
25.25 	(1) the purchase of computers or mobile devices for use in business management;
25.26 	(2) access to the Internet through the provision of necessary hardware such as routers 
25.27 	or modems or by covering the costs of monthly fees for Internet access;
25.28 	(3) covering the costs of subscription to child care management software;
25.29 	(4) covering the costs of training in the use of technology for business management 
25.30 	purposes; and
26.1 	(5) other services as determined by the commissioner.

26.2 	Sec. 29. Minnesota Statutes 2022, section 245C.04, subdivision 1, is amended to read:
26.3 		Subdivision 1.Licensed programs; other child care programs. (a) The commissioner 
26.4 	shall conduct a background study of an individual required to be studied under section 
26.5 	245C.03, subdivision 1, at least upon application for initial license for all license types.
26.6 	(b) The commissioner shall conduct a background study of an individual required to be 
26.7 	studied under section 245C.03, subdivision 1, including a child care background study 
26.8 	subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed 
26.9 	child care center, certified license-exempt child care center, or legal nonlicensed child care 
26.10 	provider, on a schedule determined by the commissioner. Except as provided in section 
26.11 	245C.05, subdivision 5a, a child care background study must include submission of 
26.12 	fingerprints for a national criminal history record check and a review of the information 
26.13 	under section 245C.08. A background study for a child care program must be repeated 
26.14 	within five years from the most recent study conducted under this paragraph.
26.15 	(c) At reauthorization or when a new background study is needed under section 119B.125, 
26.16 	subdivision 1a, for a legal nonlicensed child care provider authorized under chapter 119B:
26.17 	(1) for a background study affiliated with a legal nonlicensed child care provider, the 
26.18 	individual shall provide information required under section 245C.05, subdivision 1, 
26.19 	paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed 
26.20 	under section 245C.05, subdivision 5; and
26.21 	(2) the commissioner shall verify the information received under clause (1) and submit 
26.22 	the request in NETStudy 2.0 to complete the background study.
26.23 	(c) (d) At reapplication for a family child care license:
26.24 	(1) for a background study affiliated with a licensed family child care center or legal 
26.25 	nonlicensed child care provider, the individual shall provide information required under 
26.26 	section 245C.05, subdivision 1, paragraphs (a), (b), and (d), to the county agency, and be 
26.27 	fingerprinted and photographed under section 245C.05, subdivision 5;
26.28 	(2) the county agency shall verify the information received under clause (1) and forward 
26.29 	the information to the commissioner and submit the request in NETStudy 2.0 to complete 
26.30 	the background study; and
26.31 	(3) the background study conducted by the commissioner under this paragraph must 
26.32 	include a review of the information required under section 245C.08.
27.1 	(d) (e) The commissioner is not required to conduct a study of an individual at the time 
27.2 	of reapplication for a license if the individual's background study was completed by the 
27.3 	commissioner of human services and the following conditions are met:
27.4 	(1) a study of the individual was conducted either at the time of initial licensure or when 
27.5 	the individual became affiliated with the license holder;
27.6 	(2) the individual has been continuously affiliated with the license holder since the last 
27.7 	study was conducted; and
27.8 	(3) the last study of the individual was conducted on or after October 1, 1995.
27.9 	(e) (f) The commissioner of human services shall conduct a background study of an 
27.10 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), 
27.11 	who is newly affiliated with a child foster family setting license holder:
27.12 	(1) the county or private agency shall collect and forward to the commissioner the 
27.13 	information required under section 245C.05, subdivisions 1 and 5, when the child foster 
27.14 	family setting applicant or license holder resides in the home where child foster care services 
27.15 	are provided; and
27.16 	(2) the background study conducted by the commissioner of human services under this 
27.17 	paragraph must include a review of the information required under section 245C.08, 
27.18 	subdivisions 1, 3, and 4.
27.19 	(f) (g) The commissioner shall conduct a background study of an individual specified 
27.20 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly affiliated 
27.21 	with an adult foster care or family adult day services and with a family child care license 
27.22 	holder or a legal nonlicensed child care provider authorized under chapter 119B and:
27.23 	(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and 
27.24 	forward to the commissioner the information required under section 245C.05, subdivision 
27.25 	1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted 
27.26 	by the commissioner for all family adult day services, for adult foster care when the adult 
27.27 	foster care license holder resides in the adult foster care residence, and for family child care 
27.28 	and legal nonlicensed child care authorized under chapter 119B;
27.29 	(2) the license holder shall collect and forward to the commissioner the information 
27.30 	required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs 
27.31 	(a) and (b), for background studies conducted by the commissioner for adult foster care 
27.32 	when the license holder does not reside in the adult foster care residence; and
28.1 	(3) the background study conducted by the commissioner under this paragraph must 
28.2 	include a review of the information required under section 245C.08, subdivision 1, paragraph 
28.3 	(a), and subdivisions 3 and 4.
28.4 	(g) (h) Applicants for licensure, license holders, and other entities as provided in this 
28.5 	chapter must submit completed background study requests to the commissioner using the 
28.6 	electronic system known as NETStudy before individuals specified in section 245C.03, 
28.7 	subdivision 1, begin positions allowing direct contact in any licensed program.
28.8 	(h) (i) For an individual who is not on the entity's active roster, the entity must initiate 
28.9 	a new background study through NETStudy when:
28.10 	(1) an individual returns to a position requiring a background study following an absence 
28.11 	of 120 or more consecutive days; or
28.12 	(2) a program that discontinued providing licensed direct contact services for 120 or 
28.13 	more consecutive days begins to provide direct contact licensed services again.
28.14 	The license holder shall maintain a copy of the notification provided to the commissioner 
28.15 	under this paragraph in the program's files. If the individual's disqualification was previously 
28.16 	set aside for the license holder's program and the new background study results in no new 
28.17 	information that indicates the individual may pose a risk of harm to persons receiving 
28.18 	services from the license holder, the previous set-aside shall remain in effect.
28.19 	(i) (j) For purposes of this section, a physician licensed under chapter 147, advanced 
28.20 	practice registered nurse licensed under chapter 148, or physician assistant licensed under 
28.21 	chapter 147A is considered to be continuously affiliated upon the license holder's receipt 
28.22 	from the commissioner of health or human services of the physician's, advanced practice 
28.23 	registered nurse's, or physician assistant's background study results.
28.24 	(j) (k) For purposes of family child care, a substitute caregiver must receive repeat 
28.25 	background studies at the time of each license renewal.
28.26 	(k) (l) A repeat background study at the time of license renewal is not required if the 
28.27 	family child care substitute caregiver's background study was completed by the commissioner 
28.28 	on or after October 1, 2017, and the substitute caregiver is on the license holder's active 
28.29 	roster in NETStudy 2.0.
28.30 	(l) (m) Before and after school programs authorized under chapter 119B, are exempt 
28.31 	from the background study requirements under section 123B.03, for an employee for whom 
28.32 	a background study under this chapter has been completed.

28.33 	EFFECTIVE DATE. This section is effective April 28, 2025.

29.1 	Sec. 30. Minnesota Statutes 2022, section 245C.05, subdivision 4, is amended to read:
29.2 		Subd. 4.Electronic transmission. (a) For background studies conducted by the 
29.3 	Department of Human Services, the commissioner shall implement a secure system for the 
29.4 	electronic transmission of:
29.5 	(1) background study information to the commissioner;
29.6 	(2) background study results to the license holder;
29.7 	(3) background study information obtained under this section and section 245C.08 to 
29.8 	counties and private agencies for background studies conducted by the commissioner for 
29.9 	child foster care, including a summary of nondisqualifying results, except as prohibited by 
29.10 	law; and
29.11 	(4) background study results to county agencies for background studies conducted by 
29.12 	the commissioner for adult foster care and family adult day services and, upon 
29.13 	implementation of NETStudy 2.0, family child care and legal nonlicensed child care 
29.14 	authorized under chapter 119B.
29.15 	(b) Unless the commissioner has granted a hardship variance under paragraph (c), a 
29.16 	license holder or an applicant must use the electronic transmission system known as 
29.17 	NETStudy or NETStudy 2.0 to submit all requests for background studies to the 
29.18 	commissioner as required by this chapter.
29.19 	(c) A license holder or applicant whose program is located in an area in which high-speed 
29.20 	Internet is inaccessible may request the commissioner to grant a variance to the electronic 
29.21 	transmission requirement.
29.22 	(d) Section 245C.08, subdivision 3, paragraph (c), applies to results transmitted under 
29.23 	this subdivision.

29.24 	EFFECTIVE DATE. This section is effective April 28, 2025.

29.25 	Sec. 31. Minnesota Statutes 2022, section 245C.17, subdivision 6, is amended to read:
29.26 		Subd. 6.Notice to county agency. For studies on individuals related to a license to 
29.27 	provide adult foster care when the applicant or license holder resides in the adult foster care 
29.28 	residence and family adult day services and, effective upon implementation of NETStudy 
29.29 	2.0, family child care and legal nonlicensed child care authorized under chapter 119B, the 
29.30 	commissioner shall also provide a notice of the background study results to the county 
29.31 	agency that initiated the background study.

29.32 	EFFECTIVE DATE. This section is effective April 28, 2025.

30.1 	Sec. 32. Minnesota Statutes 2022, section 245C.23, subdivision 2, is amended to read:
30.2 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
30.3 	commissioner shall notify the license holder of the disqualification and order the license 
30.4 	holder to immediately remove the individual from any position allowing direct contact with 
30.5 	persons receiving services from the license holder if:
30.6 	(1) the individual studied does not submit a timely request for reconsideration under 
30.7 	section 245C.21;
30.8 	(2) the individual submits a timely request for reconsideration, but the commissioner 
30.9 	does not set aside the disqualification for that license holder under section 245C.22, unless 
30.10 	the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
30.11 	(3) an individual who has a right to request a hearing under sections 245C.27 and 256.045, 
30.12 	or 245C.28 and chapter 14 for a disqualification that has not been set aside, does not request 
30.13 	a hearing within the specified time; or
30.14 	(4) an individual submitted a timely request for a hearing under sections 245C.27 and 
30.15 	256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
30.16 	disqualification under section 245A.08, subdivision 5, or 256.045.
30.17 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
30.18 	and the license holder was previously ordered under section 245C.17 to immediately remove 
30.19 	the disqualified individual from direct contact with persons receiving services or to ensure 
30.20 	that the individual is under continuous, direct supervision when providing direct contact 
30.21 	services, the order remains in effect pending the outcome of a hearing under sections 245C.27 
30.22 	and 256.045, or 245C.28 and chapter 14.
30.23 	(c) If the commissioner does not set aside the disqualification under section 245C.22, 
30.24 	and the license holder was not previously ordered under section 245C.17 to immediately 
30.25 	remove the disqualified individual from direct contact with persons receiving services or 
30.26 	to ensure that the individual is under continuous direct supervision when providing direct 
30.27 	contact services, the commissioner shall order the individual to remain under continuous 
30.28 	direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045, 
30.29 	or 245C.28 and chapter 14.
30.30 	(d) For background studies related to child foster care when the applicant or license 
30.31 	holder resides in the home where services are provided, the commissioner shall also notify 
30.32 	the county or private agency that initiated the study of the results of the reconsideration.
31.1 	(e) For background studies related to family child care, legal nonlicensed child care,
31.2 	adult foster care programs when the applicant or license holder resides in the home where 
31.3 	services are provided, and family adult day services, the commissioner shall also notify the 
31.4 	county that initiated the study of the results of the reconsideration.

31.5 	EFFECTIVE DATE. This section is effective April 28, 2025.

31.6 	Sec. 33. Minnesota Statutes 2022, section 245E.06, subdivision 3, is amended to read:
31.7 		Subd. 3.Appeal of department action. A provider's rights related to the department's 
31.8 	action taken under this chapter against a provider are established in sections 119B.16and,
31.9 	119B.161, 119B.162, and 245.095, subdivision 4.

31.10 	Sec. 34. Minnesota Statutes 2022, section 256.046, subdivision 3, is amended to read:
31.11 		Subd. 3.Administrative disqualification of child care providers caring for children 
31.12 	receiving child care assistance. (a) The department or local agency shall pursue an 
31.13 	administrative disqualification, if the child care provider is accused of committing an 
31.14 	intentional program violation, in lieu of a criminal action when it has not been pursued. 
31.15 	Intentional program violations include intentionally making false or misleading statements; 
31.16 	intentionally misrepresenting, concealing, or withholding facts; and repeatedly and 
31.17 	intentionally violating program regulations under chapters 119B and 245E. Intent may be 
31.18 	proven by demonstrating a pattern of conduct that violates program rules under chapters 
31.19 	119B and 245E.
31.20 	(b) To initiate an administrative disqualification, a local agency or the commissioner 
31.21 	must mail written notice by certified mail to the provider against whom the action is being 
31.22 	taken. Unless otherwise specified under chapter 119B or 245E or Minnesota Rules, chapter 
31.23 	3400, a local agency or the commissioner must mail the written notice at least 15 calendar 
31.24 	days before the adverse action's effective date. The notice shall state (1) the factual basis 
31.25 	for the agency's determination, (2) the action the agency intends to take, (3) the dollar amount 
31.26 	of the monetary recovery or recoupment, if known, and (4) the provider's right to appeal 
31.27 	the agency's proposed action.
31.28 	(c) The provider may appeal an administrative disqualification by submitting a written 
31.29 	request to the Department of Human Services, Appeals Division. A provider's request must 
31.30 	be received by the Appeals Division no later than 30 days after the date a local agency or
31.31 	the commissioner mails the notice.
31.32 	(d) The provider's appeal request must contain the following:
32.1 	(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the 
32.2 	dollar amount involved for each disputed item;
32.3 	(2) the computation the provider believes to be correct, if applicable;
32.4 	(3) the statute or rule relied on for each disputed item; and
32.5 	(4) the name, address, and telephone number of the person at the provider's place of 
32.6 	business with whom contact may be made regarding the appeal.
32.7 	(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a 
32.8 	preponderance of the evidence that the provider committed an intentional program violation.
32.9 	(f) The hearing is subject to the requirements of sections 256.045 and 256.0451. The 
32.10 	human services judge may combine a fair hearing and administrative disqualification hearing 
32.11 	into a single hearing if the factual issues arise out of the same or related circumstances and 
32.12 	the provider receives prior notice that the hearings will be combined.
32.13 	(g) A provider found to have committed an intentional program violation and is 
32.14 	administratively disqualified shall be disqualified, for a period of three years for the first 
32.15 	offense and permanently for any subsequent offense, from receiving any payments from 
32.16 	any child care program under chapter 119B.
32.17 	(h) Unless a timely and proper appeal made under this section is received by the 
32.18 	department, the administrative determination of the department is final and binding.

32.19 	EFFECTIVE DATE. This section is effective April 28, 2025.

32.20 	Sec. 35. Minnesota Statutes 2022, section 256.983, subdivision 5, is amended to read:
32.21 		Subd. 5.Child care providers; financial misconduct. (a) A county or tribal agency 
32.22 	may conduct investigations of financial misconduct by child care providers as described in 
32.23 	chapter 245E. Prior to opening an investigation, a county or tribal agency must contact the 
32.24 	commissioner to determine whether an investigation under this chapter may compromise 
32.25 	an ongoing investigation.
32.26 	(b) If, upon investigation, a preponderance of evidence shows a provider committed an 
32.27 	intentional program violation, intentionally gave the county or tribe materially false 
32.28 	information on the provider's billing forms, provided false attendance records to a county, 
32.29 	tribe, or the commissioner, or committed financial misconduct as described in section 
32.30 	245E.01, subdivision 8, the county or tribal agency may recommend that the commissioner 
32.31 	suspend a provider's payment pursuant to chapter 245E, or deny or revoke a provider's 
32.32 	authorization pursuant to section 119B.13, subdivision 6, paragraph (d), clause (2), prior to 
33.1 	pursuing other available remedies. The county or tribe must send notice in accordance with 
33.2 	the requirements of section 119B.161, subdivision 2. If a provider's payment is suspended 
33.3 	under this section, the payment suspension shall remain in effect until: (1) the commissioner, 
33.4 	county, tribe, or a law enforcement authority determines that there is insufficient evidence 
33.5 	warranting the action and a county, tribe, or the commissioner does not pursue an additional 
33.6 	administrative remedy under chapter 119B or 245E, or section 256.046 or 256.98; or (2) 
33.7 	all criminal, civil, and administrative proceedings related to the provider's alleged misconduct 
33.8 	conclude and any appeal rights are exhausted.
33.9 	(c) For the purposes of this section, an intentional program violation includes intentionally 
33.10 	making false or misleading statements; intentionally misrepresenting, concealing, or 
33.11 	withholding facts; and repeatedly and intentionally violating program regulations under 
33.12 	chapters 119B and 245E.
33.13 	(d) A provider has the right to administrative review under section 119B.161 if: (1) 
33.14 	payment is suspended under chapter 245E; or (2) the provider's authorization was denied 
33.15 	or revoked under section 119B.13, subdivision 6, paragraph (d), clause (2).

33.16 	EFFECTIVE DATE. This section is effective April 28, 2025.

33.17 	Sec. 36. DIRECTION TO COMMISSIONER; TRANSITION CHILD CARE 
33.18 	STABILIZATION GRANTS.
 33.19 	(a) The commissioner of human services must continue providing child care stabilization 
33.20 	grants under Laws 2021, First Special Session chapter 7, article 14, section 21, from July 
33.21 	1, 2023, through no later than December 31, 2023.
33.22 	(b) The commissioner shall award transition child care stabilization grant amounts to 
33.23 	all eligible programs. The transition month grant amounts must be based on the number of 
33.24 	full-time equivalent staff who regularly care for children in the program, including employees, 
33.25 	sole proprietors, or independent contractors. One full-time equivalent staff is defined as an 
33.26 	individual caring for children 32 hours per week. An individual can count as more, or less, 
33.27 	than one full-time equivalent staff, but as no more than two full-time equivalent staff.

33.28 	Sec. 37. DIRECTION TO COMMISSIONER; INCREASE FOR MAXIMUM CHILD 
33.29 	CARE ASSISTANCE RATES.
 33.30 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
33.31 	commissioner must allocate the additional basic sliding fee child care money for calendar 
33.32 	year 2024 to counties and Tribes for updated maximum rates based on relative need to cover 
34.1 	maximum rate increases. In distributing the additional money, the commissioner shall 
34.2 	consider the following factors by county and Tribe:
34.3 	(1) the number of children;
34.4 	(2) the provider type;
34.5 	(3) the age of children served; and
34.6 	(4) the amount of the increase in maximum rates.

34.7 	Sec. 38. DIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING 
34.8 	FEE MONEY.
 34.9 	Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the 
34.10 	commissioner of human services must allocate additional basic sliding fee child care money 
34.11 	for calendar year 2025 to counties and Tribes to account for the change in the definition of 
34.12 	family in Minnesota Statutes, section 119B.011, in this article. In allocating the additional 
34.13 	money, the commissioner shall consider:
34.14 	(1) the number of children in the county or Tribe who receive care from a relative 
34.15 	custodian who accepted a transfer of permanent legal and physical custody of a child under 
34.16 	section 260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor 
34.17 	custodian or guardian as established according to section 256N.22, subdivision 10; or foster 
34.18 	parents in a family foster home under section 260C.007, subdivision 16b; and
34.19 	(2) the average basic sliding fee cost of care in the county or Tribe.

34.20 	Sec. 39. REPEALER.
 34.21 	(a) Minnesota Statutes 2022, section 119B.03, subdivision 4, is repealed.
34.22 	(b) Minnesota Statutes 2022, section 245C.11, subdivision 3, is repealed.

34.23 	EFFECTIVE DATE. Paragraph (b) is effective April 28, 2025.

34.24 	ARTICLE 2
34.25 	CHILD SAFETY AND PERMANENCY

34.26 	Section 1. [256.4792] SUPPORT BEYOND 21 GRANT PROGRAM.
34.27 		Subdivision 1.Establishment and authority. The commissioner shall establish the 
34.28 	support beyond 21 grant program to distribute grants to one or more community-based 
35.1 	organizations to provide services and financial support to youth eligible for the support 
35.2 	beyond 21 program under section 260C.451, subdivision 8b.
35.3 		Subd. 2.Distribution of money by the grantee. (a) The grantee shall distribute support 
35.4 	beyond 21 grant program money to eligible youth to be used for basic well-being needs and 
35.5 	housing as determined solely by the youth.
35.6 	(b) The grantee shall distribute support beyond 21 grant money to eligible youth on a 
35.7 	monthly basis for 12 months.
35.8 	(c) Once a youth has completed the program, the youth must receive a stipend to complete 
35.9 	an exit survey on the youth's experiences in the program.
35.10 	(d) A grantee may not deny funding to a youth based on any criteria beyond a youth's 
35.11 	eligibility for the support beyond 21 program under section 260C.451, subdivision 8b.
35.12 		Subd. 3.Reporting. The selected grantee or grantees must report quarterly to the 
35.13 	commissioner of human services in order to receive the quarterly payment. The selected 
35.14 	grantee or grantees must include the following information in a quarterly report:
35.15 	(1) a list of eligible youth who have been referred;
35.16 	(2) the amount of money that has been distributed to each youth per month;
35.17 	(3) any surveys completed by youth leaving the support beyond 21 program; and
35.18 	(4) other data as determined by the commissioner.

35.19 	Sec. 2. [256.4793] FAMILY FIRST PREVENTION SERVICES ACT SUPPORT 
35.20 	AND DEVELOPMENT GRANT PROGRAM.
35.21 		Subdivision 1.Authorization. The commissioner shall establish a grant program to 
35.22 	support prevention and early intervention services provided by community-based agencies 
35.23 	to implement and build upon Minnesota's Family First Prevention Services Act Title IV-E 
35.24 	prevention services plan.
35.25 		Subd. 2.Uses. Funds granted to community-based agencies must be used to:
35.26 	(1) implement or expand any Family First Prevention Services Act service or program 
35.27 	that is included in Minnesota's prevention services plan;
35.28 	(2) implement or expand any proposed future Family First Prevention Services Act 
35.29 	service or program;
35.30 	(3) implement or expand any prevention or family preservation service or programming; 
35.31 	or
36.1 	(4) evaluate any of the above programs or services.
36.2 		Subd. 3.Special revenue account established. Funds appropriated under this section 
36.3 	shall be transferred to a special revenue account. The commissioner shall retain federal 
36.4 	reimbursement generated under this section. Federal reimbursement shall be transferred to 
36.5 	the special revenue account.

36.6 	Sec. 3. [256.4794] FAMILY FIRST PREVENTION SERVICES ACT KINSHIP 
36.7 	NAVIGATOR PROGRAM.
36.8 		Subdivision 1.Authorization. The commissioner shall establish a grant program for 
36.9 	Kinship Navigator programs as outlined by the federal Family First Prevention Services 
36.10 	Act.
36.11 		Subd. 2.Uses. Eligible grantees must use funds to assess kinship caregiver needs, provide 
36.12 	connection to local and statewide resources, provide case management to assist with complex 
36.13 	cases, and provide support to meet caregiver needs.
36.14 		Subd. 3.Special revenue account established. Funds appropriated under this section 
36.15 	shall be transferred to a special revenue account. The commissioner shall retain federal 
36.16 	reimbursement generated under this section. Federal reimbursement shall be transferred to 
36.17 	the special revenue account.

36.18 	Sec. 4. Minnesota Statutes 2022, section 256N.24, subdivision 12, is amended to read:
36.19 		Subd. 12.Approval of initial assessments, special assessments, and reassessments. (a) 
36.20 	Any agency completing initial assessments, special assessments, or reassessments must 
36.21 	designate one or more supervisors or other staff to examine and approve assessments 
36.22 	completed by others in the agency under subdivision 2. The person approving an assessment 
36.23 	must not be the case manager or staff member completing that assessment.
36.24 	(b) In cases where a special assessment or reassessment for Northstar kinship assistance 
36.25 	and adoption assistance is required under subdivision 8 or 11, the commissioner shall review 
36.26 	and approve the assessment as part of the eligibility determination process outlined in section 
36.27 	256N.22, subdivision 7, for Northstar kinship assistance, or section 256N.23, subdivision 
36.28 	7, for adoption assistance. The assessment determines the maximum of the negotiated 
36.29 	agreement amount under section 256N.25.
36.30 	(c) The effective date of the new rate is effective the calendar month that the assessment 
36.31 	is approved, or the effective date of the agreement, whichever is later. determined as follows:
37.1 	(1) for initial assessments of children in foster care, the new rate is effective based on 
37.2 	the emergency foster care rate for initial placement pursuant to section 256N.26, subdivision 
37.3 	6;
37.4 	(2) for special assessments, the new rate is effective on the date of the finalized adoption 
37.5 	decree or the date of the court order that transfers permanent legal and physical custody to 
37.6 	a relative;
37.7 	(3) for postpermanency reassessments, the new rate is effective on the date that the 
37.8 	commissioner signs the amendment to the Northstar Adoption Assistance or Northstar 
37.9 	Kinship Assistance benefit agreement.

37.10 	Sec. 5. [260.014] FAMILY FIRST PREVENTION AND EARLY INTERVENTION 
37.11 	ALLOCATION PROGRAM.
37.12 		Subdivision 1.Authorization. The commissioner shall establish a program that allocates 
37.13 	money to counties and federally recognized Tribes in Minnesota to provide prevention and 
37.14 	early intervention services under the Family First Prevention Services Act.
37.15 		Subd. 2.Uses. (a) Money allocated to counties and Tribes may be used for the following 
37.16 	purposes:
37.17 	(1) to implement or expand any service or program that is included in the state's 
37.18 	prevention plan;
37.19 	(2) to implement or expand any proposed service or program;
37.20 	(3) to implement or expand any existing service or program; and
37.21 	(4) any other use approved by the commissioner.
37.22 	A county or a Tribe must use at least ten percent of the allocation to provide services and 
37.23 	supports directly to families.
37.24 		Subd. 3.Payments. (a) The commissioner shall allocate state money appropriated under 
37.25 	this section to each county board or Tribe on a calendar-year basis using a formula established 
37.26 	by the commissioner.
37.27 	(b) Notwithstanding this subdivision, to the extent that money is available, no county 
37.28 	or Tribe may be allocated less than:
37.29 	(1) $25,000 in calendar year 2024;
37.30 	(2) $50,000 in calendar year 2025; and
37.31 	(3) $75,000 in calendar year 2026 and each year thereafter.
38.1 	(c) A county agency or an initiative Tribe must submit a plan and report the use of money 
38.2 	as determined by the commissioner.
38.3 	(d) The commissioner may distribute money under this section for a two-year period.
38.4 		Subd. 4.Prohibition on supplanting existing money. Money received under this section 
38.5 	must be used to address prevention and early intervention staffing, programming, and other 
38.6 	activities as determined by the commissioner. Money must not be used to supplant current 
38.7 	county or Tribal expenditures for these purposes.

38.8 	Sec. 6. Minnesota Statutes 2022, section 260.761, subdivision 2, as amended by Laws 
38.9 	2023, chapter 16, section 16, is amended to read:
38.10 		Subd. 2.Notice to Tribes of services or court proceedings involving an Indian 
38.11 	child. (a) When a child-placing agency has information that a family assessment or,
38.12 	investigation, or noncaregiver sex trafficking assessment being conducted may involve an 
38.13 	Indian child, the child-placing agency shall notify the Indian child's Tribe of the family 
38.14 	assessment or, investigation, or noncaregiver sex trafficking assessment according to section 
38.15 	260E.18. The child-placing agency shall provide initial notice shall be provided by telephone 
38.16 	and by email or facsimile and shall include the child's full name and date of birth; the full 
38.17 	names and dates of birth of the child's biological parents; and if known the full names and 
38.18 	dates of birth of the child's grandparents and of the child's Indian custodian. If information 
38.19 	regarding the child's grandparents or Indian custodian is not immediately available, the 
38.20 	child-placing agency shall continue to request this information and shall notify the Tribe 
38.21 	when it is received. Notice shall be provided to all Tribes to which the child may have any 
38.22 	Tribal lineage. The child-placing agency shall request that the Tribe or a designated Tribal 
38.23 	representative participate in evaluating the family circumstances, identifying family and 
38.24 	Tribal community resources, and developing case plans. The child-placing agency shall 
38.25 	continue to include the Tribe in service planning and updates as to the progress of the case.
38.26 	(b) When a child-placing agency has information that a child receiving services may be 
38.27 	an Indian child, the child-placing agency shall notify the Tribe by telephone and by email 
38.28 	or facsimile of the child's full name and date of birth, the full names and dates of birth of 
38.29 	the child's biological parents, and, if known, the full names and dates of birth of the child's 
38.30 	grandparents and of the child's Indian custodian. This notification must be provided so for
38.31 	the Tribe can to determine if the child is a member or eligible for Tribal membership in the 
38.32 	Tribe, and must be provided the agency must provide this notification to the Tribe within 
38.33 	seven days of receiving information that the child may be an Indian child. If information 
38.34 	regarding the child's grandparents or Indian custodian is not available within the seven-day 
39.1 	period, the child-placing agency shall continue to request this information and shall notify 
39.2 	the Tribe when it is received. Notice shall be provided to all Tribes to which the child may 
39.3 	have any Tribal lineage.
39.4 	(c) In all child placement proceedings, when a court has reason to believe that a child 
39.5 	placed in emergency protective care is an Indian child, the court administrator or a designee 
39.6 	shall, as soon as possible and before a hearing takes place, notify the Tribal social services 
39.7 	agency by telephone and by email or facsimile of the date, time, and location of the 
39.8 	emergency protective care or other initial hearing. The court shall make efforts to allow 
39.9 	appearances by telephone or video conference for Tribal representatives, parents, and Indian 
39.10 	custodians.
39.11 	(d) The child-placing agency or individual petitioner shall effect service of any petition 
39.12 	governed by sections 260.751 to 260.835 by certified mail or registered mail, return receipt 
39.13 	requested upon the Indian child's parents, Indian custodian, and Indian child's Tribe at least 
39.14 	10 days before the admit-deny hearing is held. If the identity or location of the Indian child's 
39.15 	parents or Indian custodian and Tribe cannot be determined, the child-placing agency shall 
39.16 	provide the notice required in this paragraph to the United States Secretary of the Interior, 
39.17 	Bureau of Indian Affairs by certified mail, return receipt requested.
39.18 	(e) A Tribe, the Indian child's parents, or the Indian custodian may request up to 20 
39.19 	additional days to prepare for the admit-deny hearing. The court shall allow appearances 
39.20 	by telephone, video conference, or other electronic medium for Tribal representatives, the 
39.21 	Indian child's parents, or the Indian custodian.
39.22 	(f) A child-placing agency or individual petitioner must provide the notices required 
39.23 	under this subdivision at the earliest possible time to facilitate involvement of the Indian 
39.24 	child's Tribe. Nothing in this subdivision is intended to hinder the ability of the child-placing 
39.25 	agency, individual petitioner, and the court to respond to an emergency situation. Lack of 
39.26 	participation by a Tribe shall not prevent the Tribe from intervening in services and 
39.27 	proceedings at a later date. A Tribe may participate in a case at any time. At any stage of 
39.28 	the child-placing agency's involvement with an Indian child, the agency shall provide full 
39.29 	cooperation to the Tribal social services agency, including disclosure of all data concerning 
39.30 	the Indian child. Nothing in this subdivision relieves the child-placing agency of satisfying 
39.31 	the notice requirements in state or federal law.

39.32 	EFFECTIVE DATE. This section is effective July 1, 2024.

40.1 	Sec. 7. [260.786] CHILD WELFARE STAFF ALLOCATION FOR TRIBES.
40.2 		Subdivision 1.Allocations. The commissioner shall allocate $80,000 annually to each 
40.3 	of Minnesota's federally recognized Tribes that, at the beginning of the fiscal year, have not 
40.4 	joined the American Indian Child welfare initiative under section 256.01, subdivision 14b. 
40.5 	Tribes not participating in or planning to join the initiative as of July 1, 2023, are: Bois Fort 
40.6 	Band of Chippewa, Fond du Lac Band of Lake Superior Chippewa, Grand Portage Band 
40.7 	of Lake Superior Chippewa, Lower Sioux Indian Community, Prairie Island Indian 
40.8 	Community, and Upper Sioux Indian Community.
40.9 		Subd. 2.Purposes. Money must be used to address staffing for responding to notifications 
40.10 	under the Indian Child Welfare Act and the Minnesota Indian Family Preservation Act, to 
40.11 	the extent necessary, or to provide other child protection and child welfare services. Money 
40.12 	must not be used to supplant current Tribal expenditures for these purposes.
40.13 		Subd. 3.Reporting. By June 1 each year, Tribes receiving this money shall provide a 
40.14 	report to the commissioner. The report shall be written in a manner prescribed by the 
40.15 	commissioner and must include an accounting of money spent, staff hired, job duties, and 
40.16 	other information as required by the commissioner.
40.17 		Subd. 4.Redistribution of money. If a Tribe joins the American Indian child welfare 
40.18 	initiative, the payment for that Tribe shall be distributed equally among the remaining Tribes 
40.19 	receiving an allocation under this section.

40.20 	Sec. 8. Minnesota Statutes 2022, section 260C.007, subdivision 14, is amended to read:
40.21 		Subd. 14.Egregious harm. "Egregious harm" means the infliction of bodily harm to a 
40.22 	child or neglect of a child which demonstrates a grossly inadequate ability to provide 
40.23 	minimally adequate parental care. The egregious harm need not have occurred in the state 
40.24 	or in the county where a termination of parental rights action is otherwise properly venued
40.25 	has proper venue. Egregious harm includes, but is not limited to:
40.26 	(1) conduct towards toward a child that constitutes a violation of sections 609.185 to 
40.27 	609.2114, 609.222, subdivision 2, 609.223, or any other similar law of any other state;
40.28 	(2) the infliction of "substantial bodily harm" to a child, as defined in section 609.02, 
40.29 	subdivision 7a;
40.30 	(3) conduct towards toward a child that constitutes felony malicious punishment of a 
40.31 	child under section 609.377;
41.1 	(4) conduct towards toward a child that constitutes felony unreasonable restraint of a 
41.2 	child under section 609.255, subdivision 3;
41.3 	(5) conduct towards toward a child that constitutes felony neglect or endangerment of 
41.4 	a child under section 609.378;
41.5 	(6) conduct towards toward a child that constitutes assault under section 609.221, 609.222, 
41.6 	or 609.223;
41.7 	(7) conduct towards toward a child that constitutes sex trafficking, solicitation, 
41.8 	inducement, or promotion of, or receiving profit derived from prostitution under section 
41.9 	609.322;
41.10 	(8) conduct towards toward a child that constitutes murder or voluntary manslaughter 
41.11 	as defined by United States Code, title 18, section 1111(a) or 1112(a);
41.12 	(9) conduct towards toward a child that constitutes aiding or abetting, attempting, 
41.13 	conspiring, or soliciting to commit a murder or voluntary manslaughter that constitutes a 
41.14 	violation of United States Code, title 18, section 1111(a) or 1112(a); or
41.15 	(10) conduct toward a child that constitutes criminal sexual conduct under sections 
41.16 	609.342 to 609.345 or sexual extortion under section 609.3458.

41.17 	Sec. 9. Minnesota Statutes 2022, section 260C.221, subdivision 1, is amended to read:
41.18 		Subdivision 1.Relative search requirements. (a) The responsible social services agency 
41.19 	shall exercise due diligence to identify and notify adult relatives, as defined in section 
41.20 	260C.007, subdivision 27, and current caregivers of a child's sibling, prior to placement or 
41.21 	within 30 days after the child's removal from the parent, regardless of whether a child is 
41.22 	placed in a relative's home, as required under subdivision 2. The relative search required 
41.23 	by this section shall be comprehensive in scope.
41.24 	(b) The relative search required by this section shall include both maternal and paternal 
41.25 	adult relatives of the child; all adult grandparents; all legal parents, guardians, or custodians 
41.26 	of the child's siblings; and any other adult relatives suggested by the child's parents, subject 
41.27 	to the exceptions due to family violence in subdivision 5, paragraph (b). The search shall 
41.28 	also include getting information from the child in an age-appropriate manner about who the 
41.29 	child considers to be family members and important friends with whom the child has resided 
41.30 	or had significant contact. The relative search required under this section must fulfill the 
41.31 	agency's duties under the Indian Child Welfare Act regarding active efforts to prevent the 
41.32 	breakup of the Indian family under United States Code, title 25, section 1912(d), and to 
41.33 	meet placement preferences under United States Code, title 25, section 1915.
42.1 	(c) The responsible social services agency has a continuing responsibility to search for 
42.2 	and identify relatives of a child and send the notice to relatives that is required under 
42.3 	subdivision 2, unless the court has relieved the agency of this duty under subdivision 5, 
42.4 	paragraph (e).

42.5 	Sec. 10. [260C.30] COMMUNITY RESOURCE CENTERS.
42.6 		Subdivision 1.Definitions. (a) For purposes of this section, the following definitions 
42.7 	apply:
42.8 	(b) "Commissioner" means the commissioner of human services or the commissioner's 
42.9 	designee.
42.10 	(c) "Communities and families furthest from opportunity" means any community or 
42.11 	family that experiences inequities in accessing supports and services due to the community's 
42.12 	or family's circumstances, including but not limited to racism, income, disability, language, 
42.13 	gender, and geography.
42.14 	(d) "Community resource center" means a community-based coordinated point of entry 
42.15 	that provides culturally responsive, relationship-based service navigation and other supportive 
42.16 	services for expecting and parenting families and youth.
42.17 	(e) "Culturally responsive, relationship-based service navigation" means the aiding of 
42.18 	families in finding services and supports that are meaningful to them in ways that are built 
42.19 	on trust and that use cultural values, beliefs, and practices of families, communities, 
42.20 	indigenous families, and Tribal Nations for case planning, service design, and 
42.21 	decision-making processes.
42.22 	(f) "Expecting and parenting family" means any configuration of parents, grandparents, 
42.23 	guardians, foster parents, kinship caregivers, and youth who are pregnant or expecting or 
42.24 	have children and youth they care for and support.
42.25 	(g) "Protective factors" means conditions or attributes of individuals, families, 
42.26 	communities, and society that mitigate risk; that promote the healthy development and 
42.27 	well-being of children, youth, and families; and that are strengths that help buffer and support 
42.28 	families.
42.29 		Subd. 2.Community resource centers established. The commissioner, in consultation 
42.30 	with other state agencies, partners, and the Community Resource Center Advisory Council, 
42.31 	may award grants to support planning, implementation, and evaluation of community 
42.32 	resource centers to provide culturally responsive, relationship-based service navigation, 
42.33 	parent, family, and caregiver supports to expecting and parenting families with a focus on 
43.1 	ensuring equitable access to programs and services that promote protective factors and 
43.2 	support children and families.
43.3 		Subd. 3.Commissioner's duties; related infrastructure. The commissioner, in 
43.4 	consultation with the Community Resource Center Advisory Council, shall:
43.5 	(1) develop a request for proposals to support community resource centers;
43.6 	(2) provide outreach and technical assistance to support applicants with data or other 
43.7 	matters pertaining to equity of access to funding;
43.8 	(3) provide technical assistance to grantees, including but not limited to skill building 
43.9 	and professional development, trainings, evaluations, communities of practice, networking, 
43.10 	and trauma informed mental health consultation;
43.11 	(4) provide data collection and IT support; and
43.12 	(5) provide grant coordination and management focused on promoting equity and 
43.13 	accountability.
43.14 		Subd. 4.Grantee duties. At a minimum, grantees shall:
43.15 	(1) provide culturally responsive, relationship-based service navigation and supports for 
43.16 	expecting and parenting families;
43.17 	(2) improve community engagement and feedback gathering to support continuous 
43.18 	improvement and program planning to better promote protective factors;
43.19 	(3) demonstrate community-based planning with multiple partners;
43.20 	(4) develop or use an existing parent and family advisory council consisting of community 
43.21 	members with lived expertise to advise the work of the grantee; and
43.22 	(5) participate in program evaluation, data collection, and technical assistance activities.
43.23 		Subd. 5.Eligibility. Organizations eligible to receive grant funding under this section 
43.24 	include:
43.25 	(1) community-based organizations, Tribal Nations, urban Indian organizations, local 
43.26 	and county government agencies, schools, nonprofit agencies or any cooperative of these 
43.27 	organizations; and
43.28 	(2) organizations or cooperatives supporting communities and families furthest from 
43.29 	opportunity.
44.1 		Subd. 6.Community Resource Center Advisory Council; establishment and 
44.2 	duties. (a) The commissioner, in consultation with other relevant state agencies, shall appoint 
44.3 	members to the Community Resource Center Advisory Council.
44.4 	(b) Membership must be demographically and geographically diverse and include:
44.5 	(1) parents and family members with lived experience who lack opportunities;
44.6 	(2) community-based organizations serving families who lack opportunities;
44.7 	(3) Tribal and urban American Indian representatives;
44.8 	(4) county government representatives;
44.9 	(5) school and school district representatives; and
44.10 	(6) state partner representatives.
44.11 	(b) Duties of the Community Resource Center Advisory Council include but are not 
44.12 	limited to:
44.13 	(1) advising the commissioner on the development and funding of a network of 
44.14 	community resource centers;
44.15 	(2) advising the commissioner on the development of requests for proposals and grant 
44.16 	award processes;
44.17 	(3) advising the commissioner on the development of program outcomes and 
44.18 	accountability measures; and
44.19 	(4) advising the commissioner on ongoing governance and necessary support in the 
44.20 	implementation of community resource centers.
44.21 		Subd. 7.Grantee reporting. Grantees must report program data and outcomes to the 
44.22 	commissioner in a manner determined by the commissioner and the Community Resource 
44.23 	Center Advisory Council.
44.24 		Subd. 8.Evaluation. The commissioner, in partnership with the Community Resource 
44.25 	Center Advisory Council, shall develop an outcome and evaluation plan. Beginning July 
44.26 	1, 2026, the Community Resource Center Advisory Council must provide a biennial report 
44.27 	to the commissioner and the chairs and ranking minority members of the legislative 
44.28 	committees with jurisdiction over health and human services that reflects the duties of the 
44.29 	Community Resource Center Advisory Council in subdivision 6 and may describe outcomes 
44.30 	and impacts related to equity, community partnerships, program and service availability, 
44.31 	child development, family well-being, and child welfare system involvement.

45.1 	Sec. 11. Minnesota Statutes 2022, section 260C.317, subdivision 3, is amended to read:
45.2 		Subd. 3.Order; retention of jurisdiction. (a) A certified copy of the findings and the 
45.3 	order terminating parental rights, and a summary of the court's information concerning the 
45.4 	child shall be furnished by the court to the commissioner or the agency to which guardianship 
45.5 	is transferred.
45.6 	(b) The orders shall be on a document separate from the findings. The court shall furnish 
45.7 	the guardian a copy of the order terminating parental rights.
45.8 	(c) When the court orders guardianship pursuant to this section, the guardian ad litem 
45.9 	and counsel for the child shall continue on the case until an adoption decree is entered. An 
45.10 	in-court appearance hearing must be held every 90 days following termination of parental 
45.11 	rights for the court to review progress toward an adoptive placement and the specific 
45.12 	recruitment efforts the agency has taken to find an adoptive family for the child and to 
45.13 	finalize the adoption or other permanency plan. Review of the progress toward adoption of 
45.14 	a child under guardianship of the commissioner of human services shall be conducted 
45.15 	according to section 260C.607.
45.16 	(d) Upon terminating parental rights or upon a parent's consent to adoption under 
45.17 	Minnesota Statutes 2010, section 260C.201, subdivision 11, or section 260C.515, subdivision 
45.18 	5 3, resulting in an order for guardianship to the commissioner of human services, the court 
45.19 	shall retain jurisdiction:
45.20 	(1) until the child is adopted;
45.21 	(2) through the child's minority; or
45.22 	(3) as long as the child continues in or reenters foster care, until the individual becomes 
45.23 	21 years of age according to sections 260C.193, subdivision 6, and 260C.451.

45.24 	Sec. 12. Minnesota Statutes 2022, section 260C.451, is amended by adding a subdivision 
45.25 	to read:
45.26 		Subd. 8a.Transition planning. (a) For a youth who will be discharged from foster care 
45.27 	at 21 years of age or older, the responsible social services agency must develop an individual 
45.28 	transition plan as directed by the youth during the 180-day period immediately prior to the 
45.29 	youth's expected date of discharge according to section 260C.452, subdivision 4. The youth's 
45.30 	individual transition plan may be shared with a contracted agency providing case management 
45.31 	services to the youth under section 260C.452.
46.1 	(b) As part of transition planning, the responsible social services agency must inform a 
46.2 	youth preparing to leave extended foster care of the youth's eligibility for the support beyond 
46.3 	21 program under subdivision 8b and must include that program in the individual transition 
46.4 	plan for the eligible youth. Consistent with section 13.46, the local social services agency 
46.5 	or initiative Tribe must refer a youth to the support beyond 21 program by providing the 
46.6 	contracted agency with the youth's contact information.

46.7 	Sec. 13. Minnesota Statutes 2022, section 260C.451, is amended by adding a subdivision 
46.8 	to read:
46.9 		Subd. 8b.Support beyond 21 program. (a) The commissioner shall establish the support 
46.10 	beyond 21 program to provide financial assistance to a youth leaving foster care to help 
46.11 	ensure that the youth's basic needs are met as the youth transitions into adulthood.
46.12 	(b) An individual who has left extended foster care and was discharged at the age of 21 
46.13 	under subdivision 3 is eligible for the support beyond 21 program.
46.14 	(c) An eligible youth receiving benefits under the support beyond 21 program is also 
46.15 	eligible for the successful transition to adulthood program under section 260C.452.
46.16 	(d) A youth who transitions to adult residential services under section 256B.092 or 
46.17 	256B.49 or a youth in a correctional facility licensed under section 241.021 is not eligible 
46.18 	for the support beyond 21 program.
46.19 	(e) To the extent that money is available under section 256.4792, an eligible youth who 
46.20 	participates in the support beyond 21 program must receive monthly financial assistance 
46.21 	for 12 months after the youth is discharged from extended foster care under subdivision 3. 
46.22 	The money is available to assist the youth in meeting basic well-being and housing needs 
46.23 	as determined solely by the youth. A grantee must reduce monthly payments quarterly. 
46.24 	Payments must be made by a grantee according to the requirements of section 256.4792, 
46.25 	and a list of counties that failed to provide complete information and data to the commissioner 
46.26 	or the commissioner's designee under paragraph (d).

46.27 	Sec. 14. Minnesota Statutes 2022, section 260C.704, is amended to read:
46.28 	260C.704 REQUIREMENTS FOR THE QUALIFIED INDIVIDUAL'S 
46.29 	ASSESSMENT OF THE CHILD FOR PLACEMENT IN A QUALIFIED 
46.30 	RESIDENTIAL TREATMENT PROGRAM.
46.31 	(a) A qualified individual must complete an assessment of the child prior to the child's 
46.32 	placement in a qualified residential treatment program in a format approved by the 
47.1 	commissioner of human services unless, due to a crisis, the child must immediately be 
47.2 	placed in a qualified residential treatment program. When a child must immediately be 
47.3 	placed in a qualified residential treatment program without an assessment, the qualified 
47.4 	individual must complete the child's assessment within 30 days of the child's placement. 
47.5 	The qualified individual must:
47.6 	(1) assess the child's needs and strengths, using an age-appropriate, evidence-based, 
47.7 	validated, functional assessment approved by the commissioner of human services;
47.8 	(2) determine whether the child's needs can be met by the child's family members or 
47.9 	through placement in a family foster home; or, if not, determine which residential setting 
47.10 	would provide the child with the most effective and appropriate level of care to the child 
47.11 	in the least restrictive environment;
47.12 	(3) develop a list of short- and long-term mental and behavioral health goals for the 
47.13 	child; and
47.14 	(4) work with the child's family and permanency team using culturally competent 
47.15 	practices.
47.16 	If a level of care determination was conducted under section 245.4885, that information 
47.17 	must be shared with the qualified individual and the juvenile treatment screening team.
47.18 	(b) The child and the child's parents, when appropriate, may request that a specific 
47.19 	culturally competent qualified individual complete the child's assessment. The agency shall 
47.20 	make efforts to refer the child to the identified qualified individual to complete the 
47.21 	assessment. The assessment must not be delayed for a specific qualified individual to 
47.22 	complete the assessment.
47.23 	(c) The qualified individual must provide the assessment, when complete, to the 
47.24 	responsible social services agency. If the assessment recommends placement of the child 
47.25 	in a qualified residential treatment facility, the agency must distribute the assessment to the 
47.26 	child's parent or legal guardian and file the assessment with the court report as required in 
47.27 	section 260C.71, subdivision 2. If the assessment does not recommend placement in a 
47.28 	qualified residential treatment facility, the agency must provide a copy of the assessment 
47.29 	to the parents or legal guardians and the guardian ad litem and file the assessment 
47.30 	determination with the court at the next required hearing as required in section 260C.71, 
47.31 	subdivision 5. If court rules and chapter 13 permit disclosure of the results of the child's 
47.32 	assessment, the agency may share the results of the child's assessment with the child's foster 
47.33 	care provider, other members of the child's family, and the family and permanency team. 
47.34 	The agency must not share the child's private medical data with the family and permanency 
48.1 	team unless: (1) chapter 13 permits the agency to disclose the child's private medical data 
48.2 	to the family and permanency team; or (2) the child's parent has authorized the agency to 
48.3 	disclose the child's private medical data to the family and permanency team.
48.4 	(d) For an Indian child, the assessment of the child must follow the order of placement 
48.5 	preferences in the Indian Child Welfare Act of 1978, United States Code, title 25, section 
48.6 	1915.
48.7 	(e) In the assessment determination, the qualified individual must specify in writing:
48.8 	(1) the reasons why the child's needs cannot be met by the child's family or in a family 
48.9 	foster home. A shortage of family foster homes is not an acceptable reason for determining 
48.10 	that a family foster home cannot meet a child's needs;
48.11 	(2) why the recommended placement in a qualified residential treatment program will 
48.12 	provide the child with the most effective and appropriate level of care to meet the child's 
48.13 	needs in the least restrictive environment possible and how placing the child at the treatment 
48.14 	program is consistent with the short-term and long-term goals of the child's permanency 
48.15 	plan; and
48.16 	(3) if the qualified individual's placement recommendation is not the placement setting 
48.17 	that the parent, family and permanency team, child, or tribe prefer, the qualified individual 
48.18 	must identify the reasons why the qualified individual does not recommend the parent's, 
48.19 	family and permanency team's, child's, or tribe's placement preferences. The out-of-home 
48.20 	placement plan under section 260C.708 must also include reasons why the qualified 
48.21 	individual did not recommend the preferences of the parents, family and permanency team, 
48.22 	child, or tribe.
48.23 	(f) If the qualified individual determines that the child's family or a family foster home 
48.24 	or other less restrictive placement may meet the child's needs, the agency must move the 
48.25 	child out of the qualified residential treatment program and transition the child to a less 
48.26 	restrictive setting within 30 days of the determination. If the responsible social services 
48.27 	agency has placement authority of the child, the agency must make a plan for the child's 
48.28 	placement according to section 260C.212, subdivision 2. The agency must file the child's 
48.29 	assessment determination with the court at the next required hearing.
48.30 	(g) If the qualified individual recommends placing the child in a qualified residential 
48.31 	treatment program and if the responsible social services agency has placement authority of 
48.32 	the child, the agency shall make referrals to appropriate qualified residential treatment 
48.33 	programs and, upon acceptance by an appropriate program, place the child in an approved 
48.34 	or certified qualified residential treatment program.
49.1 	(h) The commissioner shall establish a review process for a qualified individual's 
49.2 	completed assessment of a child. The commissioner must develop the review process with 
49.3 	county and Tribal agency representatives. The review process must ensure that the qualified 
49.4 	individual's assessment is an independent, objective assessment that recommends the least 
49.5 	restrictive setting to meet the child's needs.

49.6 	Sec. 15. Minnesota Statutes 2022, section 260C.708, is amended to read:
49.7 	260C.708 OUT-OF-HOME PLACEMENT PLAN FOR QUALIFIED 
49.8 	RESIDENTIAL TREATMENT PROGRAM PLACEMENTS.
49.9 	(a) When the responsible social services agency places a child in a qualified residential 
49.10 	treatment program as defined in section 260C.007, subdivision 26d, the out-of-home 
49.11 	placement plan must include:
49.12 	(1) the case plan requirements in section 260C.212;
49.13 	(2) the reasonable and good faith efforts of the responsible social services agency to 
49.14 	identify and include all of the individuals required to be on the child's family and permanency 
49.15 	team under section 260C.007;
49.16 	(3) all contact information for members of the child's family and permanency team and 
49.17 	for other relatives who are not part of the family and permanency team;
49.18 	(4) evidence that the agency scheduled meetings of the family and permanency team, 
49.19 	including meetings relating to the assessment required under section 260C.704, at a time 
49.20 	and place convenient for the family;
49.21 	(5) evidence that the family and permanency team is involved in the assessment required 
49.22 	under section 260C.704 to determine the appropriateness of the child's placement in a 
49.23 	qualified residential treatment program;
49.24 	(6) the family and permanency team's placement preferences for the child in the 
49.25 	assessment required under section 260C.704. When making a decision about the child's 
49.26 	placement preferences, the family and permanency team must recognize:
49.27 	(i) that the agency should place a child with the child's siblings unless a court finds that 
49.28 	placing a child with the child's siblings is not possible due to a child's specialized placement 
49.29 	needs or is otherwise contrary to the child's best interests; and
49.30 	(ii) that the agency should place an Indian child according to the requirements of the 
49.31 	Indian Child Welfare Act, the Minnesota Family Preservation Act under sections 260.751 
49.32 	to 260.835, and section 260C.193, subdivision 3, paragraph (g);
50.1 	(7) when reunification of the child with the child's parent or legal guardian is the agency's 
50.2 	goal, evidence demonstrating that the parent or legal guardian provided input about the 
50.3 	members of the family and permanency team under section 260C.706;
50.4 	(8) when the agency's permanency goal is to reunify the child with the child's parent or 
50.5 	legal guardian, the out-of-home placement plan must identify services and supports that 
50.6 	maintain the parent-child relationship and the parent's legal authority, decision-making, and 
50.7 	responsibility for ongoing planning for the child. In addition, the agency must assist the 
50.8 	parent with visiting and contacting the child;
50.9 	(9) when the agency's permanency goal is to transfer permanent legal and physical 
50.10 	custody of the child to a proposed guardian or to finalize the child's adoption, the case plan 
50.11 	must document the agency's steps to transfer permanent legal and physical custody of the 
50.12 	child or finalize adoption, as required in section 260C.212, subdivision 1, paragraph (c), 
50.13 	clauses (6) and (7); and
50.14 	(10) the qualified individual's recommendation regarding the child's placement in a 
50.15 	qualified residential treatment program and the court approval or disapproval of the placement 
50.16 	as required in section 260C.71.
50.17 	(b) If the placement preferences of the family and permanency team, child, and tribe, if 
50.18 	applicable, are not consistent with the placement setting that the qualified individual 
50.19 	recommends, the case plan must include the reasons why the qualified individual did not 
50.20 	recommend following the preferences of the family and permanency team, child, and the 
50.21 	tribe.
50.22 	(c) The agency must file the out-of-home placement plan with the court as part of the 
50.23 	60-day court order under section 260C.71.
50.24 	(d) The agency must provide aftercare services as defined by the federal Family First 
50.25 	Prevention Services Act to the child for the six months following discharge from the qualified 
50.26 	residential treatment program. The services may include clinical care consultation, as defined 
50.27 	in section 256B.0671, subdivision 7, and family and youth peer specialists under section 
50.28 	256B.0616.

50.29 	Sec. 16. Minnesota Statutes 2022, section 260C.80, subdivision 1, is amended to read:
50.30 		Subdivision 1.Office of the Foster Youth Ombudsperson. The Office of the Foster 
50.31 	Youth Ombudsperson is hereby created. The ombudsperson serves at the pleasure of the
50.32 	governor in the unclassified service, must be selected without regard to political affiliation, 
50.33 	and must be a person highly competent and qualified to work to improve the lives of youth 
51.1 	in the foster care system, while understanding the administration and public policy related 
51.2 	to youth in the foster care system. The ombudsperson may be removed only for just cause. 
51.3 	No person may serve as the foster youth ombudsperson while holding any other public 
51.4 	office. The foster youth ombudsperson is accountable to the governor and may investigate 
51.5 	decisions, acts, and other matters related to the health, safety, and welfare of youth in foster 
51.6 	care to promote the highest attainable standards of competence, efficiency, and justice for 
51.7 	youth who are in the care of the state.

51.8 	Sec. 17. Minnesota Statutes 2022, section 260E.01, is amended to read:
51.9 	260E.01 POLICY.
51.10 	(a) The legislature hereby declares that the public policy of this state is to protect children 
51.11 	whose health or welfare may be jeopardized through maltreatment. While it is recognized 
51.12 	that most parents want to keep their children safe, sometimes circumstances or conditions 
51.13 	interfere with their ability to do so. When this occurs, the health and safety of the children 
51.14 	must be of paramount concern. Intervention and prevention efforts must address immediate 
51.15 	concerns for child safety and the ongoing risk of maltreatment and should engage the 
51.16 	protective capacities of families. In furtherance of this public policy, it is the intent of the 
51.17 	legislature under this chapter to:
51.18 	(1) protect children and promote child safety;
51.19 	(2) strengthen the family;
51.20 	(3) make the home, school, and community safe for children by promoting responsible 
51.21 	child care in all settings, including through the reporting of child maltreatment; and
51.22 	(4) provide protective, family support, and family preservation services when appropriate; 
51.23 	and
51.24 	(4) (5) provide, when necessary, a safe temporary or permanent home environment for 
51.25 	maltreated children.
51.26 	(b) In addition, it is the policy of this state to:
51.27 	(1) require the reporting of maltreatment of children in the home, school, and community 
51.28 	settings;
51.29 	(2) provide for the voluntary reporting of maltreatment of children;
51.30 	(3) require an investigation when the report alleges sexual abuse or substantial child 
51.31 	endangerment;
52.1 	(4) provide a family assessment, if appropriate, when the report does not allege sexual 
52.2 	abuse or substantial child endangerment; and
52.3 	(5) provide protective, family support, and family preservation services when needed 
52.4 	in appropriate cases.

52.5 	Sec. 18. Minnesota Statutes 2022, section 260E.02, subdivision 1, is amended to read:
52.6 		Subdivision 1.Establishment of team. A county shall establish a multidisciplinary 
52.7 	child protection team that may include, but is not be limited to, the director of the local 
52.8 	welfare agency or designees, the county attorney or designees, the county sheriff or designees, 
52.9 	representatives of health and education, representatives of mental health, representatives of 
52.10 	agencies providing specialized services or responding to youth who experience or are at 
52.11 	risk of experiencing sex trafficking or sexual exploitation, or other appropriate human 
52.12 	services or community-based agencies, and parent groups. As used in this section, a 
52.13 	"community-based agency" may include, but is not limited to, schools, social services 
52.14 	agencies, family service and mental health collaboratives, children's advocacy centers, early 
52.15 	childhood and family education programs, Head Start, or other agencies serving children 
52.16 	and families. A member of the team must be designated as the lead person of the team 
52.17 	responsible for the planning process to develop standards for the team's activities with 
52.18 	battered women's and domestic abuse programs and services.

52.19 	Sec. 19. Minnesota Statutes 2022, section 260E.03, is amended by adding a subdivision 
52.20 	to read:
52.21 		Subd. 15a.Noncaregiver sex trafficker. "Noncaregiver sex trafficker" means an 
52.22 	individual who is alleged to have engaged in the act of sex trafficking a child and who is 
52.23 	not a person responsible for the child's care, who does not have a significant relationship 
52.24 	with the child as defined in section 609.341, and who is not a person in a current or recent 
52.25 	position of authority as defined in section 609.341, subdivision 10.

52.26 	EFFECTIVE DATE. This section is effective July 1, 2024.

52.27 	Sec. 20. Minnesota Statutes 2022, section 260E.03, is amended by adding a subdivision 
52.28 	to read:
52.29 		Subd. 15b.Noncaregiver sex trafficking assessment. "Noncaregiver sex trafficking 
52.30 	assessment" is a comprehensive assessment of child safety, the risk of subsequent child 
52.31 	maltreatment, and strengths and needs of the child and family. The local welfare agency 
52.32 	shall only perform a noncaregiver sex trafficking assessment when a maltreatment report 
53.1 	alleges sex trafficking of a child by someone other than the child's caregiver. A noncaregiver 
53.2 	sex trafficking assessment does not include a determination of whether child maltreatment 
53.3 	occurred. A noncaregiver sex trafficking assessment includes a determination of a family's 
53.4 	need for services to address the safety of the child or children, the safety of family members, 
53.5 	and the risk of subsequent child maltreatment.

53.6 	EFFECTIVE DATE. This section is effective July 1, 2024.

53.7 	Sec. 21. Minnesota Statutes 2022, section 260E.03, subdivision 22, is amended to read:
53.8 		Subd. 22.Substantial child endangerment. "Substantial child endangerment" means 
53.9 	that a person responsible for a child's care, by act or omission, commits or attempts to 
53.10 	commit an act against a child under their in the person's care that constitutes any of the 
53.11 	following:
53.12 	(1) egregious harm under subdivision 5;
53.13 	(2) abandonment under section 260C.301, subdivision 2;
53.14 	(3) neglect under subdivision 15, paragraph (a), clause (2), that substantially endangers 
53.15 	the child's physical or mental health, including a growth delay, which may be referred to 
53.16 	as failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
53.17 	(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;
53.18 	(5) manslaughter in the first or second degree under section 609.20 or 609.205;
53.19 	(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;
53.20 	(7) sex trafficking, solicitation, inducement, and or promotion of prostitution under 
53.21 	section 609.322;
53.22 	(8) criminal sexual conduct under sections 609.342 to 609.3451;
53.23 	(9) sexual extortion under section 609.3458;
53.24 	(10) solicitation of children to engage in sexual conduct under section 609.352;
53.25 	(11) malicious punishment or neglect or endangerment of a child under section 609.377 
53.26 	or 609.378;
53.27 	(12) use of a minor in sexual performance under section 617.246; or
53.28 	(13) parental behavior, status, or condition that mandates that requiring the county 
53.29 	attorney to file a termination of parental rights petition under section 260C.503, subdivision 
53.30 	2.

54.1 	Sec. 22. Minnesota Statutes 2022, section 260E.14, subdivision 2, is amended to read:
54.2 		Subd. 2.Sexual abuse. (a) The local welfare agency is the agency responsible for 
54.3 	investigating an allegation of sexual abuse if the alleged offender is the parent, guardian, 
54.4 	sibling, or an individual functioning within the family unit as a person responsible for the 
54.5 	child's care, or a person with a significant relationship to the child if that person resides in 
54.6 	the child's household.
54.7 	(b) The local welfare agency is also responsible for assessing or investigating when a 
54.8 	child is identified as a victim of sex trafficking.

54.9 	EFFECTIVE DATE. This section is effective July 1, 2024.

54.10 	Sec. 23. Minnesota Statutes 2022, section 260E.14, subdivision 5, is amended to read:
54.11 		Subd. 5.Law enforcement. (a) The local law enforcement agency is the agency 
54.12 	responsible for investigating a report of maltreatment if a violation of a criminal statute is 
54.13 	alleged.
54.14 	(b) Law enforcement and the responsible agency must coordinate their investigations 
54.15 	or assessments as required under this chapter when the: (1) a report alleges maltreatment 
54.16 	that is a violation of a criminal statute by a person who is a parent, guardian, sibling, person 
54.17 	responsible for the child's care functioning within the family unit, or by a person who lives 
54.18 	in the child's household and who has a significant relationship to the child, in a setting other 
54.19 	than a facility as defined in section 260E.03; or (2) a report alleges sex trafficking of a child.

54.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

54.21 	Sec. 24. Minnesota Statutes 2022, section 260E.17, subdivision 1, is amended to read:
54.22 		Subdivision 1.Local welfare agency. (a) Upon receipt of a report, the local welfare 
54.23 	agency shall determine whether to conduct a family assessment or, an investigation, or a 
54.24 	noncaregiver sex trafficking assessment as appropriate to prevent or provide a remedy for 
54.25 	maltreatment.
54.26 	(b) The local welfare agency shall conduct an investigation when the report involves 
54.27 	sexual abuse, except as indicated in paragraph (f), or substantial child endangerment.
54.28 	(c) The local welfare agency shall begin an immediate investigation if, at any time when 
54.29 	the local welfare agency is using responding with a family assessment response, and the 
54.30 	local welfare agency determines that there is reason to believe that sexual abuse or, substantial 
54.31 	child endangerment, or a serious threat to the child's safety exists.
55.1 	(d) The local welfare agency may conduct a family assessment for reports that do not 
55.2 	allege sexual abuse, except as indicated in paragraph (f), or substantial child endangerment. 
55.3 	In determining that a family assessment is appropriate, the local welfare agency may consider 
55.4 	issues of child safety, parental cooperation, and the need for an immediate response.
55.5 	(e) The local welfare agency may conduct a family assessment on for a report that was 
55.6 	initially screened and assigned for an investigation. In determining that a complete 
55.7 	investigation is not required, the local welfare agency must document the reason for 
55.8 	terminating the investigation and notify the local law enforcement agency if the local law 
55.9 	enforcement agency is conducting a joint investigation.
55.10 	(f) The local welfare agency shall conduct a noncaregiver sex trafficking assessment 
55.11 	when a maltreatment report alleges sex trafficking of a child and the alleged offender is a 
55.12 	noncaregiver sex trafficker as defined by section 260E.03, subdivision 15a.
55.13 	(g) During a noncaregiver sex trafficking assessment, the local welfare agency shall 
55.14 	initiate an immediate investigation if there is reason to believe that a child's parent, caregiver, 
55.15 	or household member allegedly engaged in the act of sex trafficking a child or was alleged 
55.16 	to have engaged in any conduct requiring the agency to conduct an investigation.

55.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

55.18 	Sec. 25. Minnesota Statutes 2022, section 260E.18, is amended to read:
55.19 	260E.18 NOTICE TO CHILD'S TRIBE.
55.20 	The local welfare agency shall provide immediate notice, according to section 260.761, 
55.21 	subdivision 2, to an Indian child's tribe when the agency has reason to believe that the family 
55.22 	assessment or, investigation, or noncaregiver sex trafficking assessment may involve an 
55.23 	Indian child. For purposes of this section, "immediate notice" means notice provided within 
55.24 	24 hours.

55.25 	EFFECTIVE DATE. This section is effective July 1, 2024.

55.26 	Sec. 26. Minnesota Statutes 2022, section 260E.20, subdivision 2, is amended to read:
55.27 		Subd. 2.Face-to-face contact. (a) Upon receipt of a screened in report, the local welfare 
55.28 	agency shall conduct a have face-to-face contact with the child reported to be maltreated 
55.29 	and with the child's primary caregiver sufficient to complete a safety assessment and ensure 
55.30 	the immediate safety of the child. When it is possible and the report alleges substantial child 
55.31 	endangerment or sexual abuse, the local welfare agency is not required to provide notice 
56.1 	before conducting the initial face-to-face contact with the child and the child's primary 
56.2 	caregiver.
56.3 	(b) Except in a noncaregiver sex trafficking assessment, the local welfare agency shall 
56.4 	have face-to-face contact with the child and primary caregiver shall occur immediately after 
56.5 	the agency screens in a report if sexual abuse or substantial child endangerment is alleged 
56.6 	and within five calendar days of a screened in report for all other reports. If the alleged 
56.7 	offender was not already interviewed as the primary caregiver, the local welfare agency 
56.8 	shall also conduct a face-to-face interview with the alleged offender in the early stages of 
56.9 	the assessment or investigation, except in a noncaregiver sex trafficking assessment. 
56.10 	Face-to-face contact with the child and primary caregiver in response to a report alleging 
56.11 	sexual abuse or substantial child endangerment may be postponed for no more than five 
56.12 	calendar days if the child is residing in a location that is confirmed to restrict contact with 
56.13 	the alleged offender as established in guidelines issued by the commissioner, or if the local 
56.14 	welfare agency is pursuing a court order for the child's caregiver to produce the child for 
56.15 	questioning under section 260E.22, subdivision 5.
56.16 	(c) At the initial contact with the alleged offender, the local welfare agency or the agency 
56.17 	responsible for assessing or investigating the report must inform the alleged offender of the 
56.18 	complaints or allegations made against the individual in a manner consistent with laws 
56.19 	protecting the rights of the person who made the report. The interview with the alleged 
56.20 	offender may be postponed if it would jeopardize an active law enforcement investigation.
56.21 	In a noncaregiver sex trafficking assessment, the local child welfare agency is not required 
56.22 	to inform or interview the alleged offender.
56.23 	(d) The local welfare agency or the agency responsible for assessing or investigating 
56.24 	the report must provide the alleged offender with an opportunity to make a statement, except 
56.25 	in a noncaregiver sex trafficking assessment. The alleged offender may submit supporting 
56.26 	documentation relevant to the assessment or investigation.

56.27 	EFFECTIVE DATE. This section is effective July 1, 2024.

56.28 	Sec. 27. Minnesota Statutes 2022, section 260E.24, subdivision 2, is amended to read:
56.29 		Subd. 2.Determination after family assessment or a noncaregiver sex trafficking 
56.30 	assessment. After conducting a family assessment or a noncaregiver sex trafficking 
56.31 	assessment, the local welfare agency shall determine whether child protective services are 
56.32 	needed to address the safety of the child and other family members and the risk of subsequent 
56.33 	maltreatment. The local welfare agency must document the information collected under 
57.1 	section 260E.20, subdivision 3, related to the completed family assessment in the child's or 
57.2 	family's case notes.

57.3 	EFFECTIVE DATE. This section is effective July 1, 2024.

57.4 	Sec. 28. Minnesota Statutes 2022, section 260E.24, subdivision 7, is amended to read:
57.5 		Subd. 7.Notification at conclusion of family assessment or a noncaregiver sex 
57.6 	trafficking assessment. Within ten working days of the conclusion of a family assessment
57.7 	or a noncaregiver sex trafficking assessment, the local welfare agency shall notify the parent 
57.8 	or guardian of the child of the need for services to address child safety concerns or significant 
57.9 	risk of subsequent maltreatment. The local welfare agency and the family may also jointly 
57.10 	agree that family support and family preservation services are needed.

57.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

57.12 	Sec. 29. Minnesota Statutes 2022, section 260E.33, subdivision 1, is amended to read:
57.13 		Subdivision 1.Following a family assessment or a noncaregiver sex trafficking 
57.14 	assessment. Administrative reconsideration is not applicable to a family assessment or 
57.15 	noncaregiver sex trafficking assessment since no determination concerning maltreatment 
57.16 	is made.

57.17 	EFFECTIVE DATE. This section is effective July 1, 2024.

57.18 	Sec. 30. Minnesota Statutes 2022, section 260E.35, subdivision 6, is amended to read:
57.19 		Subd. 6.Data retention. (a) Notwithstanding sections 138.163 and 138.17, a record 
57.20 	maintained or a record derived from a report of maltreatment by a local welfare agency, 
57.21 	agency responsible for assessing or investigating the report, court services agency, or school 
57.22 	under this chapter shall be destroyed as provided in paragraphs (b) to (e) by the responsible 
57.23 	authority.
57.24 	(b) For a report alleging maltreatment that was not accepted for an assessment or an 
57.25 	investigation, a family assessment case, a noncaregiver sex trafficking assessment case, and 
57.26 	a case where an investigation results in no determination of maltreatment or the need for 
57.27 	child protective services, the record must be maintained for a period of five years after the 
57.28 	date that the report was not accepted for assessment or investigation or the date of the final 
57.29 	entry in the case record. A record of a report that was not accepted must contain sufficient 
57.30 	information to identify the subjects of the report, the nature of the alleged maltreatment, 
57.31 	and the reasons as to why the report was not accepted. Records under this paragraph may 
58.1 	not be used for employment, background checks, or purposes other than to assist in future 
58.2 	screening decisions and risk and safety assessments.
58.3 	(c) All records relating to reports that, upon investigation, indicate either maltreatment 
58.4 	or a need for child protective services shall be maintained for ten years after the date of the 
58.5 	final entry in the case record.
58.6 	(d) All records regarding a report of maltreatment, including a notification of intent to 
58.7 	interview that was received by a school under section 260E.22, subdivision 7, shall be 
58.8 	destroyed by the school when ordered to do so by the agency conducting the assessment or 
58.9 	investigation. The agency shall order the destruction of the notification when other records 
58.10 	relating to the report under investigation or assessment are destroyed under this subdivision.
58.11 	(e) Private or confidential data released to a court services agency under subdivision 3, 
58.12 	paragraph (d), must be destroyed by the court services agency when ordered to do so by the 
58.13 	local welfare agency that released the data. The local welfare agency or agency responsible 
58.14 	for assessing or investigating the report shall order destruction of the data when other records 
58.15 	relating to the assessment or investigation are destroyed under this subdivision.

58.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

58.17 	Sec. 31. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; FOSTER 
58.18 	CARE FEDERAL CASH ASSISTANCE BENEFITS PRESERVATION.
 58.19 	(a) The commissioner of human services must develop a plan to preserve and make 
58.20 	available the income and resources attributable to a child in foster care to meet the best 
58.21 	interests of the child. The plan must include recommendations on:
58.22 	(1) policies for youth and caregiver access to preserved federal cash assistance benefit 
58.23 	payments;
58.24 	(2) representative payees for children in voluntary foster care for treatment pursuant to 
58.25 	Minnesota Statutes, chapter 260D; and
58.26 	(3) family preservation and reunification.
58.27 	(b) For purposes of this section, "income and resources attributed to a child" means all 
58.28 	benefits from programs administered by the Social Security Administration, including but 
58.29 	not limited to retirement, survivors benefits, disability insurance programs, Supplemental 
58.30 	Security Income, veterans benefits, and railroad retirement benefits.
58.31 	(c) When developing the plan under this section, the commissioner shall consult or 
58.32 	engage with:
59.1 	(1) individuals or entities with experience in managing trusts and investment;
59.2 	(2) individuals or entities with expertise in providing tax advice;
59.3 	(3) individuals or entities with expertise in preserving assets to avoid any negative impact 
59.4 	on public assistance eligibility;
59.5 	(4) other relevant state agencies;
59.6 	(5) Tribal social services agencies;
59.7 	(6) counties;
59.8 	(7) the Children's Justice Initiative;
59.9 	(8) organizations that serve and advocate for children and families in the child protection 
59.10 	system;
59.11 	(9) parents, legal custodians, foster families, and kinship caregivers, to the extent possible;
59.12 	(10) youth who have been or are currently in out-of-home placement; and
59.13 	(11) other relevant stakeholders.
59.14 	(d) By December 15, 2023, each county shall provide the following data for fiscal years 
59.15 	2018 and 2021 to the commissioner or the commissioner's designee in a form prescribed 
59.16 	by the commissioner:
59.17 	(1) the nonduplicated number of children in foster care in the county who received 
59.18 	income and resources attributable to a child as defined in paragraph (b);
59.19 	(2) the number of children for whom the county was the representative payee for income 
59.20 	and resources attributable to a child;
59.21 	(3) the amount of money that the county received from income and resources attributable 
59.22 	to children in out-of-home placement for whom the county served as the representative 
59.23 	payee;
59.24 	(4) the county's policies and standards regarding collection and use of this money, 
59.25 	including:
59.26 	(i) how long after a child is in out-of-home placement does the county agency become 
59.27 	the representative payee;
59.28 	(ii) the disposition of any money that exceeds the costs for out-of-home placement for 
59.29 	a child;
60.1 	(iii) how the county complies with federal reporting requirements related to the use of 
60.2 	income and resources attributable to a child;
60.3 	(iv) whether the county uses income and resources attributable to a child for out-of-home 
60.4 	placement costs for other children who do not receive federal cash assistance benefit 
60.5 	payments; and
60.6 	(v) whether the county seeks repayment of federal income and resources attributable to 
60.7 	a child from the child's parents, who may have received such payments or resources while 
60.8 	the child is in out-of-home placement, and the ratio of requests for repayment to money 
60.9 	collected on an annual basis; and
60.10 	(5) other information as determined by the commissioner.
60.11 	(e) By January 15, 2025, the commissioner shall submit a report to the chairs and ranking 
60.12 	minority members of the legislative committees with jurisdiction over human services and 
60.13 	child welfare outlining the plan developed under this section. The report must include a 
60.14 	projected timeline for implementing the plan, estimated implementation costs, and any 
60.15 	legislative actions that may be required to implement the plan. The report must also include 
60.16 	data provided by counties related to the requirements for the parent or custodian of a child 
60.17 	to reimburse a county for the cost of care, examination, or treatment in subdivision (f), and 
60.18 	a list of counties that failed to provide complete information and data to the commissioner 
60.19 	or the commissioner's designee as required under paragraph (d).
60.20 	(f) By December 15, 2023, every county shall provide the commissioner of human 
60.21 	services with the following data from fiscal years 2018 and 2021 in a form prescribed by 
60.22 	the commissioner:
60.23 	(1) the nonduplicated number of cases in which the county received payments from a 
60.24 	parent or custodian of a child to reimburse the cost of care, examination, or treatment; and
60.25 	(2) the total amount in payments that the county collected from a parent or custodian of 
60.26 	a child to reimburse the cost of care, examination or treatment.
60.27 	(g) The commissioner may contract with an individual or entity to collect and analyze 
60.28 	financial data reported by counties in paragraphs (d) and (f).

60.29 	Sec. 32. DIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; CHILD 
60.30 	PROTECTION INFORMATION TECHNOLOGY SYSTEM REVIEW.
 60.31 	(a) The commissioner of human services must contract with an independent consultant 
60.32 	to perform a thorough evaluation of the social services information system (SSIS) that 
61.1 	supports the child protection system in Minnesota. The consultant must make 
61.2 	recommendations for improving the current system for usability, system performance, and 
61.3 	federal Comprehensive Child Welfare Information System compliance, and must address 
61.4 	technical problems and identify any unnecessary or unduly burdensome data entry 
61.5 	requirements that have contributed to system capacity issues. The consultant must assist 
61.6 	the commissioner with selecting a platform for future development of an information 
61.7 	technology system for child protection.
61.8 	(b) The commissioner of human services must conduct a study and develop 
61.9 	recommendations to streamline and reduce SSIS data entry requirements for child protection 
61.10 	cases. The study must be completed in partnership with local social services agencies and 
61.11 	other entities, as determined by the commissioner. By June 30, 2024, the commissioner 
61.12 	must provide a status report to the chairs and ranking minority members of the legislative 
61.13 	committees with jurisdiction over child protection. The status report must include information 
61.14 	about the procedures used for soliciting ongoing user input from stakeholders, progress 
61.15 	made on soliciting and hiring a consultant to conduct the system evaluation required under 
61.16 	paragraph (a), and a report on progress and completed efforts to streamline data entry 
61.17 	requirements and improve user experiences.

61.18 	Sec. 33. INDEPENDENT LIVING SKILLS FOR FOSTER YOUTH GRANTS.
61.19 		Subdivision 1.Program established. The commissioner shall establish direct grants to 
61.20 	local social service agencies, Tribes, and other organizations to provide independent living 
61.21 	services to eligible foster youth as described under Minnesota Statutes, section 260C.452.
61.22 		Subd. 2.Grant awards. The commissioner shall request proposals and make grants to 
61.23 	eligible applicants. The commissioner shall determine the timing and form of the application 
61.24 	and the criteria for making grant awards to eligible applicants.
61.25 		Subd. 3.Program reporting. Grant recipients shall provide the commissioner with a 
61.26 	report that describes all of the activities and outcomes of services funded by the grant 
61.27 	program in a format and at a time determined by the commissioner.
61.28 		Subd. 4.Undistributed funds. Undistributed funds must be reallocated by the 
61.29 	commissioner for the goals of the grant program. Undistributed funds are available until 
61.30 	expended.

62.1 	Sec. 34. INFORMAL KINSHIP CAREGIVER SUPPORT GRANT PROGRAM.
62.2 		Subdivision 1.Establishment. The informal caregiver support grant program is 
62.3 	established in the Department of Human Services for an eligible community-based nonprofit 
62.4 	organization to provide informal kinship caregivers, not restricted to familial status, with 
62.5 	connection to local and statewide resources and support that reduces the need for child 
62.6 	welfare involvement or risk of child welfare involvement.
62.7 		Subd. 2.Eligible grantees. Eligible grantees are community-based nonprofit 
62.8 	organizations with a demonstrated history of kinship caregiver support, ability to increase 
62.9 	capacity of caregivers served, and ability to serve racially and geographically diverse 
62.10 	populations. Grantees shall be capable of developing informal kinship caregiver support in 
62.11 	alignment with a consistent set of replicable standards.
62.12 		Subd. 3.Allowable uses of funds. Eligible grantees must use funds to assess informal 
62.13 	kinship caregiver and child needs, provide connection to local and statewide resources, 
62.14 	provide case management to assist with complex cases, and provide supports to reduce the 
62.15 	need for child welfare involvement or risk of child welfare involvement.

62.16 	ARTICLE 3
62.17 	CHILD SUPPORT

62.18 	Section 1. Minnesota Statutes 2022, section 518A.31, is amended to read:
62.19 	518A.31 SOCIAL SECURITY OR VETERANS' BENEFIT PAYMENTS 
62.20 	RECEIVED ON BEHALF OF THE CHILD.
62.21 	(a) The amount of the monthly Social Security benefits or apportioned veterans' benefits 
62.22 	provided for a joint child shall be included in the gross income of the parent on whose 
62.23 	eligibility the benefits are based.
62.24 	(b) The amount of the monthly survivors' and dependents' educational assistance provided 
62.25 	for a joint child shall be included in the gross income of the parent on whose eligibility the 
62.26 	benefits are based.
62.27 	(c) If Social Security or apportioned veterans' benefits are provided for a joint child 
62.28 	based on the eligibility of the obligor, and are received by the obligee as a representative 
62.29 	payee for the child or by the child attending school, then the amount of the benefits shall 
62.30 	also be subtracted from the obligor's net child support obligation as calculated pursuant to 
62.31 	section 518A.34.
63.1 	(d) If the survivors' and dependents' educational assistance is provided for a joint child 
63.2 	based on the eligibility of the obligor, and is received by the obligee as a representative 
63.3 	payee for the child or by the child attending school, then the amount of the assistance shall 
63.4 	also be subtracted from the obligor's net child support obligation as calculated under section 
63.5 	518A.34.
63.6 	(e) Upon a motion to modify child support, any regular or lump sum payment of Social 
63.7 	Security or apportioned veterans' benefit received by the obligee for the benefit of the joint 
63.8 	child based upon the obligor's disability prior to filing the motion to modify may be used 
63.9 	to satisfy arrears that remain due for the period of time for which the benefit was received. 
63.10 	This paragraph applies only if the derivative benefit was not considered in the guidelines 
63.11 	calculation of the previous child support order.

63.12 	EFFECTIVE DATE. This section is effective January 1, 2025.

63.13 	Sec. 2. Minnesota Statutes 2022, section 518A.32, subdivision 3, is amended to read:
63.14 		Subd. 3.Parent not considered voluntarily unemployed, underemployed, or employed 
63.15 	on a less than full-time basis. A parent is not considered voluntarily unemployed, 
63.16 	underemployed, or employed on a less than full-time basis upon a showing by the parent 
63.17 	that:
63.18 	(1) the unemployment, underemployment, or employment on a less than full-time basis 
63.19 	is temporary and will ultimately lead to an increase in income;
63.20 	(2) the unemployment, underemployment, or employment on a less than full-time basis 
63.21 	represents a bona fide career change that outweighs the adverse effect of that parent's 
63.22 	diminished income on the child; or
63.23 	(3) the unemployment, underemployment, or employment on a less than full-time basis 
63.24 	is because a parent is physically or mentally incapacitated or due to incarceration.; or
63.25 	(4) a governmental agency authorized to determine eligibility for general assistance or 
63.26 	supplemental Social Security income has determined that the individual is eligible to receive 
63.27 	general assistance or supplemental Social Security income. Actual income earned by the 
63.28 	parent may be considered for the purpose of calculating child support.

63.29 	EFFECTIVE DATE. This section is effective January 1, 2025.

64.1 	Sec. 3. Minnesota Statutes 2022, section 518A.32, subdivision 4, is amended to read:
64.2 		Subd. 4.TANF or MFIP recipient. If the parent of a joint child is a recipient of a 
64.3 	temporary assistance to a needy family (TANF) cash grant, or comparable state-funded 
64.4 	Minnesota family investment program (MFIP) benefits, no potential income is to be imputed 
64.5 	to that parent.

64.6 	EFFECTIVE DATE. This section is effective January 1, 2025.

64.7 	Sec. 4. Minnesota Statutes 2022, section 518A.34, is amended to read:
64.8 	518A.34 COMPUTATION OF CHILD SUPPORT OBLIGATIONS.
64.9 	(a) To determine the presumptive child support obligation of a parent, the court shall 
64.10 	follow the procedure set forth in this section.
64.11 	(b) To determine the obligor's basic support obligation, the court shall:
64.12 	(1) determine the gross income of each parent under section 518A.29;
64.13 	(2) calculate the parental income for determining child support (PICS) of each parent, 
64.14 	by subtracting from the gross income the credit, if any, for each parent's nonjoint children 
64.15 	under section 518A.33;
64.16 	(3) determine the percentage contribution of each parent to the combined PICS by 
64.17 	dividing the combined PICS into each parent's PICS;
64.18 	(4) determine the combined basic support obligation by application of the guidelines in 
64.19 	section 518A.35;
64.20 	(5) determine each parent's share of the combined basic support obligation by multiplying 
64.21 	the percentage figure from clause (3) by the combined basic support obligation in clause 
64.22 	(4); and
64.23 	(6) apply the parenting expense adjustment formula provided in section 518A.36 to 
64.24 	determine the obligor's basic support obligation.
64.25 	(c) If the parents have split custody of joint children, child support must be calculated 
64.26 	for each joint child as follows:
64.27 	(1) the court shall determine each parent's basic support obligation under paragraph (b) 
64.28 	and include the amount of each parent's obligation in the court order. If the basic support 
64.29 	calculation results in each parent owing support to the other, the court shall offset the higher 
64.30 	basic support obligation with the lower basic support obligation to determine the amount 
64.31 	to be paid by the parent with the higher obligation to the parent with the lower obligation. 
65.1 	For the purpose of the cost-of-living adjustment required under section 518A.75, the 
65.2 	adjustment must be based on each parent's basic support obligation prior to offset. For the 
65.3 	purposes of this paragraph, "split custody" means that there are two or more joint children 
65.4 	and each parent has at least one joint child more than 50 percent of the time;
65.5 	(2) if each parent pays all child care expenses for at least one joint child, the court shall 
65.6 	calculate child care support for each joint child as provided in section 518A.40. The court 
65.7 	shall determine each parent's child care support obligation and include the amount of each 
65.8 	parent's obligation in the court order. If the child care support calculation results in each 
65.9 	parent owing support to the other, the court shall offset the higher child care support 
65.10 	obligation with the lower child care support obligation to determine the amount to be paid 
65.11 	by the parent with the higher obligation to the parent with the lower obligation; and
65.12 	(3) if each parent pays all medical or dental insurance expenses for at least one joint 
65.13 	child, medical support shall be calculated for each joint child as provided in section 518A.41. 
65.14 	The court shall determine each parent's medical support obligation and include the amount 
65.15 	of each parent's obligation in the court order. If the medical support calculation results in 
65.16 	each parent owing support to the other, the court shall offset the higher medical support 
65.17 	obligation with the lower medical support obligation to determine the amount to be paid by 
65.18 	the parent with the higher obligation to the parent with the lower obligation. Unreimbursed 
65.19 	and uninsured medical expenses are not included in the presumptive amount of support 
65.20 	owed by a parent and are calculated and collected as provided in section 518A.41.
65.21 	(d) The court shall determine the child care support obligation for the obligor as provided 
65.22 	in section 518A.40.
65.23 	(e) The court shall determine the medical support obligation for each parent as provided 
65.24 	in section 518A.41. Unreimbursed and uninsured medical expenses are not included in the 
65.25 	presumptive amount of support owed by a parent and are calculated and collected as described 
65.26 	in section 518A.41.
65.27 	(f) The court shall determine each parent's total child support obligation by adding 
65.28 	together each parent's basic support, child care support, and health care coverage obligations 
65.29 	as provided in this section.
65.30 	(g) If Social Security benefits or veterans' benefits are received by one parent as a 
65.31 	representative payee for a joint child based on the other parent's eligibility, the court shall 
65.32 	subtract the amount of benefits from the other parent's net child support obligation, if any.
65.33 	Any benefit received by the obligee for the benefit of the joint child based upon the obligor's 
66.1 	disability or past earnings in any given month in excess of the child support obligation must 
66.2 	not be treated as an arrearage payment or a future payment.
66.3 	(h) The final child support order shall separately designate the amount owed for basic 
66.4 	support, child care support, and medical support. If applicable, the court shall use the 
66.5 	self-support adjustment and minimum support adjustment under section 518A.42 to determine 
66.6 	the obligor's child support obligation.

66.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

66.8 	Sec. 5. Minnesota Statutes 2022, section 518A.41, is amended to read:
66.9 	518A.41 MEDICAL SUPPORT.
66.10 		Subdivision 1.Definitions. The definitions in this subdivision apply to this chapter and 
66.11 	chapter 518.
66.12 	(a) "Health care coverage" means medical, dental, or other health care benefits that are 
66.13 	provided by one or more health plans. Health care coverage does not include any form of 
66.14 	public coverage private health care coverage, including fee for service, health maintenance 
66.15 	organization, preferred provider organization, and other types of private health care coverage. 
66.16 	Health care coverage also means public health care coverage under which medical or dental 
66.17 	services could be provided to a dependent child.
66.18 	(b) "Health carrier" means a carrier as defined in sections 62A.011, subdivision 2, and 
66.19 	62L.02, subdivision 16.
66.20 	(c) "Health plan" (b) "Private health care coverage" means a health plan, other than any 
66.21 	form of public coverage, that provides medical, dental, or other health care benefits and is:
66.22 	(1) provided on an individual or group basis;
66.23 	(2) provided by an employer or union;
66.24 	(3) purchased in the private market; or
66.25 	(4) provided through MinnesotaCare under chapter 256L; or
66.26 	(4) (5) available to a person eligible to carry insurance for the joint child, including a 
66.27 	party's spouse or parent.
66.28 	Health plan Private health care coverage includes, but is not limited to, a health plan meeting 
66.29 	the definition under section 62A.011, subdivision 3, except that the exclusion of coverage 
66.30 	designed solely to provide dental or vision care under section 62A.011, subdivision 3, clause 
66.31 	(6), does not apply to the definition of health plan private health care coverage under this 
67.1 	section; a group health plan governed under the federal Employee Retirement Income 
67.2 	Security Act of 1974 (ERISA); a self-insured plan under sections 43A.23 to 43A.317 and 
67.3 	471.617; and a policy, contract, or certificate issued by a community-integrated service 
67.4 	network licensed under chapter 62N.
67.5 	(c) "Public health care coverage" means health care benefits provided by any form of 
67.6 	medical assistance under chapter 256B. Public health care coverage does not include 
67.7 	MinnesotaCare or health plans subsidized by federal premium tax credits or federal 
67.8 	cost-sharing reductions.
67.9 	(d) "Medical support" means providing health care coverage for a joint child by carrying 
67.10 	health care coverage for the joint child or by contributing to the cost of health care coverage,
67.11 	public coverage, unreimbursed medical health-related expenses, and uninsured medical
67.12 	health-related expenses of the joint child.
67.13 	(e) "National medical support notice" means an administrative notice issued by the public 
67.14 	authority to enforce health insurance provisions of a support order in accordance with Code 
67.15 	of Federal Regulations, title 45, section 303.32, in cases where the public authority provides 
67.16 	support enforcement services.
67.17 	(f) "Public coverage" means health care benefits provided by any form of medical 
67.18 	assistance under chapter 256B. Public coverage does not include MinnesotaCare or health 
67.19 	plans subsidized by federal premium tax credits or federal cost-sharing reductions.
67.20 	(g) (f) "Uninsured medical health-related expenses" means a joint child's reasonable and 
67.21 	necessary health-related medical and dental expenses if the joint child is not covered by a 
67.22 	health plan or public coverage private health insurance care when the expenses are incurred.
67.23 	(h) (g) "Unreimbursed medical health-related expenses" means a joint child's reasonable 
67.24 	and necessary health-related medical and dental expenses if a joint child is covered by a 
67.25 	health plan or public coverage health care coverage and the plan or health care coverage 
67.26 	does not pay for the total cost of the expenses when the expenses are incurred. Unreimbursed 
67.27 	medical health-related expenses do not include the cost of premiums. Unreimbursed medical
67.28 	health-related expenses include, but are not limited to, deductibles, co-payments, and 
67.29 	expenses for orthodontia, and prescription eyeglasses and contact lenses, but not 
67.30 	over-the-counter medications if coverage is under a health plan provided through health 
67.31 	care coverage.
67.32 		Subd. 2.Order. (a) A completed national medical support notice issued by the public 
67.33 	authority or a court order that complies with this section is a qualified medical child support 
68.1 	order under the federal Employee Retirement Income Security Act of 1974 (ERISA), United 
68.2 	States Code, title 29, section 1169(a).
68.3 	(b) Every order addressing child support must state:
68.4 	(1) the names, last known addresses, and Social Security numbers of the parents and the 
68.5 	joint child that is a subject of the order unless the court prohibits the inclusion of an address 
68.6 	or Social Security number and orders the parents to provide the address and Social Security 
68.7 	number to the administrator of the health plan;
68.8 	(2) if a joint child is not presently enrolled in health care coverage, whether appropriate 
68.9 	health care coverage for the joint child is available and, if so, state:
68.10 	(i) the parents' responsibilities for carrying health care coverage;
68.11 	(ii) the cost of premiums and how the cost is allocated between the parents; and
68.12 	(iii) the circumstances, if any, under which an obligation to provide private health care 
68.13 	coverage for the joint child will shift from one parent to the other; and
68.14 	(3) if appropriate health care coverage is not available for the joint child, (iv) whether 
68.15 	a contribution for medical support public health care coverage is required; and
68.16 	(4) (3) how unreimbursed or uninsured medical health-related expenses will be allocated 
68.17 	between the parents.
68.18 		Subd. 3.Determining appropriate health care coverage. Public health care coverage 
68.19 	is presumed appropriate. In determining whether a parent has appropriate private health 
68.20 	care coverage for the joint child, the court must consider the following factors:
68.21 	(1) comprehensiveness of private health care coverage providing medical benefits. 
68.22 	Dependent private health care coverage providing medical benefits is presumed 
68.23 	comprehensive if it includes medical and hospital coverage and provides for preventive, 
68.24 	emergency, acute, and chronic care; or if it meets the minimum essential coverage definition 
68.25 	in United States Code, title 26, section 5000A(f). If both parents have private health care 
68.26 	coverage providing medical benefits that is presumed comprehensive under this paragraph, 
68.27 	the court must determine which parent's private health care coverage is more comprehensive 
68.28 	by considering what other benefits are included in the private health care coverage;
68.29 	(2) accessibility. Dependent private health care coverage is accessible if the covered 
68.30 	joint child can obtain services from a health plan provider with reasonable effort by the 
68.31 	parent with whom the joint child resides. Private health care coverage is presumed accessible 
68.32 	if:
69.1 	(i) primary care is available within 30 minutes or 30 miles of the joint child's residence 
69.2 	and specialty care is available within 60 minutes or 60 miles of the joint child's residence;
69.3 	(ii) the private health care coverage is available through an employer and the employee 
69.4 	can be expected to remain employed for a reasonable amount of time; and
69.5 	(iii) no preexisting conditions exist to unduly delay enrollment in private health care 
69.6 	coverage;
69.7 	(3) the joint child's special medical needs, if any; and
69.8 	(4) affordability. Dependent private health care coverage is presumed affordable if it is 
69.9 	reasonable in cost. If both parents have health care coverage available for a joint child that 
69.10 	is comparable with regard to comprehensiveness of medical benefits, accessibility, and the 
69.11 	joint child's special needs, the least costly health care coverage is presumed to be the most 
69.12 	appropriate health care coverage for the joint child the premium to cover the marginal cost 
69.13 	of the joint child does not exceed five percent of the parents' combined monthly PICS. A 
69.14 	court may additionally consider high deductibles and the cost to enroll the parent if the 
69.15 	parent must enroll themselves in private health care coverage to access private health care 
69.16 	coverage for the child.
69.17 		Subd. 4.Ordering health care coverage. (a) If a joint child is presently enrolled in 
69.18 	health care coverage, the court must order that the parent who currently has the joint child 
69.19 	enrolled continue that enrollment unless the parties agree otherwise or a party requests a 
69.20 	change in coverage and the court determines that other health care coverage is more 
69.21 	appropriate.
69.22 	(b) If a joint child is not presently enrolled in health care coverage providing medical 
69.23 	benefits, upon motion of a parent or the public authority, the court must determine whether 
69.24 	one or both parents have appropriate health care coverage providing medical benefits for 
69.25 	the joint child.
69.26 	(a) If a joint child is presently enrolled in health care coverage, the court shall order that 
69.27 	the parent who currently has the joint child enrolled in health care coverage continue that 
69.28 	enrollment if the health care coverage is appropriate as defined under subdivision 3.
69.29 	(c) (b) If only one parent has appropriate health care coverage providing medical benefits 
69.30 	available, the court must order that parent to carry the coverage for the joint child.
69.31 	(d) (c) If both parents have appropriate health care coverage providing medical benefits 
69.32 	available, the court must order the parent with whom the joint child resides to carry the 
69.33 	health care coverage for the joint child, unless:
70.1 	(1) a party expresses a preference for private health care coverage providing medical 
70.2 	benefits available through the parent with whom the joint child does not reside;
70.3 	(2) the parent with whom the joint child does not reside is already carrying dependent 
70.4 	private health care coverage providing medical benefits for other children and the cost of 
70.5 	contributing to the premiums of the other parent's health care coverage would cause the 
70.6 	parent with whom the joint child does not reside extreme hardship; or
70.7 	(3) the parties agree as to which parent will carry health care coverage providing medical 
70.8 	benefits and agree on the allocation of costs.
70.9 	(e) (d) If the exception in paragraph (d) (c), clause (1) or (2), applies, the court must 
70.10 	determine which parent has the most appropriate health care coverage providing medical 
70.11 	benefits available and order that parent to carry health care coverage for the joint child.
70.12 	(f) (e) If neither parent has appropriate health care coverage available, the court must 
70.13 	order the parents to:
70.14 	(1) contribute toward the actual health care costs of the joint children based on a pro 
70.15 	rata share; or.
70.16 	(2) if the joint child is receiving any form of public coverage, the parent with whom the 
70.17 	joint child does not reside shall contribute a monthly amount toward the actual cost of public 
70.18 	coverage. The amount of the noncustodial parent's contribution is determined by applying 
70.19 	the noncustodial parent's PICS to the premium scale for MinnesotaCare under section 
70.20 	256L.15, subdivision 2, paragraph (d). If the noncustodial parent's PICS meets the eligibility 
70.21 	requirements for MinnesotaCare, the contribution is the amount the noncustodial parent 
70.22 	would pay for the child's premium. If the noncustodial parent's PICS exceeds the eligibility 
70.23 	requirements, the contribution is the amount of the premium for the highest eligible income 
70.24 	on the premium scale for MinnesotaCare under section 256L.15, subdivision 2, paragraph 
70.25 	(d). For purposes of determining the premium amount, the noncustodial parent's household 
70.26 	size is equal to one parent plus the child or children who are the subject of the child support 
70.27 	order. The custodial parent's obligation is determined under the requirements for public 
70.28 	coverage as set forth in chapter 256B; or
70.29 	(3) if the noncustodial parent's PICS meet the eligibility requirement for public coverage 
70.30 	under chapter 256B or the noncustodial parent receives public assistance, the noncustodial 
70.31 	parent must not be ordered to contribute toward the cost of public coverage.
71.1 	(g) (f) If neither parent has appropriate health care coverage available, the court may 
71.2 	order the parent with whom the child resides to apply for public health care coverage for 
71.3 	the child.
71.4 	(h) The commissioner of human services must publish a table with the premium schedule 
71.5 	for public coverage and update the chart for changes to the schedule by July 1 of each year.
71.6 	(i) (g) If a joint child is not presently enrolled in private health care coverage providing 
71.7 	dental benefits, upon motion of a parent or the public authority, the court must determine 
71.8 	whether one or both parents have appropriate dentalprivate health care coverage providing 
71.9 	dental benefits for the joint child, and the court may order a parent with appropriate dental
71.10 	private health care coverage providing dental benefits available to carry the health care 
71.11 	coverage for the joint child.
71.12 	(j) (h) If a joint child is not presently enrolled in available private health care coverage 
71.13 	providing benefits other than medical benefits or dental benefits, upon motion of a parent 
71.14 	or the public authority, the court may determine whether that other private health care 
71.15 	coverage providing other health benefits for the joint child is appropriate, and the court may 
71.16 	order a parent with that appropriate private health care coverage available to carry the 
71.17 	coverage for the joint child.
71.18 		Subd. 5.Medical support costs; unreimbursed and uninsured medical health-related
71.19 	expenses. (a) Unless otherwise agreed to by the parties and approved by the court, the court 
71.20 	must order that the cost of private health care coverage and all unreimbursed and uninsured 
71.21 	medical health-related expenses under the health plan be divided between the obligor and 
71.22 	obligee based on their proportionate share of the parties' combined monthly PICS. The 
71.23 	amount allocated for medical support is considered child support but is not subject to a 
71.24 	cost-of-living adjustment under section 518A.75.
71.25 	(b) If a party owes a joint child basic support obligation for a joint child and is ordered 
71.26 	to carry private health care coverage for the joint child, and the other party is ordered to 
71.27 	contribute to the carrying party's cost for coverage, the carrying party's child basic support 
71.28 	payment must be reduced by the amount of the contributing party's contribution.
71.29 	(c) If a party owes a joint childbasic support obligation for a joint child and is ordered 
71.30 	to contribute to the other party's cost for carrying private health care coverage for the joint 
71.31 	child, the contributing party's child support payment must be increased by the amount of 
71.32 	the contribution. The contribution toward private health care coverage must not be charged 
71.33 	in any month in which the party ordered to carry private health care coverage fails to maintain 
71.34 	private coverage.
72.1 	(d) If the party ordered to carry private health care coverage for the joint child already 
72.2 	carries dependent private health care coverage for other dependents and would incur no 
72.3 	additional premium costs to add the joint child to the existing health care coverage, the court 
72.4 	must not order the other party to contribute to the premium costs for health care coverage 
72.5 	of the joint child.
72.6 	(e) If a party ordered to carry private health care coverage for the joint child does not 
72.7 	already carry dependent private health care coverage but has other dependents who may be 
72.8 	added to the ordered health care coverage, the full premium costs of the dependent private 
72.9 	health care coverage must be allocated between the parties in proportion to the party's share 
72.10 	of the parties' combined monthly PICS, unless the parties agree otherwise.
72.11 	(f) If a party ordered to carry private health care coverage for the joint child is required 
72.12 	to enroll in a health plan so that the joint child can be enrolled in dependent private health 
72.13 	care coverage under the plan, the court must allocate the costs of the dependent private 
72.14 	health care coverage between the parties. The costs of the private health care coverage for 
72.15 	the party ordered to carry the health care coverage for the joint child must not be allocated 
72.16 	between the parties.
72.17 	(g) If the joint child is receiving any form of public health care coverage:
72.18 	(1) the parent with whom the joint child does not reside shall contribute a monthly 
72.19 	amount toward the actual cost of public health care coverage. The amount of the noncustodial 
72.20 	parent's contribution is determined by applying the noncustodial parent's PICS to the premium 
72.21 	scale for MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). If the 
72.22 	noncustodial parent's PICS meets the eligibility requirements for MinnesotaCare, the 
72.23 	contribution is the amount that the noncustodial parent would pay for the child's premium;
72.24 	(2) if the noncustodial parent's PICS exceeds the eligibility requirements, the contribution 
72.25 	is the amount of the premium for the highest eligible income on the premium scale for 
72.26 	MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). For purposes of 
72.27 	determining the premium amount, the noncustodial parent's household size is equal to one 
72.28 	parent plus the child or children who are the subject of the order;
72.29 	(3) the custodial parent's obligation is determined under the requirements for public 
72.30 	health care coverage in chapter 256B; or
72.31 	(4) if the noncustodial parent's PICS is less than 200 percent of the federal poverty 
72.32 	guidelines for one person or the noncustodial parent receives public assistance, the 
72.33 	noncustodial parent must not be ordered to contribute toward the cost of public health care 
72.34 	coverage.
73.1 	(h) The commissioner of human services must publish a table for section 256L.15, 
73.2 	subdivision 2, paragraph (d), and update the table with changes to the schedule by July 1 
73.3 	of each year.
73.4 		Subd. 6.Notice or court order sent to party's employer, union, or health carrier. (a) 
73.5 	The public authority must forward a copy of the national medical support notice or court 
73.6 	order for private health care coverage to the party's employer within two business days after 
73.7 	the date the party is entered into the work reporting system under section 256.998.
73.8 	(b) The public authority or a party seeking to enforce an order for private health care 
73.9 	coverage must forward a copy of the national medical support notice or court order to the 
73.10 	obligor's employer or union, or to the health carrier under the following circumstances:
73.11 	(1) the party ordered to carry private health care coverage for the joint child fails to 
73.12 	provide written proof to the other party or the public authority, within 30 days of the effective 
73.13 	date of the court order, that the party has applied for private health care coverage for the 
73.14 	joint child;
73.15 	(2) the party seeking to enforce the order or the public authority gives written notice to 
73.16 	the party ordered to carry private health care coverage for the joint child of its intent to 
73.17 	enforce medical support. The party seeking to enforce the order or public authority must 
73.18 	mail the written notice to the last known address of the party ordered to carry private health 
73.19 	care coverage for the joint child; and
73.20 	(3) the party ordered to carry private health care coverage for the joint child fails, within 
73.21 	15 days after the date on which the written notice under clause (2) was mailed, to provide 
73.22 	written proof to the other party or the public authority that the party has applied for private 
73.23 	health care coverage for the joint child.
73.24 	(c) The public authority is not required to forward a copy of the national medical support 
73.25 	notice or court order to the obligor's employer or union, or to the health carrier, if the court 
73.26 	orders private health care coverage for the joint child that is not employer-based or 
73.27 	union-based coverage.
73.28 		Subd. 7.Employer or union requirements. (a) An employer or union must forward 
73.29 	the national medical support notice or court order to its health plan within 20 business days 
73.30 	after the date on the national medical support notice or after receipt of the court order.
73.31 	(b) Upon determination by an employer's or union's health plan administrator that a joint 
73.32 	child is eligible to be covered under the health plan, the employer or union and health plan 
73.33 	must enroll the joint child as a beneficiary in the health plan, and the employer must withhold 
74.1 	any required premiums from the income or wages of the party ordered to carry health care 
74.2 	coverage for the joint child.
74.3 	(c) If enrollment of the party ordered to carry private health care coverage for a joint 
74.4 	child is necessary to obtain dependent private health care coverage under the plan, and the 
74.5 	party is not enrolled in the health plan, the employer or union must enroll the party in the 
74.6 	plan.
74.7 	(d) Enrollment of dependents and, if necessary, the party ordered to carry private health 
74.8 	care coverage for the joint child must be immediate and not dependent upon open enrollment 
74.9 	periods. Enrollment is not subject to the underwriting policies under section 62A.048.
74.10 	(e) Failure of the party ordered to carry private health care coverage for the joint child 
74.11 	to execute any documents necessary to enroll the dependent in the health plan does not 
74.12 	affect the obligation of the employer or union and health plan to enroll the dependent in a 
74.13 	plan. Information and authorization provided by the public authority, or by a party or 
74.14 	guardian, is valid for the purposes of meeting enrollment requirements of the health plan.
74.15 	(f) An employer or union that is included under the federal Employee Retirement Income 
74.16 	Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), may not deny 
74.17 	enrollment to the joint child or to the parent if necessary to enroll the joint child based on 
74.18 	exclusionary clauses described in section 62A.048.
74.19 	(g) A new employer or union of a party who is ordered to provide private health care 
74.20 	coverage for a joint child must enroll the joint child in the party's health plan as required 
74.21 	by a national medical support notice or court order.
74.22 		Subd. 8.Health plan requirements. (a) If a health plan administrator receives a 
74.23 	completed national medical support notice or court order, the plan administrator must notify 
74.24 	the parties, and the public authority if the public authority provides support enforcement 
74.25 	services, within 40 business days after the date of the notice or after receipt of the court 
74.26 	order, of the following:
74.27 	(1) whether health care coverage is available to the joint child under the terms of the 
74.28 	health plan and, if not, the reason why health care coverage is not available;
74.29 	(2) whether the joint child is covered under the health plan;
74.30 	(3) the effective date of the joint child's coverage under the health plan; and
74.31 	(4) what steps, if any, are required to effectuate the joint child's coverage under the health 
74.32 	plan.
75.1 	(b) If the employer or union offers more than one plan and the national medical support 
75.2 	notice or court order does not specify the plan to be carried, the plan administrator must 
75.3 	notify the parents and the public authority if the public authority provides support 
75.4 	enforcement services. When there is more than one option available under the plan, the 
75.5 	public authority, in consultation with the parent with whom the joint child resides, must 
75.6 	promptly select from available plan options.
75.7 	(c) The plan administrator must provide the parents and public authority, if the public 
75.8 	authority provides support enforcement services, with a notice of the joint child's enrollment, 
75.9 	description of the health care coverage, and any documents necessary to effectuate coverage.
75.10 	(d) The health plan must send copies of all correspondence regarding the private health 
75.11 	care coverage to the parents.
75.12 	(e) An insured joint child's parent's signature is a valid authorization to a health plan for 
75.13 	purposes of processing an insurance reimbursement payment to the medical services provider 
75.14 	or to the parent, if medical services have been prepaid by that parent.
75.15 		Subd. 9.Employer or union liability. (a) An employer or union that willfully fails to 
75.16 	comply with the order or notice is liable for any uninsured medical health-related expenses 
75.17 	incurred by the dependents while the dependents were eligible to be enrolled in the health 
75.18 	plan and for any other premium costs incurred because the employer or union willfully 
75.19 	failed to comply with the order or notice.
75.20 	(b) An employer or union that fails to comply with the order or notice is subject to a 
75.21 	contempt finding, a $250 civil penalty under section 518A.73, and is subject to a civil penalty 
75.22 	of $500 to be paid to the party entitled to reimbursement or the public authority. Penalties 
75.23 	paid to the public authority are designated for child support enforcement services.
75.24 		Subd. 10.Contesting enrollment. (a) A party may contest a joint child's enrollment in 
75.25 	a health plan on the limited grounds that the enrollment is improper due to mistake of fact 
75.26 	or that the enrollment meets the requirements of section 518.145.
75.27 	(b) If the party chooses to contest the enrollment, the party must do so no later than 15 
75.28 	days after the employer notifies the party of the enrollment by doing the following:
75.29 	(1) filing a motion in district court or according to section 484.702 and the expedited 
75.30 	child support process rules if the public authority provides support enforcement services;
75.31 	(2) serving the motion on the other party and public authority if the public authority 
75.32 	provides support enforcement services; and
76.1 	(3) securing a date for the matter to be heard no later than 45 days after the notice of 
76.2 	enrollment.
76.3 	(c) The enrollment must remain in place while the party contests the enrollment.
76.4 		Subd. 11.Disenrollment; continuation of coverage; coverage options. (a) Unless a 
76.5 	court order provides otherwise, a child for whom a party is required to provide private health 
76.6 	care coverage under this section must be covered as a dependent of the party until the child 
76.7 	is emancipated, until further order of the court, or as consistent with the terms of the health 
76.8 	care coverage.
76.9 	(b) The health carrier, employer, or union may not disenroll or eliminate health care 
76.10 	coverage for the child unless:
76.11 	(1) the health carrier, employer, or union is provided satisfactory written evidence that 
76.12 	the court order is no longer in effect;
76.13 	(2) the joint child is or will be enrolled in comparable private health care coverage 
76.14 	through another health plan that will take effect no later than the effective date of the 
76.15 	disenrollment;
76.16 	(3) the employee is no longer eligible for dependent health care coverage; or
76.17 	(4) the required premium has not been paid by or on behalf of the joint child.
76.18 	(c) The health plan must provide 30 days' written notice to the joint child's parents, and 
76.19 	the public authority if the public authority provides support enforcement services, before 
76.20 	the health plan disenrolls or eliminates the joint child's health care coverage.
76.21 	(d) A joint child enrolled in private health care coverage under a qualified medical child 
76.22 	support order, including a national medical support notice, under this section is a dependent 
76.23 	and a qualified beneficiary under the Consolidated Omnibus Budget and Reconciliation Act 
76.24 	of 1985 (COBRA), Public Law 99-272. Upon expiration of the order, the joint child is 
76.25 	entitled to the opportunity to elect continued health care coverage that is available under 
76.26 	the health plan. The employer or union must provide notice to the parties and the public 
76.27 	authority, if it provides support services, within ten days of the termination date.
76.28 	(e) If the public authority provides support enforcement services and a plan administrator 
76.29 	reports to the public authority that there is more than one coverage option available under 
76.30 	the health plan, the public authority, in consultation with the parent with whom the joint 
76.31 	child resides, must promptly select health care coverage from the available options.
77.1 		Subd. 12.Spousal or former spousal coverage. The court must require the parent with 
77.2 	whom the joint child does not reside to provide dependent private health care coverage for 
77.3 	the benefit of the parent with whom the joint child resides if the parent with whom the child 
77.4 	does not reside is ordered to provide dependent private health care coverage for the parties' 
77.5 	joint child and adding the other parent to the health care coverage results in no additional 
77.6 	premium cost.
77.7 		Subd. 13.Disclosure of information. (a) If the public authority provides support 
77.8 	enforcement services, the parties must provide the public authority with the following 
77.9 	information:
77.10 	(1) information relating to dependent health care coverage or public coverage available 
77.11 	for the benefit of the joint child for whom support is sought, including all information 
77.12 	required to be included in a medical support order under this section;
77.13 	(2) verification that application for court-ordered health care coverage was made within 
77.14 	30 days of the court's order; and
77.15 	(3) the reason that a joint child is not enrolled in court-ordered health care coverage, if 
77.16 	a joint child is not enrolled in health care coverage or subsequently loses health care coverage.
77.17 	(b) Upon request from the public authority under section 256.978, an employer, union, 
77.18 	or plan administrator, including an employer subject to the federal Employee Retirement 
77.19 	Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), must 
77.20 	provide the public authority the following information:
77.21 	(1) information relating to dependent private health care coverage available to a party 
77.22 	for the benefit of the joint child for whom support is sought, including all information 
77.23 	required to be included in a medical support order under this section; and
77.24 	(2) information that will enable the public authority to determine whether a health plan 
77.25 	is appropriate for a joint child, including, but not limited to, all available plan options, any 
77.26 	geographic service restrictions, and the location of service providers.
77.27 	(c) The employer, union, or plan administrator must not release information regarding 
77.28 	one party to the other party. The employer, union, or plan administrator must provide both 
77.29 	parties with insurance identification cards and all necessary written information to enable 
77.30 	the parties to utilize the insurance benefits for the covered dependent.
77.31 	(d) The public authority is authorized to release to a party's employer, union, or health 
77.32 	plan information necessary to verify availability of dependent private health care coverage, 
77.33 	or to establish, modify, or enforce medical support.
78.1 	(e) An employee must disclose to an employer if medical support is required to be 
78.2 	withheld under this section and the employer must begin withholding according to the terms 
78.3 	of the order and under section 518A.53. If an employee discloses an obligation to obtain 
78.4 	private health care coverage and health care coverage is available through the employer, 
78.5 	the employer must make all application processes known to the individual and enroll the 
78.6 	employee and dependent in the plan.
78.7 		Subd. 14.Child support enforcement services. The public authority must take necessary 
78.8 	steps to establish, enforce, and modify an order for medical support if the joint child receives 
78.9 	public assistance or a party completes an application for services from the public authority 
78.10 	under section 518A.51.
78.11 		Subd. 15.Enforcement. (a) Remedies available for collecting and enforcing child 
78.12 	support apply to medical support.
78.13 	(b) For the purpose of enforcement, the following are additional support:
78.14 	(1) the costs of individual or group health or hospitalization coverage;
78.15 	(2) dental coverage;
78.16 	(3) medical costs ordered by the court to be paid by either party, including health care 
78.17 	coverage premiums paid by the obligee because of the obligor's failure to obtain health care 
78.18 	coverage as ordered; and
78.19 	(4) liabilities established under this subdivision.
78.20 	(c) A party who fails to carry court-ordered dependent private health care coverage is 
78.21 	liable for the joint child's uninsured medical health-related expenses unless a court order 
78.22 	provides otherwise. A party's failure to carry court-ordered health care coverage, or to 
78.23 	provide other medical support as ordered, is a basis for modification of medical support 
78.24 	under section 518A.39, subdivision 8, unless it meets the presumption in section 518A.39, 
78.25 	subdivision 2.
78.26 	(d) Payments by the health carrier or employer for services rendered to the dependents 
78.27 	that are directed to a party not owed reimbursement must be endorsed over to and forwarded 
78.28 	to the vendor or appropriate party or the public authority. A party retaining insurance 
78.29 	reimbursement not owed to the party is liable for the amount of the reimbursement.
78.30 		Subd. 16.Offset. (a) If a party is the parent with primary physical custody as defined 
78.31 	in section 518A.26, subdivision 17, and is an obligor ordered to contribute to the other 
78.32 	party's cost for carrying health care coverage for the joint child, the other party's child 
78.33 	support and spousal maintenance obligations are subject to an offset under subdivision 5.
79.1 	(b) The public authority, if the public authority provides child support enforcement 
79.2 	services, may remove the offset to a party's child support obligation when:
79.3 	(1) the party's court-ordered private health care coverage for the joint child terminates;
79.4 	(2) the party does not enroll the joint child in other private health care coverage; and
79.5 	(3) a modification motion is not pending.
79.6 	The public authority must provide notice to the parties of the action. If neither party requests 
79.7 	a hearing, the public authority must remove the offset effective the first day of the month 
79.8 	following termination of the joint child's private health care coverage.
79.9 	(c) The public authority, if the public authority provides child support enforcement 
79.10 	services, may resume the offset when the party ordered to provide private health care 
79.11 	coverage for the joint child has resumed the court-ordered private health care coverage or 
79.12 	enrolled the joint child in other private health care coverage. The public authority must 
79.13 	provide notice to the parties of the action. If neither party requests a hearing, the public 
79.14 	authority must resume the offset effective the first day of the month following certification 
79.15 	that private health care coverage is in place for the joint child.
79.16 	(d) A party may contest the public authority's action to remove or resume the offset to 
79.17 	the child support obligation if the party makes a written request for a hearing within 30 days 
79.18 	after receiving written notice. If a party makes a timely request for a hearing, the public 
79.19 	authority must schedule a hearing and send written notice of the hearing to the parties by 
79.20 	mail to the parties' last known addresses at least 14 days before the hearing. The hearing 
79.21 	must be conducted in district court or in the expedited child support process if section 
79.22 	484.702 applies. The district court or child support magistrate must determine whether 
79.23 	removing or resuming the offset is appropriate and, if appropriate, the effective date for the 
79.24 	removal or resumption.
79.25 		Subd. 16a.Suspension or reinstatement of medical support contribution.  (a) If a 
79.26 	party is the parent with primary physical custody, as defined in section 518A.26, subdivision 
79.27 	17, and is ordered to carry private health care coverage for the joint child but fails to carry 
79.28 	the court-ordered private health care coverage, the public authority may suspend the medical 
79.29 	support obligation of the other party if that party has been court-ordered to contribute to the 
79.30 	cost of the private health care coverage carried by the parent with primary physical custody 
79.31 	of the joint child.
80.1 	(b) If the public authority provides child support enforcement services, the public 
80.2 	authority may suspend the other party's medical support contribution toward private health 
80.3 	care coverage when:
80.4 	(1) the party's court-ordered private health care coverage for the joint child terminates;
80.5 	(2) the party does not enroll the joint child in other private health care coverage; and
80.6 	(3) a modification motion is not pending.
80.7 	The public authority must provide notice to the parties of the action. If neither party requests 
80.8 	a hearing, the public authority must remove the medical support contribution effective the 
80.9 	first day of the month following the termination of the joint child's private health care 
80.10 	coverage.
80.11 	(c) If the public authority provides child support enforcement services, the public authority 
80.12 	may reinstate the medical support contribution when the party ordered to provide private 
80.13 	health care coverage for the joint child has resumed the joint child's court-ordered private 
80.14 	health care coverage or has enrolled the joint child in other private health care coverage. 
80.15 	The public authority must provide notice to the parties of the action. If neither party requests 
80.16 	a hearing, the public authority must resume the medical support contribution effective the 
80.17 	first day of the month following certification that the joint child is enrolled in private health 
80.18 	care coverage.
80.19 	(d) A party may contest the public authority's action to suspend or reinstate the medical 
80.20 	support contribution if the party makes a written request for a hearing within 30 days after 
80.21 	receiving written notice. If a party makes a timely request for a hearing, the public authority 
80.22 	must schedule a hearing and send written notice of the hearing to the parties by mail to the 
80.23 	parties' last known addresses at least 14 days before the hearing. The hearing must be 
80.24 	conducted in district court or in the expedited child support process if section 484.702 
80.25 	applies. The district court or child support magistrate must determine whether suspending 
80.26 	or reinstating the medical support contribution is appropriate and, if appropriate, the effective 
80.27 	date of the removal or reinstatement of the medical support contribution.
80.28 		Subd. 17.Collecting unreimbursed or uninsured medical health-related expenses. (a) 
80.29 	This subdivision and subdivision 18 apply when a court order has determined and ordered 
80.30 	the parties' proportionate share and responsibility to contribute to unreimbursed or uninsured 
80.31 	medical health-related expenses.
80.32 	(b) A party requesting reimbursement of unreimbursed or uninsured medical
80.33 	health-related expenses must initiate a request to the other party within two years of the 
81.1 	date that the requesting party incurred the unreimbursed or uninsured medicalhealth-related 
81.2 	expenses. If a court order has been signed ordering the contribution towards toward
81.3 	unreimbursed or uninsured expenses, a two-year limitations provision must be applied to 
81.4 	any requests made on or after January 1, 2007. The provisions of this section apply 
81.5 	retroactively to court orders signed before January 1, 2007. Requests for unreimbursed or 
81.6 	uninsured expenses made on or after January 1, 2007, may include expenses incurred before 
81.7 	January 1, 2007, and on or after January 1, 2005.
81.8 	(c) A requesting party must mail a written notice of intent to collect the unreimbursed 
81.9 	or uninsured medical health-related expenses and a copy of an affidavit of health care 
81.10 	expenses to the other party at the other party's last known address.
81.11 	(d) The written notice must include a statement that the other party has 30 days from 
81.12 	the date the notice was mailed to (1) pay in full; (2) agree to a payment schedule; or (3) file 
81.13 	a motion requesting a hearing to contest the amount due or to set a court-ordered monthly 
81.14 	payment amount. If the public authority provides services, the written notice also must 
81.15 	include a statement that, if the other party does not respond within the 30 days, the requesting 
81.16 	party may submit the amount due to the public authority for collection.
81.17 	(e) The affidavit of health care expenses must itemize and document the joint child's 
81.18 	unreimbursed or uninsured medical health-related expenses and include copies of all bills, 
81.19 	receipts, and insurance company explanations of benefits.
81.20 	(f) If the other party does not respond to the request for reimbursement within 30 days, 
81.21 	the requesting party may commence enforcement against the other party under subdivision 
81.22 	18; file a motion for a court-ordered monthly payment amount under paragraph (i); or notify 
81.23 	the public authority, if the public authority provides services, that the other party has not 
81.24 	responded.
81.25 	(g) The notice to the public authority must include: a copy of the written notice, a copy 
81.26 	of the affidavit of health care expenses, and copies of all bills, receipts, and insurance 
81.27 	company explanations of benefits.
81.28 	(h) If noticed under paragraph (f), the public authority must serve the other party with 
81.29 	a notice of intent to enforce unreimbursed and uninsured medicalhealth-related expenses 
81.30 	and file an affidavit of service by mail with the district court administrator. The notice must 
81.31 	state that the other party has 14 days to (1) pay in full; or (2) file a motion to contest the 
81.32 	amount due or to set a court-ordered monthly payment amount. The notice must also state 
81.33 	that if there is no response within 14 days, the public authority will commence enforcement 
81.34 	of the expenses as arrears under subdivision 18.
82.1 	(i) To contest the amount due or set a court-ordered monthly payment amount, a party 
82.2 	must file a timely motion and schedule a hearing in district court or in the expedited child 
82.3 	support process if section 484.702 applies. The moving party must provide the other party 
82.4 	and the public authority, if the public authority provides services, with written notice at 
82.5 	least 14 days before the hearing by mailing notice of the hearing to the public authority and 
82.6 	to the requesting party at the requesting party's last known address. The moving party must 
82.7 	file the affidavit of health care expenses with the court at least five days before the hearing. 
82.8 	The district court or child support magistrate must determine liability for the expenses and 
82.9 	order that the liable party is subject to enforcement of the expenses as arrears under 
82.10 	subdivision 18 or set a court-ordered monthly payment amount.
82.11 		Subd. 18.Enforcing unreimbursed or uninsured medical health-related expenses 
82.12 	as arrears. (a) Unreimbursed or uninsured medical health-related expenses enforced under 
82.13 	this subdivision are collected as arrears.
82.14 	(b) If the liable party is the parent with primary physical custody as defined in section 
82.15 	518A.26, subdivision 17, the unreimbursed or uninsured medical health-related expenses 
82.16 	must be deducted from any arrears the requesting party owes the liable party. If unreimbursed 
82.17 	or uninsured expenses remain after the deduction, the expenses must be collected as follows:
82.18 	(1) If the requesting party owes a current child support obligation to the liable party, 20 
82.19 	percent of each payment received from the requesting party must be returned to the requesting 
82.20 	party. The total amount returned to the requesting party each month must not exceed 20 
82.21 	percent of the current monthly support obligation.
82.22 	(2) If the requesting party does not owe current child support or arrears, a payment 
82.23 	agreement under section 518A.69 is required. If the liable party fails to enter into or comply 
82.24 	with a payment agreement, the requesting party or the public authority, if the public authority 
82.25 	provides services, may schedule a hearing to set a court-ordered payment. The requesting 
82.26 	party or the public authority must provide the liable party with written notice of the hearing 
82.27 	at least 14 days before the hearing.
82.28 	(c) If the liable party is not the parent with primary physical custody as defined in section 
82.29 	518A.26, subdivision 17, the unreimbursed or uninsured medical health-related expenses 
82.30 	must be deducted from any arrears the requesting party owes the liable party. If unreimbursed 
82.31 	or uninsured expenses remain after the deduction, the expenses must be added and collected 
82.32 	as arrears owed by the liable party.

82.33 	EFFECTIVE DATE. This section is effective January 1, 2025.

83.1 	Sec. 6. Minnesota Statutes 2022, section 518A.42, subdivision 1, is amended to read:
83.2 		Subdivision 1.Ability to pay. (a) It is a rebuttable presumption that a child support 
83.3 	order should not exceed the obligor's ability to pay. To determine the amount of child support 
83.4 	the obligor has the ability to pay, the court shall follow the procedure set out in this section.
83.5 	(b) The court shall calculate the obligor's income available for support by subtracting a 
83.6 	monthly self-support reserve equal to 120 percent of the federal poverty guidelines for one 
83.7 	person from the obligor's parental income for determining child support (PICS). If benefits 
83.8 	under section 518A.31 are received by the obligee as a representative payee for a joint child 
83.9 	or are received by the child attending school, based on the other parent's eligibility, the court 
83.10 	shall subtract the amount of benefits from the obligor's PICS before subtracting the 
83.11 	self-support reserve. If the obligor's income available for support calculated under this 
83.12 	paragraph is equal to or greater than the obligor's support obligation calculated under section 
83.13 	518A.34, the court shall order child support under section 518A.34.
83.14 	(c) If the obligor's income available for support calculated under paragraph (b) is more 
83.15 	than the minimum support amount under subdivision 2, but less than the guideline amount 
83.16 	under section 518A.34, then the court shall apply a reduction to the child support obligation 
83.17 	in the following order, until the support order is equal to the obligor's income available for 
83.18 	support:
83.19 	(1) medical support obligation;
83.20 	(2) child care support obligation; and
83.21 	(3) basic support obligation.
83.22 	(d) If the obligor's income available for support calculated under paragraph (b) is equal 
83.23 	to or less than the minimum support amount under subdivision 2 or if the obligor's gross 
83.24 	income is less than 120 percent of the federal poverty guidelines for one person, the minimum 
83.25 	support amount under subdivision 2 applies.

83.26 	EFFECTIVE DATE. This section is effective January 1, 2025.

83.27 	Sec. 7. Minnesota Statutes 2022, section 518A.42, subdivision 3, is amended to read:
83.28 		Subd. 3.Exception. (a) This section does not apply to an obligor who is incarcerated
83.29 	or is a recipient of a general assistance grant, Supplemental Security Income, temporary 
83.30 	assistance for needy families (TANF) grant, or comparable state-funded Minnesota family 
83.31 	investment program (MFIP) benefits.
84.1 	(b) If the court finds the obligor receives no income and completely lacks the ability to 
84.2 	earn income, the minimum basic support amount under this subdivision does not apply.
84.3 	(c) If the obligor's basic support amount is reduced below the minimum basic support 
84.4 	amount due to the application of the parenting expense adjustment, the minimum basic 
84.5 	support amount under this subdivision does not apply and the lesser amount is the guideline 
84.6 	basic support.

84.7 	EFFECTIVE DATE. This section is effective January 1, 2025.

84.8 	Sec. 8. Minnesota Statutes 2022, section 518A.43, subdivision 1b, is amended to read:
84.9 		Subd. 1b.Increase in income of custodial parent. In a modification of support under 
84.10 	section 518A.39, the court may deviate from the presumptive child support obligation under 
84.11 	section 518A.34 when the only change in circumstances is an increase to the custodial 
84.12 	parent's income and:
84.13 	(1) the basic support increases;.
84.14 	(2) the parties' combined gross income is $6,000 or less; or
84.15 	(3) the obligor's income is $2,000 or less.

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

84.17 	Sec. 9. Minnesota Statutes 2022, section 518A.65, is amended to read:
84.18 	518A.65 DRIVER'S LICENSE SUSPENSION.
84.19 	(a) Upon motion of an obligee, which has been properly served on the obligor and upon 
84.20 	which there has been an opportunity for hearing, if a court finds that the obligor has been 
84.21 	or may be issued a driver's license by the commissioner of public safety and the obligor is 
84.22 	in arrears in court-ordered child support or maintenance payments, or both, in an amount 
84.23 	equal to or greater than three times the obligor's total monthly support and maintenance 
84.24 	payments and is not in compliance with a written payment agreement pursuant to section 
84.25 	518A.69 that is approved by the court, a child support magistrate, or the public authority, 
84.26 	the court shall may order the commissioner of public safety to suspend the obligor's driver's 
84.27 	license. The court may consider the circumstances in paragraph (i) to determine whether 
84.28 	driver's license suspension is an appropriate remedy that is likely to induce the payment of 
84.29 	child support. The court may consider whether driver's license suspension would have a 
84.30 	direct harmful effect on the obligor or joint children that would make driver's license 
84.31 	suspension an inappropriate remedy. The public authority may not administratively reinstate 
85.1 	a driver's license suspended by the court unless specifically authorized to do so in the court 
85.2 	order.This paragraph expires December 31, 2025.
85.3 	(b) This paragraph is effective January 1, 2026. Upon the motion of an obligee that has 
85.4 	been properly served on the obligor and for which there has been an opportunity for a 
85.5 	hearing, if a court finds that the obligor has a valid driver's license issued by the commissioner 
85.6 	of public safety and the obligor is in arrears in court-ordered child support or maintenance 
85.7 	payments, or both, in an amount equal to or greater than three times the obligor's total 
85.8 	monthly support and maintenance payments and is not in compliance with a written payment 
85.9 	agreement pursuant to section 518A.69 that is approved by the court, a child support 
85.10 	magistrate, or the public authority, the court may order the commissioner of public safety 
85.11 	to suspend the obligor's driver's license. The court may consider the circumstances in 
85.12 	paragraph (i) to determine whether driver's license suspension is an appropriate remedy that 
85.13 	is likely to induce the payment of child support. The court may consider whether driver's 
85.14 	license suspension would have a direct harmful effect on the obligor or joint children that 
85.15 	would make driver's license suspension an inappropriate remedy. The public authority may 
85.16 	not administratively reinstate a driver's license suspended by the court unless specifically 
85.17 	authorized to do so in the court order.
85.18 	(c) The court's order must be stayed for 90 days in order to allow the obligor to execute 
85.19 	a written payment agreement pursuant to section 518A.69. The payment agreement must 
85.20 	be approved by either the court or the public authority responsible for child support 
85.21 	enforcement. If the obligor has not executed or is not in compliance with a written payment 
85.22 	agreement pursuant to section 518A.69 after the 90 days expires, the court's order becomes 
85.23 	effective and the commissioner of public safety shall suspend the obligor's driver's license. 
85.24 	The remedy under this section is in addition to any other enforcement remedy available to 
85.25 	the court. An obligee may not bring a motion under this paragraph within 12 months of a 
85.26 	denial of a previous motion under this paragraph.
85.27 	(b) (d) If a public authority responsible for child support enforcement determines that 
85.28 	the obligor has been or may be issued a driver's license by the commissioner of public safety 
85.29 	and; the obligor is in arrears in court-ordered child support or maintenance payments or 
85.30 	both in an amount equal to or greater than three times the obligor's total monthly support 
85.31 	and maintenance payments and not in compliance with a written payment agreement pursuant 
85.32 	to section 518A.69 that is approved by the court, a child support magistrate, or the public 
85.33 	authority, the public authority shall direct the commissioner of public safety to suspend the 
85.34 	obligor's driver's license unless exercising administrative discretion under paragraph (i). 
86.1 	The remedy under this section is in addition to any other enforcement remedy available to 
86.2 	the public authority. This paragraph expires December 31, 2025.
86.3 	(e) This paragraph is effective January 1, 2026. If a public authority responsible for child 
86.4 	support enforcement determines that:
86.5 	(1) the obligor has a valid driver's license issued by the commissioner of public safety;
86.6 	(2) the obligor is in arrears in court-ordered child support or maintenance payments or 
86.7 	both in an amount equal to or greater than three times the obligor's total monthly support 
86.8 	and maintenance payments;
86.9 	(3) the obligor is not in compliance with a written payment agreement pursuant to section 
86.10 	518A.69 that is approved by the court, a child support magistrate, or the public authority; 
86.11 	and
86.12 	(4) the obligor's mailing address is known to the public authority;
86.13 	then the public authority shall direct the commissioner of public safety to suspend the 
86.14 	obligor's driver's license unless exercising administrative discretion under paragraph (i). 
86.15 	The remedy under this section is in addition to any other enforcement remedy available to 
86.16 	the public authority.
86.17 	(c) (f) At least 90 days prior to notifying the commissioner of public safety according 
86.18 	to paragraph (b) (d), the public authority must mail a written notice to the obligor at the 
86.19 	obligor's last known address, that it intends to seek suspension of the obligor's driver's 
86.20 	license and that the obligor must request a hearing within 30 days in order to contest the 
86.21 	suspension. If the obligor makes a written request for a hearing within 30 days of the date 
86.22 	of the notice, a court hearing must be held. Notwithstanding any law to the contrary, the 
86.23 	obligor must be served with 14 days' notice in writing specifying the time and place of the 
86.24 	hearing and the allegations against the obligor. The notice must include information that 
86.25 	apprises the obligor of the requirement to develop a written payment agreement that is 
86.26 	approved by a court, a child support magistrate, or the public authority responsible for child 
86.27 	support enforcement regarding child support, maintenance, and any arrearages in order to 
86.28 	avoid license suspension. The notice may be served personally or by mail. If the public 
86.29 	authority does not receive a request for a hearing within 30 days of the date of the notice, 
86.30 	and the obligor does not execute a written payment agreement pursuant to section 518A.69
86.31 	that is approved by the public authority within 90 days of the date of the notice, the public 
86.32 	authority shall direct the commissioner of public safety to suspend the obligor's driver's 
86.33 	license under paragraph (b) (d).
87.1 	(d) (g) At a hearing requested by the obligor under paragraph (c) (f), and on finding that 
87.2 	the obligor is in arrears in court-ordered child support or maintenance payments or both in 
87.3 	an amount equal to or greater than three times the obligor's total monthly support and 
87.4 	maintenance payments, the district court or child support magistrate shall order the 
87.5 	commissioner of public safety to suspend the obligor's driver's license or operating privileges 
87.6 	unless:
87.7 	(1) the court or child support magistrate determines that the obligor has executed and is 
87.8 	in compliance with a written payment agreement pursuant to section 518A.69 that is approved 
87.9 	by the court, a child support magistrate, or the public authority.; or
87.10 	(2) the court, in its discretion, determines that driver's license suspension is unlikely to 
87.11 	induce payment of child support or would have direct harmful effects on the obligor or joint 
87.12 	child that makes driver's license suspension an inappropriate remedy. The court may consider 
87.13 	the circumstances in paragraph (i) in exercising the court's discretion.
87.14 	(e) (h) An obligor whose driver's license or operating privileges are suspended may:
87.15 	(1) provide proof to the public authority responsible for child support enforcement that 
87.16 	the obligor is in compliance with all written payment agreements pursuant to section 518A.69;
87.17 	(2) bring a motion for reinstatement of the driver's license. At the hearing, if the court 
87.18 	or child support magistrate orders reinstatement of the driver's license, the court or child 
87.19 	support magistrate must establish a written payment agreement pursuant to section 518A.69; 
87.20 	or
87.21 	(3) seek a limited license under section 171.30. A limited license issued to an obligor 
87.22 	under section 171.30 expires 90 days after the date it is issued.
87.23 	Within 15 days of the receipt of that proof or a court order, the public authority shall 
87.24 	inform the commissioner of public safety that the obligor's driver's license or operating 
87.25 	privileges should no longer be suspended.
87.26 	(i) Prior to notifying the commissioner of public safety that an obligor's driver's license 
87.27 	should be suspended or after an obligor's driving privileges have been suspended, the public 
87.28 	authority responsible for child support enforcement may use administrative authority to end 
87.29 	the suspension process or inform the commissioner of public safety that the obligor's driving 
87.30 	privileges should no longer be suspended under any of the following circumstances:
87.31 	(1) the full amount of court-ordered payments have been received for at least one month;
87.32 	(2) an income withholding notice has been sent to an employer or payor of money;
88.1 	(3) payments less than the full court-ordered amount have been received and the 
88.2 	circumstances of the obligor demonstrate the obligor's substantial intent to comply with the 
88.3 	order;
88.4 	(4) the obligor receives public assistance;
88.5 	(5) the case is being reviewed by the public authority for downward modification due 
88.6 	to changes in the obligor's financial circumstances or a party has filed a motion to modify 
88.7 	the child support order;
88.8 	(6) the obligor no longer lives in the state and the child support case is in the process of 
88.9 	interstate enforcement;
88.10 	(7) the obligor is currently incarcerated for one week or more or is receiving in-patient 
88.11 	treatment for physical health, mental health, chemical dependency, or other treatment. This 
88.12 	clause applies for six months after the obligor is no longer incarcerated or receiving in-patient 
88.13 	treatment;
88.14 	(8) the obligor is temporarily or permanently disabled and unable to pay child support;
88.15 	(9) the obligor has presented evidence to the public authority that the obligor needs 
88.16 	driving privileges to maintain or obtain the obligor's employment;
88.17 	(10) the obligor has not had a meaningful opportunity to pay toward arrears; or
88.18 	(11) other circumstances of the obligor indicate that a temporary condition exists for 
88.19 	which suspension of the obligor's driver's license for the nonpayment of child support is 
88.20 	not appropriate. When considering whether suspension of the obligor's driver's license is 
88.21 	appropriate, the public authority must assess: (i) whether suspension of the obligor's driver's 
88.22 	license is likely to induce payment of child support; and (ii) whether suspension of the 
88.23 	obligor's driver's license would have direct harmful effects on the obligor or joint children 
88.24 	that make driver's license suspension an inappropriate remedy.
88.25 	The presence of circumstances in this paragraph does not prevent the public authority from 
88.26 	proceeding with a suspension of the obligor's driver's license.
88.27 	(f) (j) In addition to the criteria established under this section for the suspension of an 
88.28 	obligor's driver's license, a court, a child support magistrate, or the public authority may 
88.29 	direct the commissioner of public safety to suspend the license of a party who has failed, 
88.30 	after receiving notice, to comply with a subpoena relating to a paternity or child support 
88.31 	proceeding. Notice to an obligor of intent to suspend must be served by first class mail at 
88.32 	the obligor's last known address. The notice must inform the obligor of the right to request 
88.33 	a hearing. If the obligor makes a written request within ten days of the date of the hearing, 
89.1 	a hearing must be held. At the hearing, the only issues to be considered are mistake of fact 
89.2 	and whether the obligor received the subpoena.
89.3 	(g) (k) The license of an obligor who fails to remain in compliance with an approved 
89.4 	written payment agreement may be suspended. Prior to suspending a license for 
89.5 	noncompliance with an approved written payment agreement, the public authority must 
89.6 	mail to the obligor's last known address a written notice that (1) the public authority intends 
89.7 	to seek suspension of the obligor's driver's license under this paragraph, and (2) the obligor 
89.8 	must request a hearing, within 30 days of the date of the notice, to contest the suspension. 
89.9 	If, within 30 days of the date of the notice, the public authority does not receive a written 
89.10 	request for a hearing and the obligor does not comply with an approved written payment 
89.11 	agreement, the public authority must direct the Department of Public Safety to suspend the 
89.12 	obligor's license under paragraph (b) (d). If the obligor makes a written request for a hearing 
89.13 	within 30 days of the date of the notice, a court hearing must be held. Notwithstanding any 
89.14 	law to the contrary, the obligor must be served with 14 days' notice in writing specifying 
89.15 	the time and place of the hearing and the allegations against the obligor. The notice may be 
89.16 	served personally or by mail at the obligor's last known address. If the obligor appears at 
89.17 	the hearing and the court determines that the obligor has failed to comply with an approved 
89.18 	written payment agreement, the court or public authority shall notify the Department of 
89.19 	Public Safety to suspend the obligor's license under paragraph (b) (d). If the obligor fails 
89.20 	to appear at the hearing, the court or public authority must notify the Department of Public 
89.21 	Safety to suspend the obligor's license under paragraph (b) (d).

89.22 	Sec. 10. Minnesota Statutes 2022, section 518A.77, is amended to read:
89.23 	518A.77 GUIDELINES REVIEW.
89.24 	(a) No later than 2006 and every four years after that, the Department of Human Services 
89.25 	must conduct a review of the child support guidelines as required under Code of Federal 
89.26 	Regulations, title 45, section 302.56(h).
89.27 	(b) This section expires January 1, 2032.

89.28 	Sec. 11. REPEALER.
 89.29 	Minnesota Statutes 2022, section 518A.59, is repealed.

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

90.1 	ARTICLE 4
90.2 	LICENSING

90.3 	Section 1. Minnesota Statutes 2022, section 245.095, is amended to read:
90.4 	245.095 LIMITS ON RECEIVING PUBLIC FUNDS.
90.5 		Subdivision 1.Prohibition. (a) If a provider, vendor, or individual enrolled, licensed, 
90.6 	receiving funds under a grant contract, or registered in any program administered by the 
90.7 	commissioner, including under the commissioner's powers and authorities in section 256.01, 
90.8 	is excluded from that program, the commissioner shall:
90.9 	(1) prohibit the excluded provider, vendor, or individual from enrolling, becoming 
90.10 	licensed, receiving grant funds, or registering in any other program administered by the 
90.11 	commissioner; and
90.12 	(2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, 
90.13 	vendor, or individual in any other program administered by the commissioner.
90.14 	(b) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant 
90.15 	contract, or registered in any program administered by the commissioner, including under 
90.16 	the commissioner's powers and authorities in section 256.01, is excluded from that program, 
90.17 	the commissioner may:
90.18 	(1) prohibit any associated entities or associated individuals from enrolling, becoming 
90.19 	licensed, receiving grant funds, or registering in any other program administered by the 
90.20 	commissioner; and
90.21 	(2) disenroll, revoke or suspend a license of, disqualify, or debar any associated entities 
90.22 	or associated individuals in any other program administered by the commissioner.
90.23 	(c) If a provider, vendor, or individual enrolled, licensed, or otherwise receiving funds 
90.24 	under any contract or registered in any program administered by a Minnesota state or federal 
90.25 	agency is excluded from that program, the commissioner of human services may:
90.26 	(1) prohibit the excluded provider, vendor, individual, or any associated entities or 
90.27 	associated individuals from enrolling, becoming licensed, receiving grant funds, or registering 
90.28 	in any program administered by the commissioner; and
90.29 	(2) disenroll, revoke or suspend a license of, disqualify, or debar the excluded provider, 
90.30 	vendor, individual, or any associated entities or associated individuals in any program 
90.31 	administered by the commissioner.
91.1 	(b) (d) The duration of this a prohibition, disenrollment, revocation, suspension, 
91.2 	disqualification, or debarment under paragraph (a) must last for the longest applicable 
91.3 	sanction or disqualifying period in effect for the provider, vendor, or individual permitted 
91.4 	by state or federal law. The duration of a prohibition, disenrollment, revocation, suspension, 
91.5 	disqualification, or debarment under paragraphs (b) and (c) may last until up to the longest 
91.6 	applicable sanction or disqualifying period in effect for the provider, vendor, individual, 
91.7 	associated entity, or associated individual as permitted by state or federal law.
91.8 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
91.9 	meanings given them.
91.10 	(b) "Associated entity" means a provider or vendor owned or controlled by an excluded 
91.11 	individual.
91.12 	(c) "Associated individual" means an individual or entity that has a relationship with 
91.13 	the business or its owners or controlling individuals, such that the individual or entity would 
91.14 	have knowledge of the financial practices of the program in question.
91.15 	(b) (d) "Excluded" means disenrolled, disqualified, having a license that has been revoked 
91.16 	or suspended under chapter 245A, or debarred or suspended under Minnesota Rules, part 
91.17 	1230.1150, or excluded pursuant to section 256B.064, subdivision 3 removed under other 
91.18 	authorities from a program administered by a Minnesota state or federal agency, including 
91.19 	a final determination to stop payments.
91.20 	(c) (e) "Individual" means a natural person providing products or services as a provider 
91.21 	or vendor.
91.22 	(d) (f) "Provider" includes any entity or individual receiving payment from a program 
91.23 	administered by the Department of Human Services, and an owner, controlling individual, 
91.24 	license holder, director, or managerial official of an entity receiving payment from a program 
91.25 	administered by the Department of Human Services means any entity, individual, owner, 
91.26 	controlling individual, license holder, director, or managerial official of an entity receiving 
91.27 	payment from a program administered by a Minnesota state or federal agency.
91.28 		Subd. 3.Notice. Within five days of taking an action under subdivision (1), paragraph 
91.29 	(a), (b), or (c), against a provider, vendor, individual, associated individual, or associated 
91.30 	entity, the commissioner must send notice of the action to the provider, vendor, individual, 
91.31 	associated individual, or associated entity. The notice must state:
91.32 	(1) the basis for the action;
91.33 	(2) the effective date of the action;
92.1 	(3) the right to appeal the action; and
92.2 	(4) the requirements and procedures for reinstatement.
92.3 		Subd. 4.Appeal. Upon receipt of a notice under subdivision 3, a provider, vendor, 
92.4 	individual, associated individual, or associated entity may request a contested case hearing, 
92.5 	as defined in section 14.02, subdivision 3, by filing with the commissioner a written request 
92.6 	of appeal. The scope of any contested case hearing is solely limited to action taken under 
92.7 	this section. The commissioner must receive the appeal request no later than 30 days after 
92.8 	the date the notice was mailed to the provider, vendor, individual, associated individual, or 
92.9 	associated entity. The appeal request must specify:
92.10 	(1) each disputed item and the reason for the dispute;
92.11 	(2) the authority in statute or rule upon which the provider, vendor, individual, associated 
92.12 	individual, or associated entity relies for each disputed item;
92.13 	(3) the name and address of the person or entity with whom contacts may be made 
92.14 	regarding the appeal; and
92.15 	(4) any other information required by the commissioner.
92.16 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
92.17 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
92.18 	individual, or associated entity in any program administered by the commissioner, if the 
92.19 	commissioner determines there is a credible allegation of fraud for which an investigation 
92.20 	is pending for a program administered by a Minnesota state or federal agency.
92.21 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
92.22 	that has been verified by the commissioner from any source, including but not limited to:
92.23 	(1) fraud hotline complaints;
92.24 	(2) claims data mining;
92.25 	(3) patterns identified through provider audits, civil false claims cases, and law 
92.26 	enforcement investigations; and
92.27 	(4) court filings and other legal documents, including but not limited to police reports, 
92.28 	complaints, indictments, informations, affidavits, declarations, and search warrants.
92.29 	(c) The commissioner must send notice of the withholding of payments within five days 
92.30 	of taking such action. The notice must:
92.31 	(1) state that payments are being withheld according to this subdivision;
93.1 	(2) set forth the general allegations related to the withholding action, except the notice 
93.2 	need not disclose specific information concerning an ongoing investigation;
93.3 	(3) state that the withholding is for a temporary period and cite the circumstances under 
93.4 	which the withholding will be terminated; and
93.5 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
93.6 	of the right to submit written evidence to contest the withholding action for consideration 
93.7 	by the commissioner.
93.8 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
93.9 	individual, associated individual, or associated entity has a right to request administrative 
93.10 	reconsideration. A request for administrative reconsideration must be made in writing, state 
93.11 	with specificity the reasons the payment withholding decision is in error, and include 
93.12 	documents to support the request. Within 60 days from receipt of the request, the 
93.13 	commissioner shall judiciously review allegations, facts, evidence available to the 
93.14 	commissioner, and information submitted by the provider, vendor, individual, associated 
93.15 	individual, or associated entity to determine whether the payment withholding should remain 
93.16 	in place.
93.17 	(e) The commissioner shall stop withholding payments if the commissioner determines 
93.18 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
93.19 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
93.20 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
93.21 	vendor, individual, associated individual, or associated entity.
93.22 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
93.23 	section 256.045 or chapter 14.

93.24 	Sec. 2. Minnesota Statutes 2022, section 245A.02, subdivision 2c, is amended to read:
93.25 		Subd. 2c.Annual or annually; family child care training requirements. For the 
93.26 	purposes of sections 245A.50 to 245A.53, "annual" or "annually" means the 12-month 
93.27 	period beginning on the license effective date or the annual anniversary of the effective date 
93.28 	and ending on the day prior to the annual anniversary of the license effective date each 
93.29 	calendar year.

94.1 	Sec. 3. Minnesota Statutes 2022, section 245A.02, is amended by adding a subdivision to 
94.2 	read:
94.3 		Subd. 5b.Cradleboard. "Cradleboard" means a board or frame on which an infant is 
94.4 	secured using blankets or other material, such as fabric or leather sides, and laces and often 
94.5 	has a frame extending to protect the infant's head. The infant is always placed with the 
94.6 	infant's head facing outward, and the infant remains supervised in the cradleboard while 
94.7 	sleeping or being carried.

94.8 	EFFECTIVE DATE. This section is effective January 1, 2024.

94.9 	Sec. 4. Minnesota Statutes 2022, section 245A.02, subdivision 6b, is amended to read:
94.10 		Subd. 6b.Experience. For purposes of child care centers, "experience" includes is paid 
94.11 	or unpaid employment serving children as a teacher, assistant teacher, aide, or a student 
94.12 	intern in a licensed child care center, in a public or nonpublic school, or in a program licensed 
94.13 	as a family day care or group family day care provider.:
94.14 	(1) caring for children as a teacher, assistant teacher, aide, or student intern:
94.15 	(i) in a licensed child care center, a licensed family day care or group family day care, 
94.16 	or a Tribally licensed child care program in any United States state or territory; or
94.17 	(ii) in a public or nonpublic school;
94.18 	(2) caring for children as a staff person or unsupervised volunteer in a certified, 
94.19 	license-exempt child care center under chapter 245H; or
94.20 	(3) providing direct contact services in a home or residential facility serving children 
94.21 	with disabilities that requires a background study under section 245C.03.

94.22 	EFFECTIVE DATE. This section is effective October 1, 2023.

94.23 	Sec. 5. Minnesota Statutes 2022, section 245A.03, subdivision 2, is amended to read:
94.24 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
94.25 	(1) residential or nonresidential programs that are provided to a person by an individual 
94.26 	who is related unless the residential program is a child foster care placement made by a 
94.27 	local social services agency or a licensed child-placing agency, except as provided in 
94.28 	subdivision 2a;
94.29 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
94.30 	a single related family;
95.1 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
95.2 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
95.3 	functional impairment, or a physical disability;
95.4 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
95.5 	of employment and economic development;
95.6 	(5) programs operated by a public school for children 33 months or older;
95.7 	(6) nonresidential programs primarily for children that provide care or supervision for 
95.8 	periods of less than three hours a day while the child's parent or legal guardian is in the 
95.9 	same building as the nonresidential program or present within another building that is 
95.10 	directly contiguous to the building in which the nonresidential program is located;
95.11 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
95.12 	under section 245A.02;
95.13 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
95.14 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
95.15 	substance use disorder treatment;
95.16 	(9) homes providing programs for persons placed by a county or a licensed agency for 
95.17 	legal adoption, unless the adoption is not completed within two years;
95.18 	(10) programs licensed by the commissioner of corrections;
95.19 	(11) recreation programs for children or adults that are operated or approved by a park 
95.20 	and recreation board whose primary purpose is to provide social and recreational activities;
95.21 	(12) programs operated by a school as defined in section 120A.22, subdivision 4; YMCA 
95.22 	as defined in section 315.44; YWCA as defined in section 315.44; or JCC as defined in 
95.23 	section 315.51, whose primary purpose is to provide child care or services to school-age 
95.24 	children;
95.25 	(13) Head Start nonresidential programs which operate for less than 45 days in each 
95.26 	calendar year;
95.27 	(14) noncertified boarding care homes unless they provide services for five or more 
95.28 	persons whose primary diagnosis is mental illness or a developmental disability;
95.29 	(15) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
95.30 	programs, and nonresidential programs for children provided for a cumulative total of less 
95.31 	than 30 days in any 12-month period;
95.32 	(16) residential programs for persons with mental illness, that are located in hospitals;
96.1 	(17) the religious instruction of school-age children; Sabbath or Sunday schools; or the 
96.2 	congregate care of children by a church, congregation, or religious society during the period 
96.3 	used by the church, congregation, or religious society for its regular worship;
96.4 	(18) camps licensed by the commissioner of health under Minnesota Rules, chapter 
96.5 	4630;
96.6 	(19) mental health outpatient services for adults with mental illness or children with 
96.7 	emotional disturbance;
96.8 	(20) residential programs serving school-age children whose sole purpose is cultural or 
96.9 	educational exchange, until the commissioner adopts appropriate rules;
96.10 	(21) community support services programs as defined in section 245.462, subdivision 
96.11 	6, and family community support services as defined in section 245.4871, subdivision 17;
96.12 	(22) the placement of a child by a birth parent or legal guardian in a preadoptive home 
96.13 	for purposes of adoption as authorized by section 259.47;
96.14 	(23) settings registered under chapter 144D which provide home care services licensed 
96.15 	by the commissioner of health to fewer than seven adults;
96.16 	(24) substance use disorder treatment activities of licensed professionals in private 
96.17 	practice as defined in section 245G.01, subdivision 17;
96.18 	(25) consumer-directed community support service funded under the Medicaid waiver 
96.19 	for persons with developmental disabilities when the individual who provided the service 
96.20 	is:
96.21 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
96.22 	a fiscal agent, fiscal intermediary, or employer of record; and
96.23 	(ii) not otherwise under the control of a residential or nonresidential program that is 
96.24 	required to be licensed under this chapter when providing the service;
96.25 	(26) a program serving only children who are age 33 months or older, that is operated 
96.26 	by a nonpublic school, for no more than four hours per day per child, with no more than 20 
96.27 	children at any one time, and that is accredited by:
96.28 	(i) an accrediting agency that is formally recognized by the commissioner of education 
96.29 	as a nonpublic school accrediting organization; or
96.30 	(ii) an accrediting agency that requires background studies and that receives and 
96.31 	investigates complaints about the services provided.
97.1 	A program that asserts its exemption from licensure under item (ii) shall, upon request 
97.2 	from the commissioner, provide the commissioner with documentation from the accrediting 
97.3 	agency that verifies: that the accreditation is current; that the accrediting agency investigates 
97.4 	complaints about services; and that the accrediting agency's standards require background 
97.5 	studies on all people providing direct contact services;
97.6 	(27) a program operated by a nonprofit organization incorporated in Minnesota or another 
97.7 	state that serves youth in kindergarten through grade 12; provides structured, supervised 
97.8 	youth development activities; and has learning opportunities take place before or after 
97.9 	school, on weekends, or during the summer or other seasonal breaks in the school calendar. 
97.10 	A program exempt under this clause is not eligible for child care assistance under chapter 
97.11 	119B. A program exempt under this clause must:
97.12 	(i) have a director or supervisor on site who is responsible for overseeing written policies 
97.13 	relating to the management and control of the daily activities of the program, ensuring the 
97.14 	health and safety of program participants, and supervising staff and volunteers;
97.15 	(ii) have obtained written consent from a parent or legal guardian for each youth 
97.16 	participating in activities at the site; and
97.17 	(iii) have provided written notice to a parent or legal guardian for each youth at the site 
97.18 	that the program is not licensed or supervised by the state of Minnesota and is not eligible 
97.19 	to receive child care assistance payments;
97.20 	(28) a county that is an eligible vendor under section 254B.05 to provide care coordination 
97.21 	and comprehensive assessment services; or
97.22 	(29) a recovery community organization that is an eligible vendor under section 254B.05 
97.23 	to provide peer recovery support services.; or
97.24 	(30) Head Start programs that serve only children who are at least three years old but 
97.25 	not yet six years old.
97.26 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
97.27 	building in which a nonresidential program is located if it shares a common wall with the 
97.28 	building in which the nonresidential program is located or is attached to that building by 
97.29 	skyway, tunnel, atrium, or common roof.
97.30 	(c) Except for the home and community-based services identified in section 245D.03, 
97.31 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
97.32 	provided and funded according to an approved federal waiver plan where licensure is 
97.33 	specifically identified as not being a condition for the services and funding.

98.1 	EFFECTIVE DATE. This section is effective January 1, 2024.

98.2 	Sec. 6. Minnesota Statutes 2022, section 245A.04, subdivision 4, is amended to read:
98.3 		Subd. 4.Inspections; waiver. (a) Before issuing a license under this chapter, the 
98.4 	commissioner shall conduct an inspection of the program. The inspection must include but 
98.5 	is not limited to:
98.6 	(1) an inspection of the physical plant;
98.7 	(2) an inspection of records and documents;
98.8 	(3) observation of the program in operation; and
98.9 	(4) an inspection for the health, safety, and fire standards in licensing requirements for 
98.10 	a child care license holder.
98.11 	(b) The observation in paragraph (a), clause (3), is not required prior to issuing a license 
98.12 	under subdivision 7. If the commissioner issues a license under this chapter, these 
98.13 	requirements must be completed within one year after the issuance of the license.
98.14 	(c) Before completing a licensing inspection in a family child care program or child care 
98.15 	center, the licensing agency must offer the license holder an exit interview to discuss 
98.16 	violations or potential violations of law or rule observed during the inspection and offer 
98.17 	technical assistance on how to comply with applicable laws and rules. The commissioner 
98.18 	shall not issue a correction order or negative licensing action for violations of law or rule 
98.19 	not discussed in an exit interview, unless a license holder chooses not to participate in an 
98.20 	exit interview or not to complete the exit interview. If the license holder is unable to complete 
98.21 	the exit interview, the licensing agency must offer an alternate time for the license holder 
98.22 	to complete the exit interview.
98.23 	(d) If a family child care license holder disputes a county licensor's interpretation of a 
98.24 	licensing requirement during a licensing inspection or exit interview, the license holder 
98.25 	may, within five business days after the exit interview or licensing inspection, request 
98.26 	clarification from the commissioner, in writing, in a manner prescribed by the commissioner. 
98.27 	The license holder's request must describe the county licensor's interpretation of the licensing 
98.28 	requirement at issue, and explain why the license holder believes the county licensor's 
98.29 	interpretation is inaccurate. The commissioner and the county must include the license 
98.30 	holder in all correspondence regarding the disputed interpretation, and must provide an 
98.31 	opportunity for the license holder to contribute relevant information that may impact the 
98.32 	commissioner's decision. The county licensor must not issue a correction order related to 
99.1 	the disputed licensing requirement until the commissioner has provided clarification to the 
99.2 	license holder about the licensing requirement.
99.3 	(e) The commissioner or the county shall inspect at least annually once each calendar 
99.4 	year a child care provider licensed under this chapter and Minnesota Rules, chapter 9502
99.5 	or 9503, for compliance with applicable licensing standards.
99.6 	(f) No later than November 19, 2017, the commissioner shall make publicly available 
99.7 	on the department's website the results of inspection reports of all child care providers 
99.8 	licensed under this chapter and under Minnesota Rules, chapter 9502 or 9503, and the 
99.9 	number of deaths, serious injuries, and instances of substantiated child maltreatment that 
99.10 	occurred in licensed child care settings each year.

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

99.12 	Sec. 7. Minnesota Statutes 2022, section 245A.05, is amended to read:
99.13 	245A.05 DENIAL OF APPLICATION.
99.14 	(a) The commissioner may deny a license if an applicant or controlling individual:
99.15 	(1) fails to submit a substantially complete application after receiving notice from the 
99.16 	commissioner under section 245A.04, subdivision 1;
99.17 	(2) fails to comply with applicable laws or rules;
99.18 	(3) knowingly withholds relevant information from or gives false or misleading 
99.19 	information to the commissioner in connection with an application for a license or during 
99.20 	an investigation;
99.21 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
99.22 	variance has been granted;
99.23 	(5) has an individual living in the household who received a background study under 
99.24 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
99.25 	has not been set aside under section 245C.22, and no variance has been granted;
99.26 	(6) is associated with an individual who received a background study under section 
99.27 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
99.28 	children or vulnerable adults, and who has a disqualification that has not been set aside 
99.29 	under section 245C.22, and no variance has been granted;
99.30 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
100.1 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
100.2 	6;
100.3 	(9) has a history of noncompliance as a license holder or controlling individual with 
100.4 	applicable laws or rules, including but not limited to this chapter and chapters 119B and 
100.5 	245C;
100.6 	(10) is prohibited from holding a license according to section 245.095; or
100.7 	(11) for a family foster setting, has or has an individual who is living in the household 
100.8 	where the licensed services are provided or is otherwise subject to a background study who
100.9 	has nondisqualifying background study information, as described in section 245C.05, 
100.10 	subdivision 4, that reflects on the individual's applicant's ability to safely provide care to 
100.11 	foster children.
100.12 	(b) An applicant whose application has been denied by the commissioner must be given 
100.13 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
100.14 	must be given by certified mail or personal service. The notice must state the reasons the 
100.15 	application was denied and must inform the applicant of the right to a contested case hearing 
100.16 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may 
100.17 	appeal the denial by notifying the commissioner in writing by certified mail or personal 
100.18 	service. If mailed, the appeal must be postmarked and sent to the commissioner within 20 
100.19 	calendar days after the applicant received the notice of denial. If an appeal request is made 
100.20 	by personal service, it must be received by the commissioner within 20 calendar days after 
100.21 	the applicant received the notice of denial. Section 245A.08 applies to hearings held to 
100.22 	appeal the commissioner's denial of an application.

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

100.24 	Sec. 8. Minnesota Statutes 2022, section 245A.06, subdivision 1, is amended to read:
100.25 		Subdivision 1.Contents of correction orders and conditional licenses. (a) If the 
100.26 	commissioner finds that the applicant or license holder has failed to comply with an 
100.27 	applicable law or rule and this failure does not imminently endanger the health, safety, or 
100.28 	rights of the persons served by the program, the commissioner may issue a correction order 
100.29 	and an order of conditional license to the applicant or license holder. When issuing a 
100.30 	conditional license, the commissioner shall consider the nature, chronicity, or severity of 
100.31 	the violation of law or rule and the effect of the violation on the health, safety, or rights of 
100.32 	persons served by the program. The correction order or conditional license must state the 
100.33 	following in plain language:
101.1 	(1) the specific factual conditions observable or reviewable by the licensor that constitute 
101.2 	a violation of the law or rule;
101.3 	(2) the specific law or rule violated;
101.4 	(3) the time allowed to correct each violation; and
101.5 	(4) if a license is made conditional, the length and terms of the conditional license, and 
101.6 	the reasons for making the license conditional.
101.7 	(b) Nothing in this section prohibits the commissioner from proposing a sanction as 
101.8 	specified in section 245A.07, prior to issuing a correction order or conditional license.

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

101.10 	Sec. 9. Minnesota Statutes 2022, section 245A.07, subdivision 1, is amended to read:
101.11 		Subdivision 1.Sanctions; appeals; license. (a) In addition to making a license conditional 
101.12 	under section 245A.06, the commissioner may suspend or revoke the license, impose a fine, 
101.13 	or secure an injunction against the continuing operation of the program of a license holder 
101.14 	who:
101.15 	(1) does not comply with applicable law or rule, or who;
101.16 	(2) has nondisqualifying background study information, as described in section 245C.05, 
101.17 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
101.18 	children; or
101.19 	(3) has an individual living in the household where the licensed services are provided 
101.20 	or is otherwise subject to a background study, and the individual has nondisqualifying 
101.21 	background study information, as described in section 245C.05, subdivision 4, that reflects 
101.22 	on the license holder's ability to safely provide care to foster children.
101.23 	When applying sanctions authorized under this section, the commissioner shall consider 
101.24 	the nature, chronicity, or severity of the violation of law or rule and the effect of the violation 
101.25 	on the health, safety, or rights of persons served by the program.
101.26 	(b) If a license holder appeals the suspension or revocation of a license and the license 
101.27 	holder continues to operate the program pending a final order on the appeal, the commissioner 
101.28 	shall issue the license holder a temporary provisional license. Unless otherwise specified 
101.29 	by the commissioner, variances in effect on the date of the license sanction under appeal 
101.30 	continue under the temporary provisional license. If a license holder fails to comply with 
101.31 	applicable law or rule while operating under a temporary provisional license, the 
101.32 	commissioner may impose additional sanctions under this section and section 245A.06, and 
102.1 	may terminate any prior variance. If a temporary provisional license is set to expire, a new 
102.2 	temporary provisional license shall be issued to the license holder upon payment of any fee 
102.3 	required under section 245A.10. The temporary provisional license shall expire on the date 
102.4 	the final order is issued. If the license holder prevails on the appeal, a new nonprovisional 
102.5 	license shall be issued for the remainder of the current license period.
102.6 	(c) If a license holder is under investigation and the license issued under this chapter is 
102.7 	due to expire before completion of the investigation, the program shall be issued a new 
102.8 	license upon completion of the reapplication requirements and payment of any applicable 
102.9 	license fee. Upon completion of the investigation, a licensing sanction may be imposed 
102.10 	against the new license under this section, section 245A.06, or 245A.08.
102.11 	(d) Failure to reapply or closure of a license issued under this chapter by the license 
102.12 	holder prior to the completion of any investigation shall not preclude the commissioner 
102.13 	from issuing a licensing sanction under this section or section 245A.06 at the conclusion 
102.14 	of the investigation.

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

102.16 	Sec. 10. Minnesota Statutes 2022, section 245A.07, subdivision 3, is amended to read:
102.17 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
102.18 	or revoke a license, or impose a fine if:
102.19 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
102.20 	limited to the requirements of this chapter and chapter 245C;
102.21 	(2) a license holder, a controlling individual, or an individual living in the household 
102.22 	where the licensed services are provided or is otherwise subject to a background study has 
102.23 	been disqualified and the disqualification was not set aside and no variance has been granted;
102.24 	(3) a license holder knowingly withholds relevant information from or gives false or 
102.25 	misleading information to the commissioner in connection with an application for a license, 
102.26 	in connection with the background study status of an individual, during an investigation, 
102.27 	or regarding compliance with applicable laws or rules;
102.28 	(4) a license holder is excluded from any program administered by the commissioner 
102.29 	under section 245.095; or
102.30 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d).; or
102.31 	(6) for a family foster setting, a license holder or an individual living in the household 
102.32 	where the licensed services are provided or who is otherwise subject to a background study 
103.1 	has nondisqualifying background study information, as described in section 245C.05, 
103.2 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
103.3 	children.
103.4 	A license holder who has had a license issued under this chapter suspended, revoked, 
103.5 	or has been ordered to pay a fine must be given notice of the action by certified mail or 
103.6 	personal service. If mailed, the notice must be mailed to the address shown on the application 
103.7 	or the last known address of the license holder. The notice must state in plain language the 
103.8 	reasons the license was suspended or revoked, or a fine was ordered.
103.9 	(b) If the license was suspended or revoked, the notice must inform the license holder 
103.10 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
103.11 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
103.12 	a license. The appeal of an order suspending or revoking a license must be made in writing 
103.13 	by certified mail or personal service. If mailed, the appeal must be postmarked and sent to 
103.14 	the commissioner within ten calendar days after the license holder receives notice that the 
103.15 	license has been suspended or revoked. If a request is made by personal service, it must be 
103.16 	received by the commissioner within ten calendar days after the license holder received the 
103.17 	order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits a 
103.18 	timely appeal of an order suspending or revoking a license, the license holder may continue 
103.19 	to operate the program as provided in section 245A.04, subdivision 7, paragraphs (f) and 
103.20 	(g), until the commissioner issues a final order on the suspension or revocation.
103.21 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
103.22 	holder of the responsibility for payment of fines and the right to a contested case hearing 
103.23 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
103.24 	order to pay a fine must be made in writing by certified mail or personal service. If mailed, 
103.25 	the appeal must be postmarked and sent to the commissioner within ten calendar days after 
103.26 	the license holder receives notice that the fine has been ordered. If a request is made by 
103.27 	personal service, it must be received by the commissioner within ten calendar days after 
103.28 	the license holder received the order.
103.29 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
103.30 	If the license holder fails to fully comply with the order, the commissioner may issue a 
103.31 	second fine or suspend the license until the license holder complies. If the license holder 
103.32 	receives state funds, the state, county, or municipal agencies or departments responsible for 
103.33 	administering the funds shall withhold payments and recover any payments made while the 
103.34 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
103.35 	until the commissioner issues a final order.
104.1 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
104.2 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
104.3 	commissioner determines that a violation has not been corrected as indicated by the order 
104.4 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
104.5 	the license holder by certified mail or personal service that a second fine has been assessed. 
104.6 	The license holder may appeal the second fine as provided under this subdivision.
104.7 	(4) Fines shall be assessed as follows:
104.8 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
104.9 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
104.10 	for which the license holder is determined responsible for the maltreatment under section 
104.11 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
104.12 	(ii) if the commissioner determines that a determination of maltreatment for which the 
104.13 	license holder is responsible is the result of maltreatment that meets the definition of serious 
104.14 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
104.15 	$5,000;
104.16 	(iii) for a program that operates out of the license holder's home and a program licensed 
104.17 	under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license 
104.18 	holder shall not exceed $1,000 for each determination of maltreatment;
104.19 	(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
104.20 	governing matters of health, safety, or supervision, including but not limited to the provision 
104.21 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
104.22 	requirements under chapter 245C; and
104.23 	(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
104.24 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
104.25 	For purposes of this section, "occurrence" means each violation identified in the 
104.26 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
104.27 	provide home and community-based services, as identified in section 245D.03, subdivision 
104.28 	1, and a community residential setting or day services facility license under chapter 245D 
104.29 	where the services are provided, may be assessed against both licenses for the same 
104.30 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
104.31 	this clause for that occurrence.
104.32 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
104.33 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
105.1 	license holder will be personally liable for payment. In the case of a corporation, each 
105.2 	controlling individual is personally and jointly liable for payment.
105.3 	(d) Except for background study violations involving the failure to comply with an order 
105.4 	to immediately remove an individual or an order to provide continuous, direct supervision, 
105.5 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
105.6 	violation to a license holder who self-corrects a background study violation before the 
105.7 	commissioner discovers the violation. A license holder who has previously exercised the 
105.8 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
105.9 	a fine for a subsequent background study violation unless at least 365 days have passed 
105.10 	since the license holder self-corrected the earlier background study violation.

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

105.12 	Sec. 11. Minnesota Statutes 2022, section 245A.11, is amended by adding a subdivision 
105.13 	to read:
105.14 		Subd. 12.License holder qualifications for child foster care.  (a) Child foster care 
105.15 	license holders must maintain the ability to care for a foster child and ensure a safe home 
105.16 	environment for children placed in their care. License holders must immediately notify the 
105.17 	licensing agency of:
105.18 	(1) any changes to the license holder or household member's physical or behavioral 
105.19 	health that may affect the license holder's ability to care for a foster child or pose a risk to 
105.20 	a foster child's health; or
105.21 	(2) changes related to the care of a child or vulnerable adult for whom the license holder 
105.22 	is a parent or legally responsible, including living out of the home for treatment for physical 
105.23 	or behavioral health, modified parenting time arrangements, legal custody, or placement in 
105.24 	foster care.
105.25 	(b) The licensing agency may request a license holder or household member to undergo 
105.26 	an evaluation by a specialist in areas such as physical or behavioral health to evaluate the 
105.27 	license holder's ability to provide a safe environment for a foster child. Prior to assigning 
105.28 	a specialist to evaluate, the licensing agency must tell the license holder or household 
105.29 	member why the licensing agency has requested a specialist evaluation and request a release 
105.30 	of information from the license holder or household member.

105.31 	EFFECTIVE DATE. This section is effective January 1, 2024.

106.1 	Sec. 12. Minnesota Statutes 2022, section 245A.14, subdivision 4, is amended to read:
106.2 		Subd. 4.Special family child care homes. (a) Nonresidential child care programs 
106.3 	serving 14 or fewer children that are conducted at a location other than the license holder's 
106.4 	own residence shall be licensed under this section and the rules governing family child care 
106.5 	or group family child care if:
106.6 	(a) (1) the license holder is the primary provider of care and the nonresidential child 
106.7 	care program is conducted in a dwelling that is located on a residential lot;
106.8 	(b) (2) the license holder is an employer who may or may not be the primary provider 
106.9 	of care, and the purpose for the child care program is to provide child care services to 
106.10 	children of the license holder's employees;
106.11 	(c) (3) the license holder is a church or religious organization;
106.12 	(d) (4) the license holder is a community collaborative child care provider. For purposes 
106.13 	of this subdivision, a community collaborative child care provider is a provider participating 
106.14 	in a cooperative agreement with a community action agency as defined in section 256E.31;
106.15 	(e) (5) the license holder is a not-for-profit agency that provides child care in a dwelling 
106.16 	located on a residential lot and the license holder maintains two or more contracts with 
106.17 	community employers or other community organizations to provide child care services. 
106.18 	The county licensing agency may grant a capacity variance to a license holder licensed 
106.19 	under this paragraph clause to exceed the licensed capacity of 14 children by no more than 
106.20 	five children during transition periods related to the work schedules of parents, if the license 
106.21 	holder meets the following requirements:
106.22 	(1) (i) the program does not exceed a capacity of 14 children more than a cumulative 
106.23 	total of four hours per day;
106.24 	(2) (ii) the program meets a one to seven staff-to-child ratio during the variance period;
106.25 	(3) (iii) all employees receive at least an extra four hours of training per year than required 
106.26 	in the rules governing family child care each year;
106.27 	(4) (iv) the facility has square footage required per child under Minnesota Rules, part 
106.28 	9502.0425;
106.29 	(5) (v) the program is in compliance with local zoning regulations;
106.30 	(6) (vi) the program is in compliance with the applicable fire code as follows:
106.31 	(i) (A) if the program serves more than five children older than 2-1/2 years of age, but 
106.32 	no more than five children 2-1/2 years of age or less, the applicable fire code is educational 
107.1 	occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code 2015
107.2 	2020, Section 202; or
107.3 	(ii) (B) if the program serves more than five children 2-1/2 years of age or less, the 
107.4 	applicable fire code is Group I-4 Occupancies Occupancy, as provided in the Minnesota 
107.5 	State Fire Code 2015 2020, Section 202, unless the rooms in which the children 2-1/2 years 
107.6 	of age or younger are cared for are located on a level of exit discharge and each of these 
107.7 	child care rooms has an exit door directly to the exterior, then the applicable fire code is 
107.8 	Group E occupancies Occupancy, as provided in the Minnesota State Fire Code 2015 2020, 
107.9 	Section 202; and
107.10 	(7) (vii) any age and capacity limitations required by the fire code inspection and square 
107.11 	footage determinations shall be printed on the license; or
107.12 	(f) (6) the license holder is the primary provider of care and has located the licensed 
107.13 	child care program in a commercial space, if the license holder meets the following 
107.14 	requirements:
107.15 	(1) (i) the program is in compliance with local zoning regulations;
107.16 	(2) (ii) the program is in compliance with the applicable fire code as follows:
107.17 	(i) (A) if the program serves more than five children older than 2-1/2 years of age, but 
107.18 	no more than five children 2-1/2 years of age or less, the applicable fire code is educational 
107.19 	occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code 2015
107.20 	2020, Section 202; or
107.21 	(ii) (B) if the program serves more than five children 2-1/2 years of age or less, the 
107.22 	applicable fire code is Group I-4 Occupancies Occupancy, as provided under the Minnesota 
107.23 	State Fire Code 2015 2020, Section 202, unless the rooms in which the children 2-1/2 years 
107.24 	of age or younger are cared for are located on a level of exit discharge and each of these 
107.25 	child care rooms has an exit door directly to the exterior, then the applicable fire code is 
107.26 	Group E Occupancy, as provided in the Minnesota State Fire Code 2020, Section 202;
107.27 	(3) (iii) any age and capacity limitations required by the fire code inspection and square 
107.28 	footage determinations are printed on the license; and
107.29 	(4) (iv) the license holder prominently displays the license issued by the commissioner 
107.30 	which contains the statement "This special family child care provider is not licensed as a 
107.31 	child care center."
107.32 	(g) (b) Notwithstanding Minnesota Rules, part 9502.0335, subpart 12, the commissioner 
107.33 	may issue up to four licenses to an organization licensed under paragraph (b), (c), or (e) (a), 
108.1 	clause (2), (3), or (5). Each license must have its own primary provider of care as required 
108.2 	under paragraph (i) (d). Each license must operate as a distinct and separate program in 
108.3 	compliance with all applicable laws and regulations.
108.4 	(h) (c) For licenses issued under paragraph (b), (c), (d), (e), or (f) (a), clause (2), (3), 
108.5 	(4), (5), or (6), the commissioner may approve up to four licenses at the same location or 
108.6 	under one contiguous roof if each license holder is able to demonstrate compliance with all 
108.7 	applicable rules and laws. Each licensed program must operate as a distinct program and 
108.8 	within the capacity, age, and ratio distributions of each license.
108.9 	(i) (d) For a license issued under paragraph (b), (c), or (e) (a), clause (2), (3), or (5), the 
108.10 	license holder must designate a person to be the primary provider of care at the licensed 
108.11 	location on a form and in a manner prescribed by the commissioner. The license holder 
108.12 	shall notify the commissioner in writing before there is a change of the person designated 
108.13 	to be the primary provider of care. The primary provider of care:
108.14 	(1) must be the person who will be the provider of care at the program and present during 
108.15 	the hours of operation;
108.16 	(2) must operate the program in compliance with applicable laws and regulations under 
108.17 	chapter 245A and Minnesota Rules, chapter 9502;
108.18 	(3) is considered a child care background study subject as defined in section 245C.02, 
108.19 	subdivision 6a, and must comply with background study requirements in chapter 245C;
108.20 	(4) must complete the training that is required of license holders in section 245A.50; 
108.21 	and
108.22 	(5) is authorized to communicate with the county licensing agency and the department 
108.23 	on matters related to licensing.
108.24 	(j) (e) For any license issued under this subdivision, the license holder must ensure that 
108.25 	any other caregiver, substitute, or helper who assists in the care of children meets the training 
108.26 	requirements in section 245A.50 and background study requirements under chapter 245C.

108.27 	Sec. 13. Minnesota Statutes 2022, section 245A.1435, is amended to read:
108.28 	245A.1435 REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT DEATH 
108.29 	IN LICENSED PROGRAMS.
108.30 	(a) When a license holder is placing an infant to sleep, the license holder must place the 
108.31 	infant on the infant's back, unless the license holder has documentation from the infant's 
108.32 	physician, advanced practice registered nurse, or physician assistant directing an alternative 
109.1 	sleeping position for the infant. The physician, advanced practice registered nurse, or 
109.2 	physician assistant directive must be on a form approved developed by the commissioner 
109.3 	and must remain on file at the licensed location. An infant who independently rolls onto its 
109.4 	stomach after being placed to sleep on its back may be allowed to remain sleeping on its 
109.5 	stomach if the infant is at least six months of age or the license holder has a signed statement 
109.6 	from the parent indicating that the infant regularly rolls over at home.
109.7 	(b) The license holder must place the infant in a crib directly on a firm mattress with a 
109.8 	fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress, and 
109.9 	overlaps the underside of the mattress so it cannot be dislodged by pulling on the corner of 
109.10 	the sheet with reasonable effort. The license holder must not place anything in the crib with 
109.11 	the infant except for the infant's pacifier, as defined in Code of Federal Regulations, title 
109.12 	16, part 1511. The pacifier must be free from any sort of attachment. The requirements of 
109.13 	this section apply to license holders serving infants younger than one year of age. Licensed 
109.14 	child care providers must meet the crib requirements under section 245A.146. A correction 
109.15 	order shall not be issued under this paragraph unless there is evidence that a violation 
109.16 	occurred when an infant was present in the license holder's care.
109.17 	(c) If an infant falls asleep before being placed in a crib, the license holder must move 
109.18 	the infant to a crib as soon as practicable, and must keep the infant within sight of the license 
109.19 	holder until the infant is placed in a crib. When an infant falls asleep while being held, the 
109.20 	license holder must consider the supervision needs of other children in care when determining 
109.21 	how long to hold the infant before placing the infant in a crib to sleep. The sleeping infant 
109.22 	must not be in a position where the airway may be blocked or with anything covering the 
109.23 	infant's face.
109.24 	(d) When a license holder places an infant under one year of age down to sleep, the 
109.25 	infant's clothing or sleepwear must not have weighted materials, a hood, or a bib.
109.26 	(e) A license holder may place an infant under one year of age down to sleep wearing 
109.27 	a helmet if the license holder has signed documentation by a physician, advanced practice 
109.28 	registered nurse, physician assistant, licensed occupational therapist, or licensed physical 
109.29 	therapist on a form developed by the commissioner.
109.30 	(d) (f) Placing a swaddled infant down to sleep in a licensed setting is not recommended 
109.31 	for an infant of any age and is prohibited for any infant who has begun to roll over 
109.32 	independently. However, with the written consent of a parent or guardian according to this 
109.33 	paragraph, a license holder may place the infant who has not yet begun to roll over on its 
109.34 	own down to sleep in a one-piece sleeper equipped with an attached system that fastens 
110.1 	securely only across the upper torso, with no constriction of the hips or legs, to create a
110.2 	swaddle. A swaddle is defined as a one-piece sleepwear that wraps over the infant's arms, 
110.3 	fastens securely only across the infant's upper torso, and does not constrict the infant's hips 
110.4 	or legs. If a swaddle is used by a license holder, the license holder must ensure that it meets 
110.5 	the requirements of paragraph (d) and is not so tight that it restricts the infant's ability to 
110.6 	breathe or so loose that the fabric could cover the infant's nose and mouth. Prior to any use 
110.7 	of swaddling for sleep by a provider licensed under this chapter, the license holder must 
110.8 	obtain informed written consent for the use of swaddling from the parent or guardian of the 
110.9 	infant on a form provided developed by the commissioner and prepared in partnership with 
110.10 	the Minnesota Sudden Infant Death Center.
110.11 	(g) A license holder may request a variance to this section to permit the use of a 
110.12 	cradleboard when requested by a parent or guardian for a cultural accommodation. A variance 
110.13 	for the use of a cradleboard may be issued only by the commissioner. The variance request 
110.14 	must be submitted on a form developed by the commissioner in partnership with Tribal 
110.15 	welfare agencies and the Department of Health.

110.16 	EFFECTIVE DATE. This section is effective January 1, 2024.

110.17 	Sec. 14. Minnesota Statutes 2022, section 245A.146, subdivision 3, is amended to read:
110.18 		Subd. 3.License holder documentation of cribs. (a) Annually, from the date printed 
110.19 	on the license, all license holders shall check all their cribs' brand names and model numbers 
110.20 	against the United States Consumer Product Safety Commission website listing of unsafe 
110.21 	cribs.
110.22 	(b) The license holder shall maintain written documentation to be reviewed on site for 
110.23 	each crib showing that the review required in paragraph (a) has been completed, and which 
110.24 	of the following conditions applies:
110.25 	(1) the crib was not identified as unsafe on the United States Consumer Product Safety 
110.26 	Commission website;
110.27 	(2) the crib was identified as unsafe on the United States Consumer Product Safety 
110.28 	Commission website, but the license holder has taken the action directed by the United 
110.29 	States Consumer Product Safety Commission to make the crib safe; or
110.30 	(3) the crib was identified as unsafe on the United States Consumer Product Safety 
110.31 	Commission website, and the license holder has removed the crib so that it is no longer 
110.32 	used by or accessible to children in care.
111.1 	(c) Documentation of the review completed under this subdivision shall be maintained 
111.2 	by the license holder on site and made available to parents or guardians of children in care 
111.3 	and the commissioner.
111.4 	(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider that 
111.5 	complies with this section may use a mesh-sided or fabric-sided play yard, pack and play, 
111.6 	or playpen or crib that has not been identified as unsafe on the United States Consumer 
111.7 	Product Safety Commission website for the care or sleeping of infants.
111.8 	(e) On at least a monthly basis, the family child care license holder shall perform safety 
111.9 	inspections of every mesh-sided or fabric-sided play yard, pack and play, or playpen used 
111.10 	by or that is accessible to any child in care, and must document the following:
111.11 	(1) there are no tears, holes, or loose or unraveling threads in mesh or fabric sides of 
111.12 	crib;
111.13 	(2) the weave of the mesh on the crib is no larger than one-fourth of an inch;
111.14 	(3) no mesh fabric is unsecure or unattached to top rail and floor plate of crib;
111.15 	(4) no tears or holes to top rail of crib;
111.16 	(5) the mattress floor board is not soft and does not exceed one inch thick;
111.17 	(6) the mattress floor board has no rips or tears in covering;
111.18 	(7) the mattress floor board in use is a waterproof an original mattress or replacement 
111.19 	mattress provided by the manufacturer of the crib;
111.20 	(8) there are no protruding or loose rivets, metal nuts, or bolts on the crib;
111.21 	(9) there are no knobs or wing nuts on outside crib legs;
111.22 	(10) there are no missing, loose, or exposed staples; and
111.23 	(11) the latches on top and side rails used to collapse crib are secure, they lock properly, 
111.24 	and are not loose.
111.25 	(f) If a cradleboard is used in a licensed setting, the license holder must check the 
111.26 	cradleboard not less than monthly to ensure the cradleboard is structurally sound and there 
111.27 	are no loose or protruding parts. The license holder shall maintain written documentation 
111.28 	of this review.

111.29 	EFFECTIVE DATE. This section is effective January 1, 2024.

112.1 	Sec. 15. Minnesota Statutes 2022, section 245A.16, subdivision 1, is amended to read:
112.2 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
112.3 	agencies that have been designated or licensed by the commissioner to perform licensing 
112.4 	functions and activities under section 245A.04 and background studies for family child care 
112.5 	under chapter 245C; to recommend denial of applicants under section 245A.05; to issue 
112.6 	correction orders, to issue variances, and recommend a conditional license under section 
112.7 	245A.06; or to recommend suspending or revoking a license or issuing a fine under section 
112.8 	245A.07, shall comply with rules and directives of the commissioner governing those 
112.9 	functions and with this section. The following variances are excluded from the delegation 
112.10 	of variance authority and may be issued only by the commissioner:
112.11 	(1) dual licensure of family child care and child foster care, dual licensure of child and 
112.12 	adult foster care, and adult foster care and family child care;
112.13 	(2) adult foster care maximum capacity;
112.14 	(3) adult foster care minimum age requirement;
112.15 	(4) child foster care maximum age requirement;
112.16 	(5) variances regarding disqualified individuals except that, before the implementation 
112.17 	of NETStudy 2.0, county agencies may issue variances under section 245C.30 regarding 
112.18 	disqualified individuals when the county is responsible for conducting a consolidated 
112.19 	reconsideration according to sections 245C.25 and 245C.27, subdivision 2, clauses (a) and 
112.20 	(b), of a county maltreatment determination and a disqualification based on serious or 
112.21 	recurring maltreatment;
112.22 	(6) the required presence of a caregiver in the adult foster care residence during normal 
112.23 	sleeping hours;
112.24 	(7) variances to requirements relating to chemical use problems of a license holder or a 
112.25 	household member of a license holder; and
112.26 	(8) variances to section 245A.53 for a time-limited period. If the commissioner grants 
112.27 	a variance under this clause, the license holder must provide notice of the variance to all 
112.28 	parents and guardians of the children in care; and
112.29 	(9) variances to section 245A.1435 for the use of a cradleboard for a cultural 
112.30 	accommodation.
113.1 	Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency must 
113.2 	not grant a license holder a variance to exceed the maximum allowable family child care 
113.3 	license capacity of 14 children.
113.4 	(b) A county agency that has been designated by the commissioner to issue family child 
113.5 	care variances must:
113.6 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
113.7 	public website and update the policies as necessary; and
113.8 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
113.9 	all family child care license holders in the county.
113.10 	(c) Before the implementation of NETStudy 2.0, county agencies must report information 
113.11 	about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 
113.12 	2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the 
113.13 	commissioner at least monthly in a format prescribed by the commissioner.
113.14 	(d) For family child care programs, the commissioner shall require a county agency to 
113.15 	conduct one unannounced licensing review at least annually.
113.16 	(e) For family adult day services programs, the commissioner may authorize licensing 
113.17 	reviews every two years after a licensee has had at least one annual review.
113.18 	(f) A license issued under this section may be issued for up to two years.
113.19 	(g) During implementation of chapter 245D, the commissioner shall consider:
113.20 	(1) the role of counties in quality assurance;
113.21 	(2) the duties of county licensing staff; and
113.22 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
113.23 	through which some licensing duties under chapter 245D may be delegated by the 
113.24 	commissioner to the counties.
113.25 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
113.26 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
113.27 	(h) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
113.28 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
113.29 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
113.30 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county and 
113.31 	private agencies.
114.1 	(i) A county agency shall report to the commissioner, in a manner prescribed by the 
114.2 	commissioner, the following information for a licensed family child care program:
114.3 	(1) the results of each licensing review completed, including the date of the review, and 
114.4 	any licensing correction order issued;
114.5 	(2) any death, serious injury, or determination of substantiated maltreatment; and
114.6 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
114.7 	information under this clause must also be reported to the state fire marshal within two 
114.8 	business days of receiving notice from a licensed family child care provider.

114.9 	EFFECTIVE DATE. This section is effective January 1, 2024.

114.10 	Sec. 16. Minnesota Statutes 2022, section 245A.16, subdivision 9, is amended to read:
114.11 		Subd. 9.Licensed family foster settings. (a) Before recommending to grant a license, 
114.12 	deny a license under section 245A.05, or revoke a license under section 245A.07 for 
114.13 	nondisqualifying background study information received under section 245C.05, subdivision 
114.14 	4, paragraph (a), clause (3), for a licensed family foster setting, a county agency or private 
114.15 	agency that has been designated or licensed by the commissioner must review the following
114.16 	for the license holder, the applicant, and an individual living in the household where the 
114.17 	licensed services are provided or who is otherwise subject to a background study:
114.18 	(1) the type of offenses;
114.19 	(2) the number of offenses;
114.20 	(3) the nature of the offenses;
114.21 	(4) the age of the individual at the time of the offenses;
114.22 	(5) the length of time that has elapsed since the last offense;
114.23 	(6) the relationship of the offenses and the capacity to care for a child;
114.24 	(7) evidence of rehabilitation;
114.25 	(8) information or knowledge from community members regarding the individual's 
114.26 	capacity to provide foster care;
114.27 	(9) any available information regarding child maltreatment reports or child in need of 
114.28 	protection or services petitions, or related cases, in which the individual has been involved 
114.29 	or implicated, and documentation that the individual has remedied issues or conditions 
114.30 	identified in child protection or court records that are relevant to safely caring for a child;
115.1 	(10) a statement from the study subject;
115.2 	(11) a statement from the license holder; and
115.3 	(12) other aggravating and mitigating factors.
115.4 	(b) For purposes of this section, "evidence of rehabilitation" includes but is not limited 
115.5 	to the following:
115.6 	(1) maintaining a safe and stable residence;
115.7 	(2) continuous, regular, or stable employment;
115.8 	(3) successful participation in an education or job training program;
115.9 	(4) positive involvement with the community or extended family;
115.10 	(5) compliance with the terms and conditions of probation or parole following the 
115.11 	individual's most recent conviction;
115.12 	(6) if the individual has had a substance use disorder, successful completion of a substance 
115.13 	use disorder assessment, substance use disorder treatment, and recommended continuing 
115.14 	care, if applicable, demonstrated abstinence from controlled substances, as defined in section 
115.15 	152.01, subdivision 4, or the establishment of a sober network;
115.16 	(7) if the individual has had a mental illness or documented mental health issues, 
115.17 	demonstrated completion of a mental health evaluation, participation in therapy or other 
115.18 	recommended mental health treatment, or appropriate medication management, if applicable;
115.19 	(8) if the individual's offense or conduct involved domestic violence, demonstrated 
115.20 	completion of a domestic violence or anger management program, and the absence of any 
115.21 	orders for protection or harassment restraining orders against the individual since the previous 
115.22 	offense or conduct;
115.23 	(9) written letters of support from individuals of good repute, including but not limited 
115.24 	to employers, members of the clergy, probation or parole officers, volunteer supervisors, 
115.25 	or social services workers;
115.26 	(10) demonstrated remorse for convictions or conduct, or demonstrated positive behavior 
115.27 	changes; and
115.28 	(11) absence of convictions or arrests since the previous offense or conduct, including 
115.29 	any convictions that were expunged or pardoned.
115.30 	(c) An applicant for a family foster setting license must sign all releases of information 
115.31 	requested by the county or private licensing agency.
116.1 	(d) When licensing a relative for a family foster setting, the commissioner shall also 
116.2 	consider the importance of maintaining the child's relationship with relatives as an additional 
116.3 	significant factor in determining whether an application will be denied.
116.4 	(e) When recommending that the commissioner deny or revoke a license, the county or 
116.5 	private licensing agency must send a summary of the review completed according to 
116.6 	paragraph (a), on a form developed by the commissioner, to the commissioner and include 
116.7 	any recommendation for licensing action.

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

116.9 	Sec. 17. Minnesota Statutes 2022, section 245A.16, is amended by adding a subdivision 
116.10 	to read:
116.11 		Subd. 10.Electronic checklist use by family child care licensors. County staff who 
116.12 	perform family child care licensing functions must use the commissioner's electronic licensing 
116.13 	checklist in the manner prescribed by the commissioner.

116.14 	EFFECTIVE DATE. This section is effective July 1, 2023.

116.15 	Sec. 18. Minnesota Statutes 2022, section 245A.18, subdivision 2, is amended to read:
116.16 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
116.17 	licensed by the Department of Human Services under this chapter and Minnesota Rules, 
116.18 	chapter 2960, that serve a child or children under eight years of age must document training 
116.19 	that fulfills the requirements in this subdivision.
116.20 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
116.21 	age eight in a motor vehicle, the person transporting the child must satisfactorily complete 
116.22 	training on the proper use and installation of child restraint systems in motor vehicles. 
116.23 	Training completed under this section may be used to meet initial or ongoing training under 
116.24 	Minnesota Rules, part 2960.3070, subparts 1 and 2.
116.25 	(c) Training required under this section must be completed at orientation or initial training 
116.26 	and repeated at least once every five years. At a minimum, the training must address the 
116.27 	proper use of child restraint systems based on the child's size, weight, and age, and the 
116.28 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
116.29 	holder to transport the child or children.
116.30 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
116.31 	approved by the Department of Public Safety, Office of Traffic Safety within the Department 
117.1 	of Public Safety. License holders may obtain a list of certified and approved trainers through 
117.2 	the Department of Public Safety website or by contacting the agency.
117.3 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
117.4 	245A.035, the commissioner may grant a variance to the training required by this subdivision 
117.5 	for a relative who completes a child seat safety check up. The child seat safety check up 
117.6 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
117.7 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
117.8 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
117.9 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
117.10 	a license and may transport a relative foster child younger than eight years of age. A child 
117.11 	seat safety check up must be completed each time a child requires a different size car seat 
117.12 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
117.13 	complete training that meets the other requirements of this subdivision prior to placement 
117.14 	of another foster child younger than eight years of age in the home or prior to the renewal 
117.15 	of the child foster care license.

117.16 	Sec. 19. Minnesota Statutes 2022, section 245A.22, is amended by adding a subdivision 
117.17 	to read:
117.18 		Subd. 8.Maltreatment of minors training requirements. The license holder must 
117.19 	train each mandatory reporter as described in section 260E.06, subdivision 1, on the 
117.20 	maltreatment of minors reporting requirements and definitions in chapter 260E before the 
117.21 	mandatory reporter has direct contact, as defined in section 245C.02, subdivision 11, with 
117.22 	a person served by the program. The license holder must train each mandatory reporter 
117.23 	annually thereafter.

117.24 	EFFECTIVE DATE. This section is effective January 1, 2024.

117.25 	Sec. 20. [245A.42] CHILD CARE CENTER HIRING PRACTICES.
117.26 	As part of the employment assessment process, a child care center license holder or staff 
117.27 	person may observe how a prospective employee interacts with children in the licensed 
117.28 	facility. The prospective employee is not considered a child care background study subject 
117.29 	under section 245C.02, subdivision 6a, provided the prospective employee is under 
117.30 	continuous direct supervision by a staff person when the prospective employee has physical 
117.31 	access to a child served by the center. The observation period shall not be longer than two 
117.32 	hours, and a prospective employee must not be counted in staff-to-child ratios.

117.33 	EFFECTIVE DATE. This section is effective October 1, 2023.

118.1 	Sec. 21. Minnesota Statutes 2022, section 245A.50, subdivision 3, is amended to read:
118.2 		Subd. 3.First aid. (a) Before initial licensure and before caring for a child, license 
118.3 	holders, second adult caregivers, and substitutes must be trained in pediatric first aid. The 
118.4 	first aid training must have been provided by an individual approved to provide first aid 
118.5 	instruction. First aid training may be less than eight hours and persons qualified to provide 
118.6 	first aid training include individuals approved as first aid instructors. License holders, second 
118.7 	adult caregivers, and substitutes must repeat pediatric first aid training every two years. 
118.8 	When the training expires, it must be retaken no later than the day before the anniversary 
118.9 	of the license holder's license effective date. License holders, second adult caregivers, and 
118.10 	substitutes must not let the training expire.
118.11 	(b) Video training reviewed and approved by the county licensing agency satisfies the 
118.12 	training requirement of this subdivision.

118.13 	Sec. 22. Minnesota Statutes 2022, section 245A.50, subdivision 4, is amended to read:
118.14 		Subd. 4.Cardiopulmonary resuscitation. (a) Before initial licensure and before caring 
118.15 	for a child, license holders, second adult caregivers, and substitutes must be trained in 
118.16 	pediatric cardiopulmonary resuscitation (CPR), including CPR techniques for infants and 
118.17 	children, and in the treatment of obstructed airways. The CPR training must have been 
118.18 	provided by an individual approved to provide CPR instruction. License holders, second 
118.19 	adult caregivers, and substitutes must repeat pediatric CPR training at least once every two 
118.20 	years and must document the training in the license holder's records. When the training 
118.21 	expires, it must be retaken no later than the day before the anniversary of the license holder's 
118.22 	license effective date. License holders, second adult caregivers, and substitutes must not let 
118.23 	the training expire.
118.24 	(b) Persons providing CPR training must use CPR training that has been developed:
118.25 	(1) by the American Heart Association or the American Red Cross and incorporates 
118.26 	psychomotor skills to support the instruction; or
118.27 	(2) using nationally recognized, evidence-based guidelines for CPR training and 
118.28 	incorporates psychomotor skills to support the instruction.

118.29 	Sec. 23. Minnesota Statutes 2022, section 245A.50, subdivision 5, is amended to read:
118.30 		Subd. 5.Sudden unexpected infant death and abusive head trauma training. (a) 
118.31 	License holders must ensure and document that before the license holder, second adult 
118.32 	caregivers, substitutes, and helpers assist in the care of infants, they are instructed on the 
119.1 	standards in section 245A.1435 and receive training on reducing the risk of sudden 
119.2 	unexpected infant death. In addition, license holders must ensure and document that before 
119.3 	the license holder, second adult caregivers, substitutes, and helpers assist in the care of 
119.4 	infants and children under school age, they receive training on reducing the risk of abusive 
119.5 	head trauma from shaking infants and young children. The training in this subdivision may 
119.6 	be provided as initial training under subdivision 1 or ongoing annual training under 
119.7 	subdivision 7.
119.8 	(b) Sudden unexpected infant death reduction training required under this subdivision 
119.9 	must, at a minimum, address the risk factors related to sudden unexpected infant death, 
119.10 	means of reducing the risk of sudden unexpected infant death in child care, and license 
119.11 	holder communication with parents regarding reducing the risk of sudden unexpected infant 
119.12 	death.
119.13 	(c) Abusive head trauma training required under this subdivision must, at a minimum, 
119.14 	address the risk factors related to shaking infants and young children, means of reducing 
119.15 	the risk of abusive head trauma in child care, and license holder communication with parents 
119.16 	regarding reducing the risk of abusive head trauma.
119.17 	(d) Training for family and group family child care providers must be developed by the 
119.18 	commissioner in conjunction with the Minnesota Sudden Infant Death Center and approved 
119.19 	by the Minnesota Center for Professional Development. Sudden unexpected infant death 
119.20 	reduction training and abusive head trauma training may be provided in a single course of 
119.21 	no more than two hours in length.
119.22 	(e) Sudden unexpected infant death reduction training and abusive head trauma training 
119.23 	required under this subdivision must be completed in person or as allowed under subdivision 
119.24 	10, clause (1) or (2), at least once every two years. When the training expires, it must be 
119.25 	retaken no later than the day before the anniversary of the license holder's license effective 
119.26 	date. On the years when the individual receiving training is not receiving training in person 
119.27 	or as allowed under subdivision 10, clause (1) or (2), the individual receiving training in 
119.28 	accordance with this subdivision must receive sudden unexpected infant death reduction 
119.29 	training and abusive head trauma training through a video of no more than one hour in 
119.30 	length. The video must be developed or approved by the commissioner.
119.31 	(f) An individual who is related to the license holder as defined in section 245A.02, 
119.32 	subdivision 13, and who is involved only in the care of the license holder's own infant or 
119.33 	child under school age and who is not designated to be a second adult caregiver, helper, or 
120.1 	substitute for the licensed program, is exempt from the sudden unexpected infant death and 
120.2 	abusive head trauma training.

120.3 	Sec. 24. Minnesota Statutes 2022, section 245A.50, subdivision 6, is amended to read:
120.4 		Subd. 6.Child passenger restraint systems; training requirement. (a) A license 
120.5 	holder must comply with all seat belt and child passenger restraint system requirements 
120.6 	under section 169.685.
120.7 	(b) Family and group family child care programs licensed by the Department of Human 
120.8 	Services that serve a child or children under eight years of age must document training that 
120.9 	fulfills the requirements in this subdivision.
120.10 	(1) Before a license holder, second adult caregiver, substitute, or helper transports a 
120.11 	child or children under age eight in a motor vehicle, the person placing the child or children 
120.12 	in a passenger restraint must satisfactorily complete training on the proper use and installation 
120.13 	of child restraint systems in motor vehicles. Training completed under this subdivision may 
120.14 	be used to meet initial training under subdivision 1 or ongoing training under subdivision 
120.15 	7.
120.16 	(2) Training required under this subdivision must be at least one hour in length, completed 
120.17 	at initial training, and repeated at least once every five years. When the training expires, it 
120.18 	must be retaken no later than the day before the anniversary of the license holder's license 
120.19 	effective date. At a minimum, the training must address the proper use of child restraint 
120.20 	systems based on the child's size, weight, and age, and the proper installation of a car seat 
120.21 	or booster seat in the motor vehicle used by the license holder to transport the child or 
120.22 	children.
120.23 	(3) Training under this subdivision must be provided by individuals who are certified 
120.24 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
120.25 	may obtain a list of certified and approved trainers through the Department of Public Safety 
120.26 	website or by contacting the agency.
120.27 	(c) Child care providers that only transport school-age children as defined in section 
120.28 	245A.02, subdivision 19, paragraph (f), in child care buses as defined in section 169.448, 
120.29 	subdivision 1, paragraph (e), are exempt from this subdivision.

120.30 	Sec. 25. Minnesota Statutes 2022, section 245A.50, subdivision 9, is amended to read:
120.31 		Subd. 9.Supervising for safety; training requirement. (a) Courses required by this 
120.32 	subdivision must include the following health and safety topics:
121.1 	(1) preventing and controlling infectious diseases;
121.2 	(2) administering medication;
121.3 	(3) preventing and responding to allergies;
121.4 	(4) ensuring building and physical premises safety;
121.5 	(5) handling and storing biological contaminants;
121.6 	(6) preventing and reporting child abuse and maltreatment; and
121.7 	(7) emergency preparedness.
121.8 	(b) Before initial licensure and before caring for a child, all family child care license 
121.9 	holders and each second adult caregiver shall complete and document the completion of 
121.10 	the six-hour Supervising for Safety for Family Child Care course developed by the 
121.11 	commissioner.
121.12 	(c) The license holder must ensure and document that, before caring for a child, all 
121.13 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
121.14 	Substitutes course developed by the commissioner, which must include health and safety 
121.15 	topics as well as child development and learning.
121.16 	(d) The family child care license holder and each second adult caregiver shall complete 
121.17 	and document:
121.18 	(1) the annual completion of either:
121.19 	(i) a two-hour active supervision course developed by the commissioner; or
121.20 	(ii) any courses in the ensuring safety competency area under the health, safety, and 
121.21 	nutrition standard of the Knowledge and Competency Framework that the commissioner 
121.22 	has identified as an active supervision training course; and
121.23 	(2) the completion at least once every five years of the two-hour courses Health and 
121.24 	Safety I and Health and Safety II. When the training is due for the first time or expires, it 
121.25 	must be taken no later than the day before the anniversary of the license holder's license 
121.26 	effective date. A license holder's or second adult caregiver's completion of either training 
121.27 	in a given year meets the annual active supervision training requirement in clause (1).
121.28 	(e) At least once every three years, license holders must ensure and document that 
121.29 	substitutes have completed the four-hour Basics of Licensed Family Child Care for 
121.30 	Substitutes course. When the training expires, it must be retaken no later than the day before 
121.31 	the anniversary of the license holder's license effective date.

122.1 	Sec. 26. Minnesota Statutes 2022, section 245A.52, subdivision 1, is amended to read:
122.2 		Subdivision 1.Means of escape. (a)(1) At least one emergency escape route separate 
122.3 	from the main exit from the space must be available in each room used for sleeping by 
122.4 	anyone receiving licensed care, and (2) a basement used for child care. One means of escape 
122.5 	must be a stairway or door leading to the floor of exit discharge. The other must be a door 
122.6 	or window leading directly outside. A window used as an emergency escape route must be 
122.7 	openable without special knowledge.
122.8 	(b) In homes with construction that began before May 2, 2016 March 31, 2020, the 
122.9 	interior of the window leading directly outside must have a net clear opening area of not 
122.10 	less than 4.5 square feet or 648 square inches and have minimum clear opening dimensions 
122.11 	of 20 inches wide and 20 inches high. The net clear opening dimensions shall be the result 
122.12 	of normal operation of the opening. The opening must be no higher than 48 inches from the 
122.13 	floor. The height to the window may be measured from a platform if a platform is located 
122.14 	below the window.
122.15 	(c) In homes with construction that began on or after May 2, 2016 March 31, 2020, the 
122.16 	interior of the window leading directly outside must have minimum clear opening dimensions 
122.17 	of 20 inches wide and 24 inches high. The net clear opening dimensions shall be the result 
122.18 	of normal operation of the opening. The opening must be no higher than 44 inches from the 
122.19 	floor.
122.20 	(d) Additional requirements are dependent on the distance of the openings from the ground 
122.21 	outside the window: (1) windows or other openings with a sill height not more than 44 
122.22 	inches above or below the finished ground level adjacent to the opening (grade-floor 
122.23 	emergency escape and rescue openings) must have a minimum opening of five square feet; 
122.24 	and (2) non-grade-floor emergency escape and rescue openings must have a minimum 
122.25 	opening of 5.7 square feet.

122.26 	Sec. 27. Minnesota Statutes 2022, section 245A.52, subdivision 3, is amended to read:
122.27 		Subd. 3.Heating and venting systems. (a) Notwithstanding Minnesota Rules, part 
122.28 	9502.0425, subpart 7, item C, items that can be ignited and support combustion, including 
122.29 	but not limited to plastic, fabric, and wood products must not be located within:
122.30 	(1) 18 inches of a gas or fuel-oil heater or furnace.; or
122.31 	(2) 36 inches of a solid-fuel-burning appliance.
123.1 	(b) If a license holder produces manufacturer instructions listing a smaller distance, then 
123.2 	the manufacturer instructions control the distance combustible items must be from gas, 
123.3 	fuel-oil, or solid-fuel burning heaters or furnaces.

123.4 	Sec. 28. Minnesota Statutes 2022, section 245A.52, subdivision 5, is amended to read:
123.5 		Subd. 5.Carbon monoxide and smoke alarms. (a) All homes must have an approved 
123.6 	and operational carbon monoxide alarm installed within ten feet of each room used for 
123.7 	sleeping children in care.
123.8 	(b) Smoke alarms that have been listed by the Underwriter Laboratory must be properly 
123.9 	installed and maintained on all levels including basements, but not including crawl spaces 
123.10 	and uninhabitable attics, and in hallways outside rooms used for sleeping children in care.
123.11 	in hallways outside of rooms used for sleeping children and on all levels, including basements 
123.12 	but not including crawl spaces and uninhabitable attics.
123.13 	(c) In homes with construction that began on or after May 2, 2016 March 31, 2020, 
123.14 	smoke alarms must be installed and maintained in each room used for sleeping children in 
123.15 	care.

123.16 	Sec. 29. Minnesota Statutes 2022, section 245A.52, is amended by adding a subdivision 
123.17 	to read:
123.18 		Subd. 8.Fire code variances. When a variance is requested of the standards contained 
123.19 	in subdivision 1, 2, 3, 4, or 5, an applicant or provider must submit written approval from 
123.20 	the state fire marshal of the variance requested and the alternative measures identified to 
123.21 	ensure the safety of children in care.

123.22 	Sec. 30. Minnesota Statutes 2022, section 245A.66, is amended by adding a subdivision 
123.23 	to read:
123.24 		Subd. 4.Ongoing training requirement. (a) In addition to the orientation training 
123.25 	required by the applicable licensing rules and statutes, children's residential facility and 
123.26 	private child-placing agency license holders must provide a training annually on the 
123.27 	maltreatment of minors reporting requirements and definitions in chapter 260E to each 
123.28 	mandatory reporter, as described in section 260E.06, subdivision 1.
123.29 	(b) In addition to the orientation training required by the applicable licensing rules and 
123.30 	statutes, all family child foster care license holders and caregivers and foster residence 
123.31 	setting staff and volunteers that are mandatory reporters as described in section 260E.06, 
124.1 	subdivision 1, must complete training each year on the maltreatment of minors reporting 
124.2 	requirements and definitions in chapter 260E.

124.3 	EFFECTIVE DATE. This section is effective January 1, 2024.

124.4 	Sec. 31. Minnesota Statutes 2022, section 245G.13, subdivision 2, is amended to read:
124.5 		Subd. 2.Staff development. (a) A license holder must ensure that each staff member 
124.6 	has the training described in this subdivision.
124.7 	(b) Each staff member must be trained every two years in:
124.8 	(1) client confidentiality rules and regulations and client ethical boundaries; and
124.9 	(2) emergency procedures and client rights as specified in sections 144.651, 148F.165, 
124.10 	and 253B.03.
124.11 	(c) Annually each staff member with direct contact must be trained on mandatory 
124.12 	reporting as specified in sections 245A.65, 626.557, and 626.5572, and chapter 260E, 
124.13 	including specific training covering the license holder's policies for obtaining a release of 
124.14 	client information.
124.15 	(d) Upon employment and annually thereafter, each staff member with direct contact 
124.16 	must receive training on HIV minimum standards according to section 245A.19.
124.17 	(e) The license holder must ensure that each mandatory reporter, as described in section 
124.18 	260E.06, subdivision 1, is trained on the maltreatment of minors reporting requirements 
124.19 	and definitions in chapter 260E before the mandatory reporter has direct contact, as defined 
124.20 	in section 245C.02, subdivision 11, with a person served by the program.
124.21 	(e) (f) A treatment director, supervisor, nurse, or counselor must have a minimum of 12 
124.22 	hours of training in co-occurring disorders that includes competencies related to philosophy, 
124.23 	trauma-informed care, screening, assessment, diagnosis and person-centered treatment 
124.24 	planning, documentation, programming, medication, collaboration, mental health 
124.25 	consultation, and discharge planning. A new staff member who has not obtained the training 
124.26 	must complete the training within six months of employment. A staff member may request, 
124.27 	and the license holder may grant, credit for relevant training obtained before employment, 
124.28 	which must be documented in the staff member's personnel file.

124.29 	EFFECTIVE DATE. This section is effective January 1, 2024.

125.1 	Sec. 32. Minnesota Statutes 2022, section 245H.01, subdivision 5, is amended to read:
125.2 		Subd. 5.Certified license-exempt child care center. "Certified license-exempt child 
125.3 	care center" means the commissioner's written authorization for a child care center excluded 
125.4 	from licensure under section 245A.03, subdivision 2, paragraph (a), clause (5), (11) to (13), 
125.5 	(15), (18), or (26), or (30), to register to receive child care assistance payments under chapter 
125.6 	119B.

125.7 	EFFECTIVE DATE. This section is effective January 1, 2024.

125.8 	Sec. 33. Minnesota Statutes 2022, section 245H.02, is amended to read:
125.9 	245H.02 WHO MUST BE CERTIFIED.
125.10 	A program that is exempt from licensure under section 245A.03, subdivision 2, paragraph 
125.11 	(a), clause (5), (11) to (13), (15), (18), or (26), and is authorized to receive child care 
125.12 	assistance payments under chapter 119B or (30), must be a certified license-exempt child 
125.13 	care center according to this section to receive child care assistance payments under chapter 
125.14 	119B.

125.15 	EFFECTIVE DATE. This section is effective January 1, 2024.

125.16 	Sec. 34. Minnesota Statutes 2022, section 245H.03, is amended by adding a subdivision 
125.17 	to read:
125.18 		Subd. 5.Notification required. (a) A certification holder must notify the commissioner, 
125.19 	in a manner prescribed by the commissioner, and obtain the commissioner's approval before 
125.20 	making any changes:
125.21 	(1) to the certification holder as defined in section 245H.01, subdivision 4;
125.22 	(2) to the certification holder information on file with the secretary of state or Department 
125.23 	of Revenue;
125.24 	(3) in the location of the program certified under this chapter;
125.25 	(4) to the ages of children served by the program; or
125.26 	(5) to the certified center's schedule including its:
125.27 	(i) yearly schedule;
125.28 	(ii) hours of operation; or
125.29 	(iii) days of the week it is open.
126.1 	(b) When, for reasons beyond the certification holder's control, a certification holder 
126.2 	cannot provide the commissioner with prior notice of the changes in paragraph (a), the 
126.3 	certification holder must notify the commissioner by the tenth business day after the change 
126.4 	and must provide any additional information requested by the commissioner.
126.5 	(c) When a certification holder notifies the commissioner of a change to the certification 
126.6 	holder information on file with the secretary of state, the certification holder must provide 
126.7 	documentation of the change.
126.8 	(d) Upon implementation of the provider licensing and reporting hub, certification holders 
126.9 	must enter and update information in the hub in a manner prescribed by the commissioner.

126.10 	EFFECTIVE DATE. This section is effective August 1, 2023.

126.11 	Sec. 35. Minnesota Statutes 2022, section 245H.05, is amended to read:
126.12 	245H.05 MONITORING AND INSPECTIONS.
126.13 	(a) The commissioner must conduct an on-site inspection of a certified license-exempt 
126.14 	child care center at least annually once each calendar year to determine compliance with 
126.15 	the health, safety, and fire standards specific to a certified license-exempt child care center.
126.16 	(b) No later than November 19, 2017, the commissioner shall make publicly available 
126.17 	on the department's website the results of inspection reports for all certified centers including 
126.18 	the number of deaths, serious injuries, and instances of substantiated child maltreatment 
126.19 	that occurred in certified centers each year.

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

126.21 	Sec. 36. Minnesota Statutes 2022, section 245H.08, subdivision 4, is amended to read:
126.22 		Subd. 4.Maximum group size. (a) For a child six weeks old through 16 months old, 
126.23 	the maximum group size shall be no more than eight children.
126.24 	(b) For a child 16 months old through 33 months old, the maximum group size shall be 
126.25 	no more than 14 children.
126.26 	(c) For a child 33 months old through prekindergarten, a maximum group size shall be 
126.27 	no more than 20 children.
126.28 	(d) For a child in kindergarten through 13 years old, a maximum group size shall be no 
126.29 	more than 30 children.
127.1 	(e) The maximum group size applies at all times except during group activity coordination 
127.2 	time not exceeding 15 minutes, during a meal, outdoor activity, field trip, nap and rest, and 
127.3 	special activity including a film, guest speaker, indoor large muscle activity, or holiday 
127.4 	program.
127.5 	(f) Notwithstanding paragraph (d), a certified center may continue to serve a child 14 
127.6 	years of age or older if one of the following conditions is true:
127.7 	(1) the child remains eligible for child care assistance under section 119B.09, subdivision 
127.8 	1, paragraph (e); or
127.9 	(2) the certified center serves only school-age children in a setting that has students 
127.10 	enrolled in no grade higher than 8th grade.

127.11 	EFFECTIVE DATE. This section is effective August 1, 2023.

127.12 	Sec. 37. Minnesota Statutes 2022, section 245H.08, subdivision 5, is amended to read:
127.13 		Subd. 5.Ratios. (a) The minimally acceptable staff-to-child ratios are:

127.14	six weeks old through 16 months old
	1:4
	
127.15	16 months old through 33 months old
	1:7
	
127.16	33 months old through prekindergarten
	1:10
	
127.17	kindergarten through 13 years old
	1:15
	
127.18 	(b) Kindergarten includes a child of sufficient age to have attended the first day of 
127.19 	kindergarten or who is eligible to enter kindergarten within the next four months.
127.20 	(c) For mixed groups, the ratio for the age group of the youngest child applies.
127.21 	(d) Notwithstanding paragraph (a), a certified center may continue to serve a child 14 
127.22 	years of age or older if one of the following conditions is true:
127.23 	(1) the child remains eligible for child care assistance under section 119B.09, subdivision 
127.24 	1, paragraph (e); or
127.25 	(2) the certified center serves only school-age children in a setting that has students 
127.26 	enrolled in no grade higher than 8th grade.

127.27 	EFFECTIVE DATE. This section is effective August 1, 2023.

127.28 	Sec. 38. Minnesota Statutes 2022, section 245H.13, subdivision 3, is amended to read:
127.29 		Subd. 3.Administration of medication. (a) A certified center that chooses to administer 
127.30 	medicine must meet the requirements in this subdivision.
128.1 	(b) The certified center must obtain written permission from the child's parent or legal 
128.2 	guardian before administering prescription medicine, nonprescription medicine, diapering 
128.3 	product, sunscreen lotion, and insect repellent.
128.4 	(c) The certified center must administer nonprescription medicine, diapering product, 
128.5 	sunscreen lotion, and insect repellent according to the manufacturer's instructions unless 
128.6 	provided written instructions by a licensed health professional to use a product differently.
128.7 	(d) The certified center must obtain and follow written instructions from the prescribing 
128.8 	health professional before administering prescription medicine. Medicine with the child's 
128.9 	first and last name and current prescription information on the label is considered written 
128.10 	instructions.
128.11 	(e) The certified center must ensure all prescription and nonprescription medicine is:
128.12 	(1) kept in the medicine's original container with a legible label stating the child's first 
128.13 	and last name;
128.14 	(2) given only to the child whose name is on the label;
128.15 	(3) not given after an expiration date on the label; and
128.16 	(4) returned to the child's parent or legal guardian or destroyed, if unused.
128.17 	(f) The certified center must document in the child's record the administration of
128.18 	prescription and nonprescription medication, including the child's first and last name; the 
128.19 	name of the medication or prescription number; the date, time, and dosage; and the name 
128.20 	and signature of the person who administered the medicine. This documentation must be 
128.21 	available to the child's parent or legal guardian.
128.22 	(g) The certified center must store prescription and nonprescription medicines, insect 
128.23 	repellents, and diapering products according to directions on the original container.

128.24 	EFFECTIVE DATE. This section is effective August 1, 2023.

128.25 	Sec. 39. Minnesota Statutes 2022, section 245H.13, subdivision 7, is amended to read:
128.26 		Subd. 7.Risk reduction plan. (a) The certified center must develop a risk reduction 
128.27 	plan that identifies risks to children served by the child care center. The assessment of risk 
128.28 	must include risks presented by (1) the physical plant where the certified services are 
128.29 	provided, including electrical hazards; and (2) the environment, including the proximity to 
128.30 	busy roads and bodies of water.
129.1 	(b) The certification holder must establish policies and procedures to minimize identified 
129.2 	risks. After any change to the risk reduction plan, the certification holder must inform staff 
129.3 	of the change in the risk reduction plan and document that staff were informed of the change.
129.4 	(c) If middle-school-age children are enrolled in the center and combined with elementary 
129.5 	children, the certification holder must establish policies and procedures to ensure adequate 
129.6 	supervision as defined in subdivision 10 when children are grouped together.

129.7 	EFFECTIVE DATE. This section is effective August 1, 2023.

129.8 	Sec. 40. DIRECTION TO COMMISSIONER; AMENDING THE DEFINITION OF 
129.9 	EDUCATION.
 129.10 	(a) The commissioner of human services must amend Minnesota Rules, part 9503.0030, 
129.11 	subpart 1, item B, to include accredited course work from an accredited postsecondary 
129.12 	institution that can be shown to be relevant to the primary skills necessary to meet the 
129.13 	qualifications of a teacher.
129.14 	(b) For purposes of this section, the commissioner may use the good cause exemption 
129.15 	process under Minnesota Statutes, section 14.388, subdivision 1, clause (3), and Minnesota 
129.16 	Statutes, section 14.386, does not apply.

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

129.18 	Sec. 41. DIRECTION TO COMMISSIONER; AMENDING STAFF 
129.19 	QUALIFICATION RULES FOR CHILD CARE CENTERS.
 129.20 	(a) The commissioner of human services must amend Minnesota Rules, part 9503.0033, 
129.21 	to allow a child care center to hire an individual as an assistant teacher if the individual is 
129.22 	at least 18 years old, has been employed in a direct child-serving role at the center for a 
129.23 	minimum of 30 days, is enrolled in a child development associate credential program at the 
129.24 	time of hire or will be within 60 days of being hired, and completes the child development 
129.25 	associate credential from the Council for Professional Recognition within one year of the 
129.26 	individual's hiring date.
129.27 	(b) For purposes of this section, the commissioner may use the good cause exemption 
129.28 	process under Minnesota Statutes, section 14.388, subdivision 1, clause (3), and Minnesota 
129.29 	Statutes, section 14.386, does not apply.

130.1 	ARTICLE 5
130.2 	ECONOMIC ASSISTANCE

130.3 	Section 1. Minnesota Statutes 2022, section 119B.011, subdivision 3, is amended to read:
130.4 		Subd. 3.Application. "Application" means the submission to a county agency, by or 
130.5 	on behalf of a family, of a completed, signed, and dated:
130.6 	(1) child care assistance universal application form; or
130.7 	(2) child care addendum form in combination with a combined application form for 
130.8 	MFIP, DWP, or Supplemental Nutrition Assistance Program (SNAP) benefits.

130.9 	EFFECTIVE DATE. This section is effective March 1, 2024.

130.10 	Sec. 2. Minnesota Statutes 2022, section 119B.011, subdivision 15, is amended to read:
130.11 		Subd. 15.Income. "Income" means earned income as defined under section 256P.01, 
130.12 	subdivision 3, unearned income as defined under section 256P.01, subdivision 8, and public 
130.13 	assistance cash benefits, including the Minnesota family investment program, diversionary 
130.14 	work program, work benefit, Minnesota supplemental aid, general assistance, refugee cash 
130.15 	assistance, at-home infant child care subsidy payments, and child support and maintenance 
130.16 	distributed to the family under section 256.741, subdivision 2a.
130.17 	The following are deducted from income: funds used to pay for health insurance 
130.18 	premiums for family members, and child or spousal support paid to or on behalf of a person 
130.19 	or persons who live outside of the household. Income sources not included in this subdivision 
130.20 	and section 256P.06, subdivision 3, are not counted as income.

130.21 	EFFECTIVE DATE. This section is effective March 1, 2024.

130.22 	Sec. 3. Minnesota Statutes 2022, section 119B.02, subdivision 4, is amended to read:
130.23 		Subd. 4.Universal application form. The commissioner must develop and make 
130.24 	available to all counties a universal application form for child care assistance under this 
130.25 	chapter. The commissioner may develop and make available to all counties a child care 
130.26 	addendum form to be used to supplement the combined application form for MFIP, DWP,
130.27 	or Supplemental Nutrition Assistance Program (SNAP) benefits or to supplement other 
130.28 	statewide application forms for public assistance programs for families applying for one of 
130.29 	these programs in addition to child care assistance. The application must provide notice of 
130.30 	eligibility requirements for assistance and penalties for wrongfully obtaining assistance.

130.31 	EFFECTIVE DATE. This section is effective March 1, 2024.

131.1 	Sec. 4. Minnesota Statutes 2022, section 119B.025, subdivision 4, is amended to read:
131.2 		Subd. 4.Changes in eligibility. (a) The county shall process a change in eligibility 
131.3 	factors according to paragraphs (b) to (g).
131.4 	(b) A family is subject to the reporting requirements in section 256P.07, subdivision 6.
131.5 	(c) If a family reports a change or a change is known to the agency before the family's 
131.6 	regularly scheduled redetermination, the county must act on the change. The commissioner 
131.7 	shall establish standards for verifying a change.
131.8 	(d) A change in income occurs on the day the participant received the first payment 
131.9 	reflecting the change in income.
131.10 	(e) During a family's 12-month eligibility period, if the family's income increases and 
131.11 	remains at or below 85 percent of the state median income, adjusted for family size, there 
131.12 	is no change to the family's eligibility. The county shall not request verification of the 
131.13 	change. The co-payment fee shall not increase during the remaining portion of the family's 
131.14 	12-month eligibility period.
131.15 	(f) During a family's 12-month eligibility period, if the family's income increases and 
131.16 	exceeds 85 percent of the state median income, adjusted for family size, the family is not 
131.17 	eligible for child care assistance. The family must be given 15 calendar days to provide 
131.18 	verification of the change. If the required verification is not returned or confirms ineligibility, 
131.19 	the family's eligibility ends following a subsequent 15-day adverse action notice.
131.20 	(g) Notwithstanding Minnesota Rules, parts 3400.0040, subpart 3, and 3400.0170, 
131.21 	subpart 1, if an applicant or participant reports that employment ended, the agency may 
131.22 	accept a signed statement from the applicant or participant as verification that employment 
131.23 	ended.

131.24 	EFFECTIVE DATE. This section is effective March 1, 2025.

131.25 	Sec. 5. Minnesota Statutes 2022, section 119B.03, subdivision 3, is amended to read:
131.26 		Subd. 3.Eligible participants. Families that meet the eligibility requirements under 
131.27 	sections 119B.09 and 119B.10, except MFIP participants, diversionary work program, and 
131.28 	transition year families are eligible for child care assistance under the basic sliding fee 
131.29 	program. Families enrolled in the basic sliding fee program shall be continued until they 
131.30 	are no longer eligible. Child care assistance provided through the child care fund is considered 
131.31 	assistance to the parent.

131.32 	EFFECTIVE DATE. This section is effective March 1, 2024.

132.1 	Sec. 6. Minnesota Statutes 2022, section 119B.03, subdivision 4, is amended to read:
132.2 		Subd. 4.Funding priority. (a) First priority for child care assistance under the basic 
132.3 	sliding fee program must be given to eligible non-MFIP families who do not have a high 
132.4 	school diploma or commissioner of education-selected high school equivalency certification 
132.5 	or who need remedial and basic skill courses in order to pursue employment or to pursue 
132.6 	education leading to employment and who need child care assistance to participate in the 
132.7 	education program. This includes student parents as defined under section 119B.011, 
132.8 	subdivision 19b. Within this priority, the following subpriorities must be used:
132.9 	(1) child care needs of minor parents;
132.10 	(2) child care needs of parents under 21 years of age; and
132.11 	(3) child care needs of other parents within the priority group described in this paragraph.
132.12 	(b) Second priority must be given to parents who have completed their MFIP or DWP
132.13 	transition year, or parents who are no longer receiving or eligible for diversionary work 
132.14 	program supports.
132.15 	(c) Third priority must be given to families who are eligible for portable basic sliding 
132.16 	fee assistance through the portability pool under subdivision 9.
132.17 	(d) Fourth priority must be given to families in which at least one parent is a veteran as 
132.18 	defined under section 197.447.
132.19 	(e) Families under paragraph (b) must be added to the basic sliding fee waiting list on 
132.20 	the date they begin the transition year under section 119B.011, subdivision 20, and must 
132.21 	be moved into the basic sliding fee program as soon as possible after they complete their 
132.22 	transition year.

132.23 	EFFECTIVE DATE. This section is effective March 1, 2024.

132.24 	Sec. 7. Minnesota Statutes 2022, section 119B.03, subdivision 4a, is amended to read:
132.25 		Subd. 4a.Temporary reprioritization. (a) Notwithstanding subdivision 4, priority for 
132.26 	child care assistance under the basic sliding fee assistance program shall be determined 
132.27 	according to this subdivision beginning July 1, 2021, through May 31, 2024.
132.28 	(b) First priority must be given to eligible non-MFIP families who do not have a high 
132.29 	school diploma or commissioner of education-selected high school equivalency certification 
132.30 	or who need remedial and basic skill courses in order to pursue employment or to pursue 
132.31 	education leading to employment and who need child care assistance to participate in the 
133.1 	education program. This includes student parents as defined under section 119B.011, 
133.2 	subdivision 19b. Within this priority, the following subpriorities must be used:
133.3 	(1) child care needs of minor parents;
133.4 	(2) child care needs of parents under 21 years of age; and
133.5 	(3) child care needs of other parents within the priority group described in this paragraph.
133.6 	(c) Second priority must be given to families in which at least one parent is a veteran, 
133.7 	as defined under section 197.447.
133.8 	(d) Third priority must be given to eligible families who do not meet the specifications 
133.9 	of paragraph (b), (c), (e), or (f).
133.10 	(e) Fourth priority must be given to families who are eligible for portable basic sliding 
133.11 	fee assistance through the portability pool under subdivision 9.
133.12 	(f) Fifth priority must be given to eligible families receiving services under section 
133.13 	119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition 
133.14 	year, or if the parents are no longer receiving or eligible for DWP supports.
133.15 	(g) Families under paragraph (f) must be added to the basic sliding fee waiting list on 
133.16 	the date they complete their transition year under section 119B.011, subdivision 20.

133.17 	EFFECTIVE DATE. This section is effective March 1, 2024.

133.18 	Sec. 8. Minnesota Statutes 2022, section 119B.05, subdivision 1, is amended to read:
133.19 		Subdivision 1.Eligible participants. Families eligible for child care assistance under 
133.20 	the MFIP child care program are:
133.21 	(1) MFIP participants who are employed or in job search and meet the requirements of 
133.22 	section 119B.10;
133.23 	(2) persons who are members of transition year families under section 119B.011, 
133.24 	subdivision 20, and meet the requirements of section 119B.10;
133.25 	(3) families who are participating in employment orientation or job search, or other 
133.26 	employment or training activities that are included in an approved employability development 
133.27 	plan under section 256J.95;
133.28 	(4) (3) MFIP families who are participating in work job search, job support, employment, 
133.29 	or training activities as required in their employment plan, or in appeals, hearings, 
133.30 	assessments, or orientations according to chapter 256J;
134.1 	(5) (4) MFIP families who are participating in social services activities under chapter 
134.2 	256J as required in their employment plan approved according to chapter 256J;
134.3 	(6) (5) families who are participating in services or activities that are included in an 
134.4 	approved family stabilization plan under section 256J.575;
134.5 	(7) (6) families who are participating in programs as required in tribal contracts under 
134.6 	section 119B.02, subdivision 2, or 256.01, subdivision 2;
134.7 	(8) (7) families who are participating in the transition year extension under section 
134.8 	119B.011, subdivision 20a;
134.9 	(9) (8) student parents as defined under section 119B.011, subdivision 19b; and
134.10 	(10) (9) student parents who turn 21 years of age and who continue to meet the other 
134.11 	requirements under section 119B.011, subdivision 19b. A student parent continues to be 
134.12 	eligible until the student parent is approved for basic sliding fee child care assistance or 
134.13 	until the student parent's redetermination, whichever comes first. At the student parent's 
134.14 	redetermination, if the student parent was not approved for basic sliding fee child care 
134.15 	assistance, a student parent's eligibility ends following a 15-day adverse action notice.

134.16 	EFFECTIVE DATE. This section is effective March 1, 2024.

134.17 	Sec. 9. Minnesota Statutes 2022, section 119B.09, subdivision 7, is amended to read:
134.18 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child care 
134.19 	assistance under this chapter is the later of the date the application was received by the 
134.20 	county; the beginning date of employment, education, or training; the date the infant is born 
134.21 	for applicants to the at-home infant care program; or the date a determination has been made 
134.22 	that the applicant is a participant in employment and training services under Minnesota 
134.23 	Rules, part 3400.0080, or chapter 256J.
134.24 	(b) Payment ceases for a family under the at-home infant child care program when a 
134.25 	family has used a total of 12 months of assistance as specified under section 119B.035. 
134.26 	Payment of child care assistance for employed persons on MFIP is effective the date of 
134.27 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
134.28 	assistance for MFIP or DWP participants in employment and training services is effective 
134.29 	the date of commencement of the services or the date of MFIP or DWP eligibility, whichever 
134.30 	is later. Payment of child care assistance for transition year child care must be made 
134.31 	retroactive to the date of eligibility for transition year child care.
135.1 	(c) Notwithstanding paragraph (b), payment of child care assistance for participants 
135.2 	eligible under section 119B.05 may only be made retroactive for a maximum of three months 
135.3 	from the date of application for child care assistance.

135.4 	EFFECTIVE DATE. This section is effective March 1, 2024.

135.5 	Sec. 10. Minnesota Statutes 2022, section 119B.095, subdivision 2, is amended to read:
135.6 		Subd. 2.Maintain steady child care authorizations. (a) Notwithstanding Minnesota 
135.7 	Rules, chapter 3400, the amount of child care authorized under section 119B.10 for 
135.8 	employment, education, or an MFIP or DWP employment plan shall continue at the same 
135.9 	number of hours or more hours until redetermination, including:
135.10 	(1) when the other parent moves in and is employed or has an education plan under 
135.11 	section 119B.10, subdivision 3, or has an MFIP or DWP employment plan; or
135.12 	(2) when the participant's work hours are reduced or a participant temporarily stops 
135.13 	working or attending an approved education program. Temporary changes include, but are 
135.14 	not limited to, a medical leave, seasonal employment fluctuations, or a school break between 
135.15 	semesters.
135.16 	(b) The county may increase the amount of child care authorized at any time if the 
135.17 	participant verifies the need for increased hours for authorized activities.
135.18 	(c) The county may reduce the amount of child care authorized if a parent requests a 
135.19 	reduction or because of a change in:
135.20 	(1) the child's school schedule;
135.21 	(2) the custody schedule; or
135.22 	(3) the provider's availability.
135.23 	(d) The amount of child care authorized for a family subject to subdivision 1, paragraph 
135.24 	(b), must change when the participant's activity schedule changes. Paragraph (a) does not 
135.25 	apply to a family subject to subdivision 1, paragraph (b).
135.26 	(e) When a child reaches 13 years of age or a child with a disability reaches 15 years of 
135.27 	age, the amount of child care authorized shall continue at the same number of hours or more 
135.28 	hours until redetermination.

135.29 	EFFECTIVE DATE. This section is effective March 1, 2024.

136.1 	Sec. 11. Minnesota Statutes 2022, section 119B.095, subdivision 3, is amended to read:
136.2 		Subd. 3.Assistance for persons who are homeless. An applicant who is homeless and 
136.3 	eligible for child care assistance is exempt from the activity participation requirements under 
136.4 	this chapter for three months. The applicant under this subdivision is eligible for 60 hours 
136.5 	of child care assistance per service period for three months from the date the county receives 
136.6 	the application. Additional hours may be authorized as needed based on the applicant's 
136.7 	participation in employment, education, or MFIP or DWP employment plan. To continue 
136.8 	receiving child care assistance after the initial three months, the applicant must verify that 
136.9 	the applicant meets eligibility and activity requirements for child care assistance under this 
136.10 	chapter.

136.11 	EFFECTIVE DATE. This section is effective March 1, 2024.

136.12 	Sec. 12. Minnesota Statutes 2022, section 119B.10, subdivision 1, is amended to read:
136.13 		Subdivision 1.Assistance for persons seeking and retaining employment. (a) Persons 
136.14 	who are seeking employment and who are eligible for assistance under this section are 
136.15 	eligible to receive up to 240 hours of child care assistance per calendar year.
136.16 	(b) At application and redetermination, employed persons who work at least an average 
136.17 	of 20 hours and full-time students who work at least an average of ten hours a week and 
136.18 	receive at least a minimum wage for all hours worked are eligible for child care assistance 
136.19 	for employment. For purposes of this section, work-study programs must be counted as 
136.20 	employment. An employed person with an MFIP or DWP employment plan shall receive 
136.21 	child care assistance as specified in the person's employment plan. Child care assistance 
136.22 	during employment must be authorized as provided in paragraphs (c) and (d).
136.23 	(c) When the person works for an hourly wage and the hourly wage is equal to or greater 
136.24 	than the applicable minimum wage, child care assistance shall be provided for the hours of 
136.25 	employment, break, and mealtime during the employment and travel time up to two hours 
136.26 	per day.
136.27 	(d) When the person does not work for an hourly wage, child care assistance must be 
136.28 	provided for the lesser of:
136.29 	(1) the amount of child care determined by dividing gross earned income by the applicable 
136.30 	minimum wage, up to one hour every eight hours for meals and break time, plus up to two 
136.31 	hours per day for travel time; or
137.1 	(2) the amount of child care equal to the actual amount of child care used during 
137.2 	employment, including break and mealtime during employment, and travel time up to two 
137.3 	hours per day.

137.4 	EFFECTIVE DATE. This section is effective March 1, 2024.

137.5 	Sec. 13. Minnesota Statutes 2022, section 119B.10, subdivision 3, is amended to read:
137.6 		Subd. 3.Assistance for persons attending an approved education or training 
137.7 	program. (a) Money for an eligible person according to sections 119B.03, subdivision 3, 
137.8 	and 119B.05, subdivision 1, shall be used to reduce child care costs for a student. The county 
137.9 	shall not limit the duration of child care subsidies for a person in an employment or 
137.10 	educational program unless the person is ineligible for child care funds. Any other limitation 
137.11 	must be based on county policies included in the approved child care fund plan.
137.12 	(b) To be eligible, the student must be in good standing and be making satisfactory 
137.13 	progress toward the degree. The maximum length of time a student is eligible for child care 
137.14 	assistance under the child care fund for education and training is no more than the time 
137.15 	necessary to complete the credit requirements for an associate's or baccalaureate degree as 
137.16 	determined by the educational institution. Time limitations for child care assistance do not 
137.17 	apply to basic or remedial educational programs needed for postsecondary education or 
137.18 	employment. Basic or remedial educational programs include high school, commissioner 
137.19 	of education-selected high school equivalency, and English as a second language programs. 
137.20 	A program exempt from this time limit must not run concurrently with a postsecondary 
137.21 	program.
137.22 	(c) If a student meets the conditions of paragraphs (a) and (b), child care assistance must 
137.23 	be authorized for all hours of class time and credit hours, including independent study and 
137.24 	internships, and up to two hours of travel time per day. A postsecondary student shall receive 
137.25 	four hours of child care assistance per credit hour for study time and academic appointments 
137.26 	per service period.
137.27 	(d) For an MFIP or DWP participant, child care assistance must be authorized according 
137.28 	to the person's approved employment plan. If an MFIP or DWP participant receiving MFIP 
137.29 	or DWP child care assistance under this chapter moves to another county, continues to 
137.30 	participate in an authorized educational or training program, and remains eligible for MFIP 
137.31 	or DWP child care assistance, the participant must receive continued child care assistance 
137.32 	from the county responsible for the person's current employment plan under section 256G.07.
138.1 	(e) If a person with an approved education program under section 119B.03, subdivision 
138.2 	3, or 119B.05, subdivision 1, begins receiving MFIP or DWP assistance, the person continues 
138.3 	to receive child care assistance for the approved education program until the person's 
138.4 	education is included in an approved MFIP or DWP employment plan or until 
138.5 	redetermination, whichever occurs first.
138.6 	(f) If a person's MFIP or DWP assistance ends and the approved MFIP or DWP
138.7 	employment plan included education, the person continues to be eligible for child care 
138.8 	assistance for education under transition year child care assistance until the person's education 
138.9 	is included in an approved education plan or until redetermination.

138.10 	EFFECTIVE DATE. This section is effective March 1, 2024.

138.11 	Sec. 14. Minnesota Statutes 2022, section 119B.105, subdivision 2, is amended to read:
138.12 		Subd. 2.Extended eligibility and redetermination. (a) If the family received three 
138.13 	months of extended eligibility and redetermination is not due, to continue receiving child 
138.14 	care assistance the participant must be employed or have an education plan that meets the 
138.15 	requirements of section 119B.10, subdivision 3, or have an MFIP or DWP employment 
138.16 	plan. If child care assistance continues, the amount of child care authorized shall continue 
138.17 	at the same number or more hours until redetermination, unless a condition in section 
138.18 	119B.095, subdivision 2, paragraph (c), applies. A family subject to section 119B.095, 
138.19 	subdivision 1, paragraph (b), shall have child care authorized based on a verified activity 
138.20 	schedule.
138.21 	(b) If the family's redetermination occurs before the end of the three-month extended 
138.22 	eligibility period to continue receiving child care assistance, the participant must verify that 
138.23 	the participant meets eligibility and activity requirements for child care assistance under 
138.24 	this chapter. If child care assistance continues, the amount of child care authorized is based 
138.25 	on section 119B.10. A family subject to section 119B.095, subdivision 1, paragraph (b), 
138.26 	shall have child care authorized based on a verified activity schedule.

138.27 	EFFECTIVE DATE. This section is effective March 1, 2024.

138.28 	Sec. 15. Minnesota Statutes 2022, section 168B.07, subdivision 3, is amended to read:
138.29 		Subd. 3.Retrieval of contents. (a) For purposes of this subdivision:
138.30 	(1) "contents" does not include any permanently affixed mechanical or nonmechanical 
138.31 	automobile parts; automobile body parts; or automobile accessories, including audio or 
138.32 	video players; and
139.1 	(2) "relief based on need" includes, but is not limited to, receipt of MFIP and Diversionary 
139.2 	Work Program, medical assistance, general assistance, emergency general assistance, 
139.3 	Minnesota supplemental aid, MSA-emergency assistance, MinnesotaCare, Supplemental 
139.4 	Security Income, energy assistance, emergency assistance, Supplemental Nutrition Assistance 
139.5 	Program (SNAP) benefits, earned income tax credit, or Minnesota working family tax credit.
139.6 	(b) A unit of government or impound lot operator shall establish reasonable procedures 
139.7 	for retrieval of vehicle contents, and may establish reasonable procedures to protect the 
139.8 	safety and security of the impound lot and its personnel.
139.9 	(c) At any time before the expiration of the waiting periods provided in section 168B.051, 
139.10 	a registered owner who provides documentation from a government or nonprofit agency or 
139.11 	legal aid office that the registered owner is homeless, receives relief based on need, or is 
139.12 	eligible for legal aid services, has the unencumbered right to retrieve any and all contents 
139.13 	without charge and regardless of whether the registered owner pays incurred charges or 
139.14 	fees, transfers title, or reclaims the vehicle.

139.15 	EFFECTIVE DATE. This section is effective March 1, 2024.

139.16 	Sec. 16. Minnesota Statutes 2022, section 256.046, subdivision 1, is amended to read:
139.17 		Subdivision 1.Hearing authority. A local agency must initiate an administrative fraud 
139.18 	disqualification hearing for individuals accused of wrongfully obtaining assistance or 
139.19 	intentional program violations, in lieu of a criminal action when it has not been pursued, in 
139.20 	the Minnesota family investment program and any affiliated program to include the 
139.21 	diversionary work program and the work participation cash benefit program, child care 
139.22 	assistance programs, general assistance, family general assistance program formerly codified 
139.23 	in section 256D.05, subdivision 1, clause (15), Minnesota supplemental aid, the Supplemental 
139.24 	Nutrition Assistance Program (SNAP), MinnesotaCare for adults without children, and 
139.25 	upon federal approval, all categories of medical assistance and remaining categories of 
139.26 	MinnesotaCare except for children through age 18. The Department of Human Services, in 
139.27 	lieu of a local agency, may initiate an administrative fraud disqualification hearing when 
139.28 	the state agency is directly responsible for administration or investigation of the program 
139.29 	for which benefits were wrongfully obtained. The hearing is subject to the requirements of 
139.30 	sections 256.045 and 256.0451 and the requirements in Code of Federal Regulations, title 
139.31 	7, section 273.16.

139.32 	EFFECTIVE DATE. This section is effective March 1, 2024, and applies to acts of 
139.33 	wrongfully obtaining assistance and intentional program violations that occur on or after 
139.34 	that date.

140.1 	Sec. 17. Minnesota Statutes 2022, section 256.98, subdivision 8, is amended to read:
140.2 		Subd. 8.Disqualification from program. (a) Any person found to be guilty of 
140.3 	wrongfully obtaining assistance by a federal or state court or by an administrative hearing 
140.4 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
140.5 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
140.6 	carries with it any probationary or other conditions, in the Minnesota family investment 
140.7 	program and any affiliated program to include the diversionary work program and the work 
140.8 	participation cash benefit program, the Supplemental Nutrition Assistance Program (SNAP), 
140.9 	the general assistance program, housing support under chapter 256I, or the Minnesota 
140.10 	supplemental aid program shall be disqualified from that program. In addition, any person 
140.11 	disqualified from the Minnesota family investment program shall also be disqualified from 
140.12 	SNAP. The needs of that individual shall not be taken into consideration in determining the 
140.13 	grant level for that assistance unit:
140.14 	(1) for one year after the first offense;
140.15 	(2) for two years after the second offense; and
140.16 	(3) permanently after the third or subsequent offense.
140.17 	The period of program disqualification shall begin on the date stipulated on the advance 
140.18 	notice of disqualification without possibility of postponement for administrative stay or 
140.19 	administrative hearing and shall continue through completion unless and until the findings 
140.20 	upon which the sanctions were imposed are reversed by a court of competent jurisdiction. 
140.21 	The period for which sanctions are imposed is not subject to review. The sanctions provided 
140.22 	under this subdivision are in addition to, and not in substitution for, any other sanctions that 
140.23 	may be provided for by law for the offense involved. A disqualification established through 
140.24 	hearing or waiver shall result in the disqualification period beginning immediately unless 
140.25 	the person has become otherwise ineligible for assistance. If the person is ineligible for 
140.26 	assistance, the disqualification period begins when the person again meets the eligibility 
140.27 	criteria of the program from which they were disqualified and makes application for that 
140.28 	program.
140.29 	(b) A family receiving assistance through child care assistance programs under chapter 
140.30 	119B with a family member who is found to be guilty of wrongfully obtaining child care 
140.31 	assistance by a federal court, state court, or an administrative hearing determination or 
140.32 	waiver, through a disqualification consent agreement, as part of an approved diversion plan 
140.33 	under section 401.065, or a court-ordered stay with probationary or other conditions, is 
140.34 	disqualified from child care assistance programs. The disqualifications must be for periods 
141.1 	of one year and two years for the first and second offenses, respectively. Subsequent 
141.2 	violations must result in permanent disqualification. During the disqualification period, 
141.3 	disqualification from any child care program must extend to all child care programs and 
141.4 	must be immediately applied.
141.5 	(c) A provider caring for children receiving assistance through child care assistance 
141.6 	programs under chapter 119B is disqualified from receiving payment for child care services 
141.7 	from the child care assistance program under chapter 119B when the provider is found to 
141.8 	have wrongfully obtained child care assistance by a federal court, state court, or an 
141.9 	administrative hearing determination or waiver under section 256.046, through a 
141.10 	disqualification consent agreement, as part of an approved diversion plan under section 
141.11 	401.065, or a court-ordered stay with probationary or other conditions. The disqualification 
141.12 	must be for a period of three years for the first offense. Any subsequent violation must result 
141.13 	in permanent disqualification. The disqualification period must be imposed immediately 
141.14 	after a determination is made under this paragraph. During the disqualification period, the 
141.15 	provider is disqualified from receiving payment from any child care program under chapter 
141.16 	119B.
141.17 	(d) Any person found to be guilty of wrongfully obtaining MinnesotaCare for adults 
141.18 	without children and upon federal approval, all categories of medical assistance and 
141.19 	remaining categories of MinnesotaCare, except for children through age 18, by a federal or 
141.20 	state court or by an administrative hearing determination, or waiver thereof, through a 
141.21 	disqualification consent agreement, or as part of any approved diversion plan under section 
141.22 	401.065, or any court-ordered stay which carries with it any probationary or other conditions, 
141.23 	is disqualified from that program. The period of disqualification is one year after the first 
141.24 	offense, two years after the second offense, and permanently after the third or subsequent 
141.25 	offense. The period of program disqualification shall begin on the date stipulated on the 
141.26 	advance notice of disqualification without possibility of postponement for administrative 
141.27 	stay or administrative hearing and shall continue through completion unless and until the 
141.28 	findings upon which the sanctions were imposed are reversed by a court of competent 
141.29 	jurisdiction. The period for which sanctions are imposed is not subject to review. The 
141.30 	sanctions provided under this subdivision are in addition to, and not in substitution for, any 
141.31 	other sanctions that may be provided for by law for the offense involved.

141.32 	EFFECTIVE DATE. This section is effective March 1, 2024, and applies to acts of 
141.33 	wrongfully obtaining assistance that occur on or after that date.

142.1 	Sec. 18. Minnesota Statutes 2022, section 256.987, subdivision 4, is amended to read:
142.2 		Subd. 4.Disqualification. (a) Any person found to be guilty of purchasing tobacco 
142.3 	products or alcoholic beverages with their EBT debit card by a federal or state court or by 
142.4 	an administrative hearing determination, or waiver thereof, through a disqualification consent 
142.5 	agreement, or as part of any approved diversion plan under section 401.065, or any 
142.6 	court-ordered stay which carries with it any probationary or other conditions, in the: (1) 
142.7 	Minnesota family investment program and any affiliated program to include the diversionary 
142.8 	work program and the work participation cash benefit program under chapter 256J; (2) 
142.9 	general assistance program under chapter 256D; or (3) Minnesota supplemental aid program 
142.10 	under chapter 256D, shall be disqualified from all of the listed programs.
142.11 	(b) The needs of the disqualified individual shall not be taken into consideration in 
142.12 	determining the grant level for that assistance unit: (1) for one year after the first offense; 
142.13 	(2) for two years after the second offense; and (3) permanently after the third or subsequent 
142.14 	offense.
142.15 	(c) The period of program disqualification shall begin on the date stipulated on the 
142.16 	advance notice of disqualification without possibility for postponement for administrative 
142.17 	stay or administrative hearing and shall continue through completion unless and until the 
142.18 	findings upon which the sanctions were imposed are reversed by a court of competent 
142.19 	jurisdiction. The period for which sanctions are imposed is not subject to review.

142.20 	EFFECTIVE DATE. This section is effective March 1, 2024, and applies to purchases 
142.21 	made on or after that date.

142.22 	Sec. 19. Minnesota Statutes 2022, section 256D.03, is amended by adding a subdivision 
142.23 	to read:
142.24 		Subd. 2b.Budgeting and reporting. Every county agency shall determine eligibility 
142.25 	and calculate benefit amounts for general assistance according to chapter 256P.

142.26 	EFFECTIVE DATE. This section is effective March 1, 2025.

142.27 	Sec. 20. Minnesota Statutes 2022, section 256D.63, subdivision 2, is amended to read:
142.28 		Subd. 2.SNAP reporting requirements. The commissioner of human services shall 
142.29 	implement simplified reporting as permitted under the Food and Nutrition Act of 2008, as 
142.30 	amended, and the SNAP regulations in Code of Federal Regulations, title 7, part 273. SNAP 
142.31 	benefit recipient households required to report periodically shall not be required to report 
143.1 	more often than one time every six months. This provision shall not apply to households 
143.2 	receiving food benefits under the Minnesota family investment program waiver.

143.3 	EFFECTIVE DATE. This section is effective March 1, 2025.

143.4 	Sec. 21. Minnesota Statutes 2022, section 256E.34, subdivision 4, is amended to read:
143.5 		Subd. 4.Use of money. At least 96 percent of the money distributed to Hunger Solutions 
143.6 	under this section must be distributed to food shelf programs to purchase, transport, and 
143.7 	coordinate the distribution of nutritious food to needy individuals and families. The money 
143.8 	distributed to food shelf programs may also be used to purchase personal hygiene products, 
143.9 	including but not limited to diapers and toilet paper. No more than four percent of the money 
143.10 	may be expended for other expenses, such as rent, salaries, and other administrative expenses 
143.11 	of Hunger Solutions.

143.12 	Sec. 22. [256E.341] AMERICAN INDIAN FOOD SOVEREIGNTY FUNDING 
143.13 	PROGRAM.
143.14 		Subdivision 1.Establishment. The American Indian food sovereignty funding program 
143.15 	is established to improve access and equity to food security programs within Tribal and 
143.16 	American Indian communities. The program shall assist Tribal Nations and American Indian 
143.17 	communities in achieving self-determination and improve collaboration and partnership 
143.18 	building between American Indian communities and the state. The commissioner of human 
143.19 	services shall administer the program and provide outreach, technical assistance, and program 
143.20 	development support to increase food security for American Indians.
143.21 		Subd. 2.Distribution of funding. (a) The commissioner shall provide funding to support 
143.22 	food system changes and provide equitable access to existing and new methods of food 
143.23 	support for American Indian communities. The commissioner shall determine the timing 
143.24 	and form of the application for the program.
143.25 	(b) Eligible recipients of funding under this section include:
143.26 	(1) federally recognized American Indian Tribes or bands in Minnesota as defined in 
143.27 	section 10.65; or
143.28 	(2) nonprofit organizations or fiscal sponsors with a majority American Indian board of 
143.29 	directors.
143.30 	(c) Funding for American Indian Tribes or bands must be allocated by a formula 
143.31 	determined by the commissioner. Funding for nonprofit organizations or fiscal sponsors 
143.32 	must be awarded through a competitive grant process.
144.1 		Subd. 3.Allowable uses of money. Recipients shall use money provided under this 
144.2 	section to promote food security for American Indian communities by:
144.3 	(1) planning for sustainable food systems;
144.4 	(2) implementing food security programs, including but not limited to technology to 
144.5 	facilitate no-contact or low-contact food distribution and outreach models;
144.6 	(3) providing culturally relevant training for building food access;
144.7 	(4) purchasing, producing, processing, transporting, storing, and coordinating the 
144.8 	distribution of food, including culturally relevant food; and
144.9 	(5) purchasing seeds, plants, equipment, or materials to preserve, procure, or grow food.
144.10 		Subd. 4.Reporting. (a) Recipients shall report on the use of American Indian food 
144.11 	sovereignty funding program money under this section to the commissioner.
144.12 	(b) The commissioner shall determine the timing and form required for the reports.

144.13 	Sec. 23. Minnesota Statutes 2022, section 256E.35, subdivision 1, is amended to read:
144.14 		Subdivision 1.Establishment. The Minnesota family assets for independence initiative 
144.15 	is established to provide incentives for low-income families to accrue assets for education, 
144.16 	housing, vehicles, emergencies, and economic development purposes.

144.17 	Sec. 24. Minnesota Statutes 2022, section 256E.35, subdivision 2, is amended to read:
144.18 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
144.19 	(b) "Eligible educational institution" means the following:
144.20 	(1) an institution of higher education described in section 101 or 102 of the Higher 
144.21 	Education Act of 1965; or
144.22 	(2) an area vocational education school, as defined in subparagraph (C) or (D) of United 
144.23 	States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and 
144.24 	Applied Technology Education Act), which is located within any state, as defined in United 
144.25 	States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only to the 
144.26 	extent section 2302 is in effect on August 1, 2008.
144.27 	(c) "Family asset account" means a savings account opened by a household participating 
144.28 	in the Minnesota family assets for independence initiative.
144.29 	(d) "Fiduciary organization" means:
145.1 	(1) a community action agency that has obtained recognition under section 256E.31;
145.2 	(2) a federal community development credit union serving the seven-county metropolitan 
145.3 	area; or
145.4 	(3) a women-oriented economic development agency serving the seven-county 
145.5 	metropolitan area.;
145.6 	(4) a federally recognized Tribal Nation; or
145.7 	(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue 
145.8 	Code.
145.9 	(e) "Financial coach" means a person who:
145.10 	(1) has completed an intensive financial literacy training workshop that includes 
145.11 	curriculum on budgeting to increase savings, debt reduction and asset building, building a 
145.12 	good credit rating, and consumer protection;
145.13 	(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM) 
145.14 	network training meetings under FAIM program supervision; and
145.15 	(3) provides financial coaching to program participants under subdivision 4a.
145.16 	(f) "Financial institution" means a bank, bank and trust, savings bank, savings association, 
145.17 	or credit union, the deposits of which are insured by the Federal Deposit Insurance 
145.18 	Corporation or the National Credit Union Administration.
145.19 	(g) "Household" means all individuals who share use of a dwelling unit as primary 
145.20 	quarters for living and eating separate from other individuals.
145.21 	(h) "Permissible use" means:
145.22 	(1) postsecondary educational expenses at an eligible educational institution as defined 
145.23 	in paragraph (b), including books, supplies, and equipment required for courses of instruction;
145.24 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including 
145.25 	any usual or reasonable settlement, financing, or other closing costs;
145.26 	(3) business capitalization expenses for expenditures on capital, plant, equipment, working 
145.27 	capital, and inventory expenses of a legitimate business pursuant to a business plan approved 
145.28 	by the fiduciary organization;
145.29 	(4) acquisition costs of a principal residence within the meaning of section 1034 of the 
145.30 	Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase 
146.1 	price applicable to the residence determined according to section 143(e)(2) and (3) of the 
146.2 	Internal Revenue Code of 1986; and
146.3 	(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization.;
146.4 	(6) contributions to an emergency savings account; and
146.5 	(7) contributions to a Minnesota 529 savings plan.

146.6 	Sec. 25. Minnesota Statutes 2022, section 256E.35, subdivision 3, is amended to read:
146.7 		Subd. 3.Grants awarded. The commissioner shall allocate funds to participating 
146.8 	fiduciary organizations to provide family asset services. Grant awards must be based on a 
146.9 	plan submitted by a statewide organization representing fiduciary organizations. The 
146.10 	statewide organization must ensure that any interested unrepresented fiduciary organization 
146.11 	have input into the development of the plan. The plan must equitably distribute funds to 
146.12 	achieve geographic balance and document the capacity of participating fiduciary 
146.13 	organizations to manage the program. A portion of funds appropriated for this section may 
146.14 	be expended on evaluation of the Minnesota family assets for independence initiative.

146.15 	Sec. 26. Minnesota Statutes 2022, section 256E.35, subdivision 4a, is amended to read:
146.16 		Subd. 4a.Financial coaching. A financial coach shall provide the following to program 
146.17 	participants:
146.18 	(1) financial education relating to budgeting, debt reduction, asset-specific training, 
146.19 	credit building, and financial stability activities;
146.20 	(2) asset-specific training related to buying a home or vehicle, acquiring postsecondary 
146.21 	education, or starting or expanding a small business, saving for emergencies, or saving for 
146.22 	a child's education; and
146.23 	(3) financial stability education and training to improve and sustain financial security.

146.24 	Sec. 27. Minnesota Statutes 2022, section 256E.35, subdivision 6, is amended to read:
146.25 		Subd. 6.Withdrawal; matching; permissible uses. (a) To receive a match, a 
146.26 	participating household must transfer funds withdrawn from a family asset account to its 
146.27 	matching fund custodial account held by the fiscal agent, according to the family asset 
146.28 	agreement. The fiscal agent must determine if the match request is for a permissible use 
146.29 	consistent with the household's family asset agreement.
147.1 	(b) The fiscal agent must ensure the household's custodial account contains the applicable 
147.2 	matching funds to match the balance in the household's account, including interest, on at 
147.3 	least a quarterly basis and at the time of an approved withdrawal. Matches must be a 
147.4 	contribution of $3 from state grant or TANF funds for every $1 of funds withdrawn from 
147.5 	the family asset account not to exceed a $6,000 $12,000 lifetime limit.
147.6 	(c) Notwithstanding paragraph (b), if funds are appropriated for the Federal Assets for 
147.7 	Independence Act of 1998, and a participating fiduciary organization is awarded a grant 
147.8 	under that act, participating households with that fiduciary organization must be provided 
147.9 	matches as follows:
147.10 	(1) from state grant and TANF funds, a matching contribution of $1.50 for every $1 of 
147.11 	funds withdrawn from the family asset account not to exceed a $3,000 $6,000 lifetime limit; 
147.12 	and
147.13 	(2) from nonstate funds, a matching contribution of not less than $1.50 for every $1 of 
147.14 	funds withdrawn from the family asset account not to exceed a $3,000 $6,000 lifetime limit.
147.15 	(d) Upon receipt of transferred custodial account funds, the fiscal agent must make a 
147.16 	direct payment to the vendor of the goods or services for the permissible use.

147.17 	Sec. 28. Minnesota Statutes 2022, section 256E.35, subdivision 7, is amended to read:
147.18 		Subd. 7.Program reporting. The fiscal agent on behalf of each fiduciary organization 
147.19 	participating in a family assets for independence initiative must report quarterly to the 
147.20 	commissioner of human services identifying the participants with accounts,; the number of 
147.21 	accounts,; the amount of savings and matches for each participant's account,; the uses of 
147.22 	the account, and; the number of businesses, homes, vehicles, and educational services paid 
147.23 	for with money from the account,; and the amount of contributions to Minnesota 529 savings 
147.24 	plans and emergency savings accounts, as well as other information that may be required 
147.25 	for the commissioner to administer the program and meet federal TANF reporting 
147.26 	requirements.

147.27 	Sec. 29. Minnesota Statutes 2022, section 256I.03, subdivision 13, is amended to read:
147.28 		Subd. 13.Prospective budgeting. "Prospective budgeting" means estimating the amount 
147.29 	of monthly income a person will have in the payment month has the meaning given in 
147.30 	section 256P.01, subdivision 9.

147.31 	EFFECTIVE DATE. This section is effective March 1, 2025.

148.1 	Sec. 30. Minnesota Statutes 2022, section 256I.06, subdivision 6, is amended to read:
148.2 		Subd. 6.Reports. Recipients must report changes in circumstances according to section 
148.3 	256P.07that affect eligibility or housing support payment amounts, other than changes in 
148.4 	earned income, within ten days of the change. Recipients with countable earned income 
148.5 	must complete a household report form at least once every six months according to section 
148.6 	256P.10. If the report form is not received before the end of the month in which it is due, 
148.7 	the county agency must terminate eligibility for housing support payments. The termination 
148.8 	shall be effective on the first day of the month following the month in which the report was 
148.9 	due. If a complete report is received within the month eligibility was terminated, the 
148.10 	individual is considered to have continued an application for housing support payment 
148.11 	effective the first day of the month the eligibility was terminated.

148.12 	EFFECTIVE DATE. This section is effective March 1, 2025.

148.13 	Sec. 31. Minnesota Statutes 2022, section 256I.06, is amended by adding a subdivision 
148.14 	to read:
148.15 		Subd. 6a.When to terminate assistance. An agency must terminate benefits when the 
148.16 	assistance unit fails to submit the household report form before the end of the month in 
148.17 	which it is due. The termination shall be effective on the first day of the month following 
148.18 	the month in which the report was due. If the assistance unit submits the household report 
148.19 	form within 30 days of the termination of benefits and remains eligible, benefits must be 
148.20 	reinstated and made available retroactively for the full benefit month.

148.21 	EFFECTIVE DATE. This section is effective March 1, 2025.

148.22 	Sec. 32. Minnesota Statutes 2022, section 256I.06, subdivision 8, is amended to read:
148.23 		Subd. 8.Amount of housing support payment. (a) The amount of a room and board 
148.24 	payment to be made on behalf of an eligible individual is determined by subtracting the 
148.25 	individual's countable income under section 256I.04, subdivision 1, for a whole calendar 
148.26 	month from the room and board rate for that same month. The housing support payment is 
148.27 	determined by multiplying the housing support rate times the period of time the individual 
148.28 	was a resident or temporarily absent under section 256I.05, subdivision 2a.
148.29 	(b) For an individual with earned income under paragraph (a), prospective budgeting 
148.30 	according to section 256P.09 must be used to determine the amount of the individual's 
148.31 	payment for the following six-month period. An increase in income shall not affect an 
148.32 	individual's eligibility or payment amount until the month following the reporting month. 
149.1 	A decrease in income shall be effective the first day of the month after the month in which 
149.2 	the decrease is reported.
149.3 	(c) For an individual who receives housing support payments under section 256I.04, 
149.4 	subdivision 1, paragraph (c), the amount of the housing support payment is determined by 
149.5 	multiplying the housing support rate times the period of time the individual was a resident.

149.6 	EFFECTIVE DATE. This section is effective March 1, 2025.

149.7 	Sec. 33. Minnesota Statutes 2022, section 256J.01, subdivision 1, is amended to read:
149.8 		Subdivision 1.Implementation of Minnesota family investment program 
149.9 	(MFIP). Except for section 256J.95, This chapter and chapter 256K may be cited as the 
149.10 	Minnesota family investment program (MFIP). MFIP is the statewide implementation of 
149.11 	components of the Minnesota family investment plan (MFIP) authorized and formerly 
149.12 	codified in section 256.031 and Minnesota family investment plan-Ramsey County (MFIP-R) 
149.13 	formerly codified in section 256.047.

149.14 	EFFECTIVE DATE. This section is effective March 1, 2024.

149.15 	Sec. 34. Minnesota Statutes 2022, section 256J.02, subdivision 2, is amended to read:
149.16 		Subd. 2.Use of money. State money appropriated for purposes of this section and TANF 
149.17 	block grant money must be used for:
149.18 	(1) financial assistance to or on behalf of any minor child who is a resident of this state 
149.19 	under section 256J.12;
149.20 	(2) the health care and human services training and retention program under chapter 
149.21 	116L, for costs associated with families with children with incomes below 200 percent of 
149.22 	the federal poverty guidelines;
149.23 	(3) the pathways program under section 116L.04, subdivision 1a;
149.24 	(4) welfare to work transportation authorized under Public Law 105-178;
149.25 	(5) reimbursements for the federal share of child support collections passed through to 
149.26 	the custodial parent;
149.27 	(6) program administration under this chapter;
149.28 	(7) the diversionary work program under section 256J.95;
149.29 	(8) (7) the MFIP consolidated fund under section 256J.626; and
150.1 	(9) (8) the Minnesota Department of Health consolidated fund under Laws 2001, First 
150.2 	Special Session chapter 9, article 17, section 3, subdivision 2.

150.3 	EFFECTIVE DATE. This section is effective March 1, 2024.

150.4 	Sec. 35. Minnesota Statutes 2022, section 256J.08, subdivision 65, is amended to read:
150.5 		Subd. 65.Participant. (a) "Participant" includes any of the following:
150.6 	(1) a person who is currently receiving cash assistance or the food portion available 
150.7 	through MFIP;
150.8 	(2) a person who withdraws a cash or food assistance payment by electronic transfer or 
150.9 	receives and cashes an MFIP assistance check or food coupons and is subsequently 
150.10 	determined to be ineligible for assistance for that period of time is a participant, regardless 
150.11 	whether that assistance is repaid;
150.12 	(3) the caregiver relative and the minor child whose needs are included in the assistance 
150.13 	payment;
150.14 	(4) a person in an assistance unit who does not receive a cash and food assistance payment 
150.15 	because the case has been suspended from MFIP; and
150.16 	(5) a person who receives cash payments under the diversionary work program under 
150.17 	section 256J.95 is a participant; and
150.18 	(6) (5) a person who receives cash payments under family stabilization services under 
150.19 	section 256J.575.
150.20 	(b) "Participant" does not include a person who fails to withdraw or access electronically 
150.21 	any portion of the person's cash and food assistance payment by the end of the payment 
150.22 	month, who makes a written request for closure before the first of a payment month and 
150.23 	repays cash and food assistance electronically issued for that payment month within that 
150.24 	payment month, or who returns any uncashed assistance check and food coupons and 
150.25 	withdraws from the program.

150.26 	EFFECTIVE DATE. This section is effective March 1, 2024.

150.27 	Sec. 36. Minnesota Statutes 2022, section 256J.08, subdivision 71, is amended to read:
150.28 		Subd. 71.Prospective budgeting. "Prospective budgeting" means a method of 
150.29 	determining the amount of the assistance payment in which the budget month and payment 
150.30 	month are the same has the meaning given in section 256P.01, subdivision 9.

151.1 	EFFECTIVE DATE. This section is effective March 1, 2025.

151.2 	Sec. 37. Minnesota Statutes 2022, section 256J.08, subdivision 79, is amended to read:
151.3 		Subd. 79.Recurring income. "Recurring income" means a form of income which is:
151.4 	(1) received periodically, and may be received irregularly when receipt can be anticipated 
151.5 	even though the date of receipt cannot be predicted; and
151.6 	(2) from the same source or of the same type that is received and budgeted in a 
151.7 	prospective month and is received in one or both of the first two retrospective months.

151.8 	EFFECTIVE DATE. This section is effective March 1, 2025.

151.9 	Sec. 38. Minnesota Statutes 2022, section 256J.09, subdivision 10, is amended to read:
151.10 		Subd. 10.Ineligibility for MFIP or the diversionary work program. When an applicant 
151.11 	is not eligible for MFIP or the diversionary work program under section 256J.95 because 
151.12 	the applicant does not meet eligibility requirements, the county agency must determine 
151.13 	whether the applicant is eligible for SNAP, or health care programs. The county must also 
151.14 	inform applicants about resources available through the county or other agencies to meet 
151.15 	short-term emergency needs.

151.16 	EFFECTIVE DATE. This section is effective March 1, 2024.

151.17 	Sec. 39. Minnesota Statutes 2022, section 256J.11, subdivision 1, is amended to read:
151.18 		Subdivision 1.General citizenship requirements. (a) To be eligible for MFIP, a member 
151.19 	of the assistance unit must be a citizen of the United States, a qualified noncitizen as defined 
151.20 	in section 256J.08, or a noncitizen who is otherwise residing lawfully in the United States.
151.21 	(b) A qualified noncitizen who entered the United States on or after August 22, 1996, 
151.22 	is eligible for MFIP. However, TANF dollars cannot be used to fund the MFIP benefits for 
151.23 	an individual under this paragraph for a period of five years after the date of entry unless 
151.24 	the qualified noncitizen meets one of the following criteria:
151.25 	(1) was admitted to the United States as a refugee under United States Code, title 8, 
151.26 	section 1157;
151.27 	(2) was granted asylum under United States Code, title 8, section 1158;
151.28 	(3) was granted withholding of deportation under the United States Code, title 8, section 
151.29 	1253(h);
152.1 	(4) is a veteran of the United States armed forces with an honorable discharge for a 
152.2 	reason other than noncitizen status, or is a spouse or unmarried minor dependent child of 
152.3 	the same; or
152.4 	(5) is an individual on active duty in the United States armed forces, other than for 
152.5 	training, or is a spouse or unmarried minor dependent child of the same.
152.6 	(c) A person who is not a qualified noncitizen but who is otherwise residing lawfully in 
152.7 	the United States is eligible for MFIP. However, TANF dollars cannot be used to fund the 
152.8 	MFIP benefits for an individual under this paragraph.
152.9 	(d) For purposes of this subdivision, a nonimmigrant in one or more of the classes listed 
152.10 	in United States Code, title 8, section 1101(a)(15)(A)-(S) and (V), or an undocumented 
152.11 	immigrant who resides in the United States without the approval or acquiescence of the 
152.12 	United States Citizenship and Immigration Services, is not eligible for MFIP.

152.13 	EFFECTIVE DATE. This section is effective March 1, 2024.

152.14 	Sec. 40. Minnesota Statutes 2022, section 256J.21, subdivision 3, is amended to read:
152.15 		Subd. 3.Initial income test.  (a) The agency shall determine initial eligibility by 
152.16 	considering all earned and unearned income as defined in section 256P.06. To be eligible 
152.17 	for MFIP, the assistance unit's countable income minus the earned income disregards in 
152.18 	paragraph (a) and section 256P.03 must be below the family wage level according to section 
152.19 	256J.24, subdivision 7, for that size assistance unit.
152.20 	(a) (b) The initial eligibility determination must disregard the following items:
152.21 	(1) the earned income disregard as determined in section 256P.03;
152.22 	(2) dependent care costs must be deducted from gross earned income for the actual 
152.23 	amount paid for dependent care up to a maximum of $200 per month for each child less 
152.24 	than two years of age, and $175 per month for each child two years of age and older;
152.25 	(3) all payments made according to a court order for spousal support or the support of 
152.26 	children not living in the assistance unit's household shall be disregarded from the income 
152.27 	of the person with the legal obligation to pay support; and
152.28 	(4) an allocation for the unmet need of an ineligible spouse or an ineligible child under 
152.29 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
152.30 	caregiver according to section 256J.36.
153.1 	(b) After initial eligibility is established, (c) The income test is for a six-month period.
153.2 	The assistance payment calculation is based on the monthly income test prospective budgeting 
153.3 	according to section 256P.09.

153.4 	EFFECTIVE DATE. This section is effective March 1, 2025.

153.5 	Sec. 41. Minnesota Statutes 2022, section 256J.21, subdivision 4, is amended to read:
153.6 		Subd. 4.Monthly Income test and determination of assistance payment. The county 
153.7 	agency shall determine ongoing eligibility and the assistance payment amount according 
153.8 	to the monthly income test. To be eligible for MFIP, the result of the computations in 
153.9 	paragraphs (a) to (e) applied to prospective budgeting must be at least $1.
153.10 	(a) Apply an income disregard as defined in section 256P.03, to gross earnings and 
153.11 	subtract this amount from the family wage level. If the difference is equal to or greater than 
153.12 	the MFIP transitional standard, the assistance payment is equal to the MFIP transitional 
153.13 	standard. If the difference is less than the MFIP transitional standard, the assistance payment 
153.14 	is equal to the difference. The earned income disregard in this paragraph must be deducted 
153.15 	every month there is earned income.
153.16 	(b) All payments made according to a court order for spousal support or the support of 
153.17 	children not living in the assistance unit's household must be disregarded from the income 
153.18 	of the person with the legal obligation to pay support.
153.19 	(c) An allocation for the unmet need of an ineligible spouse or an ineligible child under 
153.20 	the age of 21 for whom the caregiver is financially responsible and who lives with the 
153.21 	caregiver must be made according to section 256J.36.
153.22 	(d) Subtract unearned income dollar for dollar from the MFIP transitional standard to 
153.23 	determine the assistance payment amount.
153.24 	(e) When income is both earned and unearned, the amount of the assistance payment 
153.25 	must be determined by first treating gross earned income as specified in paragraph (a). After 
153.26 	determining the amount of the assistance payment under paragraph (a), unearned income 
153.27 	must be subtracted from that amount dollar for dollar to determine the assistance payment 
153.28 	amount.
153.29 	(f) When the monthly income is greater than the MFIP transitional standard after 
153.30 	deductions and the income will only exceed the standard for one month, the county agency 
153.31 	must suspend the assistance payment for the payment month.

153.32 	EFFECTIVE DATE. This section is effective March 1, 2025.

154.1 	Sec. 42. Minnesota Statutes 2022, section 256J.33, subdivision 1, is amended to read:
154.2 		Subdivision 1.Determination of eligibility. (a) A county agency must determine MFIP 
154.3 	eligibility prospectively for a payment month based on retrospectively assessing income 
154.4 	and the county agency's best estimate of the circumstances that will exist in the payment 
154.5 	month.
154.6 	(b) Except as described in section 256J.34, subdivision 1, when prospective eligibility 
154.7 	exists, A county agency must calculate the amount of the assistance payment using 
154.8 	retrospective prospective budgeting. To determine MFIP eligibility and the assistance 
154.9 	payment amount, a county agency must apply countable income, described in sections 
154.10 	256P.06 and 256J.37, subdivisions 3 to 10 9, received by members of an assistance unit or 
154.11 	by other persons whose income is counted for the assistance unit, described under sections 
154.12 	256J.37, subdivisions 1 to 2, and 256P.06, subdivision 1.
154.13 	(c) This income must be applied to the MFIP standard of need or family wage level 
154.14 	subject to this section and sections 256J.34 to 256J.36. Countable income as described in 
154.15 	section 256P.06, subdivision 3, received in a calendar month must be applied to the needs 
154.16 	of an assistance unit.
154.17 	(d) An assistance unit is not eligible when the countable income equals or exceeds the 
154.18 	MFIP standard of need or the family wage level for the assistance unit.

154.19 	EFFECTIVE DATE. This section is effective March 1, 2025, except that the amendment 
154.20 	to paragraph (b) striking "10" and inserting "9" is effective July 1, 2024.

154.21 	Sec. 43. Minnesota Statutes 2022, section 256J.33, subdivision 2, is amended to read:
154.22 		Subd. 2.Prospective eligibility. An agency must determine whether the eligibility 
154.23 	requirements that pertain to an assistance unit, including those in sections 256J.11 to 256J.15
154.24 	and 256P.02, will be met prospectively for the payment month period. Except for the 
154.25 	provisions in section 256J.34, subdivision 1, The income test will be applied retrospectively
154.26 	prospectively.

154.27 	EFFECTIVE DATE. This section is effective March 1, 2025.

155.1 	Sec. 44. Minnesota Statutes 2022, section 256J.35, is amended to read:
155.2 	256J.35 AMOUNT OF ASSISTANCE PAYMENT.
155.3 	Except as provided in paragraphs (a) to (d) (e), the amount of an assistance payment is 
155.4 	equal to the difference between the MFIP standard of need or the Minnesota family wage 
155.5 	level in section 256J.24 and countable income.
155.6 	(a) Beginning July 1, 2015, MFIP assistance units are eligible for an MFIP housing 
155.7 	assistance grant of $110 per month, unless:
155.8 	(1) the housing assistance unit is currently receiving public and assisted rental subsidies 
155.9 	provided through the Department of Housing and Urban Development (HUD) and is subject 
155.10 	to section 256J.37, subdivision 3a; or
155.11 	(2) the assistance unit is a child-only case under section 256J.88.
155.12 	(b) On October 1 of each year, the commissioner shall adjust the MFIP housing assistance 
155.13 	grant in paragraph (a) for inflation based on the CPI-U for the prior calendar year.
155.14 	(b) (c) When MFIP eligibility exists for the month of application, the amount of the 
155.15 	assistance payment for the month of application must be prorated from the date of application 
155.16 	or the date all other eligibility factors are met for that applicant, whichever is later. This 
155.17 	provision applies when an applicant loses at least one day of MFIP eligibility.
155.18 	(c) (d) MFIP overpayments to an assistance unit must be recouped according to section 
155.19 	256P.08, subdivision 6.
155.20 	(d) (e) An initial assistance payment must not be made to an applicant who is not eligible 
155.21 	on the date payment is made.

155.22 	EFFECTIVE DATE. This section is effective October 1, 2024.

155.23 	Sec. 45. Minnesota Statutes 2022, section 256J.37, subdivision 3, is amended to read:
155.24 		Subd. 3.Earned income of wage, salary, and contractual employees. The agency 
155.25 	must include gross earned income less any disregards in the initial and monthly income 
155.26 	test. Gross earned income received by persons employed on a contractual basis must be 
155.27 	prorated over the period covered by the contract even when payments are received over a 
155.28 	lesser period of time.

155.29 	EFFECTIVE DATE. This section is effective March 1, 2025.

156.1 	Sec. 46. Minnesota Statutes 2022, section 256J.37, subdivision 3a, is amended to read:
156.2 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the agency 
156.3 	shall count $50 of the value of public and assisted rental subsidies provided through the 
156.4 	Department of Housing and Urban Development (HUD) as unearned income to the cash 
156.5 	portion of the MFIP grant. The full amount of the subsidy must be counted as unearned 
156.6 	income when the subsidy is less than $50. The income from this subsidy shall be budgeted 
156.7 	according to section 256J.34 256P.09.
156.8 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit which 
156.9 	includes a participant who is:
156.10 	(1) age 60 or older;
156.11 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
156.12 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
156.13 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
156.14 	suitable employment; or
156.15 	(3) a caregiver whose presence in the home is required due to the illness or incapacity 
156.16 	of another member in the assistance unit, a relative in the household, or a foster child in the 
156.17 	household when the illness or incapacity and the need for the participant's presence in the 
156.18 	home has been certified by a qualified professional and is expected to continue for more 
156.19 	than 30 days.
156.20 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit where 
156.21 	the parental caregiver is an SSI participant.

156.22 	EFFECTIVE DATE. This section is effective March 1, 2025.

156.23 	Sec. 47. Minnesota Statutes 2022, section 256J.40, is amended to read:
156.24 	256J.40 FAIR HEARINGS.
156.25 	Caregivers receiving a notice of intent to sanction or a notice of adverse action that 
156.26 	includes a sanction, reduction in benefits, suspension of benefits, denial of benefits, or 
156.27 	termination of benefits may request a fair hearing. A request for a fair hearing must be 
156.28 	submitted in writing to the county agency or to the commissioner and must be mailed within 
156.29 	30 days after a participant or former participant receives written notice of the agency's action 
156.30 	or within 90 days when a participant or former participant shows good cause for not 
156.31 	submitting the request within 30 days. A former participant who receives a notice of adverse 
157.1 	action due to an overpayment may appeal the adverse action according to the requirements 
157.2 	in this section. Issues that may be appealed are:
157.3 	(1) the amount of the assistance payment;
157.4 	(2) a suspension, reduction, denial, or termination of assistance;
157.5 	(3) the basis for an overpayment, the calculated amount of an overpayment, and the level 
157.6 	of recoupment;
157.7 	(4) the eligibility for an assistance payment; and
157.8 	(5) the use of protective or vendor payments under section 256J.39, subdivision 2, clauses 
157.9 	(1) to (3).
157.10 	Except for benefits issued under section 256J.95, A county agency must not reduce, 
157.11 	suspend, or terminate payment when an aggrieved participant requests a fair hearing prior 
157.12 	to the effective date of the adverse action or within ten days of the mailing of the notice of 
157.13 	adverse action, whichever is later, unless the participant requests in writing not to receive 
157.14 	continued assistance pending a hearing decision. An appeal request cannot extend benefits 
157.15 	for the diversionary work program under section 256J.95 beyond the four-month time limit.
157.16 	Assistance issued pending a fair hearing is subject to recovery under section 256P.08 when 
157.17 	as a result of the fair hearing decision the participant is determined ineligible for assistance 
157.18 	or the amount of the assistance received. A county agency may increase or reduce an 
157.19 	assistance payment while an appeal is pending when the circumstances of the participant 
157.20 	change and are not related to the issue on appeal. The commissioner's order is binding on 
157.21 	a county agency. No additional notice is required to enforce the commissioner's order.
157.22 	A county agency shall reimburse appellants for reasonable and necessary expenses of 
157.23 	attendance at the hearing, such as child care and transportation costs and for the transportation 
157.24 	expenses of the appellant's witnesses and representatives to and from the hearing. Reasonable 
157.25 	and necessary expenses do not include legal fees. Fair hearings must be conducted at a 
157.26 	reasonable time and date by an impartial human services judge employed by the department. 
157.27 	The hearing may be conducted by telephone or at a site that is readily accessible to persons 
157.28 	with disabilities.
157.29 	The appellant may introduce new or additional evidence relevant to the issues on appeal. 
157.30 	Recommendations of the human services judge and decisions of the commissioner must be 
157.31 	based on evidence in the hearing record and are not limited to a review of the county agency 
157.32 	action.

157.33 	EFFECTIVE DATE. This section is effective March 1, 2024.

158.1 	Sec. 48. Minnesota Statutes 2022, section 256J.42, subdivision 5, is amended to read:
158.2 		Subd. 5.Exemption for certain families. (a) Any cash assistance received by an 
158.3 	assistance unit does not count toward the 60-month limit on assistance during a month in 
158.4 	which the caregiver is age 60 or older.
158.5 	(b) From July 1, 1997, until the date MFIP is operative in the caregiver's county of 
158.6 	financial responsibility, any cash assistance received by a caregiver who is complying with 
158.7 	Minnesota Statutes 1996, section 256.73, subdivision 5a, and Minnesota Statutes 1998, 
158.8 	section 256.736, if applicable, does not count toward the 60-month limit on assistance. 
158.9 	Thereafter, any cash assistance received by a minor caregiver who is complying with the 
158.10 	requirements of sections 256J.14 and 256J.54, if applicable, does not count towards the 
158.11 	60-month limit on assistance.
158.12 	(c) Any diversionary assistance or emergency assistance received prior to July 1, 2003, 
158.13 	does not count toward the 60-month limit.
158.14 	(d) Any cash assistance received by an 18- or 19-year-old caregiver who is complying 
158.15 	with an employment plan that includes an education option under section 256J.54 does not 
158.16 	count toward the 60-month limit.
158.17 	(e) Payments provided to meet short-term emergency needs under section 256J.626 and 
158.18 	diversionary work program benefits provided under section 256J.95 do not count toward 
158.19 	the 60-month time limit.

158.20 	EFFECTIVE DATE. This section is effective March 1, 2024.

158.21 	Sec. 49. Minnesota Statutes 2022, section 256J.425, subdivision 1, is amended to read:
158.22 		Subdivision 1.Eligibility. (a) To be eligible for a hardship extension, a participant in 
158.23 	an assistance unit subject to the time limit under section 256J.42, subdivision 1, must be in 
158.24 	compliance in the participant's 60th counted month. For purposes of determining eligibility 
158.25 	for a hardship extension, a participant is in compliance in any month that the participant 
158.26 	has not been sanctioned. In order to maintain eligibility for any of the hardship extension 
158.27 	categories a participant shall develop and comply with either an employment plan or a 
158.28 	family stabilization services plan, whichever is appropriate.
158.29 	(b) If one participant in a two-parent assistance unit is determined to be ineligible for a 
158.30 	hardship extension, the county shall give the assistance unit the option of disqualifying the 
158.31 	ineligible participant from MFIP. In that case, the assistance unit shall be treated as a 
158.32 	one-parent assistance unit.
159.1 	(c) Prior to denying an extension, the county must review the sanction status and 
159.2 	determine whether the sanction is appropriate or if good cause exists under section 256J.57. 
159.3 	If the sanction was inappropriately applied or the participant is granted a good cause 
159.4 	exception before the end of month 60, the participant shall be considered for an extension.

159.5 	EFFECTIVE DATE. This section is effective May 1, 2026.

159.6 	Sec. 50. Minnesota Statutes 2022, section 256J.425, subdivision 4, is amended to read:
159.7 		Subd. 4.Employed participants. (a) An assistance unit subject to the time limit under 
159.8 	section 256J.42, subdivision 1, is eligible to receive assistance under a hardship extension 
159.9 	if the participant who reached the time limit belongs to:
159.10 	(1) a one-parent assistance unit in which the participant is participating in work activities 
159.11 	for at least 30 hours per week, of which an average of at least 25 hours per week every 
159.12 	month are spent participating in employment;
159.13 	(2) a two-parent assistance unit in which the participants are participating in work 
159.14 	activities for at least 55 hours per week, of which an average of at least 45 hours per week 
159.15 	every month are spent participating in employment; or
159.16 	(3) an assistance unit in which a participant is participating in employment for fewer 
159.17 	hours than those specified in clause (1), and the participant submits verification from a 
159.18 	qualified professional, in a form acceptable to the commissioner, stating that the number 
159.19 	of hours the participant may work is limited due to illness or disability, as long as the 
159.20 	participant is participating in employment for at least the number of hours specified by the 
159.21 	qualified professional. The participant must be following the treatment recommendations 
159.22 	of the qualified professional providing the verification. The commissioner shall develop a 
159.23 	form to be completed and signed by the qualified professional, documenting the diagnosis 
159.24 	and any additional information necessary to document the functional limitations of the 
159.25 	participant that limit work hours. If the participant is part of a two-parent assistance unit, 
159.26 	the other parent must be treated as a one-parent assistance unit for purposes of meeting the 
159.27 	work requirements under this subdivision.
159.28 	(b) For purposes of this section, employment means:
159.29 	(1) unsubsidized employment under section 256J.49, subdivision 13, clause (1);
159.30 	(2) subsidized employment under section 256J.49, subdivision 13, clause (2);
159.31 	(3) on-the-job training under section 256J.49, subdivision 13, clause (2);
159.32 	(4) an apprenticeship under section 256J.49, subdivision 13, clause (1);
160.1 	(5) supported work under section 256J.49, subdivision 13, clause (2);
160.2 	(6) a combination of clauses (1) to (5); or
160.3 	(7) child care under section 256J.49, subdivision 13, clause (7), if it is in combination 
160.4 	with paid employment.
160.5 	(c) If a participant is complying with a child protection plan under chapter 260C, the 
160.6 	number of hours required under the child protection plan count toward the number of hours 
160.7 	required under this subdivision.
160.8 	(d) The county shall provide the opportunity for subsidized employment to participants 
160.9 	needing that type of employment within available appropriations.
160.10 	(e) To be eligible for a hardship extension for employed participants under this 
160.11 	subdivision, a participant must be in compliance for at least ten out of the 12 months the 
160.12 	participant received MFIP immediately preceding the participant's 61st month on assistance. 
160.13 	If ten or fewer months of eligibility for TANF assistance remain at the time the participant 
160.14 	from another state applies for assistance, the participant must be in compliance every month.
160.15 	(f) (e) The employment plan developed under section 256J.521, subdivision 2, for 
160.16 	participants under this subdivision must contain at least the minimum number of hours 
160.17 	specified in paragraph (a) for the purpose of meeting the requirements for an extension 
160.18 	under this subdivision. The job counselor and the participant must sign the employment 
160.19 	plan to indicate agreement between the job counselor and the participant on the contents of 
160.20 	the plan.
160.21 	(g) (f) Participants who fail to meet the requirements in paragraph (a), without eligibility 
160.22 	for another hardship extension or good cause under section 256J.57, shall be sanctioned
160.23 	subject to sanction or permanently disqualified under subdivision 6. Good cause may only 
160.24 	be granted for that portion of the month for which the good cause reason applies case closure. 
160.25 	Participants must meet all remaining requirements in the approved employment plan or be 
160.26 	subject to sanction or permanent disqualification case closure.
160.27 	(h) (g) If the noncompliance with an employment plan is due to the involuntary loss of 
160.28 	employment, the participant is exempt from the hourly employment requirement under this 
160.29 	subdivision for one month. Participants must meet all remaining requirements in the approved 
160.30 	employment plan or be subject to sanction or permanent disqualification case closure if 
160.31 	ineligible for another hardship extension.

160.32 	EFFECTIVE DATE. This section is effective May 1, 2026.

161.1 	Sec. 51. Minnesota Statutes 2022, section 256J.425, subdivision 5, is amended to read:
161.2 		Subd. 5.Accrual of certain exempt months. (a) Participants who are not eligible for 
161.3 	assistance under a hardship extension under this section shall be eligible for a hardship 
161.4 	extension for a period of time equal to the number of months that were counted toward the 
161.5 	60-month time limit while the participant was a caregiver with a child or an adult in the 
161.6 	household who meets the disability or medical criteria for home care services under section 
161.7 	256B.0651, subdivision 1, paragraph (c), or a home and community-based waiver services 
161.8 	program under chapter 256B, or meets the criteria for severe emotional disturbance under 
161.9 	section 245.4871, subdivision 6, or for serious and persistent mental illness under section 
161.10 	245.462, subdivision 20, paragraph (c), and who was subject to the requirements in section 
161.11 	256J.561, subdivision 2.
161.12 	(b) A participant who received MFIP assistance that counted toward the 60-month time 
161.13 	limit while the participant met the state time limit exemption criteria under section 256J.42, 
161.14 	subdivision 4 or 5, is eligible for assistance under a hardship extension for a period of time 
161.15 	equal to the number of months that were counted toward the 60-month time limit while the 
161.16 	participant met the state time limit exemption criteria under section 256J.42, subdivision 4
161.17 	or 5.
161.18 	(c) After the accrued months have been exhausted, the county agency must determine 
161.19 	if the assistance unit is eligible for an extension under another extension category in 
161.20 	subdivision 2, 3, or 4.
161.21 	(d) At the time of the case review, a county agency must explain to the participant the 
161.22 	basis for receiving a hardship extension based on the accrual of exempt months. The 
161.23 	participant must provide documentation necessary to enable the county agency to determine 
161.24 	whether the participant is eligible to receive a hardship extension based on the accrual of 
161.25 	exempt months or authorize a county agency to verify the information.
161.26 	(e) While receiving extended MFIP assistance under this subdivision, a participant is 
161.27 	subject to the MFIP policies that apply to participants during the first 60 months of MFIP, 
161.28 	unless the participant is a member of a two-parent family in which one parent is extended 
161.29 	under subdivision 3 or 4. For two-parent families in which one parent is extended under 
161.30 	subdivision 3 or 4, the sanction provisions in subdivision 6 shall apply.

161.31 	EFFECTIVE DATE. This section is effective May 1, 2026.

162.1 	Sec. 52. Minnesota Statutes 2022, section 256J.425, subdivision 7, is amended to read:
162.2 		Subd. 7.Status of disqualified participants closed cases. (a) An assistance unit that 
162.3 	is disqualified has its case closed under subdivision 6, paragraph (a), section 256J.46 may 
162.4 	be approved for MFIP if the participant complies with MFIP program requirements and 
162.5 	demonstrates compliance for up to one month. No assistance shall be paid during this period.
162.6 	(b) An assistance unit that is disqualified has its case closed under subdivision 6, 
162.7 	paragraph (a) , section 256J.46 and that reapplies under paragraph (a) is subject to sanction 
162.8 	under section 256J.46, subdivision 1, paragraph (c), clause (1), for a first occurrence of 
162.9 	noncompliance. A subsequent occurrence of noncompliance results in a permanent 
162.10 	disqualification.
162.11 	(c) If one participant in a two-parent assistance unit receiving assistance under a hardship 
162.12 	extension under subdivision 3 or 4 is determined to be out of compliance with the 
162.13 	employment and training services requirements under sections 256J.521 to 256J.57, the 
162.14 	county shall give the assistance unit the option of disqualifying the noncompliant participant 
162.15 	from MFIP. In that case, the assistance unit shall be treated as a one-parent assistance unit 
162.16 	for the purposes of meeting the work requirements under subdivision 4. An applicant who 
162.17 	is disqualified from receiving assistance under this paragraph may reapply under paragraph 
162.18 	(a). If a participant is disqualified from MFIP under this subdivision a second time, the 
162.19 	participant is permanently disqualified from MFIP.
162.20 	(d) (c) Prior to a disqualification case closure under this subdivision, a county agency 
162.21 	must review the participant's case to determine if the employment plan is still appropriate 
162.22 	and attempt to meet with the participant face-to-face. If a face-to-face meeting is not 
162.23 	conducted, the county agency must send the participant a notice of adverse action as provided 
162.24 	in section 256J.31. During the face-to-face meeting, the county agency must:
162.25 	(1) determine whether the continued noncompliance can be explained and mitigated by 
162.26 	providing a needed preemployment activity, as defined in section 256J.49, subdivision 13, 
162.27 	clause (9);
162.28 	(2) determine whether the participant qualifies for a good cause exception under section 
162.29 	256J.57;
162.30 	(3) inform the participant of the family violence waiver criteria and make appropriate 
162.31 	referrals if the waiver is requested;
162.32 	(4) inform the participant of the participant's sanction status and explain the consequences 
162.33 	of continuing noncompliance;
163.1 	(5) identify other resources that may be available to the participant to meet the needs of 
163.2 	the family; and
163.3 	(6) inform the participant of the right to appeal under section 256J.40.

163.4 	EFFECTIVE DATE. This section is effective May 1, 2026.

163.5 	Sec. 53. Minnesota Statutes 2022, section 256J.46, subdivision 1, is amended to read:
163.6 		Subdivision 1.Participants not complying with program requirements. (a) A 
163.7 	participant who fails without good cause under section 256J.57 to comply with the 
163.8 	requirements of this chapter for orientation under section 256J.45, or employment and 
163.9 	training services under sections 256J.515 to 256J.57, and who is not subject to a sanction 
163.10 	under subdivision 2, shall be subject to a sanction or case closure as provided in this 
163.11 	subdivision section. Good cause may only be granted for the month for which the good 
163.12 	cause reason applies. Prior to the imposition of a sanction, a county agency shall provide a 
163.13 	notice of intent to sanction under section 256J.57, subdivision 2, and, when applicable, a 
163.14 	notice of adverse action as provided in section 256J.31, subdivision 5.
163.15 	(b) A sanction under this subdivision becomes effective the month following the month 
163.16 	in which a required notice is given. A sanction must not be imposed when a participant 
163.17 	comes into compliance with the requirements for orientation under section 256J.45 prior to 
163.18 	the effective date of the sanction. A sanction must not be imposed when a participant comes 
163.19 	into compliance with the requirements for employment and training services under sections 
163.20 	256J.515 to 256J.57 ten days prior to the effective date of the sanction. For purposes of this 
163.21 	subdivision, each month that a participant fails to comply with a requirement of this chapter 
163.22 	shall be considered a separate occurrence of noncompliance. If both participants in a 
163.23 	two-parent assistance unit are out of compliance at the same time, it is considered one 
163.24 	occurrence of noncompliance.
163.25 	(c) Sanctions for noncompliance shall be imposed as follows:
163.26 	(1) For the first occurrence of noncompliance by a participant in an assistance unit, the 
163.27 	assistance unit's grant shall be reduced by ten percent of the MFIP standard of need for an 
163.28 	assistance unit of the same size with the residual grant paid to the participant. The reduction 
163.29 	in the grant amount must be in effect for a minimum of one month and shall be removed in 
163.30 	the month following the month that the participant returns to compliance.
163.31 	(2) for a the first, second, third, fourth, fifth, or sixth consecutive occurrence of 
163.32 	noncompliance by a participant in an assistance unit, the assistance unit's shelter costs shall 
163.33 	be vendor paid up to the amount of the cash portion of the MFIP grant for which the 
164.1 	assistance unit is eligible. At county option, the assistance unit's utilities may also be vendor 
164.2 	paid up to the amount of the cash portion of the MFIP grant remaining after vendor payment 
164.3 	of the assistance unit's shelter costs. The residual amount of the grant after vendor payment, 
164.4 	if any, must be reduced by an amount are equal to 30 a reduction of five percent of the cash 
164.5 	portion of the MFIP standard of need for an grant received by the assistance unit of the 
164.6 	same size before the residual grant is paid to the assistance unit. The reduction in the grant 
164.7 	amount must be in effect for a minimum of one month and shall be removed in the month 
164.8 	following the month that the participant in a one-parent assistance unit returns to compliance, 
164.9 	unless the requirements in paragraph (h) are met. In a two-parent assistance unit, the grant 
164.10 	reduction must be in effect for a minimum of one month and shall be removed in the month 
164.11 	following the month both participants return to compliance, unless the requirements in 
164.12 	paragraph (h) are met. The vendor payment of shelter costs and, if applicable, utilities shall 
164.13 	be removed six months after the month in which the participant or participants return to 
164.14 	compliance. When an assistance unit comes into compliance with the requirements in section 
164.15 	256.741, or shows good cause under section 256.741, subdivision 10, or 256J.57, the sanction 
164.16 	occurrences for that assistance unit shall be equal to zero sanctions. If an assistance unit is 
164.17 	sanctioned under this clause, the participant's case file must be reviewed to determine if the 
164.18 	employment plan is still appropriate.
164.19 	(d) For a seventh consecutive occurrence of noncompliance by a participant in an 
164.20 	assistance unit, or when the participants in a two-parent assistance unit have a total of seven 
164.21 	occurrences of noncompliance, the county agency shall close the MFIP assistance unit's 
164.22 	financial assistance case, both including the cash and food portions, and redetermine the 
164.23 	family's continued eligibility for Supplemental Nutrition Assistance Program (SNAP) 
164.24 	payments. The MFIP case must remain closed for a minimum of one full month. Before the 
164.25 	case is closed, the county agency must review the participant's case to determine if the 
164.26 	employment plan is still appropriate and attempt to meet with the participant face-to-face. 
164.27 	The participant may bring an advocate to the face-to-face meeting. If a face-to-face meeting 
164.28 	is not conducted, the county agency must send the participant a written notice that includes 
164.29 	the information required under clause (1).
164.30 	(1) During the face-to-face meeting, the county agency must:
164.31 	(i) determine whether the continued noncompliance can be explained and mitigated by 
164.32 	providing a needed preemployment activity, as defined in section 256J.49, subdivision 13, 
164.33 	clause (9);
164.34 	(ii) determine whether the participant qualifies for a good cause exception under section 
164.35 	256J.57, or if the sanction is for noncooperation with child support requirements, determine 
165.1 	if the participant qualifies for a good cause exemption under section 256.741, subdivision 
165.2 	10;
165.3 	(iii) determine whether the work activities in the employment plan are appropriate based 
165.4 	on the criteria in section 256J.521, subdivision 2 or 3;
165.5 	(iv) determine whether the participant qualifies for the family violence waiver;
165.6 	(v) inform the participant of the participant's sanction status and explain the consequences 
165.7 	of continuing noncompliance;
165.8 	(vi) identify other resources that may be available to the participant to meet the needs 
165.9 	of the family; and
165.10 	(vii) inform the participant of the right to appeal under section 256J.40.
165.11 	(2) If the lack of an identified activity or service can explain the noncompliance, the 
165.12 	county must work with the participant to provide the identified activity.
165.13 	(3) The grant must be restored to the full amount for which the assistance unit is eligible 
165.14 	retroactively to the first day of the month in which the participant was found to lack 
165.15 	preemployment activities or to qualify for a family violence waiver or for a good cause 
165.16 	exemption under section 256.741, subdivision 10, or 256J.57.
165.17 	(e) For the purpose of applying sanctions under this section, only consecutive occurrences 
165.18 	of noncompliance that occur after July 1, 2003 on or after May 1, 2026, shall be considered
165.19 	when counting the number of sanction occurrences under this subdivision. Active cases 
165.20 	under sanction on May 1, 2026, shall be considered to have one sanction occurrence. If the 
165.21 	participant is in 30 percent sanction in the month this section takes effect, that month counts 
165.22 	as the first occurrence for purposes of applying the sanctions under this section, but the 
165.23 	sanction shall remain at 30 percent for that month comes into compliance, the assistance 
165.24 	unit is considered to have zero sanctions.
165.25 	(f) An assistance unit whose case is closed under paragraph (d) or (g), may reapply for 
165.26 	MFIP using a form prescribed by the commissioner and shall be eligible if the participant 
165.27 	complies with MFIP program requirements and demonstrates compliance for up to one 
165.28 	month. No assistance shall be paid during this period. The county agency shall not start a 
165.29 	new certification period for a participant who has submitted the reapplication form within 
165.30 	30 calendar days of case closure. The county agency must process the form according to 
165.31 	section 256P.04, except that the county agency shall not require additional verification of 
165.32 	information in the case file unless the information is inaccurate, questionable, or no longer 
166.1 	current. When a participant does not reapply for MFIP within 30 calendar days of case 
166.2 	closure, a new application must be completed.
166.3 	(g) An assistance unit whose case has been closed for noncompliance, that reapplies 
166.4 	under paragraph (f), is subject to sanction under paragraph (c), clause (2), for a first 
166.5 	occurrence of noncompliance. Any subsequent occurrence of noncompliance shall result 
166.6 	in and case closure under paragraph (d).
166.7 	(h) If an assistance unit is in compliance by the 15th of the month in which the assistance 
166.8 	unit has a sanction imposed, the reduction to the assistance unit's cash grant shall be restored 
166.9 	retroactively for the current month and the sanction occurrences shall be equal to zero.

166.10 	EFFECTIVE DATE. This section is effective May 1, 2026.

166.11 	Sec. 54. Minnesota Statutes 2022, section 256J.46, subdivision 2, is amended to read:
166.12 		Subd. 2.Sanctions for refusal to cooperate with support requirements. The grant of 
166.13 	an MFIP caregiver who refuses to cooperate, as determined by the child support enforcement 
166.14 	agency, with support requirements under section 256.741, shall be subject to sanction as 
166.15 	specified in this subdivision and subdivision 1. For a first occurrence of noncooperation, 
166.16 	the assistance unit's grant must be reduced by 30 percent of the applicable MFIP standard 
166.17 	of need. Subsequent occurrences of noncooperation shall be subject to sanction under 
166.18 	subdivision 1, paragraphs (c), clause (2), and (d)., paragraphs (b) to (h), except the assistance 
166.19 	unit's cash portion of the grant must be reduced by 25 percent of the MFIP cash received 
166.20 	by the assistance unit. The residual amount of the grant, if any, must be paid to the caregiver. 
166.21 	A sanction under this subdivision becomes effective the first month following the month 
166.22 	in which a required notice is given. A sanction must not be imposed when a caregiver comes 
166.23 	into compliance with the requirements under section 256.741 prior to the effective date of 
166.24 	the sanction. The sanction shall be removed in the month following the month that the 
166.25 	caregiver cooperates with the support requirements, unless the requirements in subdivision 
166.26 	1, paragraph (h), are met. Each month that an MFIP caregiver fails to comply with the 
166.27 	requirements of section 256.741 must be considered a separate occurrence of noncompliance 
166.28 	for the purpose of applying sanctions under subdivision 1, paragraphs (c), clause (2), and 
166.29 	(d).

166.30 	EFFECTIVE DATE. This section is effective May 1, 2026.

167.1 	Sec. 55. Minnesota Statutes 2022, section 256J.46, subdivision 2a, is amended to read:
167.2 		Subd. 2a.Dual sanctions. (a) Notwithstanding the provisions of subdivisions 1 and 2, 
167.3 	for a participant subject to a sanction for refusal to comply with child support requirements 
167.4 	under subdivision 2 and subject to a concurrent sanction for refusal to cooperate with other 
167.5 	program requirements under subdivision 1, sanctions shall be imposed in the manner 
167.6 	prescribed in this subdivision.
167.7 	Any vendor payment of shelter costs or utilities under this subdivision must remain in 
167.8 	effect for six months after the month in which the participant is no longer subject to sanction 
167.9 	under subdivision 1.
167.10 	(b) If the participant was subject to sanction for:
167.11 	(1) noncompliance under subdivision 1 before being subject to sanction for 
167.12 	noncooperation under subdivision 2; or
167.13 	(2) noncooperation under subdivision 2 before being subject to sanction for 
167.14 	noncompliance under subdivision 1, the participant is considered to have a second occurrence 
167.15 	of noncompliance and shall be sanctioned as provided in subdivision 1, paragraph (c), clause 
167.16 	(2). Each subsequent occurrence of noncompliance shall be considered one additional 
167.17 	occurrence and shall be subject to the applicable level of sanction under subdivision 1. The 
167.18 	requirement that the county conduct a review as specified in subdivision 1, paragraph (d), 
167.19 	remains in effect.
167.20 	(c) (b) A participant who first becomes subject to sanction under both subdivisions 1 
167.21 	and 2 in the same month is subject to sanction as follows:
167.22 	(1) in the first month of noncompliance and noncooperation, the participant's cash portion 
167.23 	of the grant must be reduced by 30 25 percent of the applicable MFIP standard of need cash 
167.24 	received by the assistance unit, with any residual amount paid to the participant;
167.25 	(2) in the second and subsequent months of noncompliance and noncooperation, the 
167.26 	participant shall be subject to the applicable level of sanction under subdivision 12.
167.27 	The requirement that the county conduct a review as specified in subdivision 1, paragraph 
167.28 	(d), remains in effect.
167.29 	(d) (c) A participant remains subject to sanction under subdivision 2 if the participant:
167.30 	(1) returns to compliance and is no longer subject to sanction for noncompliance with 
167.31 	section 256J.45 or sections 256J.515 to 256J.57; or
168.1 	(2) has the sanction for noncompliance with section 256J.45 or sections 256J.515 to 
168.2 	256J.57 removed upon completion of the review under subdivision 1, paragraph (e) (d).
168.3 	A participant remains subject to the applicable level of sanction under subdivision 1 if 
168.4 	the participant cooperates and is no longer subject to sanction under subdivision 2.

168.5 	EFFECTIVE DATE. This section is effective May 1, 2026.

168.6 	Sec. 56. Minnesota Statutes 2022, section 256J.49, subdivision 9, is amended to read:
168.7 		Subd. 9.Participant. "Participant" means a recipient of MFIP assistance who participates 
168.8 	or is required to participate in employment and training services under sections 256J.515
168.9 	to 256J.57and 256J.95.

168.10 	EFFECTIVE DATE. This section is effective March 1, 2024.

168.11 	Sec. 57. Minnesota Statutes 2022, section 256J.50, subdivision 1, is amended to read:
168.12 		Subdivision 1.Employment and training services component of MFIP. (a) Each 
168.13 	county must develop and provide an employment and training services component which 
168.14 	is designed to put participants on the most direct path to unsubsidized employment. 
168.15 	Participation in these services is mandatory for all MFIP caregivers.
168.16 	(b) A county must provide employment and training services under sections 256J.515
168.17 	to 256J.74 within 30 days after the caregiver is determined eligible for MFIP, or within ten 
168.18 	days when the caregiver participated in the diversionary work program under section 256J.95
168.19 	within the past 12 months.

168.20 	EFFECTIVE DATE. This section is effective March 1, 2024.

168.21 	Sec. 58. Minnesota Statutes 2022, section 256J.521, subdivision 1, is amended to read:
168.22 		Subdivision 1.Assessments. (a) For purposes of MFIP employment services, assessment 
168.23 	is a continuing process of gathering information related to employability for the purpose of 
168.24 	identifying both participant's strengths and strategies for coping with issues that interfere 
168.25 	with employment. The job counselor must use information from the assessment process to 
168.26 	develop and update the employment plan under subdivision 2 or 3, as appropriate, to 
168.27 	determine whether the participant qualifies for a family violence waiver including an 
168.28 	employment plan under subdivision 3, and to determine whether the participant should be 
168.29 	referred to family stabilization services under section 256J.575.
168.30 	(b) The scope of assessment must cover at least the following areas:
169.1 	(1) basic information about the participant's ability to obtain and retain employment, 
169.2 	including: a review of the participant's education level; interests, skills, and abilities; prior 
169.3 	employment or work experience; transferable work skills; child care and transportation 
169.4 	needs;
169.5 	(2) identification of personal and family circumstances that impact the participant's 
169.6 	ability to obtain and retain employment, including: any special needs of the children, the 
169.7 	level of English proficiency, family violence issues, and any involvement with social services 
169.8 	or the legal system;
169.9 	(3) the results of a mental and chemical health screening tool designed by the 
169.10 	commissioner and results of the brief screening tool for special learning needs. Screening 
169.11 	tools for mental and chemical health and special learning needs must be approved by the 
169.12 	commissioner and may only be administered by job counselors or county staff trained in 
169.13 	using such screening tools. Participants must be told of the purpose of the screens and how 
169.14 	the information will be used to assist the participant in identifying and overcoming barriers 
169.15 	to employment. Screening for mental and chemical health and special learning needs must 
169.16 	be completed by participants three months after development of the initial employment plan 
169.17 	or earlier if there is a documented need. Failure to complete the screens will result in sanction 
169.18 	under section 256J.46; and
169.19 	(4) a comprehensive review of participation and progress for participants who have 
169.20 	received MFIP assistance and have not worked in unsubsidized employment during the past 
169.21 	12 months. The purpose of the review is to determine the need for additional services and 
169.22 	supports, including placement in subsidized employment or unpaid work experience under 
169.23 	section 256J.49, subdivision 13, or referral to family stabilization services under section 
169.24 	256J.575.
169.25 	(c) Information gathered during a caregiver's participation in the diversionary work 
169.26 	program under section 256J.95 must be incorporated into the assessment process.
169.27 	(d) (c) The job counselor may require the participant to complete a professional chemical 
169.28 	use assessment to be performed according to the rules adopted under section 254A.03, 
169.29 	subdivision 3, including provisions in the administrative rules which recognize the cultural 
169.30 	background of the participant, or a professional psychological assessment as a component 
169.31 	of the assessment process, when the job counselor has a reasonable belief, based on objective 
169.32 	evidence, that a participant's ability to obtain and retain suitable employment is impaired 
169.33 	by a medical condition. The job counselor may assist the participant with arranging services, 
169.34 	including child care assistance and transportation, necessary to meet needs identified by the 
170.1 	assessment. Data gathered as part of a professional assessment must be classified and 
170.2 	disclosed according to the provisions in section 13.46.

170.3 	EFFECTIVE DATE. This section is effective March 1, 2024.

170.4 	Sec. 59. Minnesota Statutes 2022, section 256J.621, subdivision 1, is amended to read:
170.5 		Subdivision 1.Program characteristics. (a) Within 30 days of exiting the Minnesota 
170.6 	family investment program with earnings, the county must assess eligibility for work 
170.7 	participation cash benefits of $25 per month to assist in meeting the family's basic needs as 
170.8 	the participant continues to move toward self-sufficiency. Payment begins effective the first 
170.9 	of the month following exit or termination for MFIP and DWP participants.
170.10 	(b) To be eligible for work participation cash benefits, the participant shall not receive 
170.11 	MFIP or diversionary work program assistance during the month and the participant or 
170.12 	participants must meet the following work requirements:
170.13 	(1) if the participant is a single caregiver and has a child under six years of age, the 
170.14 	participant must be employed at least 87 hours per month;
170.15 	(2) if the participant is a single caregiver and does not have a child under six years of 
170.16 	age, the participant must be employed at least 130 hours per month; or
170.17 	(3) if the household is a two-parent family, at least one of the parents must be employed 
170.18 	130 hours per month.
170.19 	Whenever a participant exits the diversionary work program or is terminated from MFIP 
170.20 	and meets the other criteria in this section, work participation cash benefits are available 
170.21 	for up to 24 consecutive months.
170.22 	(c) Expenditures on the program are maintenance of effort state funds under a separate 
170.23 	state program for participants under paragraph (b), clauses (1) and (2). Expenditures for 
170.24 	participants under paragraph (b), clause (3), are nonmaintenance of effort funds. Months in 
170.25 	which a participant receives work participation cash benefits under this section do not count 
170.26 	toward the participant's MFIP 60-month time limit.

170.27 	EFFECTIVE DATE. This section is effective March 1, 2024.

170.28 	Sec. 60. Minnesota Statutes 2022, section 256J.626, subdivision 2, is amended to read:
170.29 		Subd. 2.Allowable expenditures. (a) The commissioner must restrict expenditures 
170.30 	under the consolidated fund to benefits and services allowed under title IV-A of the federal 
171.1 	Social Security Act. Allowable expenditures under the consolidated fund may include, but 
171.2 	are not limited to:
171.3 	(1) short-term, nonrecurring shelter and utility needs that are excluded from the definition 
171.4 	of assistance under Code of Federal Regulations, title 45, section 260.31, for families who 
171.5 	meet the residency requirement in section 256J.12, subdivisions 1 and 1a. Payments under 
171.6 	this subdivision are not considered TANF cash assistance and are not counted towards the 
171.7 	60-month time limit;
171.8 	(2) transportation needed to obtain or retain employment or to participate in other 
171.9 	approved work activities or activities under a family stabilization plan;
171.10 	(3) direct and administrative costs of staff to deliver employment services for MFIP, the 
171.11 	diversionary work program, or family stabilization services; to administer financial assistance; 
171.12 	and to provide specialized services intended to assist hard-to-employ participants to transition 
171.13 	to work or transition from family stabilization services to MFIP;
171.14 	(4) costs of education and training including functional work literacy and English as a 
171.15 	second language;
171.16 	(5) cost of work supports including tools, clothing, boots, telephone service, and other 
171.17 	work-related expenses;
171.18 	(6) county administrative expenses as defined in Code of Federal Regulations, title 45, 
171.19 	section 260(b);
171.20 	(7) services to parenting and pregnant teens;
171.21 	(8) supported work;
171.22 	(9) wage subsidies;
171.23 	(10) child care needed for MFIP, the diversionary work program, or family stabilization 
171.24 	services participants to participate in social services;
171.25 	(11) child care to ensure that families leaving MFIP or diversionary work program will 
171.26 	continue to receive child care assistance from the time the family no longer qualifies for 
171.27 	transition year child care until an opening occurs under the basic sliding fee child care 
171.28 	program;
171.29 	(12) services to help noncustodial parents who live in Minnesota and have minor children 
171.30 	receiving MFIP or DWP assistance, but do not live in the same household as the child, 
171.31 	obtain or retain employment; and
172.1 	(13) services to help families participating in family stabilization services achieve the 
172.2 	greatest possible degree of self-sufficiency.
172.3 	(b) Administrative costs that are not matched with county funds as provided in subdivision 
172.4 	8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation under this 
172.5 	section. The commissioner shall define administrative costs for purposes of this subdivision.
172.6 	(c) The commissioner may waive the cap on administrative costs for a county or tribe 
172.7 	that elects to provide an approved supported employment, unpaid work, or community work 
172.8 	experience program for a major segment of the county's or tribe's MFIP population. The 
172.9 	county or tribe must apply for the waiver on forms provided by the commissioner. In no 
172.10 	case shall total administrative costs exceed the TANF limits.

172.11 	EFFECTIVE DATE. This section is effective March 1, 2024.

172.12 	Sec. 61. Minnesota Statutes 2022, section 256J.626, subdivision 3, is amended to read:
172.13 		Subd. 3.Eligibility for services. Families with a minor child, a pregnant woman, or a 
172.14 	noncustodial parent of a minor child receiving assistance, with incomes below 200 percent 
172.15 	of the federal poverty guideline for a family of the applicable size, are eligible for services 
172.16 	funded under the consolidated fund. Counties and tribes must give priority to families 
172.17 	currently receiving MFIP, the diversionary work program, or family stabilization services,
172.18 	and families at risk of receiving MFIP or diversionary work program. A county or tribe 
172.19 	shall not impose a residency requirement on families, except for the residency requirement 
172.20 	under section 256J.12.

172.21 	EFFECTIVE DATE. This section is effective March 1, 2024.

172.22 	Sec. 62. Minnesota Statutes 2022, section 256J.751, subdivision 2, is amended to read:
172.23 		Subd. 2.Quarterly comparison report. (a) The commissioner shall report quarterly to 
172.24 	all counties on each county's performance on the following measures:
172.25 	(1) percent of MFIP caseload working in paid employment;
172.26 	(2) percent of MFIP caseload receiving only the food portion of assistance;
172.27 	(3) number of MFIP cases that have left assistance;
172.28 	(4) median placement wage rate;
172.29 	(5) caseload by months of TANF assistance;
173.1 	(6) percent of MFIP and diversionary work program (DWP) cases off cash assistance 
173.2 	or working 30 or more hours per week at one-year, two-year, and three-year follow-up 
173.3 	points from a baseline quarter. This measure is called the self-support index. The 
173.4 	commissioner shall report quarterly an expected range of performance for each county, 
173.5 	county grouping, and tribe on the self-support index. The expected range shall be derived 
173.6 	by a statistical methodology developed by the commissioner in consultation with the counties 
173.7 	and tribes. The statistical methodology shall control differences across counties in economic 
173.8 	conditions and demographics of the MFIP and DWP case load; and
173.9 	(7) the TANF work participation rate, defined as the participation requirements specified 
173.10 	under Public Law 109-171, the Deficit Reduction Act of 2005.
173.11 	(b) The commissioner shall not apply the limits on vocational educational training and 
173.12 	education activities under Code of Federal Regulations, title 45, section 261.33(c), when 
173.13 	determining TANF work participation rates for individual counties under this subdivision.

173.14 	EFFECTIVE DATE. This section is effective March 1, 2024.

173.15 	Sec. 63. Minnesota Statutes 2022, section 256P.01, is amended by adding a subdivision 
173.16 	to read:
173.17 		Subd. 9.Prospective budgeting. "Prospective budgeting" means estimating the amount 
173.18 	of monthly income that an assistance unit will have in the payment month.

173.19 	EFFECTIVE DATE. This section is effective March 1, 2025.

173.20 	Sec. 64. Minnesota Statutes 2022, section 256P.02, subdivision 2, is amended to read:
173.21 		Subd. 2.Personal property limitations. The equity value of an assistance unit's personal 
173.22 	property listed in clauses (1) to (5) must not exceed $10,000 for applicants and participants. 
173.23 	For purposes of this subdivision, personal property is limited to:
173.24 	(1) cash;
173.25 	(2) bank accounts not excluded under subdivision 4;
173.26 	(3) liquid stocks and bonds that can be readily accessed without a financial penalty;
173.27 	(4) vehicles not excluded under subdivision 3; and
173.28 	(5) the full value of business accounts used to pay expenses not related to the business.

174.1 	Sec. 65. Minnesota Statutes 2022, section 256P.02, is amended by adding a subdivision 
174.2 	to read:
174.3 		Subd. 4.Account exception. Family asset accounts under section 256E.35 and individual 
174.4 	development accounts authorized under the Assets for Independence Act, Title IV of the 
174.5 	Community Opportunities, Accountability, and Training and Educational Services Human 
174.6 	Services Reauthorization Act of 1998, Public Law 105-285, shall be excluded when 
174.7 	determining the equity value of personal property.

174.8 	Sec. 66. Minnesota Statutes 2022, section 256P.04, subdivision 4, is amended to read:
174.9 		Subd. 4.Factors to be verified. (a) The agency shall verify the following at application:
174.10 	(1) identity of adults;
174.11 	(2) age, if necessary to determine eligibility;
174.12 	(3) immigration status;
174.13 	(4) income;
174.14 	(5) spousal support and child support payments made to persons outside the household;
174.15 	(6) vehicles;
174.16 	(7) checking and savings accounts, including but not limited to any business accounts 
174.17 	used to pay expenses not related to the business;
174.18 	(8) inconsistent information, if related to eligibility;
174.19 	(9) residence; and
174.20 	(10) Social Security number; and.
174.21 	(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2), item 
174.22 	(ix), for the intended purpose for which it was given and received.
174.23 	(b) Applicants who are qualified noncitizens and victims of domestic violence as defined 
174.24 	under section 256J.08, subdivision 73, clauses (8) and (9), are not required to verify the 
174.25 	information in paragraph (a), clause (10). When a Social Security number is not provided 
174.26 	to the agency for verification, this requirement is satisfied when each member of the 
174.27 	assistance unit cooperates with the procedures for verification of Social Security numbers, 
174.28 	issuance of duplicate cards, and issuance of new numbers which have been established 
174.29 	jointly between the Social Security Administration and the commissioner.

174.30 	EFFECTIVE DATE. This section is effective July 1, 2024.

175.1 	Sec. 67. Minnesota Statutes 2022, section 256P.04, subdivision 8, is amended to read:
175.2 		Subd. 8.Recertification. The agency shall recertify eligibility annually. During 
175.3 	recertification and reporting under section 256P.10, the agency shall verify the following:
175.4 	(1) income, unless excluded, including self-employment earnings;
175.5 	(2) assets when the value is within $200 of the asset limit; and
175.6 	(3) inconsistent information, if related to eligibility.

175.7 	EFFECTIVE DATE. This section is effective March 1, 2025.

175.8 	Sec. 68. Minnesota Statutes 2022, section 256P.06, subdivision 3, is amended to read:
175.9 		Subd. 3.Income inclusions. The following must be included in determining the income 
175.10 	of an assistance unit:
175.11 	(1) earned income; and
175.12 	(2) unearned income, which includes:
175.13 	(i) interest and dividends from investments and savings;
175.14 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real property;
175.15 	(iii) proceeds from rent and contract for deed payments in excess of the principal and 
175.16 	interest portion owed on property;
175.17 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
175.18 	(v) interest income from loans made by the participant or household;
175.19 	(vi) cash prizes and winnings;
175.20 	(vii) unemployment insurance income that is received by an adult member of the 
175.21 	assistance unit unless the individual receiving unemployment insurance income is:
175.22 	(A) 18 years of age and enrolled in a secondary school; or
175.23 	(B) 18 or 19 years of age, a caregiver, and is enrolled in school at least half-time;
175.24 	(viii) for the purposes of programs under chapters 256D and 256I, retirement, survivors, 
175.25 	and disability insurance payments;
175.26 	(ix) nonrecurring income over $60 per quarter unless the nonrecurring income is: (A) 
175.27 	from tax refunds, tax rebates, or tax credits; (B) a reimbursement, rebate, award, grant, or 
175.28 	refund of personal or real property or costs or losses incurred when these payments are 
175.29 	made by: a public agency; a court; solicitations through public appeal; a federal, state, or 
176.1 	local unit of government; or a disaster assistance organization; (C) provided as an in-kind 
176.2 	benefit; or (D) earmarked and used for the purpose for which it was intended, subject to 
176.3 	verification requirements under section 256P.04;
176.4 	(x) (ix) retirement benefits;
176.5 	(xi) (x) cash assistance benefits, as defined by each program in chapters 119B, 256D, 
176.6 	256I, and 256J;
176.7 	(xii) (xi) Tribal per capita payments unless excluded by federal and state law;
176.8 	(xiii) (xii) income from members of the United States armed forces unless excluded 
176.9 	from income taxes according to federal or state law;
176.10 	(xiv)(xiii) for the purposes of programs under chapters 119B, 256D, and 256I, all child 
176.11 	support payments for programs under chapters 119B, 256D, and 256I;
176.12 	(xv)(xiv) for the purposes of programs under chapter 256J, the amount of child support 
176.13 	received that exceeds $100 for assistance units with one child and $200 for assistance units 
176.14 	with two or more children for programs under chapter 256J;
176.15 	(xvi) (xv) spousal support; and
176.16 	(xvii) (xvi) workers' compensation.; and
176.17 	(xvii) for the purposes of programs under chapters 119B and 256J, the amount of 
176.18 	retirement, survivors, and disability insurance payments that exceeds the applicable monthly 
176.19 	federal maximum Supplemental Security Income payments.

176.20 	EFFECTIVE DATE. This section is effective September 1, 2024, except the removal 
176.21 	of item (ix) related to nonrecurring income is effective July 1, 2024.

176.22 	Sec. 69. Minnesota Statutes 2022, section 256P.07, subdivision 1, is amended to read:
176.23 		Subdivision 1.Exempted programs. Participants who receive Supplemental Security 
176.24 	Income and qualify for Minnesota supplemental aid under chapter 256D and or for housing 
176.25 	support under chapter 256I on the basis of eligibility for Supplemental Security Income are 
176.26 	exempt from this section reporting income under this chapter.

176.27 	EFFECTIVE DATE. This section is effective March 1, 2025.

177.1 	Sec. 70. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
177.2 	to read:
177.3 		Subd. 1a.Child care assistance programs. Participants who qualify for child care 
177.4 	assistance programs under chapter 119B are exempt from this section except the reporting 
177.5 	requirements in subdivision 6.

177.6 	EFFECTIVE DATE. This section is effective March 1, 2025.

177.7 	Sec. 71. Minnesota Statutes 2022, section 256P.07, subdivision 2, is amended to read:
177.8 		Subd. 2.Reporting requirements. An applicant or participant must provide information 
177.9 	on an application and any subsequent reporting forms about the assistance unit's 
177.10 	circumstances that affect eligibility or benefits. An applicant or assistance unit must report 
177.11 	changes that affect eligibility or benefits as identified in subdivision subdivisions 3, 4, 5, 
177.12 	7, 8, and 9 during the application period or by the tenth of the month following the month 
177.13 	the assistance unit's circumstances changed. When information is not accurately reported, 
177.14 	both an overpayment and a referral for a fraud investigation may result. When information 
177.15 	or documentation is not provided, the receipt of any benefit may be delayed or denied, 
177.16 	depending on the type of information required and its effect on eligibility.

177.17 	EFFECTIVE DATE. This section is effective March 1, 2025.

177.18 	Sec. 72. Minnesota Statutes 2022, section 256P.07, subdivision 3, is amended to read:
177.19 		Subd. 3.Changes that must be reported. An assistance unit must report the changes 
177.20 	or anticipated changes specified in clauses (1) to (12) within ten days of the date they occur, 
177.21 	at the time of recertification of eligibility under section 256P.04, subdivisions 8 and 9, or 
177.22 	within eight calendar days of a reporting period, whichever occurs first. An assistance unit 
177.23 	must report other changes at the time of recertification of eligibility under section 256P.04, 
177.24 	subdivisions 8 and 9, or at the end of a reporting period, as applicable. When an agency 
177.25 	could have reduced or terminated assistance for one or more payment months if a delay in 
177.26 	reporting a change specified under clauses (1) to (12) had not occurred, the agency must 
177.27 	determine whether a timely notice could have been issued on the day that the change 
177.28 	occurred. When a timely notice could have been issued, each month's overpayment 
177.29 	subsequent to that notice must be considered a client error overpayment under section 
177.30 	119B.11, subdivision 2a, or 256P.08. Changes in circumstances that must be reported within 
177.31 	ten days must also be reported for the reporting period in which those changes occurred. 
177.32 	Within ten days, an assistance unit must report:
178.1 	(1) a change in earned income of $100 per month or greater with the exception of a 
178.2 	program under chapter 119B;
178.3 	(2) a change in unearned income of $50 per month or greater with the exception of a 
178.4 	program under chapter 119B;
178.5 	(3) a change in employment status and hours with the exception of a program under 
178.6 	chapter 119B;
178.7 	(4) a change in address or residence;
178.8 	(5) a change in household composition with the exception of programs under chapter 
178.9 	256I;
178.10 	(6) a receipt of a lump-sum payment with the exception of a program under chapter 
178.11 	119B;
178.12 	(7) an increase in assets if over $9,000 with the exception of programs under chapter 
178.13 	119B;
178.14 	(8) a change in citizenship or immigration status;
178.15 	(9) a change in family status with the exception of programs under chapter 256I;
178.16 	(10) a change in disability status of a unit member, with the exception of programs under 
178.17 	chapter 119B;
178.18 	(11) a new rent subsidy or a change in rent subsidy with the exception of a program 
178.19 	under chapter 119B; and
178.20 	(12) a sale, purchase, or transfer of real property with the exception of a program under 
178.21 	chapter 119B.
178.22 	(a) An assistance unit must report changes or anticipated changes as described in this 
178.23 	section.
178.24 	(b) An assistance unit must report:
178.25 	(1) a change in eligibility for Supplemental Security Income, Retirement Survivors 
178.26 	Disability Insurance, or another federal income support;
178.27 	(2) a change in address or residence;
178.28 	(3) a change in household composition with the exception of programs under chapter 
178.29 	256I;
179.1 	(4) cash prizes and winnings according to guidance provided for the Supplemental 
179.2 	Nutrition Assistance Program;
179.3 	(5) a change in citizenship or immigration status;
179.4 	(6) a change in family status with the exception of programs under chapter 256I; and
179.5 	(7) a change that makes the value of the unit's assets at or above the asset limit.
179.6 	(c) When an agency could have reduced or terminated assistance for one or more payment 
179.7 	months if a delay in reporting a change specified under paragraph (b) had not occurred, the 
179.8 	agency must determine whether the agency could have issued a timely notice on the day 
179.9 	that the change occurred. When a timely notice could have been issued, each month's 
179.10 	overpayment subsequent to the notice must be considered a client error overpayment under 
179.11 	section 256P.08.

179.12 	EFFECTIVE DATE. This section is effective March 1, 2025, except that the amendment 
179.13 	deleting clause (6) is effective July 1, 2024.

179.14 	Sec. 73. Minnesota Statutes 2022, section 256P.07, subdivision 4, is amended to read:
179.15 		Subd. 4.MFIP-specific reporting. In addition to subdivision 3, an assistance unit under 
179.16 	chapter 256J, within ten days of the change, must report:
179.17 	(1) a pregnancy not resulting in birth when there are no other minor children; and
179.18 	(2) a change in school attendance of a parent under 20 years of age or of an employed 
179.19 	child.; and
179.20 	(3) an individual in the household who is 18 or 19 years of age attending high school 
179.21 	who graduates or drops out of school.

179.22 	EFFECTIVE DATE. This section is effective March 1, 2025.

179.23 	Sec. 74. Minnesota Statutes 2022, section 256P.07, subdivision 6, is amended to read:
179.24 		Subd. 6.Child care assistance programs-specific reporting. (a) In addition to 
179.25 	subdivision 3, An assistance unit under chapter 119B, within ten days of the change, must 
179.26 	report:
179.27 	(1) a change in a parentally responsible individual's custody schedule for any child 
179.28 	receiving child care assistance program benefits;
179.29 	(2) a permanent end in a parentally responsible individual's authorized activity; and
180.1 	(3) if the unit's family's annual included income exceeds 85 percent of the state median 
180.2 	income, adjusted for family size.;
180.3 	(4) a change in address or residence;
180.4 	(5) a change in household composition;
180.5 	(6) a change in citizenship or immigration status; and
180.6 	(7) a change in family status.
180.7 	(b) An assistance unit subject to section 119B.095, subdivision 1, paragraph (b), must 
180.8 	report a change in the unit's authorized activity status.
180.9 	(c) An assistance unit must notify the county when the unit wants to reduce the number 
180.10 	of authorized hours for children in the unit.

180.11 	EFFECTIVE DATE. This section is effective March 1, 2025.

180.12 	Sec. 75. Minnesota Statutes 2022, section 256P.07, subdivision 7, is amended to read:
180.13 		Subd. 7.Minnesota supplemental aid-specific reporting. (a) In addition to subdivision 
180.14 	3, an assistance unit participating in the Minnesota supplemental aid program under section 
180.15 	256D.44, subdivision 5, paragraph (g), within ten days of the change, chapter 256D and not 
180.16 	receiving Supplemental Security Income must report shelter expenses.:
180.17 	(1) a change in unearned income of $50 per month or greater; and
180.18 	(2) a change in earned income of $100 per month or greater.
180.19 	(b) An assistance unit receiving housing assistance under section 256D.44, subdivision 
180.20 	5, paragraph (g), including assistance units that also receive Supplemental Security Income, 
180.21 	must report:
180.22 	(1) a change in shelter expenses; and
180.23 	(2) a new rent subsidy or a change in rent subsidy.

180.24 	EFFECTIVE DATE. This section is effective March 1, 2025.

180.25 	Sec. 76. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
180.26 	to read:
180.27 		Subd. 8.Housing support-specific reporting. (a) In addition to subdivision 3, an 
180.28 	assistance unit participating in the housing support program under chapter 256I and not 
180.29 	receiving Supplemental Security Income must report:
181.1 	(1) a change in unearned income of $50 per month or greater; and
181.2 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
181.3 	is already subject to six-month reporting requirements in section 256P.10.
181.4 	(b) Notwithstanding the exemptions in subdivisions 1 and 3, an assistance unit receiving 
181.5 	housing support under chapter 256I, including an assistance unit that receives Supplemental 
181.6 	Security Income, must report:
181.7 	(1) a new rent subsidy or a change in rent subsidy;
181.8 	(2) a change in the disability status of a unit member; and
181.9 	(3) a change in household composition if the assistance unit is a participant in housing 
181.10 	support under section 256I.04, subdivision 3, paragraph (a), clause (3).

181.11 	EFFECTIVE DATE. This section is effective March 1, 2025.

181.12 	Sec. 77. Minnesota Statutes 2022, section 256P.07, is amended by adding a subdivision 
181.13 	to read:
181.14 		Subd. 9.General assistance-specific reporting. In addition to subdivision 3, an 
181.15 	assistance unit participating in the general assistance program under chapter 256D must 
181.16 	report:
181.17 	(1) a change in unearned income of $50 per month or greater;
181.18 	(2) a change in earned income of $100 per month or greater, unless the assistance unit 
181.19 	is already subject to six-month reporting requirements in section 256P.10; and
181.20 	(3) changes in any condition that would result in the loss of basis for eligibility in section 
181.21 	256D.05, subdivision 1, paragraph (a).

181.22 	EFFECTIVE DATE. This section is effective March 1, 2025.

181.23 	Sec. 78. [256P.09] PROSPECTIVE BUDGETING OF BENEFITS.
181.24 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
181.25 	assistance programs under chapter 119B and assistance units that receive housing support 
181.26 	under chapter 256I are not subject to reporting under section 256P.10, and assistance units 
181.27 	that qualify for Minnesota supplemental aid under chapter 256D are exempt from this 
181.28 	section.
181.29 		Subd. 2.Prospective budgeting of benefits. An agency subject to this chapter must use 
181.30 	prospective budgeting to calculate the assistance payment amount.
182.1 		Subd. 3.Initial income. For the purpose of determining an assistance unit's level of 
182.2 	benefits, an agency must take into account the income already received by the assistance 
182.3 	unit during or anticipated to be received during the application period. Income anticipated 
182.4 	to be received only in the initial month of eligibility must only be counted in the initial 
182.5 	month.
182.6 		Subd. 4.Income determination. An agency must use prospective budgeting to determine 
182.7 	the amount of the assistance unit's benefit for the eligibility period based on the best 
182.8 	information available at the time of approval. An agency shall only count anticipated income 
182.9 	when the participant and the agency are reasonably certain of the amount of the payment 
182.10 	and the month in which the payment will be received. If the exact amount of the income is 
182.11 	not known, the agency shall consider only the amounts that can be anticipated as income.
182.12 		Subd. 5.Income changes. An increase in income shall not affect an assistance unit's 
182.13 	eligibility or benefit amount until the next review unless otherwise required to be reported 
182.14 	in section 256P.07. A decrease in income shall be effective on the date that the change 
182.15 	occurs if the change is reported by the tenth of the month following the month when the 
182.16 	change occurred. If the assistance unit does not report the change in income by the tenth of 
182.17 	the month following the month when the change occurred, the change in income shall be 
182.18 	effective on the date the change was reported.

182.19 	EFFECTIVE DATE. This section is effective March 1, 2025.

182.20 	Sec. 79. [256P.10] SIX-MONTH REPORTING.
182.21 		Subdivision 1.Exempted programs. Assistance units that qualify for child care 
182.22 	assistance programs under chapter 119B, assistance units that qualify for Minnesota 
182.23 	supplemental aid under chapter 256D, and assistance units that qualify for housing support 
182.24 	under chapter 256I and also receive Supplemental Security Income are exempt from this 
182.25 	section.
182.26 		Subd. 2.Reporting. (a) Every six months, an assistance unit that qualifies for the 
182.27 	Minnesota family investment program under chapter 256J, an assistance unit that qualifies 
182.28 	for general assistance under chapter 256D with an earned income of $100 per month or 
182.29 	greater, or an assistance unit that qualifies for housing support under chapter 256I with an 
182.30 	earned income of $100 per month or greater is subject to six-month reviews. The initial 
182.31 	reporting period may be shorter than six months in order to align with other programs' 
182.32 	reporting periods.
183.1 	(b) An assistance unit that qualifies for the Minnesota family investment program or an 
183.2 	assistance unit that qualifies for general assistance with an earned income of $100 per month 
183.3 	or greater must complete household report forms as required by the commissioner for 
183.4 	redetermination of benefits.
183.5 	(c) An assistance unit that qualifies for housing support with an earned income of $100 
183.6 	per month or greater must complete household report forms as prescribed by the 
183.7 	commissioner to provide information about earned income.
183.8 	(d) An assistance unit that qualifies for housing support and also receives assistance 
183.9 	through the Minnesota family investment program shall be subject to requirements of this 
183.10 	section for purposes of the Minnesota family investment program but not for housing support.
183.11 	(e) An assistance unit covered by this section must submit a household report form in 
183.12 	compliance with the provisions in section 256P.04, subdivision 11.
183.13 	(f) An assistance unit covered by this section may choose to report changes under this 
183.14 	section at any time.
183.15 		Subd. 3.When to terminate assistance. (a) An agency must terminate benefits when 
183.16 	the assistance unit fails to submit the household report form before the end of the six-month 
183.17 	review period. If the assistance unit submits the household report form within 30 days of 
183.18 	the termination of benefits and remains eligible, benefits must be reinstated and made 
183.19 	available retroactively for the full benefit month.
183.20 	(b) When an assistance unit is determined to be ineligible for assistance according to 
183.21 	this section and chapter 256D, 256I, or 256J, the agency must terminate assistance.

183.22 	EFFECTIVE DATE. This section is effective March 1, 2025.

183.23 	Sec. 80. Minnesota Statutes 2022, section 261.063, is amended to read:
183.24 	261.063 TAX LEVY FOR SOCIAL SERVICES; BOARD DUTY; PENALTY.
183.25 	(a) The board of county commissioners of each county shall annually levy taxes and fix 
183.26 	a rate sufficient to produce the full amount required for poor relief, general assistance, 
183.27 	Minnesota family investment program, diversionary work program, county share of county 
183.28 	and state supplemental aid to Supplemental Security Income applicants or recipients, and 
183.29 	any other Social Security measures wherein there is now or may hereafter be county 
183.30 	participation, sufficient to produce the full amount necessary for each such item, including 
183.31 	administrative expenses, for the ensuing year, within the time fixed by law in addition to 
183.32 	all other tax levies and tax rates, however fixed or determined, and any commissioner who 
184.1 	shall fail to comply herewith shall be guilty of a gross misdemeanor and shall be immediately 
184.2 	removed from office by the governor. For the purposes of this paragraph, "poor relief" 
184.3 	means county services provided under sections 261.035 and 261.21 to 261.231.
184.4 	(b) Nothing within the provisions of this section shall be construed as requiring a county 
184.5 	agency to provide income support or cash assistance to needy persons when they are no 
184.6 	longer eligible for assistance under general assistance, chapter 256J, or Minnesota 
184.7 	supplemental aid.

184.8 	EFFECTIVE DATE. This section is effective March 1, 2024.

184.9 	Sec. 81. Minnesota Statutes 2022, section 514.972, subdivision 5, is amended to read:
184.10 		Subd. 5.Access to certain items. (a) Any occupant may remove from the self-storage 
184.11 	facility personal papers and health aids upon demand made to any of the persons listed in 
184.12 	section 514.976, subdivision 1.
184.13 	(b) An occupant who provides documentation from a government or nonprofit agency 
184.14 	or legal aid office that the occupant is a recipient of relief based on need, is eligible for legal 
184.15 	aid services, or is a survivor of domestic violence or sexual assault may remove, in addition 
184.16 	to the items provided in paragraph (a), personal clothing of the occupant and the occupant's 
184.17 	dependents and tools of the trade that are necessary for the livelihood of the occupant that 
184.18 	has a market value not to exceed $125 per item.
184.19 	(c) The occupant shall present a list of the items and may remove the items during the 
184.20 	facility's ordinary business hours prior to the sale authorized by section 514.973. If the 
184.21 	owner unjustifiably denies the occupant access for the purpose of removing the items 
184.22 	specified in this subdivision, the occupant is entitled to request relief from the court for an 
184.23 	order allowing access to the storage space for removal of the specified items. The self-service 
184.24 	storage facility is liable to the occupant for the costs, disbursements, and attorney fees 
184.25 	expended by the occupant to obtain this order.
184.26 	(d) For the purposes of this subdivision, "relief based on need" includes but is not limited 
184.27 	to receipt of a benefit from the Minnesota family investment program and diversionary 
184.28 	work program, medical assistance, general assistance, emergency general assistance, 
184.29 	Minnesota supplemental aid, Minnesota supplemental aid housing assistance, MinnesotaCare, 
184.30 	Supplemental Security Income, energy assistance, emergency assistance, Supplemental 
184.31 	Nutrition Assistance Program benefits, earned income tax credit, or Minnesota working 
184.32 	family tax credit. Relief based on need can also be proven by providing documentation from 
184.33 	a legal aid organization that the individual is receiving legal aid assistance, or by providing 
185.1 	documentation from a government agency, nonprofit, or housing assistance program that 
185.2 	the individual is receiving assistance due to domestic violence or sexual assault.

185.3 	EFFECTIVE DATE. This section is effective March 1, 2024.

185.4 	Sec. 82. SUPPLEMENTAL NUTRITION ASSISTANCE OUTREACH PROGRAM.
 185.5 		Subdivision 1.SNAP outreach program. The commissioner of human services shall 
185.6 	implement a Supplemental Nutrition Assistance Program (SNAP) outreach program to 
185.7 	inform low-income households about the availability, eligibility requirements, application 
185.8 	procedures, and benefits of SNAP that meets the requirements of the United States 
185.9 	Department of Agriculture.
185.10 		Subd. 2.Duties of commissioner. In addition to any other duties imposed by federal 
185.11 	law, the commissioner shall:
185.12 	(1) supervise the administration of the SNAP outreach program according to guidance 
185.13 	provided by the United States Department of Agriculture;
185.14 	(2) submit the SNAP outreach plan and budget to the United States Department of 
185.15 	Agriculture;
185.16 	(3) accept any funds provided by the federal government or other sources for SNAP 
185.17 	outreach;
185.18 	(4) administer the request-for-proposals process and establish contracts with grantees 
185.19 	to ensure SNAP outreach services are available to inform low-income households statewide;
185.20 	(5) approve budgets from grantees to ensure that activities are eligible for federal 
185.21 	reimbursement;
185.22 	(6) monitor grantees, review invoices, and reimburse grantees for allowable costs that 
185.23 	are eligible for federal reimbursement;
185.24 	(7) provide technical assistance to grantees to ensure that projects support SNAP outreach 
185.25 	goals and project costs are eligible for federal reimbursement;
185.26 	(8) work in partnership with counties, Tribal Nations, and community organizations to 
185.27 	enhance the reach and services of a statewide SNAP outreach program; and
185.28 	(9) identify and leverage eligible nonfederal funds to earn federal reimbursement for 
185.29 	SNAP outreach.
185.30 		Subd. 3.Program funding. (a) Grantees must submit allowable costs for approved 
185.31 	SNAP outreach activities to the commissioner in order to receive federal reimbursement.
186.1 	(b) The commissioner shall disburse federal reimbursement funds for allowable costs 
186.2 	for approved SNAP outreach activities to the state agency or grantee that incurred the costs 
186.3 	being reimbursed.

186.4 	Sec. 83. REVISOR INSTRUCTION.
 186.5 	The revisor of statutes shall remove from Minnesota Statutes, sections 550.143, 
186.6 	subdivision 3c; 550.37, subdivision 14; 551.05, subdivision 1d; 571.72, subdivision 10; 
186.7 	571.912, subdivision 3; and 571.925, the terms "MFIP Diversionary Work Program" and 
186.8 	"MFIP diversionary work program." The revisor shall also make any necessary grammatical 
186.9 	changes related to the removal of terms.

186.10 	EFFECTIVE DATE. This section is effective March 1, 2024.

186.11 	Sec. 84. REPEALER.
 186.12 	(a) Minnesota Statutes 2022, sections 256.9864; 256J.08, subdivisions 10, 53, 61, 62, 
186.13 	81, and 83; 256J.30, subdivisions 5, 7, and 8; 256J.33, subdivisions 3, 4, and 5; 256J.34, 
186.14 	subdivisions 1, 2, 3, and 4; and 256J.37, subdivision 10, are repealed.
186.15 	(b) Minnesota Statutes 2022, section 256J.425, subdivision 6, is repealed.
186.16 	(c) Minnesota Statutes 2022, sections 119B.011, subdivision 10a; 256J.08, subdivision 
186.17 	24b; 256J.95, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 19; 
186.18 	and 256P.07, subdivision 5, are repealed.
186.19 	(d) Minnesota Statutes 2022, section 256D.63, subdivision 1, is repealed.
186.20 	(e) Minnesota Statutes 2022, section 256.8799, is repealed.

186.21 	EFFECTIVE DATE. Paragraph (a) is effective March 1, 2025, except the repeal of 
186.22 	Minnesota Statutes, sections 256J.08, subdivisions 53 and 62, and 256J.37, subdivision 10, 
186.23 	is effective July 1, 2024. Paragraph (b) is effective May 1, 2026. Paragraph (c) is effective 
186.24 	March 1, 2024. Paragraph (d) is effective the day following final enactment. Paragraph (e) 
186.25 	is effective August 1, 2023.

186.26 	ARTICLE 6
186.27 	HOMELESSNESS

186.28 	Section 1. Minnesota Statutes 2022, section 145.4716, subdivision 3, is amended to read:
186.29 		Subd. 3.Youth eligible for services. Youth 24 years of age or younger shall be eligible 
186.30 	for all services, support, and programs provided under this section and section 145.4717, 
187.1 	and all shelter, housing beds, and services provided by the commissioner of human services 
187.2 	to sexually exploited youth and youth at risk of sexual exploitation under section 256K.47.

187.3 	Sec. 2. Minnesota Statutes 2022, section 256K.45, subdivision 3, is amended to read:
187.4 		Subd. 3.Street and community outreach and drop-in program. Youth drop-in centers 
187.5 	must provide walk-in access to crisis intervention and ongoing supportive services including 
187.6 	one-to-one case management services on a self-referral basis. Street and community outreach 
187.7 	programs must locate, contact, and provide information, referrals, and services to homeless 
187.8 	youth, youth at risk of homelessness, and runaways. Information, referrals, and services 
187.9 	provided may include, but are not limited to:
187.10 	(1) family reunification services;
187.11 	(2) conflict resolution or mediation counseling;
187.12 	(3) assistance in obtaining temporary emergency shelter;
187.13 	(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
187.14 	(5) counseling regarding violence, sexual exploitation, substance abuse, sexually 
187.15 	transmitted diseases, and pregnancy;
187.16 	(6) referrals to other agencies that provide support services to homeless youth, youth at 
187.17 	risk of homelessness, and runaways;
187.18 	(7) assistance with education, employment, and independent living skills;
187.19 	(8) aftercare services;
187.20 	(9) specialized services for highly vulnerable runaways and homeless youth, including 
187.21 	teen but not limited to youth at risk of discrimination based on sexual orientation or gender 
187.22 	identity, young parents, emotionally disturbed and mentally ill youth, and sexually exploited 
187.23 	youth; and
187.24 	(10) homelessness prevention.

187.25 	Sec. 3. Minnesota Statutes 2022, section 256K.45, subdivision 7, is amended to read:
187.26 		Subd. 7.Provider repair or improvement grants. (a) Providers that serve homeless 
187.27 	youth under this section may apply for a grant of up to $200,000 $500,000 under this 
187.28 	subdivision to make minor or mechanical repairs or improvements to a facility providing 
187.29 	services to homeless youth or youth at risk of homelessness.
188.1 	(b) Grant applications under this subdivision must include a description of the repairs 
188.2 	or improvements and the estimated cost of the repairs or improvements.
188.3 	(c) Grantees under this subdivision cannot receive grant funds under this subdivision 
188.4 	for two consecutive years.

188.5 	Sec. 4. Minnesota Statutes 2022, section 256K.45, is amended by adding a subdivision to 
188.6 	read:
188.7 		Subd. 8.Awarding of grants. For grants awarded pursuant to a two-year grant contract, 
188.8 	the commissioner shall permit grant recipients to carry over any unexpended amount from 
188.9 	the first contract year to the second contract year.

188.10 	Sec. 5. [256K.47] SAFE HARBOR SHELTER AND HOUSING GRANT PROGRAM.
188.11 		Subdivision 1.Grant program established. The commissioner of human services shall 
188.12 	establish the safe harbor shelter and housing grant program and award grants to providers 
188.13 	who are committed to serving sexually exploited youth and youth at risk of sexual 
188.14 	exploitation. The grant program is to provide street and community outreach programs, 
188.15 	emergency shelter programs, and supportive housing programs, consistent with the program 
188.16 	descriptions in this section in order to address the specialized outreach, shelter, and housing 
188.17 	needs of sexually exploited youth and youth at risk of sexual exploitation.
188.18 		Subd. 2.Youth eligible for services. Youth 24 years of age or younger shall be eligible 
188.19 	for all shelter, housing beds, and services provided under this section and all services, 
188.20 	support, and programs provided by the commissioner of health to sexually exploited youth 
188.21 	and youth at risk of sexual exploitation under sections 145.4716 and 145.4717.
188.22 		Subd. 3.Street and community outreach. Street and community outreach programs 
188.23 	receiving grants under this section must locate, contact, and provide information, referrals, 
188.24 	and services to eligible youth. Information, referrals, and services provided by street and 
188.25 	community outreach programs may include but are not limited to:
188.26 	(1) family reunification services;
188.27 	(2) conflict resolution or mediation counseling;
188.28 	(3) assistance in obtaining temporary emergency shelter;
188.29 	(4) assistance in obtaining food, clothing, medical care, or mental health counseling;
188.30 	(5) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
188.31 	infections, and pregnancy;
189.1 	(6) referrals to other agencies that provide support services to sexually exploited youth 
189.2 	and youth at risk of sexual exploitation;
189.3 	(7) assistance with education, employment, and independent living skills;
189.4 	(8) aftercare services;
189.5 	(9) specialized services for sexually exploited youth and youth at risk of sexual 
189.6 	exploitation, including youth experiencing homelessness and youth with mental health 
189.7 	needs; and
189.8 	(10) services to address the prevention of sexual exploitation and homelessness.
189.9 		Subd. 4.Emergency shelter program. (a) Emergency shelter programs must provide 
189.10 	eligible youth with referral and walk-in access to emergency, short-term residential care. 
189.11 	The program shall provide eligible youth with safe, dignified shelter, including private 
189.12 	shower facilities, beds, and meals each day; and shall assist eligible youth with reunification 
189.13 	with the family or legal guardian when required or appropriate.
189.14 	(b) The services provided at emergency shelters may include but are not limited to:
189.15 	(1) specialized services to address the trauma of sexual exploitation;
189.16 	(2) family reunification services;
189.17 	(3) individual, family, and group counseling;
189.18 	(4) assistance obtaining clothing;
189.19 	(5) access to medical and dental care and mental health counseling;
189.20 	(6) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
189.21 	infections, and pregnancy;
189.22 	(7) education and employment services;
189.23 	(8) recreational activities;
189.24 	(9) advocacy and referral services;
189.25 	(10) independent living skills training;
189.26 	(11) aftercare and follow-up services;
189.27 	(12) transportation; and
189.28 	(13) services to address the prevention of sexual exploitation and homelessness.
190.1 		Subd. 5.Supportive housing programs. Supportive housing programs must help eligible 
190.2 	youth find and maintain safe, dignified housing and provide related supportive services and 
190.3 	referrals. The program may also provide rental assistance. Services provided in supportive 
190.4 	housing programs may include but are not limited to:
190.5 	(1) specialized services to address the trauma of sexual exploitation;
190.6 	(2) education and employment services;
190.7 	(3) budgeting and money management;
190.8 	(4) assistance in securing housing appropriate to needs and income;
190.9 	(5) counseling regarding violence, sexual exploitation, substance use, sexually transmitted 
190.10 	infections, and pregnancy;
190.11 	(6) referral for medical services or chemical dependency treatment;
190.12 	(7) parenting skills;
190.13 	(8) self-sufficiency support services and independent living skills training;
190.14 	(9) aftercare and follow-up services; and
190.15 	(10) services to address the prevention of sexual exploitation and homelessness 
190.16 	prevention.
190.17 		Subd. 6.Funding. Money appropriated for this section may be expended on programs 
190.18 	described under subdivisions 3 to 5, technical assistance, and capacity building to meet the 
190.19 	greatest need on a statewide basis.

190.20 	Sec. 6. HOMELESS YOUTH CASH STIPEND PILOT PROJECT.
 190.21 		Subdivision 1.Pilot project established. The commissioner of human services shall 
190.22 	establish a homeless youth cash stipend pilot project to provide a direct cash stipend to 
190.23 	homeless youth in St. Louis County. The pilot project must be designed to meet the needs 
190.24 	of underserved communities.
190.25 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
190.26 	meanings given.
190.27 	(b) "Commissioner" means the commissioner of human services.
190.28 	(c) "Homeless youth" means a person 18 to 24 years of age who lacks a fixed, regular, 
190.29 	and adequate nighttime residence. The following are not fixed, regular, or adequate nighttime 
190.30 	residences:
191.1 	(1) a supervised publicly or privately operated shelter designed to provide temporary 
191.2 	living accommodations;
191.3 	(2) an institution or a publicly or privately operated shelter designed to provide temporary 
191.4 	living accommodations;
191.5 	(3) transitional housing;
191.6 	(4) a temporary placement with a peer, friend, or family member that has not offered 
191.7 	permanent residence, a residential lease, or temporary lodging for more than 30 days; or
191.8 	(5) a public or private place not designed for, nor ordinarily used as, a regular sleeping 
191.9 	accommodation for human beings.
191.10 		Subd. 3.Administration. The commissioner, as authorized by Minnesota Statutes, 
191.11 	section 256.01, subdivision 2, paragraph (a), clause (6), shall contract with Youthprise to:
191.12 	(1) identify eligible homeless youth under this section;
191.13 	(2) provide technical assistance to cash stipend recipients;
191.14 	(3) engage with cash stipend recipients to develop youth-designed optional services;
191.15 	(4) evaluate the efficacy and cost-effectiveness of the pilot program;
191.16 	(5) collaborate with youth leaders of each county to identify and contract with the 
191.17 	appropriate service providers to offer financial coaching, housing navigation, employment, 
191.18 	education services, and trauma-informed mentoring and support; and
191.19 	(6) submit annual updates and a final report to the commissioner.
191.20 		Subd. 4.Eligibility. Homeless youth who are 18 to 24 years of age and who live in St. 
191.21 	Louis County at the time of initial enrollment are eligible to participate in the pilot project.
191.22 		Subd. 5.Cash stipend. The commissioner, in consultation with Youthprise and St. Louis 
191.23 	County, shall establish a stipend amount for eligible homeless youth who participate in the 
191.24 	pilot project.
191.25 		Subd. 6.Stipends not to be considered income. (a) Notwithstanding any law to the 
191.26 	contrary, cash stipends under this section must not be considered income, assets, or personal 
191.27 	property for purposes of determining eligibility or recertifying eligibility for:
191.28 	(1) child care assistance programs under Minnesota Statutes, chapter 119B;
191.29 	(2) general assistance, Minnesota supplemental aid, and food support under Minnesota 
191.30 	Statutes, chapter 256D;
192.1 	(3) housing support under Minnesota Statutes, chapter 256I;
192.2 	(4) the Minnesota family investment program and diversionary work program under 
192.3 	Minnesota Statutes, chapter 256J; and
192.4 	(5) economic assistance programs under Minnesota Statutes, chapter 256P.
192.5 	(b) The commissioner must not consider cash stipends under this section as income or 
192.6 	assets for medical assistance under Minnesota Statutes, section 256B.056, subdivision 1a, 
192.7 	paragraph (a); 3; or 3c.
192.8 	(c) Postsecondary institutions as defined in Minnesota Statutes, section 136A.103, shall 
192.9 	minimize any negative impact on student financial aid resulting from the receipt of cash 
192.10 	stipends under this section.
192.11 		Subd. 7.Report. The commissioner, in cooperation with Youthprise and St. Louis 
192.12 	County, shall submit an annual report on Youthprise's findings regarding the efficacy and 
192.13 	cost-effectiveness of the homeless youth cash stipend pilot project to the chairs and ranking 
192.14 	minority members of the legislative committees with jurisdiction over homeless youth policy 
192.15 	and finance by January 15, 2024, and each January 15 thereafter.
192.16 		Subd. 8.Expiration. This section expires June 30, 2027.

192.17 	Sec. 7. EMERGENCY SHELTER FACILITIES.
 192.18 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
192.19 	the meanings given.
192.20 	(b) "Commissioner" means the commissioner of human services.
192.21 	(c) "Eligible applicant" means a statutory or home rule charter city, county, Tribal 
192.22 	government, not-for-profit corporation under section 501(c)(3) of the Internal Revenue 
192.23 	Code, or housing and redevelopment authority established under Minnesota Statutes, section 
192.24 	469.003.
192.25 	(d) "Emergency shelter facility" or "facility" means a facility that provides a safe, sanitary, 
192.26 	accessible, and suitable emergency shelter for individuals and families experiencing 
192.27 	homelessness, regardless of whether the facility provides emergency shelter during the day, 
192.28 	overnight, or both.
192.29 		Subd. 2.Project criteria. (a) The commissioner shall prioritize grants under this section 
192.30 	for projects that improve or expand emergency shelter facility options by:
193.1 	(1) adding additional emergency shelter facilities by renovating existing facilities not 
193.2 	currently operating as emergency shelter facilities;
193.3 	(2) adding additional emergency shelter facility beds by renovating existing emergency 
193.4 	shelter facilities, including major projects that address an accumulation of deferred 
193.5 	maintenance or repair or replacement of mechanical, electrical, and safety systems and 
193.6 	components in danger of failure;
193.7 	(3) adding additional emergency shelter facility beds through acquisition and construction 
193.8 	of new emergency shelter facilities;
193.9 	(4) improving the safety, sanitation, accessibility, and habitability of existing emergency 
193.10 	shelter facilities, including major projects that address an accumulation of deferred 
193.11 	maintenance or repair or replacement of mechanical, electrical, and safety systems and 
193.12 	components in danger of failure; and
193.13 	(5) improving access to emergency shelter facilities that provide culturally appropriate 
193.14 	shelter and gender-inclusive shelter.
193.15 	(b) A grant under this section may be used to pay for 100 percent of total project capital 
193.16 	expenditures or a specified project phase, up to $10,000,000 per project. For eligible 
193.17 	applicants seeking funding under this section for the acquisition and construction of new 
193.18 	emergency shelter facilities under paragraph (a), clause (3), the commissioner must give 
193.19 	priority to projects in which the eligible applicant will provide at least ten percent of total 
193.20 	project funding.
193.21 	(c) All projects funded with a grant under this section must meet all applicable state and 
193.22 	local building codes at the time of project completion.
193.23 	(d) The commissioner must use a competitive request for proposal process to identify 
193.24 	potential projects and eligible applicants on a statewide basis. At least 40 percent of the 
193.25 	appropriation under this section must be awarded to projects located in greater Minnesota. 
193.26 	If the commissioner does not receive sufficient eligible funding requests from greater 
193.27 	Minnesota to award at least 40 percent of the appropriation under this section to projects in 
193.28 	greater Minnesota, the commissioner may award the remaining funds to other eligible 
193.29 	projects.
193.30 	(e) Notwithstanding Minnesota Statutes, sections 16B.98, subdivision 5, paragraph (a), 
193.31 	clauses (1) and (2), and 16C.05, subdivision 2, paragraph (a), clause (3), final grant recipients 
193.32 	from a competitive grant process may incur eligible expenses based on an agreed-upon 
194.1 	predesign and design work plan and budget commencing July 1, 2023, prior to an 
194.2 	encumbrance being established in the accounting system and grant execution.

194.3 	ARTICLE 7
194.4 	MISCELLANEOUS

194.5 	Section 1. Minnesota Statutes 2022, section 4.045, is amended to read:
194.6 	4.045 CHILDREN'S CABINET.
194.7 	The Children's Cabinet shall consist of the commissioners of education,; human services,;
194.8 	employment and economic development,; public safety,; corrections,; management and 
194.9 	budget,; health,; administration,; Housing Finance Agency, and; transportation,; and the 
194.10 	director of the Office of Strategic and Long-Range Planning children, youth, and families. 
194.11 	The governor shall designate one member to serve as cabinet chair. The chair is responsible 
194.12 	for ensuring that the duties of the Children's Cabinet are performed.

194.13 	EFFECTIVE DATE. This section is effective July 1, 2024.

194.14 	Sec. 2. Minnesota Statutes 2022, section 10.65, subdivision 2, is amended to read:
194.15 		Subd. 2.Definitions. (a) As used in this section, the following terms have the meanings 
194.16 	given:
194.17 	(1) "agency" means the Department of Administration,; Department of Agriculture,; 
194.18 	Department of Children, Youth, and Families; Department of Commerce,; Department of 
194.19 	Corrections,; Department of Education,; Department of Employment and Economic 
194.20 	Development,; Department of Health,; Office of Higher Education,; Housing Finance 
194.21 	Agency,; Department of Human Rights,; Department of Human Services,; Department of 
194.22 	Information Technology Services,; Department of Iron Range Resources and Rehabilitation,;
194.23 	Department of Labor and Industry,; Minnesota Management and Budget,; Bureau of 
194.24 	Mediation Services,; Department of Military Affairs,; Metropolitan Council,; Department 
194.25 	of Natural Resources,; Pollution Control Agency,; Department of Public Safety,; Department 
194.26 	of Revenue,; Department of Transportation,; Department of Veterans Affairs,; Gambling 
194.27 	Control Board,; Racing Commission,; the Minnesota Lottery,; the Animal Health Board,;
194.28 	and the Board of Water and Soil Resources;
194.29 	(2) "consultation" means the direct and interactive involvement of the Minnesota Tribal 
194.30 	governments in the development of policy on matters that have Tribal implications. 
194.31 	Consultation is the proactive, affirmative process of identifying and seeking input from 
194.32 	appropriate Tribal governments and considering their interest as a necessary and integral 
195.1 	part of the decision-making process. This definition adds to statutorily mandated notification 
195.2 	procedures. During a consultation, the burden is on the agency to show that it has made a 
195.3 	good faith effort to elicit feedback. Consultation is a formal engagement between agency 
195.4 	officials and the governing body or bodies of an individual Minnesota Tribal government 
195.5 	that the agency or an individual Tribal government may initiate. Formal meetings or 
195.6 	communication between top agency officials and the governing body of a Minnesota Tribal 
195.7 	government is a necessary element of consultation;
195.8 	(3) "matters that have Tribal implications" means rules, legislative proposals, policy 
195.9 	statements, or other actions that have substantial direct effects on one or more Minnesota 
195.10 	Tribal governments, or on the distribution of power and responsibilities between the state 
195.11 	and Minnesota Tribal governments;
195.12 	(4) "Minnesota Tribal governments" means the federally recognized Indian Tribes located 
195.13 	in Minnesota including: Bois Forte Band; Fond Du Lac Band; Grand Portage Band; Leech 
195.14 	Lake Band; Mille Lacs Band; White Earth Band; Red Lake Nation; Lower Sioux Indian 
195.15 	Community; Prairie Island Indian Community; Shakopee Mdewakanton Sioux Community; 
195.16 	and Upper Sioux Community; and
195.17 	(5) "timely and meaningful" means done or occurring at a favorable or useful time that 
195.18 	allows the result of consultation to be included in the agency's decision-making process for 
195.19 	a matter that has Tribal implications.

195.20 	EFFECTIVE DATE. This section is effective July 1, 2024.

195.21 	Sec. 3. Minnesota Statutes 2022, section 15.01, is amended to read:
195.22 	15.01 DEPARTMENTS OF THE STATE.
195.23 	The following agencies are designated as the departments of the state government: the 
195.24 	Department of Administration; the Department of Agriculture; the Department of Children, 
195.25 	Youth, and Families; the Department of Commerce; the Department of Corrections; the 
195.26 	Department of Education; the Department of Employment and Economic Development; 
195.27 	the Department of Health; the Department of Human Rights; the Department of Information 
195.28 	Technology Services; the Department of Iron Range Resources and Rehabilitation; the 
195.29 	Department of Labor and Industry; the Department of Management and Budget; the 
195.30 	Department of Military Affairs; the Department of Natural Resources; the Department of 
195.31 	Public Safety; the Department of Human Services; the Department of Revenue; the 
195.32 	Department of Transportation; the Department of Veterans Affairs; and their successor 
195.33 	departments.

196.1 	EFFECTIVE DATE. This section is effective July 1, 2024.

196.2 	Sec. 4. Minnesota Statutes 2022, section 15.06, subdivision 1, is amended to read:
196.3 		Subdivision 1.Applicability. This section applies to the following departments or 
196.4 	agencies: the Departments of Administration,; Agriculture,; Children, Youth, and Families;
196.5 	Commerce,; Corrections,; Education,; Employment and Economic Development,; Health,;
196.6 	Human Rights,; Labor and Industry,; Management and Budget,; Natural Resources,; Public 
196.7 	Safety,; Human Services,; Revenue,; Transportation,; and Veterans Affairs; the Housing 
196.8 	Finance and Pollution Control Agencies; the Office of Commissioner of Iron Range 
196.9 	Resources and Rehabilitation; the Department of Information Technology Services; the 
196.10 	Bureau of Mediation Services; and their successor departments and agencies. The heads of 
196.11 	the foregoing departments or agencies are "commissioners."

196.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

196.13 	Sec. 5. Minnesota Statutes 2022, section 15A.0815, subdivision 2, is amended to read:
196.14 		Subd. 2.Group I salary limits. The salary for a position listed in this subdivision shall 
196.15 	not exceed 133 percent of the salary of the governor. This limit must be adjusted annually 
196.16 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
196.17 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
196.18 	second prior year to October of the immediately prior year. The commissioner of management 
196.19 	and budget must publish the limit on the department's website. This subdivision applies to 
196.20 	the following positions:
196.21 	Commissioner of administration;
196.22 	Commissioner of agriculture;
196.23 	Commissioner of education;
196.24 	Commissioner of children, youth, and families;
196.25 	Commissioner of commerce;
196.26 	Commissioner of corrections;
196.27 	Commissioner of health;
196.28 	Commissioner, Minnesota Office of Higher Education;
196.29 	Commissioner, Housing Finance Agency;
196.30 	Commissioner of human rights;
197.1 	Commissioner of human services;
197.2 	Commissioner of labor and industry;
197.3 	Commissioner of management and budget;
197.4 	Commissioner of natural resources;
197.5 	Commissioner, Pollution Control Agency;
197.6 	Commissioner of public safety;
197.7 	Commissioner of revenue;
197.8 	Commissioner of employment and economic development;
197.9 	Commissioner of transportation; and
197.10 	Commissioner of veterans affairs.

197.11 	EFFECTIVE DATE. This section is effective July 1, 2024.

197.12 	Sec. 6. Minnesota Statutes 2022, section 43A.08, subdivision 1a, is amended to read:
197.13 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
197.14 	agencies may designate additional unclassified positions according to this subdivision: the 
197.15 	Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; 
197.16 	Corrections; Education; Employment and Economic Development; Explore Minnesota 
197.17 	Tourism; Management and Budget; Health; Human Rights; Labor and Industry; Natural 
197.18 	Resources; Public Safety; Human Services; Revenue; Transportation; and Veterans Affairs; 
197.19 	the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of 
197.20 	Investment; the Office of Administrative Hearings; the Department of Information 
197.21 	Technology Services; the Offices of the Attorney General, Secretary of State, and State 
197.22 	Auditor; the Minnesota State Colleges and Universities; the Minnesota Office of Higher 
197.23 	Education; the Perpich Center for Arts Education; and the Minnesota Zoological Board.
197.24 	A position designated by an appointing authority according to this subdivision must 
197.25 	meet the following standards and criteria:
197.26 	(1) the designation of the position would not be contrary to other law relating specifically 
197.27 	to that agency;
197.28 	(2) the person occupying the position would report directly to the agency head or deputy 
197.29 	agency head and would be designated as part of the agency head's management team;
198.1 	(3) the duties of the position would involve significant discretion and substantial 
198.2 	involvement in the development, interpretation, and implementation of agency policy;
198.3 	(4) the duties of the position would not require primarily personnel, accounting, or other 
198.4 	technical expertise where continuity in the position would be important;
198.5 	(5) there would be a need for the person occupying the position to be accountable to, 
198.6 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
198.7 	board or commission, or the employing constitutional officer;
198.8 	(6) the position would be at the level of division or bureau director or assistant to the 
198.9 	agency head; and
198.10 	(7) the commissioner has approved the designation as being consistent with the standards 
198.11 	and criteria in this subdivision.

198.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

198.13 	Sec. 7. [119C.01] GREAT START SCHOLARSHIPS PROGRAM.
198.14 		Subdivision 1.Establishment; purpose. The commissioner of children, youth, and 
198.15 	families, in collaboration with the commissioner of education and the commissioner of 
198.16 	human services, shall establish and develop the great start scholarships program to ensure 
198.17 	affordable access to high-quality early care and learning for children from birth to 
198.18 	kindergarten entry.
198.19 		Subd. 2.Development. In developing the program under this section, the commissioner 
198.20 	shall:
198.21 	(1) identify ways to integrate the functions, administrative structures, and funding 
198.22 	mechanisms of early care and learning programs administered by the state with the great 
198.23 	start scholarships program;
198.24 	(2) consider the recommendations made by the Great Start for All Minnesota Children 
198.25 	Task Force under Laws 2021, First Special Session chapter 7, article 14, section 18, 
198.26 	subdivision 2;
198.27 	(3) make a plan to seamlessly transition the following families to the great start 
198.28 	scholarships program by July 1, 2026:
198.29 	(i) families with at least one child receiving an early learning scholarship under section 
198.30 	124D.165; and
199.1 	(ii) families with at least one child who is not yet in kindergarten and is receiving child 
199.2 	care assistance under section 119B.03 or 119B.05 for care received from a provider licensed 
199.3 	under Minnesota Rules, chapter 9502 or 9503, or Tribally licensed, or a Head Start program 
199.4 	that has a rating under section 124D.142;
199.5 	(4) create mechanisms for members of local communities, including families and members 
199.6 	of the early care and learning workforce, to have input in decisions regarding needs and 
199.7 	preferences for early care and learning options;
199.8 	(5) develop a method for funding early care and learning slots in response to local need 
199.9 	through contracts with eligible providers that may be used to deliver services that meet 
199.10 	quality and compensation standards with the intent to build early care and learning capacity 
199.11 	statewide for children from birth to kindergarten entry; and
199.12 	(6) maximize available federal resources while minimizing the extent to which state 
199.13 	policy is limited by federal regulations. The executive director, in consultation with an 
199.14 	appropriate state agency, may seek federal technical assistance or outside consultation as 
199.15 	necessary to provide minimally burdensome program access to all participating families.
199.16 		Subd. 3.Program requirements. The great start scholarships program must include at 
199.17 	a minimum:
199.18 	(1) family-directed scholarships that provide financial assistance to families voluntarily 
199.19 	participating in the program;
199.20 	(2) family eligibility for any family that has at least one child who is not yet in 
199.21 	kindergarten;
199.22 	(3) provider eligibility for:
199.23 	(i) any program licensed under Minnesota Rules, chapter 9502 or 9503, or Tribally 
199.24 	licensed, that participates in the quality rating and improvement system under section 
199.25 	124D.142; and
199.26 	(ii) any school-based program and Head Start program that has a rating under section 
199.27 	124D.142;
199.28 	(4) a unified, integrated, and simple online application process that utilizes administrative 
199.29 	data to ease qualification and benefit determination and facilitate required reporting to the 
199.30 	federal government;
199.31 	(5) an integrated electronic attendance tracking system and payments system to safeguard 
199.32 	program integrity and streamline billing and payment processes for providers; and
200.1 	(6) a schedule for scholarship amounts that ensures that no participating family pays 
200.2 	more than seven percent of annual income for early care and learning services for children 
200.3 	from birth to kindergarten entry. Scholarship amounts may vary by family income, program 
200.4 	quality, geography, and need for compensatory services, and may take into consideration 
200.5 	the results of the market rate survey under section 119B.02, subdivision 7; information from 
200.6 	cost estimation models for providing early care and learning in the state; and cost information 
200.7 	gathered through contracts under subdivision 2, clause (5).
200.8 		Subd. 4.Administration. By May 1, 2026, the commissioner, in consultation with the 
200.9 	commissioners of education and human services, shall have in place the administrative 
200.10 	structures and systems needed for the great start scholarships program to meet the operational 
200.11 	needs of participating families and eligible providers.

200.12 	EFFECTIVE DATE. This section is effective July 1, 2024.

200.13 	Sec. 8. Minnesota Statutes 2022, section 124D.142, subdivision 2, is amended to read:
200.14 		Subd. 2.System components. (a) The standards-based voluntary quality rating and 
200.15 	improvement system includes:
200.16 	(1) at least a one-star rating for all programs licensed under Minnesota Rules, chapter 
200.17 	9502 or 9503, that do not opt out of the system under paragraph (b) and that are not:
200.18 	(i) the subject of a finding of fraud;
200.19 	(ii) prohibited from receiving public funds under section 245.095;
200.20 	(iii) under revocation, suspension, temporary immediate suspension, or decertification, 
200.21 	regardless of whether the action is under appeal; or
200.22 	(iv) operating under a conditional license, regardless of whether the license holder has 
200.23 	requested reconsideration;
200.24 	(1) (2) quality opportunities in order to improve the educational outcomes of children 
200.25 	so that they are ready for school;
200.26 	(2) (3) a framework based on the Minnesota quality rating system rating tool and a 
200.27 	common set of child outcome and program standards informed by evaluation results;
200.28 	(3) (4) a tool to increase the number of publicly funded and regulated early learning and 
200.29 	care services in both public and private market programs that are high quality;
201.1 	(4) (5) voluntary participation ensuring that if a program or provider chooses to 
201.2 	participate, the program or provider will be rated and may receive public funding associated 
201.3 	with the rating; and
201.4 	(5) (6) tracking progress toward statewide access to high-quality early learning and care 
201.5 	programs, progress toward the number of low-income children whose parents can access 
201.6 	quality programs, and progress toward increasing the number of children who are fully 
201.7 	prepared to enter kindergarten.
201.8 	(b) The commissioner of human services shall establish a process by which a program 
201.9 	may opt out of the rating under paragraph (a), clause (1).

201.10 	Sec. 9. [143.01] DEFINITIONS.
201.11 		Subdivision 1.Application. The definitions in this section apply to this chapter.
201.12 		Subd. 2.Commissioner. "Commissioner" means the commissioner of children, youth, 
201.13 	and families.
201.14 		Subd. 3.Department. "Department" means the Department of Children, Youth, and 
201.15 	Families.

201.16 	EFFECTIVE DATE. This section is effective July 1, 2024.

201.17 	Sec. 10. [143.02] CREATION OF THE DEPARTMENT OF CHILDREN, YOUTH, 
201.18 	AND FAMILIES.
201.19 		Subdivision 1.Department. The Department of Children, Youth, and Families is 
201.20 	established.
201.21 		Subd. 2.Transfer and restructuring provisions. The restructuring of agencies under 
201.22 	this act must be conducted in accordance with sections 15.039 and 43A.045.
201.23 		Subd. 3.Successor and employee protection clause. (a) Personnel relating to the 
201.24 	functions assigned to the commissioner in section 143.03 are transferred to the department 
201.25 	effective 30 days after approval by the commissioner.
201.26 	(b) Before the commissioner's appointment, personnel relating to the functions in this 
201.27 	section may be transferred beginning July 1, 2024, with 30 days' notice from the 
201.28 	commissioner of management and budget.
201.29 	(c) The following protections shall apply to employees who are transferred to the 
201.30 	department from state agencies:
202.1 	(1) no transferred employee shall have their employment status and job classification 
202.2 	altered as a result of the transfer;
202.3 	(2) transferred employees who were represented by an exclusive representative prior to 
202.4 	the transfer shall continue to be represented by the same exclusive representative after the 
202.5 	transfer;
202.6 	(3) any applicable collective bargaining agreements with exclusive representatives shall 
202.7 	continue in full force and effect for transferred employees after the transfer;
202.8 	(4) the state shall have the obligation to meet and negotiate with the exclusive 
202.9 	representatives of the transferred employees about any proposed changes affecting or relating 
202.10 	to the transferred employees' terms and conditions of employment to the extent that the 
202.11 	proposed changes are not addressed in the applicable collective bargaining agreement; and
202.12 	(5) in the event that the state transfers ownership or control of any facilities, services, 
202.13 	or operations of the department to another private or public entity by subcontracting, sale, 
202.14 	assignment, lease, or other transfer, the state shall require as a written condition of the 
202.15 	transfer of ownership or control the following:
202.16 	(i) employees who perform work in the facilities, services, or operations must be offered 
202.17 	employment with the entity acquiring ownership or control before the entity offers 
202.18 	employment to any individual who was not employed by the transferring agency at the time 
202.19 	of the transfer; and
202.20 	(ii) the wage and benefit standards of the transferred employees must not be reduced by 
202.21 	the entity acquiring ownership or control through the expiration of the collective bargaining 
202.22 	agreement in effect at the time of the transfer or for a period of two years after the transfer, 
202.23 	whichever is longer.
202.24 	There is no liability on the part of, and no cause of action arises against, the state of 
202.25 	Minnesota or its officers or agents for any action or inaction of any entity acquiring ownership 
202.26 	or control of any facilities, services, or operations of the department.
202.27 	(d) To the extent that departmental changes affect the operations of any school district 
202.28 	or charter school, employers have the obligation to bargain about any changes affecting or 
202.29 	relating to employees' terms and conditions of employment if the changes are necessary 
202.30 	during or after the term of an existing collective bargaining agreement.

202.31 	EFFECTIVE DATE. This section is effective July 1, 2024.

203.1 	Sec. 11. [143.03] COMMISSIONER.
203.2 		Subdivision 1.General. The department is under the administrative control of the 
203.3 	commissioner. The commissioner is appointed by the governor with the advice and consent 
203.4 	of the senate. The commissioner has the general powers provided in section 15.06, 
203.5 	subdivision 6. The commissioner's salary must be established according to the procedure 
203.6 	in section 15A.0815, subdivision 5, in the same range as specified for the commissioner of 
203.7 	management and budget.
203.8 		Subd. 2.Duties of the commissioner. (a) The commissioner may apply for and accept 
203.9 	on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying 
203.10 	out the duties and responsibilities of the commissioner. Any money received under this 
203.11 	paragraph is appropriated and dedicated for the purpose for which the money is granted. 
203.12 	The commissioner must biennially report to the chairs and ranking minority members of 
203.13 	relevant legislative committees and divisions by January 15 of each even-numbered year a 
203.14 	list of all grants and gifts received under this subdivision.
203.15 	(b) Pursuant to law, the commissioner may apply for and receive money made available 
203.16 	from federal sources for the purpose of carrying out the duties and responsibilities of the 
203.17 	commissioner.
203.18 	(c) The commissioner may make contracts with and grants to Tribal Nations, public and 
203.19 	private agencies and organizations, both for-profit and nonprofit, and individuals using 
203.20 	appropriated money.
203.21 	(d) The commissioner must develop program objectives and performance measures for 
203.22 	evaluating progress toward achieving the objectives. The commissioner must identify the 
203.23 	objectives, performance measures, and current status of achieving the measures in a biennial 
203.24 	report to the chairs and ranking minority members of relevant legislative committees and 
203.25 	divisions. The report is due no later than January 15 each even-numbered year. The report 
203.26 	must include, when possible, the following objectives:
203.27 	(1) considering the experiences of children, youth, and families in all aspects of the 
203.28 	department's work;
203.29 	(2) increasing the effectiveness of the department's programs in addressing the needs of 
203.30 	children and youth facing racial, economic, or geographic inequities;
203.31 	(3) increasing coordination and reducing inefficiencies among the department's programs 
203.32 	and the funding sources that support the programs;
204.1 	(4) increasing the alignment and coordination of family access to child care and early 
204.2 	learning programs and improving systems of support for early childhood and learning 
204.3 	providers and services;
204.4 	(5) improving the connection between the department's programs and the kindergarten 
204.5 	through grade 12 system and the higher education system; and
204.6 	(6) minimizing and streamlining the effort required of youth and families to receive 
204.7 	services to which the youth and families are entitled.

204.8 	EFFECTIVE DATE. This section is effective July 1, 2024.

204.9 	Sec. 12. [143.04] STATE AND COUNTY SYSTEMS.
204.10 		Subdivision 1.Establishment of systems. (a) The commissioner shall establish and 
204.11 	enhance computer systems necessary for the efficient operation of the programs the 
204.12 	commissioner supervises, including:
204.13 	(1) management and administration of the Supplemental Nutrition Assistance Program 
204.14 	(SNAP) and income maintenance program, including the electronic distribution of benefits; 
204.15 	and
204.16 	(2) management and administration of the child support enforcement program.
204.17 	(b) The commissioner's development costs incurred by computer systems for statewide 
204.18 	programs administered with that computer system and mandated by state or federal law 
204.19 	must not be assessed against county agencies. The commissioner may charge a county for 
204.20 	development and operating costs incurred by computer systems for functions requested by 
204.21 	the county and not mandated by state or federal law for programs administered by the 
204.22 	computer system incurring the cost.
204.23 	(c) The commissioner shall distribute the nonfederal share of the costs of operating and 
204.24 	maintaining the systems to the commissioner and to the counties participating in the system 
204.25 	in a manner that reflects actual system usage, except that the nonfederal share of the costs 
204.26 	of the MAXIS computer system and child support enforcement systems for statewide 
204.27 	programs administered by those systems and mandated by state or federal law shall be borne 
204.28 	entirely by the commissioner.
204.29 	(d) The commissioner may enter into contractual agreements with federally recognized 
204.30 	Indian Tribes with a reservation in Minnesota to participate in state-operated computer 
204.31 	systems related to the management and administration of the SNAP, income maintenance, 
204.32 	and child support enforcement programs to the extent necessary for the Tribe to operate a 
205.1 	federally approved family assistance program or any other program under the supervision 
205.2 	of the commissioner.
205.3 		Subd. 2.State systems account created. A state systems account for the Department 
205.4 	of Children, Youth, and Families is created in the state treasury. Money collected by the 
205.5 	commissioner for the programs in subdivision 1 must be deposited in the account. Money 
205.6 	in the state systems account and federal matching money are appropriated to the 
205.7 	commissioner for purposes of this section.

205.8 	EFFECTIVE DATE. This section is effective July 1, 2024.

205.9 	Sec. 13. [143.05] RULEMAKING.
205.10 	(a) The commissioner may use the procedure in section 14.386, paragraph (a), to adopt 
205.11 	rules necessary to implement the responsibilities transferred under this act or through section 
205.12 	16B.37. Section 14.386, paragraph (b), does not apply to these rules.
205.13 	(b) The commissioner must amend Minnesota Rules to make conforming changes related 
205.14 	to the transfer of responsibilities under this act or through section 16B.37. The commissioner 
205.15 	must obtain the approval of the commissioners of human services, education, health, and 
205.16 	public safety for any amendments to or repeal of rules in existence on the effective date of 
205.17 	this section and administered under the authority of those agencies.
205.18 	(c) The time limit in section 14.125 is extended to 36 months for rulemaking under 
205.19 	paragraphs (a) and (b). The commissioner must publish a notice of intent to adopt rules or 
205.20 	a notice of hearing within 36 months of the effective date reported under section 143.05, 
205.21 	subdivision 1, paragraph (c).
205.22 	(d) The commissioner may adopt rules for the administration of activities related to the 
205.23 	department. Rules adopted under this paragraph are subject to the rulemaking requirements 
205.24 	of chapter 14.

205.25 	EFFECTIVE DATE. This section is effective July 1, 2024.

205.26 	Sec. 14. Minnesota Statutes 2022, section 256.014, subdivision 1, is amended to read:
205.27 		Subdivision 1.Establishment of systems. (a) The commissioner of human services 
205.28 	shall establish and enhance computer systems necessary for the efficient operation of the
205.29 	medical assistance and other programs the commissioner supervises, including:.
205.30 	(1) management and administration of the Supplemental Nutrition Assistance Program 
205.31 	(SNAP) and income maintenance program, including the electronic distribution of benefits;
206.1 	(2) management and administration of the child support enforcement program; and
206.2 	(3) administration of medical assistance.
206.3 	(b) The commissioner's development costs incurred by computer systems for statewide 
206.4 	programs administered by that computer system and mandated by state or federal law must 
206.5 	not be assessed against county agencies. The commissioner may charge a county for 
206.6 	development and operating costs incurred by computer systems for functions requested by 
206.7 	the county and not mandated by state or federal law for programs administered by the 
206.8 	computer system incurring the cost.
206.9 	(c) The commissioner shall distribute the nonfederal share of the costs of operating and 
206.10 	maintaining the systems to the commissioner and to the counties participating in the system 
206.11 	in a manner that reflects actual system usage, except that the nonfederal share of the costs 
206.12 	of the MAXIS computer system and child support enforcement systems for statewide 
206.13 	programs administered by those systems that system and mandated by state or federal law 
206.14 	shall be borne entirely by the commissioner.
206.15 	The commissioner may enter into contractual agreements with federally recognized 
206.16 	Indian tribes with a reservation in Minnesota to participate in state-operated computer 
206.17 	systems related to the management and administration of the SNAP, income maintenance, 
206.18 	child support enforcement, and medical assistance programs program to the extent necessary 
206.19 	for the tribe to operate a federally approved family the medical assistance program or any 
206.20 	other program under the supervision of the commissioner.

206.21 	EFFECTIVE DATE. This section is effective July 1, 2024.

206.22 	Sec. 15. Minnesota Statutes 2022, section 256.014, subdivision 2, is amended to read:
206.23 		Subd. 2.State systems account created. A state systems account for the Department 
206.24 	of Human Services is created in the state treasury. Money collected by the commissioner 
206.25 	of human services for the programs in subdivision 1 must be deposited in the account. 
206.26 	Money in the state systems account and federal matching money is appropriated to the 
206.27 	commissioner of human services for purposes of this section.

206.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

207.1 	Sec. 16. APPOINTMENT OF COMMISSIONER OF CHILDREN, YOUTH, AND 
207.2 	FAMILIES.
 207.3 	The governor shall appoint a commissioner-designee of the Department of Children, 
207.4 	Youth, and Families. The person appointed becomes the governor's appointee as the 
207.5 	commissioner of children, youth, and families on July 1, 2024.

207.6 	EFFECTIVE DATE. This section is effective July 1, 2023.

207.7 	Sec. 17. TRANSFERS FROM OTHER AGENCIES.
 207.8 		Subdivision 1.General. (a) Between July 1, 2024, and July 1, 2025, the Departments 
207.9 	of Human Services, Education, Health, and Public Safety must transition all of the 
207.10 	responsibilities held by these departments and described in this section to the Department 
207.11 	of Children, Youth, and Families.
207.12 	(b) Notwithstanding paragraph (a), any programs identified in paragraph (a) that require 
207.13 	federal approval to move to the Department of Children, Youth, and Families must be 
207.14 	transferred on or after July 1, 2024, and upon the federal government granting transfer 
207.15 	authority to the commissioner of children, youth, and families.
207.16 	(c) The commissioner of children, youth, and families must report an effective date of 
207.17 	the transfer of each responsibility identified in this section to the commissioners of 
207.18 	administration, management and budget, and other relevant departments along with the 
207.19 	secretary of the senate, the chief clerk of the house of representatives, and the chairs and 
207.20 	ranking minority members of relevant legislative committees and divisions. The reported 
207.21 	date is the effective date of transfer of responsibilities under Minnesota Statutes, section 
207.22 	15.039.
207.23 	(d) The requirement in Minnesota Statutes, section 16B.37, subdivision 1, that a state 
207.24 	agency must have been in existence for at least one year before being eligible for receiving 
207.25 	a transfer of personnel, powers, or duties does not apply to the Department of Children, 
207.26 	Youth, and Families.
207.27 	(e) Notwithstanding Minnesota Statutes, section 15.039, subdivision 6, for the transfer 
207.28 	of responsibilities conducted under this chapter, the unexpended balance of any appropriation 
207.29 	to an agency for the purposes of any responsibilities that are transferred to the Department 
207.30 	of Children, Youth, and Families, along with the operational functions to support the 
207.31 	responsibilities transferred, including administrative, legal, information technology, and 
207.32 	personnel support, and a proportional share of base funding, are reappropriated under the 
207.33 	same conditions as the original appropriation to the Department of Children, Youth, and 
208.1 	Families effective on the date of the transfer of responsibilities and related elements. The 
208.2 	commissioner of management and budget shall identify and allocate any unexpended 
208.3 	appropriations and base funding.
208.4 	(f) The commissioner of children, youth, and families or management and budget may 
208.5 	request an extension to transfer any responsibility listed in this section. The commissioner 
208.6 	of children, youth, and families or management and budget may request that the transfer of 
208.7 	any responsibility listed in this section be canceled if an effective date has not been reported 
208.8 	under paragraph (c). Any request under this paragraph must be made in writing to the 
208.9 	governor. Upon approval from the governor, the transfer may be delayed or canceled. Within 
208.10 	ten days after receiving the approval of the governor, the commissioner who requested the 
208.11 	transfer shall submit to the chairs and ranking minority members of relevant legislative 
208.12 	committees and divisions a notice of any extensions or cancellations granted under this 
208.13 	paragraph.
208.14 	(g) The commissioner of children, youth, and families must provide four successive 
208.15 	quarterly reports to relevant legislative committees on the status of transferring programs, 
208.16 	responsibilities, and personnel under this section. The first report must cover the quarter 
208.17 	starting July 1, 2024, and each report must be submitted by the 15th of the month following 
208.18 	the quarter end.
208.19 		Subd. 2.Department of Human Services. The powers and duties of the Department 
208.20 	of Human Services with respect to the following responsibilities and related elements are 
208.21 	transferred to the Department of Children, Youth, and Families according to Minnesota 
208.22 	Statutes, section 15.039:
208.23 	(1) family services and community-based collaboratives under Minnesota Statutes, 
208.24 	section 124D.23;
208.25 	(2) child care programs under Minnesota Statutes, chapter 119B;
208.26 	(3) Parent Aware quality rating and improvement system under Minnesota Statutes, 
208.27 	section 124D.142;
208.28 	(4) migrant child care services under Minnesota Statutes, section 256M.50;
208.29 	(5) early childhood and school-age professional development training under Laws 2007, 
208.30 	chapter 147, article 2, section 56;
208.31 	(6) licensure of family child care and child care centers, child foster care, and private 
208.32 	child placing agencies under Minnesota Statutes, chapter 245A;
209.1 	(7) certification of license-exempt child care centers under Minnesota Statutes, chapter 
209.2 	245H;
209.3 	(8) program integrity and fraud related to the Child Care Assistance Program (CCAP), 
209.4 	the Minnesota Family Investment Program (MFIP), and the Supplemental Nutrition 
209.5 	Assistance Program (SNAP) under Minnesota Statutes, chapters 119B and 245E;
209.6 	(9) SNAP under Minnesota Statutes, sections 256D.61 to 256D.63;
209.7 	(10) electronic benefit transactions under Minnesota Statutes, sections 256.9862, 
209.8 	256.9863, 256.9865, 256.987, 256.9871, 256.9872, and 256J.77;
209.9 	(11) Minnesota food assistance program under Minnesota Statutes, section 256D.64;
209.10 	(12) Minnesota food shelf program under Minnesota Statutes, section 256E.34;
209.11 	(13) MFIP and Temporary Assistance for Needy Families (TANF) under Minnesota 
209.12 	Statutes, sections 256.9864 and 256.9865 and chapters 256J and 256P;
209.13 	(14) Diversionary Work Program (DWP) under Minnesota Statutes, section 256J.95;
209.14 	(15) resettlement programs under Minnesota Statutes, section 256B.06, subdivision 6;
209.15 	(16) child abuse under Minnesota Statutes, chapter 256E;
209.16 	(17) reporting of the maltreatment of minors under Minnesota Statutes, chapter 260E;
209.17 	(18) children in voluntary foster care for treatment under Minnesota Statutes, chapter 
209.18 	260D;
209.19 	(19) juvenile safety and placement under Minnesota Statutes, chapter 260C;
209.20 	(20) the Minnesota Indian Family Preservation Act under Minnesota Statutes, sections 
209.21 	260.751 to 260.835;
209.22 	(21) the Interstate Compact for Juveniles under Minnesota Statutes, section 260.515, 
209.23 	and the Interstate Compact on the Placement of Children under Minnesota Statutes, sections 
209.24 	260.851 to 260.93;
209.25 	(22) adoption under Minnesota Statutes, sections 259.20 to 259.89;
209.26 	(23) Northstar Care for Children under Minnesota Statutes, chapter 256N;
209.27 	(24) child support under Minnesota Statutes, chapters 13, 13B, 214, 256, 256J, 257, 259, 
209.28 	518, 518A, 518C, 551, 552, 571, and 588, and Minnesota Statutes, section 609.375;
209.29 	(25) community action programs under Minnesota Statutes, sections 256E.30 to 256E.32; 
209.30 	and
210.1 	(26) Family Assets for Independence in Minnesota under Minnesota Statutes, section 
210.2 	256E.35.
210.3 		Subd. 3.Department of Education. The powers and duties of the Department of 
210.4 	Education with respect to the following responsibilities and related elements are transferred 
210.5 	to the Department of Children, Youth, and Families according to Minnesota Statutes, section 
210.6 	15.039:
210.7 	(1) Head Start Program and Early Head Start under Minnesota Statutes, sections 119A.50 
210.8 	to 119A.545;
210.9 	(2) the early childhood screening program under Minnesota Statutes, sections 121A.16 
210.10 	to 121A.19;
210.11 	(3) early learning scholarships under Minnesota Statutes, section 124D.165;
210.12 	(4) the interagency early childhood intervention system under Minnesota Statutes, 
210.13 	sections 125A.259 to 125A.48;
210.14 	(5) voluntary prekindergarten programs and school readiness plus programs under 
210.15 	Minnesota Statutes, section 124D.151;
210.16 	(6) early childhood family education programs under Minnesota Statutes, sections 
210.17 	124D.13 to 124D.135;
210.18 	(7) school readiness under Minnesota Statutes, sections 124D.15 to 124D.16; and
210.19 	(8) after-school community learning programs under Minnesota Statutes, section 
210.20 	124D.2211.
210.21 		Subd. 4.Department of Public Safety. The powers and duties of the Department of 
210.22 	Public Safety with respect to the following responsibilities and related elements are 
210.23 	transferred to the Department of Children, Youth, and Families according to Minnesota 
210.24 	Statutes, section 15.039:
210.25 	(1) the juvenile justice program under Minnesota Statutes, section 299A.72; and
210.26 	(2) grants-in-aid to youth intervention programs under Minnesota Statutes, section 
210.27 	299A.73.

210.28 	EFFECTIVE DATE. This section is effective July 1, 2024.

211.1 	Sec. 18. TRANSITION REPORT TO THE LEGISLATURE.
 211.2 	By March 1, 2024, the commissioner of management and budget must report to the 
211.3 	legislature on the status of work related to establishing and setting up the Department of 
211.4 	Children, Youth, and Families. The report must address, at a minimum:
211.5 	(1) the completed, ongoing, and anticipated work related to the transfer of programs, 
211.6 	responsibilities, and personnel to the department;
211.7 	(2) the development of interagency agreements for services that will be shared by 
211.8 	agencies;
211.9 	(3) efforts to secure needed federal approvals for the transfer of programs and 
211.10 	responsibilities;
211.11 	(4) regular engagement with leaders and staff of state agencies, county and Tribal 
211.12 	governments, and school districts about the creation of the department and the transfer of 
211.13 	programs, responsibilities, and personnel to the department;
211.14 	(5) input from individuals impacted by the programs that are to be transferred to the 
211.15 	department and input from local services providers and other stakeholders about how to 
211.16 	improve services through the creation of the department; and
211.17 	(6) plans and timelines related to the items referenced in clauses (1) to (5).
211.18 	(b) The report must include recommendations for how to coordinate and partner with 
211.19 	county and Tribal governments, including through the use of a governing authority, such 
211.20 	as an intergovernmental advisory committee. The recommendations must be developed in 
211.21 	coordination with county and Tribal governments.
211.22 	(c) The report must include input from stakeholders and recommendations for improving 
211.23 	service coordination and delivery for families with children who have disabilities, including 
211.24 	recommendations for coordinating services between state agencies in the areas of child 
211.25 	protection, early education, children's mental health, disability services, and other areas 
211.26 	relevant to families with children who have disabilities.

211.27 	Sec. 19. DATA PRACTICES.
 211.28 	(a) To the extent not prohibited by state or federal law, and notwithstanding the data's 
211.29 	classification under Minnesota Statutes, chapter 13:
211.30 	(1) the commissioner of children, youth, and families may access data maintained by 
211.31 	the commissioners of education, human services, and public safety related to the 
211.32 	responsibilities transferred under section 17; and
212.1 	(2) the commissioners of education, human services, and public safety may access data 
212.2 	maintained by the commissioner of children, youth, and families related to each department's 
212.3 	respective responsibilities transferred under section 17.
212.4 	(b) Data sharing authorized by this subdivision includes only the data necessary to 
212.5 	coordinate department activities and services transferred under section 17.
212.6 	(c) Any data shared under this section retain the data's classification from the agency 
212.7 	holding the data.
212.8 	(d) Existing limitations and legal requirements under Minnesota Statutes, chapter 13, 
212.9 	including but not limited to any applicable data subject to consent requirements, apply to 
212.10 	any data accessed, transferred, disseminated, or shared under this section.
212.11 	(e) This section expires July 1, 2027.

212.12 	Sec. 20. MODERNIZING INFORMATION TECHNOLOGY FOR PROGRAMS 
212.13 	IMPACTING CHILDREN AND FAMILIES.
 212.14 	(a) To the extent there is funding available in the children and families information 
212.15 	technology account in the special revenue fund, the commissioner of information technology 
212.16 	services shall develop and implement a plan to transform and modernize the information 
212.17 	technology systems that support the programs impacting children and families, including 
212.18 	youth programs and child care and early learning programs, currently administered by the 
212.19 	Departments of Education and Human Services and other departments with programs 
212.20 	impacting children and families as identified by the Children's Cabinet. The commissioner 
212.21 	may contract for the services contained in this section.
212.22 	(b) The plan must support the goal of creating new or modernizing existing information 
212.23 	technology systems for child- and family-focused programs that collect, analyze, share, and 
212.24 	report data on program participation and service coordination and school readiness, early 
212.25 	screening, and other childhood indicators. The plan must include strategies to:
212.26 	(1) minimize the time and effort needed for families to apply for, enroll in, and maintain 
212.27 	enrollment in programs;
212.28 	(2) minimize the time and effort needed for providers to administer programs;
212.29 	(3) improve coordination among programs for families;
212.30 	(4) assess the impact of childhood programs on children's outcomes, including school 
212.31 	readiness and educational outcomes; and
213.1 	(5) monitor and collect nonbiometric attendance data at child care centers licensed under 
213.2 	Minnesota Rules, chapter 9503, through a combination of state-provided technology and 
213.3 	integration with private child care management systems.
213.4 	(c) In developing and implementing the plan required under this section, the contractor 
213.5 	must consult with the commissioners of education and human services and other departments 
213.6 	with programs impacting children and families as identified by the Children's Cabinet and 
213.7 	other stakeholders.
213.8 	(d) By February 1 of each year, the commissioner must provide a report to the legislative 
213.9 	committees with jurisdiction over impacted programs on the status of the use of money, 
213.10 	plan development, and strategy implementation.

213.11 	Sec. 21. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; CHILD 
213.12 	CARE AND EARLY EDUCATION PROFESSIONAL WAGE SCALE.
 213.13 	(a) The commissioner of human services shall develop, in consultation with the 
213.14 	commissioners of employment and economic development and education, the Children's 
213.15 	Cabinet, and relevant stakeholders, a process for recognizing comparable competencies for 
213.16 	use in a wage scale and a child care and early education professional wage scale that:
213.17 	(1) implements the wage scale recommendations made by the Great Start for All 
213.18 	Minnesota Children Task Force under Laws 2021, First Special Session chapter 7, article 
213.19 	14, section 18;
213.20 	(2) provides recommended wages that are equivalent to elementary school educators 
213.21 	with similar credentials and experience;
213.22 	(3) provides recommended levels of compensation and benefits, such as professional 
213.23 	development stipends, health care benefits, and retirement benefits, that vary based on child 
213.24 	care and early education professional roles and qualifications and other criteria established 
213.25 	by the commissioner;
213.26 	(4) incorporates, to the extent feasible, qualifications inclusive of competencies attained 
213.27 	through experience, training, and educational attainment; and
213.28 	(5) is applicable to the following types of child care and early education programs:
213.29 	(i) licensed family and group family child care under Minnesota Rules, chapter 9502;
213.30 	(ii) licensed child care centers under Minnesota Rules, chapter 9503;
213.31 	(iii) certified, license-exempt child care centers under Minnesota Statutes, chapter 245H;
214.1 	(iv) voluntary prekindergarten and school readiness plus programs;
214.2 	(v) school readiness programs;
214.3 	(vi) early childhood family education programs;
214.4 	(vii) programs for children who are eligible for Part B or Part C of the Individuals with 
214.5 	Disabilities Education Act, Public Law 108-446; and
214.6 	(viii) Head Start programs.
214.7 	(b) By January 30, 2025, the commissioner shall report to the legislative committees 
214.8 	with jurisdiction over early childhood programs on the development of the wage scale, make 
214.9 	recommendations for implementing a process for recognizing comparable competencies, 
214.10 	and make recommendations about how the wage scale could be used to inform payment 
214.11 	rates for child care assistance under Minnesota Statutes, chapter 119B, and great start 
214.12 	scholarships under Minnesota Statutes, section 119C.01.

214.13 	Sec. 22. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; COST 
214.14 	ESTIMATION MODEL FOR EARLY CARE AND LEARNING PROGRAMS.
 214.15 	(a) The commissioner of human services shall develop a cost estimation model for 
214.16 	providing early care and learning in the state. In developing the model, the commissioner 
214.17 	shall consult with relevant entities and stakeholders, including but not limited to the State 
214.18 	Advisory Council on Early Childhood Education and Care under Minnesota Statutes, section 
214.19 	124D.141; county administrators; child care resource and referral organizations under 
214.20 	Minnesota Statutes, section 119B.19, subdivision 1; and organizations representing 
214.21 	caregivers, teachers, and directors.
214.22 	(b) The commissioner shall contract with an organization with experience and expertise 
214.23 	in early care and learning cost estimation modeling to conduct the work outlined in this 
214.24 	section. If practicable, the commissioner shall contract with First Children's Finance.
214.25 	(c) The commissioner shall ensure that the model can estimate variation in the cost of 
214.26 	early care and learning by:
214.27 	(1) the quality of care;
214.28 	(2) the geographic area;
214.29 	(3) the type of child care provider and associated licensing standards;
214.30 	(4) the age of the child;
215.1 	(5) whether the early care and learning is inclusive by caring for children with disabilities 
215.2 	alongside children without disabilities;
215.3 	(6) child care provider and staff compensation, including benefits such as professional 
215.4 	development stipends, health care benefits, and retirement benefits;
215.5 	(7) a child care provider's fixed costs, including rent and mortgage payments, property 
215.6 	taxes, and business-related insurance payments;
215.7 	(8) a child care provider's operating expenses, including expenses for training and 
215.8 	substitutes; and
215.9 	(9) a child care provider's hours of operation.
215.10 	(d) By January 30, 2025, the commissioner shall report to the legislative committees 
215.11 	with jurisdiction over early childhood programs on the development of the cost estimation 
215.12 	model. The report must include:
215.13 	(1) recommendations on how the model could be used in conjunction with a child care 
215.14 	and early education professional wage scale to set child care provider payment rates for 
215.15 	child care assistance under Minnesota Statutes, chapter 119B, and great start scholarships 
215.16 	under Minnesota Statutes, section 119C.01; and
215.17 	(2) a plan to seek federal approval to use the model for child care provider payment rates 
215.18 	for child care assistance.

215.19 	Sec. 23. REVISOR INSTRUCTION.
 215.20 	The revisor of statutes must identify, in consultation with the commissioners of 
215.21 	management and budget; human services; education; health; and public safety and with 
215.22 	nonpartisan legislative offices, any changes to Minnesota Statutes and Minnesota Rules 
215.23 	necessary to facilitate the transfer of responsibilities under this act, the authority to fulfill 
215.24 	the responsibilities under this act, and the related operational functions needed to implement 
215.25 	the necessary legal changes and responsibilities under this act. By February 1, 2024, the 
215.26 	revisor of statutes must submit to the chairs and ranking minority members of relevant 
215.27 	legislative committees draft legislation with the statutory changes necessary to implement 
215.28 	this act.

215.29 	EFFECTIVE DATE. This section is effective July 1, 2023.

215.30 	ARTICLE 8
215.31 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

215.32	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
216.1 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
216.2 	and for the purposes specified in this article. The appropriations are from the general fund, 
216.3 	or another named fund, and are available for the fiscal years indicated for each purpose. 
216.4 	The figures "2024" and "2025" used in this article mean that the appropriations listed under 
216.5 	them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively. 
216.6 	"The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The biennium" 
216.7 	is fiscal years 2024 and 2025.

216.8				APPROPRIATIONS
	
216.9				Available for the Year
	
216.10				Ending June 30
	
216.11					2024
		2025

216.12
216.13	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

216.14	Subdivision 1.Total Appropriation
 	$
	1,116,292,000
	$
	1,126,612,000

216.15	Appropriations by Fund
	
216.16		2024
	2025
	
216.17	General
	874,943,000
	903,809,000
	
216.18	Federal TANF
	202,030,000
	207,168,000
	
216.19 	The amounts that may be spent for each 
216.20 	purpose are specified in the following 
216.21 	subdivisions.

216.22	Subd. 2.TANF Maintenance of Effort
 					
216.23 	(a) Nonfederal Expenditures. The 
216.24 	commissioner shall ensure that sufficient 
216.25 	qualified nonfederal expenditures are made 
216.26 	each year to meet the state's maintenance of 
216.27 	effort requirements of the TANF block grant 
216.28 	specified under Code of Federal Regulations, 
216.29 	title 45, section 263.1. In order to meet these 
216.30 	basic TANF maintenance of effort 
216.31 	requirements, the commissioner may report 
216.32 	as TANF maintenance of effort expenditures 
217.1 	only nonfederal money expended for allowable 
217.2 	activities listed in the following clauses:
217.3 	(1) MFIP cash, diversionary work program, 
217.4 	and food assistance benefits under Minnesota 
217.5 	Statutes, chapter 256J;
217.6 	(2) the child care assistance programs under 
217.7 	Minnesota Statutes, sections 119B.03 and 
217.8 	119B.05, and county child care administrative 
217.9 	costs under Minnesota Statutes, section 
217.10 	119B.15;
217.11 	(3) state and county MFIP administrative costs 
217.12 	under Minnesota Statutes, chapters 256J and 
217.13 	256K;
217.14 	(4) state, county, and Tribal MFIP 
217.15 	employment services under Minnesota 
217.16 	Statutes, chapters 256J and 256K;
217.17 	(5) expenditures made on behalf of legal 
217.18 	noncitizen MFIP recipients who qualify for 
217.19 	the MinnesotaCare program under Minnesota 
217.20 	Statutes, chapter 256L;
217.21 	(6) qualifying working family credit 
217.22 	expenditures under Minnesota Statutes, section 
217.23 	290.0671;
217.24 	(7) qualifying Minnesota education credit 
217.25 	expenditures under Minnesota Statutes, section 
217.26 	290.0674; and
217.27 	(8) qualifying Head Start expenditures under 
217.28 	Minnesota Statutes, section 119A.50.
217.29 	(b) Nonfederal Expenditures; Reporting.
217.30 	For the activities listed in paragraph (a), 
217.31 	clauses (2) to (8), the commissioner may 
217.32 	report only expenditures that are excluded 
217.33 	from the definition of assistance under Code 
218.1 	of Federal Regulations, title 45, section 
218.2 	260.31.
218.3 	(c) Limitations; Exceptions. The 
218.4 	commissioner must not claim an amount of 
218.5 	TANF maintenance of effort in excess of the 
218.6 	75 percent standard in Code of Federal 
218.7 	Regulations, title 45, section 263.1(a)(2), 
218.8 	except:
218.9 	(1) to the extent necessary to meet the 80 
218.10 	percent standard under Code of Federal 
218.11 	Regulations, title 45, section 263.1(a)(1), if it 
218.12 	is determined by the commissioner that the 
218.13 	state will not meet the TANF work 
218.14 	participation target rate for the current year;
218.15 	(2) to provide any additional amounts under 
218.16 	Code of Federal Regulations, title 45, section 
218.17 	264.5, that relate to replacement of TANF 
218.18 	money due to the operation of TANF 
218.19 	penalties; and
218.20 	(3) to provide any additional amounts that may 
218.21 	contribute to avoiding or reducing TANF work 
218.22 	participation penalties through the operation 
218.23 	of the excess maintenance of effort provisions 
218.24 	of Code of Federal Regulations, title 45, 
218.25 	section 261.43(a)(2).
218.26 	(d) Supplemental Expenditures. For the 
218.27 	purposes of paragraph (c), the commissioner 
218.28 	may supplement the maintenance of effort 
218.29 	claim with working family credit expenditures 
218.30 	or other qualified expenditures to the extent 
218.31 	such expenditures are otherwise available after 
218.32 	considering the expenditures allowed in this 
218.33 	subdivision.
219.1 	(e) Reduction of Appropriations; Exception.
219.2 	The requirement in Minnesota Statutes, section 
219.3 	256.011, subdivision 3, that federal grants or 
219.4 	aids secured or obtained under that subdivision 
219.5 	be used to reduce any direct appropriations 
219.6 	provided by law does not apply if the grants 
219.7 	or aids are federal TANF money.
219.8 	(f) IT Appropriations Generally. This 
219.9 	appropriation includes money for information 
219.10 	technology projects, services, and support. 
219.11 	Notwithstanding Minnesota Statutes, section 
219.12 	16E.0466, funding for information technology 
219.13 	project costs must be incorporated into the 
219.14 	service level agreement and paid to the 
219.15 	Minnesota IT Services by the Department of 
219.16 	Human Services under the rates and 
219.17 	mechanism specified in that agreement.
219.18 	(g) Receipts for Systems Project.
219.19 	Appropriations and federal receipts for 
219.20 	information technology systems projects for 
219.21 	MAXIS, PRISM, MMIS, ISDS, METS, and 
219.22 	SSIS must be deposited in the state systems 
219.23 	account authorized in Minnesota Statutes, 
219.24 	section 256.014. Money appropriated for 
219.25 	information technology projects approved by 
219.26 	the commissioner of the Minnesota IT 
219.27 	Services funded by the legislature and 
219.28 	approved by the commissioner of management 
219.29 	and budget may be transferred from one 
219.30 	project to another and from development to 
219.31 	operations as the commissioner of human 
219.32 	services considers necessary. Any unexpended 
219.33 	balance in the appropriation for these projects 
219.34 	does not cancel and is available for ongoing 
219.35 	development and operations.
220.1 	(h) Federal SNAP Education and Training 
220.2 	Grants. Federal funds available during fiscal 
220.3 	years 2024 and 2025 for Supplemental 
220.4 	Nutrition Assistance Program Education and 
220.5 	Training and SNAP Quality Control 
220.6 	Performance Bonus grants are appropriated 
220.7 	to the commissioner of human services for the 
220.8 	purposes allowable under the terms of the 
220.9 	federal award. This paragraph is effective the 
220.10 	day following final enactment.

220.11	Subd. 3.Central Office; Operations

220.12	Appropriations by Fund
	
220.13	General
	23,867,000
	18,283,000
	
220.14 	Base Level Adjustment. The general fund 
220.15 	base for this appropriation is $20,488,000 for 
220.16 	fiscal year 2026 and $18,468,000 for fiscal 
220.17 	year 2027.

220.18	Subd. 4.Central Office; Children and Families

220.19	Appropriations by Fund
	
220.20	General
	26,864,000
	25,244,000
	
220.21 	(a) Review of Child Support Guidelines.
220.22 	$64,000 in fiscal year 2024 and $32,000 in 
220.23 	fiscal year 2025 are for transfer to the special 
220.24 	revenue fund for a quadrennial review of child 
220.25 	support guidelines.
220.26 	(b) Base Level Adjustment. The general fund 
220.27 	base for this appropriation is $20,753,000 in 
220.28 	fiscal year 2026 and $19,582,000 in fiscal year 
220.29 	2027.

220.30	Subd. 5.Central Office; Community Supports

220.31	Appropriations by Fund
	
220.32	General
	265,000
	306,000
	
221.1 	Base Level Adjustment. The general fund 
221.2 	base for this appropriation is $306,000 in fiscal 
221.3 	year 2026 and $306,000 in fiscal year 2027.

221.4	Subd. 6.Forecasted Programs; MFIP/DWP

221.5	Appropriations by Fund
	
221.6	General
	82,713,000
	92,492,000
	
221.7	Federal TANF
	105,579,000
	110,717,000

221.8
221.9	Subd. 7.Forecasted Programs; MFIP Child Care 
Assistance
 		38,910,000
		146,221,000

221.10
221.11	Subd. 8.Forecasted Programs; General 
Assistance
 		-0-
		321,000

221.12
221.13	Subd. 9.Forecasted Programs; Minnesota 
Supplemental Assistance
 		1,000
		1,000

221.14
221.15	Subd. 10.Forecasted Programs; Housing 
Supports
 		6,000
		6,000

221.16
221.17	Subd. 11.Forecasted Programs; Northstar Care 
for Children
 		113,912,000
		124,546,000

221.18
221.19	Subd. 12.Grant Programs; Support Services 
Grants

221.20	Appropriations by Fund
	
221.21	General
	8,715,000
	8,715,000
	
221.22	Federal TANF
	96,311,000
	96,311,000

221.23
221.24	Subd. 13.Grant Programs; BSF Child Care 
Grants
 		118,801,000
		118,801,000
	
221.25 	The general fund base is $149,560,000 in 
221.26 	fiscal year 2026 and $147,007,000 in fiscal 
221.27 	year 2027.

221.28
221.29	Subd. 14.Grant Programs; Child Care 
Development Grants
 		119,277,000
		125,347,000
	
221.30 	(a) Great Start Compensation Support 
221.31 	Payments. $116,740,000 in fiscal year 2024 
221.32 	and $115,890,000 in fiscal year 2025 are for 
221.33 	the great start compensation support payments 
221.34 	under Minnesota Statutes, section 119B.27, 
221.35 	and the transition grant program for child care 
222.1 	providers that intend to participate in the child 
222.2 	care retention program. The general fund base 
222.3 	for this appropriation is $77,178,000 in fiscal 
222.4 	year 2026 and $78,198,000 in fiscal year 2027. 
222.5 	Money appropriated for this purpose in each 
222.6 	fiscal year is available until expended.
222.7 	(b) Cost Estimation Model and Wage Scale.
222.8 	$500,000 in fiscal year 2024 is for developing 
222.9 	a cost estimation model for providing early 
222.10 	care and learning and a child care and early 
222.11 	education professional wage scale. The 
222.12 	commissioner may transfer funds to other state 
222.13 	agencies for work related to developing a wage 
222.14 	scale. This is a onetime appropriation and is 
222.15 	available until June 30, 2025.
222.16 	(c) Additional Support for Parent Aware.
222.17 	$500,000 in fiscal year 2025 is for increasing 
222.18 	supports for programs participating in Parent 
222.19 	Aware under Minnesota Statutes, section 
222.20 	124D.142. This is a onetime appropriation.
222.21 	(d) Family, Friend, and Neighbor Grant 
222.22 	Program. $3,500,000 in fiscal year 2025 is 
222.23 	for the family, friend, and neighbor grant 
222.24 	program under Minnesota Statutes, section 
222.25 	119B.196. This is a onetime appropriation.
222.26 	(e) Base Level Adjustment. The general fund 
222.27 	base is $82,635,000 in fiscal year 2026 and 
222.28 	$83,655,000 in fiscal year 2027.

222.29
222.30	Subd. 15.Grant Programs; Child Support 
Enforcement Grants
 		50,000
		50,000

222.31
222.32	Subd. 16.Grant Programs; Children's Services 
Grants

222.33	Appropriations by Fund
	
222.34	General
	82,563,000
	95,957,000
	
222.35	Federal TANF
	140,000
	140,000
	
223.1 	(a) Title IV-E Adoption Assistance. The 
223.2 	commissioner shall allocate funds from the 
223.3 	state's savings from the Fostering Connections 
223.4 	to Success and Increasing Adoptions Act's 
223.5 	expanded eligibility for Title IV-E adoption 
223.6 	assistance as required in Minnesota Statutes, 
223.7 	section 256N.261, and as allowable under 
223.8 	federal law. Additional savings to the state as 
223.9 	a result of the Fostering Connections to 
223.10 	Success and Increasing Adoptions Act's 
223.11 	expanded eligibility for Title IV-E adoption 
223.12 	assistance is for postadoption, foster care, 
223.13 	adoption, and kinship services, including a 
223.14 	parent-to-parent support network and as 
223.15 	allowable under federal law.
223.16 	(b) Mille Lacs Band of Ojibwe American 
223.17 	Indian Child Welfare Initiative. $3,337,000 
223.18 	in fiscal year 2024 and $5,294,000 in fiscal 
223.19 	year 2025 are to support activities necessary 
223.20 	for the Mille Lacs Band of Ojibwe to join the 
223.21 	American Indian child welfare initiative. The 
223.22 	general fund base for this appropriation is 
223.23 	$7,893,000 in fiscal year 2026 and $7,893,000 
223.24 	in fiscal year 2027.
223.25 	(c) Leech Lake Band of Ojibwe American 
223.26 	Indian Child Welfare Initiative. $1,848,000 
223.27 	in fiscal year 2024 and $1,848,000 in fiscal 
223.28 	year 2025 are for the Leech Lake Band of 
223.29 	Ojibwe to participate in the American Indian 
223.30 	child welfare initiative.
223.31 	(d) Red Lake Band of Chippewa American 
223.32 	Indian Child Welfare Initiative. $3,000,000 
223.33 	in fiscal year 2024 and $3,000,000 in fiscal 
223.34 	year 2025 are for the Red Lake Band of 
224.1 	Chippewa to participate in the American 
224.2 	Indian child welfare initiative.
224.3 	(e) White Earth Nation American Indian 
224.4 	Child Welfare Initiative. $824,000 in fiscal 
224.5 	year 2024 and $833,000 in fiscal year 2025 
224.6 	are from the general fund for the White Earth 
224.7 	Nation to participate in the American Indian 
224.8 	child welfare initiative.
224.9 	(f) Staffing Increase for Tribal Nations.
224.10 	$800,000 in fiscal year 2024 and $800,000 in 
224.11 	fiscal year 2025 are for Tribal Nations to 
224.12 	expand staff capacity to provide child welfare 
224.13 	services.
224.14 	(g) Indian Child Welfare Grants. $4,405,000 
224.15 	in fiscal year 2024 and $4,405,000 in fiscal 
224.16 	year 2025 are for Indian child welfare grants. 
224.17 	The general fund base for this appropriation 
224.18 	is $4,640,000 in fiscal year 2026 and 
224.19 	$4,640,000 in fiscal year 2027.
224.20 	(h) Child Welfare Staff Allocation for 
224.21 	Tribes. $480,000 in fiscal year 2024 and 
224.22 	$480,000 in fiscal year 2025 are for staffing 
224.23 	needs for Tribes that have not joined the 
224.24 	American Indian Child welfare initiative under 
224.25 	Minnesota Statutes, section 256.01, 
224.26 	subdivision 14b.
224.27 	(i) Kinship Navigator Services. $514,000 in 
224.28 	fiscal year 2024 and $514,000 in fiscal year 
224.29 	2025 are for kinship navigator services. The 
224.30 	general fund base for this appropriation is 
224.31 	$500,000 in fiscal year 2026 and $500,000 in 
224.32 	fiscal year 2027.
224.33 	(j) Kinship Navigator Services for Tribes.
224.34 	$250,000 in fiscal year 2024 and $250,000 in 
225.1 	fiscal year 2025 are for grants to Tribal 
225.2 	Nations for kinship navigator services.
225.3 	(k) Family First Prevention and Early 
225.4 	Intervention Allocation Program.
225.5 	$6,100,000 in fiscal year 2024 and $9,800,000 
225.6 	in fiscal year 2025 are for Family First 
225.7 	Prevention and Early Intervention Allocation 
225.8 	Program pursuant to Minnesota Statutes, 
225.9 	section 260.014.
225.10 	(l) Grants for Prevention and Early 
225.11 	Intervention Services. $3,000,000 in fiscal 
225.12 	year 2024 and $5,000,000 in fiscal year 2025 
225.13 	are for grants to support prevention and early 
225.14 	intervention services to implement and build 
225.15 	upon Minnesota's Family First Prevention 
225.16 	Services Act Title IV-E Prevention Services 
225.17 	plan under Minnesota Statutes, section 
225.18 	256.4793. Funds will be transferred into the 
225.19 	special revenue fund.
225.20 	(m) Assessment of Out-of-Home Placement.
225.21 	$450,000 in fiscal year 2024 and $450,000 in 
225.22 	fiscal year 2025 are for grants to one or more 
225.23 	grantees to establish and manage a pool of 
225.24 	state-funded qualified individuals to assess 
225.25 	potential out-of-home placement of a child in 
225.26 	a qualified residential treatment program.
225.27 	(n) STAY in the Community Grants.
225.28 	$1,958,000 in fiscal year 2024 and $2,095,000 
225.29 	in fiscal year 2025 are for the STAY in the 
225.30 	community program under Minnesota Statutes, 
225.31 	section 260C.452. These are onetime 
225.32 	appropriations and are available until June 30, 
225.33 	2027.
226.1 	(o) Support Beyond 21 Program. $600,000 
226.2 	in fiscal year 2024 and $1,200,000 in fiscal 
226.3 	year 2025 are for the support beyond 21 
226.4 	program under Minnesota Statutes, section 
226.5 	256.4792. The fiscal year 2024 appropriation 
226.6 	is available until June 30, 2025. The general 
226.7 	fund base for this appropriation is $1,200,000 
226.8 	in fiscal year 2026 and $1,200,000 in fiscal 
226.9 	year 2027.
226.10 	(p) Grants for Caseload Reduction.
226.11 	$2,000,000 in fiscal year 2024 and $2,000,000 
226.12 	in fiscal year 2025 are for grants to counties 
226.13 	and American Indian child welfare initiative 
226.14 	Tribes for reducing extended foster care 
226.15 	caseload sizes. This is a onetime appropriation 
226.16 	and is available until June 30, 2027.
226.17 	(q) Grants for Community Resource 
226.18 	Centers. $5,000,000 in fiscal year 2025 is for 
226.19 	community resource centers, under Minnesota 
226.20 	Statutes, section 260C.30. This is a onetime 
226.21 	appropriation.
226.22 	(r) Kinship Care Support Grants.
226.23 	$1,000,000 in fiscal year 2024 and $1,000,000 
226.24 	in fiscal year 2025 are for kinship care support 
226.25 	grants. This is a onetime appropriation.
226.26 	(s) Family Assets for Independence in 
226.27 	Minnesota. $1,250,000 in fiscal year 2024 
226.28 	and $2,500,000 in fiscal year 2025 are for the 
226.29 	family assets for independence in Minnesota 
226.30 	program, under Minnesota Statutes, section 
226.31 	256E.35. The general fund base for this 
226.32 	appropriation is $5,000,000 in fiscal year 2026 
226.33 	and $5,000,000 in fiscal year 2027.
227.1 	(t) Base Level Adjustment. The general fund 
227.2 	base is $88,682,000 in fiscal year 2026 and 
227.3 	$88,682,000 in fiscal year 2027.

227.4
227.5	Subd. 17.Grant Programs; Children and 
Community Service Grants
 		60,856,000
		60,856,000

227.6
227.7	Subd. 18.Grant Programs; Children and 
Economic Support Grants
 		247,240,000
		86,490,000
	
227.8 	(a) Fraud Prevention Program Grants.
227.9 	$400,000 in fiscal year 2024 is for start-up 
227.10 	grants to the Red Lake Nation, White Earth 
227.11 	Nation, and Mille Lacs Band of Ojibwe to 
227.12 	develop a fraud prevention program. This is 
227.13 	a onetime appropriation and is available until 
227.14 	June 30, 2025.
227.15 	(b) Emergency Services Program Grants.
227.16 	$20,000,000 in fiscal year 2024 and 
227.17 	$20,000,000 in fiscal year 2025 are for 
227.18 	emergency services grants under Minnesota 
227.19 	Statutes, section 256E.36. Grant allocation 
227.20 	balances in the first year do not cancel but are 
227.21 	available in the second year of the biennium. 
227.22 	The general fund base for this appropriation 
227.23 	is $35,000,000 in fiscal year 2026 and 
227.24 	$35,000,000 in fiscal year 2027.
227.25 	(c) Homeless Youth Act Grants. $14,500,000 
227.26 	in fiscal year 2024 and $12,500,000 in fiscal 
227.27 	year 2025 are for grants under Minnesota 
227.28 	Statutes, section 256K.45, subdivision 1. The 
227.29 	fiscal year 2024 appropriation is available until 
227.30 	June 30, 2027. The general fund base for this 
227.31 	appropriation is $20,000,000 in fiscal year 
227.32 	2026 and $20,000,000 in fiscal year 2027.
227.33 	(d) Transitional Housing Programs.
227.34 	$3,000,000 in fiscal year 2024 and $3,000,000 
227.35 	in fiscal year 2025 are for transitional housing 
228.1 	programs under Minnesota Statutes, section 
228.2 	256E.33.
228.3 	(e) Safe Harbor Shelter and Housing 
228.4 	Grants. $3,250,000 in fiscal year 2024 and 
228.5 	$3,250,000 in fiscal year 2025 are for grants 
228.6 	under Minnesota Statutes, section 256K.47.
228.7 	(f) Emergency Shelter Facilities.
228.8 	$150,000,000 in fiscal year 2024 is for grants 
228.9 	to eligible applicants for the acquisition of 
228.10 	property; site preparation, including 
228.11 	demolition; predesign; design; construction; 
228.12 	renovation; furnishing; and equipping of 
228.13 	emergency shelter facilities. This is a onetime 
228.14 	appropriation and is available until June 30, 
228.15 	2028.
228.16 	(g) Homeless Youth Pilot Project.
228.17 	$1,000,000 in fiscal year 2024 and $1,000,000 
228.18 	in fiscal year 2025 are for a grant to 
228.19 	Youthprise for a pilot project to provide cash 
228.20 	stipends to homeless youth, youth-designed 
228.21 	optional services, and cash incentives for 
228.22 	participation in periodic surveys and to 
228.23 	complete a legislative report.
228.24 	(h) Quality Parenting Initiative. $100,000 
228.25 	in fiscal year 2024 and $100,000 in fiscal year 
228.26 	2025 are for a grant to Quality Parenting 
228.27 	Initiative Minnesota to implement quality 
228.28 	parenting initiative principles and practices 
228.29 	and support children and families experiencing 
228.30 	foster care placements.
228.31 	(i) American Indian Food Sovereignty 
228.32 	Funding. $3,000,000 in fiscal year 2024 and 
228.33 	$3,000,000 in fiscal year 2025 are to support 
228.34 	food security among Tribal Nations and 
229.1 	American Indian communities under 
229.2 	Minnesota Statutes, section 256E.341. The 
229.3 	fiscal year 2024 appropriation is available until 
229.4 	June 30, 2025. The general fund base for this 
229.5 	appropriation is $2,000,000 in fiscal year 2026 
229.6 	and $2,000,000 in fiscal year 2027.
229.7 	(j) Food Shelf Program. $6,000,000 in fiscal 
229.8 	year 2024 and $6,000,000 in fiscal year 2025 
229.9 	are for the Minnesota food shelf program 
229.10 	under Minnesota Statutes, section 256E.34. 
229.11 	The fiscal year 2024 appropriation is available 
229.12 	until June 30, 2025.
229.13 	(k) Capital for Emergency Food 
229.14 	Distribution Facilities. $10,000,000 in fiscal 
229.15 	year 2024 is for improving and expanding the 
229.16 	infrastructure of food shelf facilities across 
229.17 	the state. Grant money shall be made available 
229.18 	to nonprofit organizations, federally 
229.19 	recognized Tribes, and local units of 
229.20 	government. This is a onetime appropriation 
229.21 	and is available until June 30, 2027.
229.22 	(l) Community Action Grants. $1,000,000 
229.23 	in fiscal year 2024 and $1,000,000 in fiscal 
229.24 	year 2025 are for community action grants.
229.25 	(m) Diaper Distribution Grant. $500,000 in 
229.26 	fiscal year 2024 and $500,000 in fiscal year 
229.27 	2025 are for a grant to the Diaper Bank of 
229.28 	Minnesota to distribute diapers and wipes to 
229.29 	underresourced families statewide.
229.30 	(n) Base Level Adjustment. The general fund 
229.31 	base is $108,490,000 in fiscal year 2026 and 
229.32 	$108,490,000 in fiscal year 2027.

229.33	Sec. 3. COMMISSIONER OF HEALTH
 	$
	2,000,000
	$
	2,000,000
	
230.1 	Health Improvement. $2,000,000 in fiscal 
230.2 	year 2024 and $2,000,000 in fiscal year 2025 
230.3 	are for regional navigators in the Safe Harbor 
230.4 	program. This is a onetime appropriation.

230.5
230.6	Sec. 4. COMMISSIONER OF MANAGEMENT 
AND BUDGET
 	$
	11,931,000
	$
	2,066,000
	
230.7 	Support for New Department. $11,931,000 
230.8 	in fiscal year 2024 and $2,066,000 in fiscal 
230.9 	year 2025 are for supporting the creation of 
230.10 	the Department of Children, Youth, and 
230.11 	Families. This is a onetime appropriation.

230.12
230.13	Sec. 5. COMMISSIONER OF INFORMATION 
TECHNOLOGY
 	$
	25,000,000
	$
	-0-
	
230.14 	IT Systems Improvement. $25,000,000 in 
230.15 	fiscal year 2024 is for transfer to the children 
230.16 	and families account in the special revenue 
230.17 	fund to develop and implement a plan to 
230.18 	modernize the IT systems that support 
230.19 	programs for children and families. This is a 
230.20 	onetime appropriation and does not cancel.

230.21
230.22	Sec. 6. COMMISSIONER OF CHILDREN, 
YOUTH, AND FAMILIES.
 	$
	823,000
	$
	3,531,000
	
230.23 	Operations. $823,000 in fiscal year 2024 and 
230.24 	$3,521,000 in fiscal year 2025 are for the 
230.25 	Department of Children, Youth, and Families.

230.26
230.27	Sec. 7. OMBUDSPERSON FOR AMERICAN 
INDIAN FAMILIES
 	$
	336,000
	$
	340,000

230.28	Sec. 8. OMBUDSPERSON FOR FAMILIES
 	$
	759,000
	$
	776,000

230.29
230.30	Sec. 9. OMBUDSPERSON FOR FOSTER 
YOUTH
 	$
	842,000
	$
	759,000

230.31 	Sec. 10. CHILDREN AND FAMILIES INFORMATION TECHNOLOGY 
230.32 	ACCOUNT.
 230.33 	The children and families information technology account is created in the special 
230.34 	revenue fund. Money in the account is appropriated to the commissioner of information 
231.1 	technology services for developing and implementing a plan in support of transforming and 
231.2 	modernizing the information technology systems that support programs impacting children 
231.3 	and families, including programs for youth, child care and early learning programs, and 
231.4 	programs serving young children.

231.5 	Sec. 11. CANCELLATIONS; FISCAL YEAR 2023.
 231.6 	$100,000 of the fiscal year 2023 general fund appropriation under Laws 2022, chapter 
231.7 	63, section 6, is canceled to the general fund on June 30, 2023.

231.8 	Sec. 12. APPROPRIATIONS GIVEN EFFECT ONCE.
 231.9 	If an appropriation or transfer in this article is enacted more than once during the 2023 
231.10 	regular session, the appropriation or transfer must be given effect once.

231.11 	ARTICLE 9
231.12 	EDUCATION

231.13 	Section 1. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 231.14 		Subdivision 1.Department of Education. The sums indicated in this section are 
231.15 	appropriated from the general fund to the Department of Education for the fiscal years 
231.16 	designated.
231.17 		Subd. 2.Grow Your Own. (a) For grants to develop, continue, or expand Grow Your 
231.18 	Own programs under Minnesota Statutes, section 122A.731:

231.19		$
	3,000,000
	.....
	2024
	
231.20		$
	3,000,000
	.....
	2025
	
231.21 	(b) This is a onetime appropriation and is subject to the requirements under Minnesota 
231.22 	Statutes, section 122A.731, subdivision 4.
231.23 		Subd. 3.Early childhood teacher shortage. (a) For grants to Minnesota institutions of 
231.24 	higher education to address the early childhood education teacher shortage:

231.25		$
	490,000
	.....
	2024
	
231.26		$
	490,000
	.....
	2025
	
231.27 	(b) Grant money may be used to provide tuition and other supports to students.
231.28 	(c) Any balance in the first year does not cancel but is available in the second year.
231.29 	(d) This is a onetime appropriation.
232.1 		Subd. 4.School readiness.  (a) For revenue for school readiness programs under 
232.2 	Minnesota Statutes, sections 124D.15 and 124D.16:

232.3		$
	33,683,000
	.....
	2024
	
232.4		$
	33,683,000
	.....
	2025
	
232.5 	(b) The 2024 appropriation includes $3,368,000 for 2023 and $30,315,000 for 2024.
232.6 	(c) The 2025 appropriation includes $3,368,000 for 2024 and $30,315,000 for 2025.
232.7 		Subd. 5.Early learning scholarships. (a) For the early learning scholarship program 
232.8 	under Minnesota Statutes, section 124D.165:

232.9		$
	203,622,000
	.....
	2024
	
232.10		$
	203,623,000
	.....
	2025
	
232.11 	(b) This appropriation is subject to the requirements under Minnesota Statutes, section 
232.12 	124D.165, subdivision 6.
232.13 	(c) The base for fiscal year 2026 is $110,048,000 and the base for fiscal year 2027 is 
232.14 	$110,048,000.
232.15 		Subd. 6.Head Start program. (a) For Head Start programs under Minnesota Statutes, 
232.16 	section 119A.52:

232.17		$
	25,100,000
	.....
	2024
	
232.18		$
	25,100,000
	.....
	2025
	
232.19 	(b) Any balance in the first year does not cancel but is available in the second year.
232.20 		Subd. 7.Head Start infrastructure. (a) For facilities grants to Head Start agencies for 
232.21 	the purposes of improving services, expanding services, and serving additional low-income 
232.22 	children:

232.23		$
	10,000,000
	.....
	2024
	
232.24		$
	-0-
	.....
	2025
	
232.25 	(b) Head Start agencies may apply for the grants established under this subdivision in 
232.26 	a form and manner prescribed by the commissioner. The commissioner must establish 
232.27 	criteria and a process for awarding the grants that consider the number of eligible children 
232.28 	in an applicant's service area that are not currently being served and prioritize, to the extent 
232.29 	possible, geographic balance and program diversity among grant recipients.
232.30 	(c) This is a onetime appropriation and is available until June 30, 2027.
233.1 		Subd. 8.Early childhood family education aid. (a) For early childhood family education 
233.2 	aid under Minnesota Statutes, section 124D.135:

233.3		$
	37,497,000
	.....
	2024
	
233.4		$
	39,108,000
	.....
	2025
	
233.5 	(b) The 2024 appropriation includes $3,518,000 for 2023 and $33,979,000 for 2024.
233.6 	(c) The 2025 appropriation includes $3,775,000 for 2024 and $35,333,000 for 2025.
233.7 		Subd. 9.Early childhood family education support staff. (a) For the purposes described 
233.8 	under Minnesota Statutes, section 124D.13, subdivision 12a:

233.9		$
	500,000
	.....
	2024
	
233.10		$
	500,000
	.....
	2025
	
233.11 	(b) Any balance in the first year does not cancel but is available in the second year.
233.12 		Subd. 10.Developmental screening aid. (a) For developmental screening aid under 
233.13 	Minnesota Statutes, sections 121A.17 and 121A.19:

233.14		$
	4,350,000
	.....
	2024
	
233.15		$
	4,375,000
	.....
	2025
	
233.16 	(b) The 2024 appropriation includes $349,000 for 2023 and $4,001,000 for 2024.
233.17 	(c) The 2025 appropriation includes $445,000 for 2024 and $3,930,000 for 2025.
233.18 		Subd. 11.Administrative costs for developmental screening. (a) For the administrative 
233.19 	costs associated with developmental screening under Minnesota Statutes, sections 121A.17 
233.20 	and 121A.19:

233.21		$
	127,000
	.....
	2024
	
233.22		$
	77,000
	.....
	2025
	
233.23 	(b) The base in fiscal year 2026 and beyond is $77,000.
233.24 		Subd. 12.ParentChild+ program. (a) For a grant to the ParentChild+ program:

233.25		$
	1,800,000
	.....
	2024
	
233.26		$
	1,800,000
	.....
	2025
	
233.27 	(b) The grant must be used for an evidence-based and research-validated early childhood 
233.28 	literacy and school readiness program for children ages 16 months to four years at its existing 
233.29 	suburban program location. The program must include urban and rural program locations 
233.30 	for fiscal years 2024 and 2025.
233.31 	(c) Any balance in the first year does not cancel but is available in the second year.
234.1 	(d) The base for fiscal year 2026 and later is $900,000.
234.2 		Subd. 13.Kindergarten entry assessment. (a) For the kindergarten entry assessment 
234.3 	under Minnesota Statutes, section 124D.162:

234.4		$
	1,049,000
	.....
	2024
	
234.5		$
	2,037,000
	.....
	2025
	
234.6 	(b) The base for fiscal year 2026 is $2,357,000 and the base for fiscal year 2027 is 
234.7 	$1,743,000.
234.8 		Subd. 14.Quality rating and improvement system. (a) For transfer to the commissioner 
234.9 	of human services for the purposes of expanding the quality rating and improvement system 
234.10 	under Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports 
234.11 	for providers participating in the quality rating and improvement system:

234.12		$
	1,750,000
	.....
	2024
	
234.13		$
	1,750,000
	.....
	2025
	
234.14 	(b) The amounts in paragraph (a) must be in addition to any federal funding under the 
234.15 	child care and development block grant authorized under Public Law 101-508 in that year 
234.16 	for the system under Minnesota Statutes, section 124D.142.
234.17 		Subd. 15.Children's savings accounts start-up grants. (a) For a grant to Youthprise 
234.18 	to implement and administer a pilot program to award grants to entities to start up new, 
234.19 	local child savings account programs:

234.20		$
	500,000
	.....
	2024
	
234.21		$
	0
	.....
	2025
	
234.22 	(b) Youthprise must allocate at least $400,000 of this appropriation for grants to entities 
234.23 	in up to four locations in the state to start up new, local child savings account programs. To 
234.24 	the extent possible, Youthprise must award grants in urban, rural, suburban, and Tribal 
234.25 	settings.
234.26 	(c) By December 1, 2025, Youthprise must report on the status and any outcomes of the 
234.27 	pilot project to the Department of Education and relevant committees of the legislature.
234.28 	(d) The appropriation is available through June 30, 2025.
234.29 		Subd. 16.Early childhood programs at Tribal contract schools. (a) For early childhood 
234.30 	family education programs at Tribal contract schools under Minnesota Statutes, section 
234.31 	124D.83, subdivision 4:

235.1		$
	68,000
	.....
	2024
	
235.2		$
	68,000
	.....
	2025
	
235.3 	(b) Any balance in the first year does not cancel but is available in the second year.
235.4 		Subd. 17.Educate parents partnership. (a) For the educate parents partnership under 
235.5 	Minnesota Statutes, section 124D.129:

235.6		$
	49,000
	.....
	2024
	
235.7		$
	49,000
	.....
	2025
	
235.8 	(b) Any balance in the first year does not cancel but is available in the second year.
235.9 		Subd. 18.Home visiting aid. (a) For home visiting aid under Minnesota Statutes, section 
235.10 	124D.135:

235.11		$
	391,000
	.....
	2024
	
235.12		$
	309,000
	.....
	2025
	
235.13 	(b) The 2024 appropriation includes $41,000 for 2023 and $350,000 for 2024.
235.14 	(c) The 2025 appropriation includes $38,000 for 2024 and $271,000 for 2025.
235.15 		Subd. 19.Learning with Music program. (a) For a grant to the MacPhail Center for 
235.16 	Music to expand the Learning with Music program:

235.17		$
	250,000
	.....
	2024
	
235.18		$
	250,000
	.....
	2025
	
235.19 	(b) The MacPhail Center for Music must use the grant money received under this 
235.20 	subdivision to:
235.21 	(1) expand direct programming to four early childhood center locations in each year of 
235.22 	the grant, with a focus on meeting the needs of children experiencing economic hardship 
235.23 	in the Twin Cities metropolitan area; and
235.24 	(2) create and deliver professional development training opportunities to early childhood 
235.25 	educators statewide, both online and in person, that are based on current successful elements 
235.26 	of the Learning with Music program.
235.27 	(c) Any balance in the first year does not cancel but is available in the second year.
235.28 	(d) The base for fiscal year 2026 is $0.
235.29 		Subd. 20.Way to Grow. (a) For a grant to Way to Grow:

235.30		$
	150,000
	.....
	2024
	
235.31		$
	150,000
	.....
	2025
	
236.1 	(b) Way to Grow must use the grant money to extend its home visiting services, including 
236.2 	family support services, health and wellness education, and learning support to more families 
236.3 	with children from birth to age eight.
236.4 	(c) This is a onetime appropriation.
236.5 		Subd. 21.Reach Out and Read Minnesota. (a) For a grant to Reach Out and Read 
236.6 	Minnesota to establish a statewide plan that encourages early childhood development through 
236.7 	a network of health care clinics:

236.8		$
	250,000
	.....
	2024
	
236.9		$
	250,000
	.....
	2025
	
236.10 	(b) The grant recipient must develop and implement a plan that includes:
236.11 	(1) integrating children's books and parent education into well-child visits;
236.12 	(2) creating literacy-rich environments at health care clinics by providing books to clinics 
236.13 	for visits outside of Reach Out and Read Minnesota parameters, for waiting room use, or 
236.14 	for volunteer readers to model read-aloud techniques for parents where possible;
236.15 	(3) working with public health clinics, federally qualified health centers, Tribal sites, 
236.16 	community health centers, and clinics that belong to health care systems, as well as 
236.17 	independent clinics in underserved areas; and
236.18 	(4) training medical professionals on discussing the importance of early literacy with 
236.19 	parents of infants, toddlers, and preschoolers.
236.20 	(c) The grant recipient must fully implement the plan on a statewide basis by 2030.
236.21 		Subd. 22.Executive function across generations curriculum grant. (a) For a grant 
236.22 	to the family partnership for an executive function curriculum pilot program:

236.23		$
	300,000
	.....
	2024
	
236.24 	(b) The family partnership must establish six sites across Minnesota to provide executive 
236.25 	function across generations curriculum. The sites must be spread across the state and include 
236.26 	rural, suburban, and urban early education and care providers, organizations providing home 
236.27 	visiting services, or parenting groups in high-risk communities. The family partnership must 
236.28 	report to the legislature by December 15, 2024, and December 15, 2025, on the progress 
236.29 	made to expand the executive function curriculum across Minnesota.
236.30 	(c) This appropriation is available until June 30, 2025.
237.1 		Subd. 23.Metro Deaf School. (a) For a grant to Metro Deaf School to provide services 
237.2 	to young children who have a primary disability of deaf, deafblind, or hard-of-hearing and 
237.3 	who are not eligible for funding under Minnesota Statutes, section 124E.11, paragraph (h):

237.4		$
	100,000
	.....
	2024
	
237.5		$
	100,000
	.....
	2025
	
237.6 	(b) This is a onetime appropriation.
237.7 		Subd. 24.VPK administrative costs. For administrative and IT costs associated with 
237.8 	the voluntary prekindergarten program under Minnesota Statutes, section 124D.151:

237.9		$
	691,000
	.....
	2024
	
237.10		$
	691,000
	.....
	2025

237.11 	Sec. 2. APPROPRIATIONS; PROFESSIONAL EDUCATOR LICENSING AND 
237.12 	STANDARDS BOARD.
 237.13 		Subdivision 1.Professional Educator Licensing and Standards Board. The sums 
237.14 	indicated in this section are appropriated from the general fund to the Professional Educator 
237.15 	Licensing and Standards Board for the fiscal years designated.
237.16 		Subd. 2.Definition of teacher. (a) For costs related to modifying teaching assignments 
237.17 	for early childhood educators:

237.18		$
	15,000
	.....
	2024
	
237.19		$
	-0-
	.....
	2025
	
237.20 	(b) This is a onetime appropriation.

237.21 	Sec. 3. APPROPRIATION; EARLY CHILDHOOD CURRICULUM GRANTS.
 237.22 	(a) $250,000 in fiscal year 2024 and $250,000 in fiscal year 2025 are appropriated from 
237.23 	the general fund to the commissioner of the Office of Higher Education for competitive 
237.24 	grants to Minnesota postsecondary institutions. The grants must be used to improve the 
237.25 	curricula of the recipient institution's early childhood education programs by incorporating 
237.26 	or conforming to the Minnesota knowledge and competency frameworks for early child 
237.27 	professionals. This is a onetime appropriation.
237.28 	(b) By December 1, 2024, and again by December 1, 2025, the commissioner must 
237.29 	submit a report to the chairs and ranking minority members of the legislative committees 
237.30 	with jurisdiction over early childhood through grade 12 education and higher education 
238.1 	finance and policy reporting on grants awarded under this section. The report must include 
238.2 	the following information for the previous fiscal year:
238.3 	(1) the number of grant applications received;
238.4 	(2) the criteria applied by the commissioner for evaluating applications;
238.5 	(3) the number of grants awarded, grant recipients, and amounts awarded;
238.6 	(4) early childhood education curricular reforms proposed by each recipient institution;
238.7 	(5) grant outcomes for each recipient institution;
238.8 	(6) an evaluation of the grant program, its successes and challenges, and recommendations 
238.9 	to the legislature regarding the program; and
238.10 	(7) other information identified by the commissioner as outcome indicators.
238.11 	(c) The commissioner may use no more than three percent of the appropriation under 
238.12 	this section to administer the grant program.

238.13 	Sec. 4. Minnesota Statutes 2022, section 119A.52, is amended to read:
238.14 	119A.52 DISTRIBUTION OF APPROPRIATION.
238.15 	(a) The commissioner of education must distribute money appropriated for that purpose 
238.16 	to federally designated Head Start programs to expand services and to serve additional 
238.17 	low-income children. Migrant and Indian reservation programs must be initially allocated 
238.18 	money based on the programs' share of federal funds., which may include costs associated 
238.19 	with program operations, infrastructure, or reconfiguration to serve children from birth to 
238.20 	age five in center-based services. The distribution must occur in the following order: (1) 
238.21 	10.72 percent of the total Head Start appropriation must be initially allocated to federally 
238.22 	designated Tribal Head Start programs; (2) the Tribal Head Start portion of the appropriation 
238.23 	must be initially allocated to Tribal Head Start programs based on the programs' share of 
238.24 	federal funds; and (3) migrant programs must be initially allocated funding based on the 
238.25 	programs' share of federal funds. The remaining money must be initially allocated to the 
238.26 	remaining local agencies based equally on the agencies' share of federal funds and on the 
238.27 	proportion of eligible children in the agencies' service area who are not currently being 
238.28 	served. A Head Start program must be funded at a per child rate equal to its contracted, 
238.29 	federally funded base level at the start of the fiscal year. For all agencies without a federal 
238.30 	Early Head Start rate, the state average federal cost per child for Early Head Start applies. 
238.31 	In allocating funds under this paragraph, the commissioner of education must assure that 
238.32 	each Head Start program in existence in 1993 is allocated no less funding in any fiscal year 
239.1 	than was allocated to that program in fiscal year 1993. Before paying money to the programs, 
239.2 	the commissioner must notify each program of its initial allocation and how the money must 
239.3 	be used. Each program must present a plan under section 119A.535. For any program that 
239.4 	cannot utilize its full allocation at the beginning of the fiscal year, the commissioner must 
239.5 	reduce the allocation proportionately. Money available after the initial allocations are reduced 
239.6 	must be redistributed to eligible programs.
239.7 	(b) The commissioner must develop procedures to make payments to programs based 
239.8 	upon the number of children reported to be enrolled during the required time period of 
239.9 	program operations. Enrollment is defined by federal Head Start regulations. The procedures 
239.10 	must include a reporting schedule, corrective action plan requirements, and financial 
239.11 	consequences to be imposed on programs that do not meet full enrollment after the period 
239.12 	of corrective action. Programs reporting chronic underenrollment, as defined by the 
239.13 	commissioner, will have their subsequent program year allocation reduced proportionately. 
239.14 	Funds made available by prorating payments and allocations to programs with reported 
239.15 	underenrollment will be made available to the extent funds exist to fully enrolled Head Start 
239.16 	programs through a form and manner prescribed by the department.
239.17 	(c) Programs with approved innovative initiatives that target services to high-risk 
239.18 	populations, including homeless families and families living in homeless shelters and 
239.19 	transitional housing, are exempt from the procedures in paragraph (b). This exemption does 
239.20 	not apply to entire programs. The exemption applies only to approved innovative initiatives 
239.21 	that target services to high-risk populations, including homeless families and families living 
239.22 	in homeless shelters, transitional housing, and permanent supportive housing.

239.23 	Sec. 5. Minnesota Statutes 2022, section 121A.17, subdivision 3, is amended to read:
239.24 		Subd. 3.Screening program. (a) A screening program must include at least the following 
239.25 	components: developmental assessments, including virtual developmental screening for 
239.26 	families who make the request based on their immunocompromised health status or other 
239.27 	health conditions, hearing and vision screening or referral, immunization review and referral, 
239.28 	the child's height and weight, the date of the child's most recent comprehensive vision 
239.29 	examination, if any, identification of risk factors that may influence learning, an interview 
239.30 	with the parent about the child, and referral for assessment, diagnosis, and treatment when 
239.31 	potential needs are identified. The district and the person performing or supervising the 
239.32 	screening must provide a parent or guardian with clear written notice that the parent or 
239.33 	guardian may decline to answer questions or provide information about family circumstances 
239.34 	that might affect development and identification of risk factors that may influence learning. 
240.1 	The notice must state "Early childhood developmental screening helps a school district 
240.2 	identify children who may benefit from district and community resources available to help 
240.3 	in their development. Early childhood developmental screening includes a vision screening 
240.4 	that helps detect potential eye problems but is not a substitute for a comprehensive eye 
240.5 	exam." The notice must clearly state that declining to answer questions or provide information 
240.6 	does not prevent the child from being enrolled in kindergarten or first grade if all other 
240.7 	screening components are met. If a parent or guardian is not able to read and comprehend 
240.8 	the written notice, the district and the person performing or supervising the screening must 
240.9 	convey the information in another manner. The notice must also inform the parent or guardian 
240.10 	that a child need not submit to the district screening program if the child's health records 
240.11 	indicate to the school that the child has received comparable developmental screening 
240.12 	performed within the preceding 365 days by a public or private health care organization or 
240.13 	individual health care provider. The notice must be given to a parent or guardian at the time 
240.14 	the district initially provides information to the parent or guardian about screening and must 
240.15 	be given again at the screening location.
240.16 	(b) All screening components shall be consistent with the standards of the state 
240.17 	commissioner of health for early developmental screening programs. A developmental 
240.18 	screening program must not provide laboratory tests or a physical examination to any child. 
240.19 	The district must request from the public or private health care organization or the individual 
240.20 	health care provider the results of any laboratory test or physical examination within the 12 
240.21 	months preceding a child's scheduled screening. For the purposes of this section, 
240.22 	"comprehensive vision examination" means a vision examination performed by an optometrist 
240.23 	or ophthalmologist.
240.24 	(c) If a child is without health coverage, the school district must refer the child to an 
240.25 	appropriate health care provider.
240.26 	(d) A board may offer additional components such as nutritional, physical and dental 
240.27 	assessments, review of family circumstances that might affect development, blood pressure, 
240.28 	laboratory tests, and health history.
240.29 	(e) If a statement signed by the child's parent or guardian is submitted to the administrator 
240.30 	or other person having general control and supervision of the school that the child has not 
240.31 	been screened because of conscientiously held beliefs of the parent or guardian, the screening 
240.32 	is not required.

241.1 	Sec. 6. Minnesota Statutes 2022, section 121A.19, is amended to read:
241.2 	121A.19 DEVELOPMENTAL SCREENING AID.
241.3 	Each school year, the state must pay a district for each child or student screened by the 
241.4 	district according to the requirements of section 121A.17. The amount of state aid for each 
241.5 	child or student screened shall be: (1) $75 $98 for a child screened at age three; (2) $50 $65
241.6 	for a child screened at age four; (3) $40 $52 for a child screened at age five or six prior to 
241.7 	kindergarten; and (4) $30 $39 for a student screened within 30 days after first enrolling in 
241.8 	a public school kindergarten if the student has not previously been screened according to 
241.9 	the requirements of section 121A.17. If this amount of aid is insufficient, the district may 
241.10 	permanently transfer from the general fund an amount that, when added to the aid, is 
241.11 	sufficient. Developmental screening aid shall not be paid for any student who is screened 
241.12 	more than 30 days after the first day of attendance at a public school kindergarten, except 
241.13 	if a student transfers to another public school kindergarten within 30 days after first enrolling 
241.14 	in a Minnesota public school kindergarten program. In this case, if the student has not been 
241.15 	screened, the district to which the student transfers may receive developmental screening 
241.16 	aid for screening that student when the screening is performed within 30 days of the transfer 
241.17 	date.

241.18 	Sec. 7. [122A.261] PREKINDERGARTEN, SCHOOL READINESS, PRESCHOOL, 
241.19 	AND EARLY EDUCATION PROGRAMS; LICENSURE REQUIREMENT.
241.20 		Subdivision 1.Licensure requirement. A school district or charter school must employ 
241.21 	a qualified teacher, as defined in section 122A.16, to provide instruction in a preschool, 
241.22 	school readiness, school readiness plus, or prekindergarten program or other school district 
241.23 	or charter school-based early education program.
241.24 		Subd. 2.Exemptions. Any teacher who has taught in a preschool, school readiness, 
241.25 	school readiness plus, or prekindergarten program, or other early learning program for at 
241.26 	least five years prior to September 1, 2028, may continue to teach without obtaining a 
241.27 	license. Notwithstanding this exemption from the licensure requirement, these individuals 
241.28 	are teachers under section 179A.03, subdivision 18.

241.29 	EFFECTIVE DATE. This section is effective July 1, 2028.

242.1 	Sec. 8. [122A.731] GRANTS FOR GROW YOUR OWN EARLY CHILDHOOD 
242.2 	EDUCATOR PROGRAMS.
242.3 		Subdivision 1.Establishment. The commissioner of education must award grants for 
242.4 	Grow Your Own Early Childhood Educator programs established under this section in order 
242.5 	to develop an early childhood education workforce that more closely reflects the state's 
242.6 	increasingly diverse student population and ensures all students have equitable access to 
242.7 	high-quality early educators.
242.8 		Subd. 2.Grow Your Own Early Childhood Educator programs. (a) 
242.9 	Minnesota-licensed family child care or licensed center-based child care programs, school 
242.10 	district or charter school early learning programs, Head Start programs, institutions of higher 
242.11 	education, and other community partnership nongovernmental organizations may apply for 
242.12 	a grant to host, build, or expand an early childhood educator preparation program that leads 
242.13 	to an individual earning the credential or degree needed to enter or advance in the early 
242.14 	childhood education workforce. Examples include programs that help interested individuals 
242.15 	earn the child development associate (CDA) credential, an associate's degree in child 
242.16 	development, or a bachelor's degree in early childhood studies or early childhood licensures. 
242.17 	The grant recipient must use at least 80 percent of grant money for student stipends, tuition 
242.18 	scholarships, or unique student teaching or field placement experiences.
242.19 	(b) Programs providing financial support to interested individuals may require a 
242.20 	commitment from the individuals awarded, as determined by the commissioner, to teach in 
242.21 	the program or school for a reasonable amount of time that does not exceed one year.
242.22 		Subd. 3.Grant procedure. (a) Eligible programs must apply for a grant under this 
242.23 	section in the form and manner specified by the commissioner. To the extent that there are 
242.24 	sufficient applications, the commissioner must, to the extent practicable, award an equal 
242.25 	number of grants between applicants in greater Minnesota and those in the metropolitan 
242.26 	area.
242.27 	(b) For the 2023-2024 school year and later, grant applications for new and existing 
242.28 	programs must be received by the commissioner no later than January 15 of the year prior 
242.29 	to the school year in which the grant will be used. The commissioner must review all 
242.30 	applications and notify grant recipients by March 15 or as soon as practicable of the 
242.31 	anticipated amount awarded. If the commissioner determines that sufficient funding is 
242.32 	unavailable for the grants, the commissioner must notify grant applicants by June 30 or as 
242.33 	soon as practicable that there is insufficient money.
243.1 		Subd. 4.Grow Your Own Early Childhood Education program account. (a) The 
243.2 	Grow Your Own Early Childhood Education program account is established in the special 
243.3 	revenue fund.
243.4 	(b) Money appropriated for the Grow Your Own Early Childhood Education program 
243.5 	under this section must be transferred to the Grow Your Own Early Childhood Education 
243.6 	program account in the special revenue fund.
243.7 	(c) Money in the account is annually appropriated to the commissioner for the Grow 
243.8 	Your Own Early Childhood Education program under this section. Any returned money is 
243.9 	available to be regranted. Grant recipients may apply to use grant money over a period of 
243.10 	up to 60 months.
243.11 	(d) Up to $175,000 annually is appropriated to the commissioner for costs associated 
243.12 	with administering and monitoring the program under this section.
243.13 		Subd. 5.Report. Grant recipients must annually report to the commissioner in the form 
243.14 	and manner determined by the commissioner on their activities under this section, including 
243.15 	the number of educators supported through grant money and the number of educators 
243.16 	obtaining credentials by type. Data must indicate the beginning level of education and ending 
243.17 	level of education of individual participants and an assessment of program effectiveness, 
243.18 	including participant feedback, areas for improvement, and employment changes and current 
243.19 	employment status, where applicable, after completing preparation programs. The 
243.20 	commissioner must publish a report for the public that summarizes the activities and 
243.21 	outcomes of grant recipients and what was done to promote sharing of effective practices 
243.22 	among grant recipients and potential grant applicants.

243.23 	Sec. 9. Minnesota Statutes 2022, section 124D.13, is amended by adding a subdivision to 
243.24 	read:
243.25 		Subd. 12a.Support staff. (a) The department must employ two full-time equivalent 
243.26 	staff to serve as resources for programs described in this section. The staff persons must 
243.27 	provide operational support and guidance to programs, including but not limited to providing 
243.28 	professional development and education support, assisting with marketing and outreach, 
243.29 	and facilitating collaborations with public and private organizations serving families.
243.30 	(b) Each staff person described in this subdivision must hold a valid license as a teacher 
243.31 	of parent and family education.

243.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2024 and later.

244.1 	Sec. 10. Minnesota Statutes 2022, section 124D.141, subdivision 2, is amended to read:
244.2 		Subd. 2.Additional duties. The following duties are added to those assigned to the 
244.3 	council under federal law:
244.4 	(1) make recommendations on the most efficient and effective way to leverage state and 
244.5 	federal funding streams for early childhood and child care programs;
244.6 	(2) make recommendations on how to coordinate or colocate early childhood and child 
244.7 	care programs in one state Office of Early Learning. The council shall establish a task force 
244.8 	to develop these recommendations. The task force shall include two nonexecutive branch 
244.9 	or nonlegislative branch representatives from the council; six representatives from the early 
244.10 	childhood caucus; two representatives each from the Departments of Education, Human 
244.11 	Services, and Health; one representative each from a local public health agency, a local 
244.12 	county human services agency, and a school district; and two representatives from the 
244.13 	private nonprofit organizations that support early childhood programs in Minnesota. In 
244.14 	developing recommendations in coordination with existing efforts of the council, the task 
244.15 	force shall consider how to:
244.16 	(i) consolidate and coordinate resources and public funding streams for early childhood 
244.17 	education and child care, and ensure the accountability and coordinated development of all 
244.18 	early childhood education and child care services to children from birth to kindergarten 
244.19 	entrance;
244.20 	(ii) create a seamless transition from early childhood programs to kindergarten;
244.21 	(iii) encourage family choice by ensuring a mixed system of high-quality public and 
244.22 	private programs, with local points of entry, staffed by well-qualified professionals;
244.23 	(iv) ensure parents a decisive role in the planning, operation, and evaluation of programs 
244.24 	that aid families in the care of children;
244.25 	(v) provide consumer education and accessibility to early childhood education and child 
244.26 	care resources;
244.27 	(vi) advance the quality of early childhood education and child care programs in order 
244.28 	to support the healthy development of children and preparation for their success in school;
244.29 	(vii) develop a seamless service delivery system with local points of entry for early 
244.30 	childhood education and child care programs administered by local, state, and federal 
244.31 	agencies;
245.1 	(viii) ensure effective collaboration between state and local child welfare programs and 
245.2 	early childhood mental health programs and the Office of Early Learning;
245.3 	(ix) develop and manage an effective data collection system to support the necessary 
245.4 	functions of a coordinated system of early childhood education and child care in order to 
245.5 	enable accurate evaluation of its impact;
245.6 	(x) respect and be sensitive to family values and cultural heritage; and
245.7 	(xi) establish the administrative framework for and promote the development of early 
245.8 	childhood education and child care services in order to provide that these services, staffed 
245.9 	by well-qualified professionals, are available in every community for all families that express 
245.10 	a need for them.
245.11 	In addition, the task force must consider the following responsibilities for transfer to the 
245.12 	Office of Early Learning:
245.13 	(A) responsibilities of the commissioner of education for early childhood education 
245.14 	programs and financing under sections 119A.50 to 119A.535, 121A.16 to 121A.19, and 
245.15 	124D.129 to 124D.2211;
245.16 	(B) responsibilities of the commissioner of human services for child care assistance, 
245.17 	child care development, and early childhood learning and child protection facilities programs 
245.18 	and financing under chapter 119B and section 256E.37; and
245.19 	(C) responsibilities of the commissioner of health for family home visiting programs 
245.20 	and financing under section 145A.17.
245.21 	Any costs incurred by the council in making these recommendations must be paid from 
245.22 	private funds. If no private funds are received, the council must not proceed in making these 
245.23 	recommendations. The council must report its recommendations to the governor and the 
245.24 	legislature by January 15, 2011;
245.25 	(3) (2) review program evaluations regarding high-quality early childhood programs;
245.26 	(4) (3) make recommendations to the governor and legislature, including proposed 
245.27 	legislation on how to most effectively create a high-quality early childhood system in 
245.28 	Minnesota in order to improve the educational outcomes of children so that all children are 
245.29 	school-ready by 2020 have the opportunities and experiences to support a successful transition 
245.30 	to kindergarten; and
245.31 	(5) make recommendations to the governor and the legislature by March 1, 2011, on the 
245.32 	creation and implementation of a statewide school readiness report card to monitor progress 
246.1 	toward the goal of having all children ready for kindergarten by the year 2020. The 
246.2 	recommendations shall include what should be measured including both children and system 
246.3 	indicators, what benchmarks should be established to measure state progress toward the 
246.4 	goal, and how frequently the report card should be published. In making their 
246.5 	recommendations, the council shall consider the indicators and strategies for Minnesota's 
246.6 	early childhood system report, the Minnesota school readiness study, developmental 
246.7 	assessment at kindergarten entrance, and the work of the council's accountability committee. 
246.8 	Any costs incurred by the council in making these recommendations must be paid from 
246.9 	private funds. If no private funds are received, the council must not proceed in making these 
246.10 	recommendations; and
246.11 	(6) make recommendations to the governor and the legislature on how to screen earlier 
246.12 	and comprehensively assess children for school readiness in order to provide increased early 
246.13 	interventions and increase the number of children ready for kindergarten. In formulating 
246.14 	their recommendations, the council shall consider (i) ways to interface with parents of 
246.15 	children who are not participating in early childhood education or care programs, (ii) ways 
246.16 	to interface with family child care providers, child care centers, and school-based early 
246.17 	childhood and Head Start programs, (iii) if there are age-appropriate and culturally sensitive 
246.18 	screening and assessment tools for three-, four-, and five-year-olds, (iv) the role of the 
246.19 	medical community in screening, (v) incentives for parents to have children screened at an 
246.20 	earlier age, (vi) incentives for early education and care providers to comprehensively assess 
246.21 	children in order to improve instructional practice, (vii) how to phase in increases in screening 
246.22 	and assessment over time, (viii) how the screening and assessment data will be collected 
246.23 	and used and who will have access to the data, (ix) how to monitor progress toward the goal 
246.24 	of having 50 percent of three-year-old children screened and 50 percent of entering 
246.25 	kindergarteners assessed for school readiness by 2015 and 100 percent of three-year-old 
246.26 	children screened and entering kindergarteners assessed for school readiness by 2020, and 
246.27 	(x) costs to meet these benchmarks. The council shall consider the screening instruments 
246.28 	and comprehensive assessment tools used in Minnesota early childhood education and care 
246.29 	programs and kindergarten. The council may survey early childhood education and care 
246.30 	programs in the state to determine the screening and assessment tools being used or rely on 
246.31 	previously collected survey data, if available. For purposes of this subdivision, "school 
246.32 	readiness" is defined as the child's skills, knowledge, and behaviors at kindergarten entrance 
246.33 	in these areas of child development: social; self-regulation; cognitive, including language, 
246.34 	literacy, and mathematical thinking; and physical. For purposes of this subdivision, 
246.35 	"screening" is defined as the activities used to identify a child who may need further 
246.36 	evaluation to determine delay in development or disability. For purposes of this subdivision, 
247.1 	"assessment" is defined as the activities used to determine a child's level of performance in 
247.2 	order to promote the child's learning and development. Work on this duty will begin in 
247.3 	fiscal year 2012. Any costs incurred by the council in making these recommendations must 
247.4 	be paid from private funds. If no private funds are received, the council must not proceed 
247.5 	in making these recommendations. The council must report its recommendations to the 
247.6 	governor and legislature by January 15, 2013, with an interim report on February 15, 2011.
247.7 	(4) review and provide input on the recommendations and implementation timelines 
247.8 	developed by the Great Start For All Minnesota Children Task Force under Laws 2021, 
247.9 	First Special Session chapter 7, article 14, section 18, subdivision 2.

247.10 	Sec. 11. Minnesota Statutes 2022, section 124D.162, is amended to read:
247.11 	124D.162 KINDERGARTEN READINESS ENTRY ASSESSMENT.
247.12 		Subdivision 1.Assessment required. The commissioner of education may must
247.13 	implement a kindergarten readiness entry assessment representative of incoming 
247.14 	kindergartners to identify the percent of kindergartners who meet or exceed end-of-year 
247.15 	prekindergarten early learning standards. The assessment must be based on the Department 
247.16 	of Education Kindergarten Readiness Assessment at kindergarten entrance study.
247.17 		Subd. 2.Process. (a) School districts and charter schools must choose a kindergarten 
247.18 	entry assessment tool from a menu of valid and reliable measurement instruments approved 
247.19 	by the department that:
247.20 	(1) are aligned to the state early childhood indicators of progress and kindergarten 
247.21 	standards and are based on the criteria to be an early learning assessment approved by the 
247.22 	department;
247.23 	(2) support the world's best workforce goals in section 120B.11, subdivision 1, paragraph 
247.24 	(c); and
247.25 	(3) are based, in part, on information collected from teachers, early learning professionals, 
247.26 	families, and other partners.
247.27 	(b) The department must provide technical assistance and professional development 
247.28 	related to the assessment required under this section to educators, school districts, and charter 
247.29 	schools.
247.30 		Subd. 3.Reporting. School districts and charter schools must annually report the results 
247.31 	of kindergarten entry assessments to the department in a form and manner determined by 
247.32 	the commissioner that is concurrent with a district's and charter school's world's best 
248.1 	workforce report under section 120B.11, subdivision 5. The commissioner must publicly 
248.2 	report kindergarten readiness results as part of the performance reports required under 
248.3 	section 120B.36 and in a manner consistent with section 120B.35, subdivision 3, paragraph 
248.4 	(a), clause (2).
248.5 		Subd. 4.Implementation. The requirements under this section must be phased in over 
248.6 	three school years with all school districts and charter schools complying beginning with 
248.7 	the 2025-2026 school year.

248.8 	Sec. 12. Minnesota Statutes 2022, section 124D.165, subdivision 2, is amended to read:
248.9 		Subd. 2.Family eligibility. (a) For a family to receive an early learning scholarship, 
248.10 	parents or guardians must have an eligible child and meet at least one of the following 
248.11 	eligibility requirements:
248.12 	(1) have an eligible child; and
248.13 	(2) (1) have income equal to or less than 185 percent of federal poverty level income
248.14 	the at-application rate specified in section 119B.09, subdivision 1, paragraph (a), clause (2),
248.15 	in the current calendar year, or;
248.16 	(2) be able to document their child's current participation in the free and reduced-price 
248.17 	lunch meal program or Child and Adult Care Food Program, National School Lunch Act, 
248.18 	United States Code, title 42, sections 1751 and 1766; the Food Distribution Program on 
248.19 	Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections 2011-2036; 
248.20 	Head Start under the federal Improving Head Start for School Readiness Act of 2007; 
248.21 	Minnesota family investment program under chapter 256J; child care assistance programs 
248.22 	under chapter 119B; the supplemental nutrition assistance program; or placement
248.23 	(3) have a child referred as in need of child protection services or placed in foster care 
248.24 	under section 260C.212.
248.25 	(b) An "eligible child" means a child who has not yet enrolled in kindergarten and is:
248.26 	(1) at least three but not yet five years of age on September 1 of the current school year;.
248.27 	(2) a sibling from birth to age five of a child who has been awarded a scholarship under 
248.28 	this section provided the sibling attends the same program as long as funds are available;
248.29 	(3) the child of a parent under age 21 who is pursuing a high school degree or a course 
248.30 	of study for a high school equivalency test; or
248.31 	(4) homeless, in foster care, or in need of child protective services.
249.1 	(c) A child who has received a scholarship under this section must continue to receive 
249.2 	a scholarship each year until that child is eligible for kindergarten under section 120A.20 
249.3 	and as long as funds are available.
249.4 	(d) Early learning scholarships may not be counted as earned income for the purposes 
249.5 	of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota 
249.6 	family investment program under chapter 256J, child care assistance programs under chapter 
249.7 	119B, or Head Start under the federal Improving Head Start for School Readiness Act of 
249.8 	2007.
249.9 	(e) A child from an adjoining state whose family resides at a Minnesota address as 
249.10 	assigned by the United States Postal Service, who has received developmental screening 
249.11 	under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district, 
249.12 	and whose family meets the criteria of paragraph (a) is eligible for an early learning 
249.13 	scholarship under this section.

249.14 	EFFECTIVE DATE. This section is effective July 1, 2024.

249.15 	Sec. 13. Minnesota Statutes 2022, section 124D.165, subdivision 3, is amended to read:
249.16 		Subd. 3.Administration. (a) The commissioner shall establish application timelines 
249.17 	and determine the schedule for awarding scholarships that meets operational needs of eligible 
249.18 	families and programs. The commissioner must give highest priority to applications from 
249.19 	children who:
249.20 	(1) are not yet four years of age;
249.21 	(1) (2) have a parent under age 21 who is pursuing a high school diploma or a course of 
249.22 	study for a high school equivalency test;
249.23 	(2) (3) are in foster care or otherwise;
249.24 	(4) have been referred as in need of child protection or services; or
249.25 	(5) have an incarcerated parent;
249.26 	(6) have a parent in a substance use treatment program;
249.27 	(7) have a parent in a mental health treatment program;
249.28 	(8) have experienced domestic violence; or
249.29 	(3) (9) have experienced homelessness in the last 24 months, as defined under the federal 
249.30 	McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 11434a.
250.1 	(b) The commissioner may prioritize applications on additional factors including family 
250.2 	income, geographic location, and whether the child's family is on a waiting list for a publicly 
250.3 	funded program providing early education or child care services.
250.4 	(b) (c) The commissioner shall establish a target for the average scholarship amount per 
250.5 	childschedule of tiered per-child scholarship amounts based on the results of the rate survey 
250.6 	conducted under section 119B.02, subdivision 7, the cost of providing high-quality early 
250.7 	care and learning to children in varying circumstances, a family's income, and geographic 
250.8 	location. For programs that earn a four-star rating under section 124D.142, amounts must 
250.9 	be no less than the cost to provide full-time care at the 75th percentile of the most recent 
250.10 	market rate survey.
250.11 	(c) (d) A four-star rated program that has children eligible for a scholarship enrolled in 
250.12 	or on a waiting list for a program beginning in July, August, or September may notify the 
250.13 	commissioner, in the form and manner prescribed by the commissioner, each year of the 
250.14 	program's desire to enhance program services or to serve more children than current funding 
250.15 	provides. The commissioner may designate a predetermined number of scholarship slots 
250.16 	for that program and notify the program of that number. For fiscal year 2018 and later, the 
250.17 	statewide amount of funding directly designated by the commissioner must not exceed the 
250.18 	funding directly designated for fiscal year 2017. Beginning July 1, 2016, a school district 
250.19 	or Head Start program qualifying under this paragraph may use its established registration 
250.20 	process to enroll scholarship recipients and may verify a scholarship recipient's family 
250.21 	income in the same manner as for other program participants.
250.22 	(d) (e) A scholarship is awarded for a 12-month period. If the scholarship recipient has 
250.23 	not been accepted and subsequently enrolled in a rated program within ten three months of 
250.24 	the awarding of the scholarship, the scholarship cancels and the recipient must reapply in 
250.25 	order to be eligible for another scholarship. An extension may be requested if a program is 
250.26 	unavailable for the child within the three-month timeline. A child may not be awarded more 
250.27 	than one scholarship in a 12-month period.
250.28 	(e) (f) A child who receives a scholarship who has not completed development screening 
250.29 	under sections 121A.16 to 121A.19 must complete that screening within 90 days of first 
250.30 	attending an eligible program or within 90 days after the child's third birthday if awarded 
250.31 	a scholarship under the age of three.
250.32 	(f) (g) For fiscal year 2017 and later, a school district or Head Start program enrolling 
250.33 	scholarship recipients under paragraph (c) may apply to the commissioner, in the form and 
250.34 	manner prescribed by the commissioner, for direct payment of state aid. Upon receipt of 
251.1 	the application, the commissioner must pay each program directly for each approved 
251.2 	scholarship recipient enrolled under paragraph (c) according to the metered payment system 
251.3 	or another schedule established by the commissioner.

251.4 	EFFECTIVE DATE. This section is effective July 1, 2024.

251.5 	Sec. 14. Minnesota Statutes 2022, section 124D.165, subdivision 4, is amended to read:
251.6 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept an 
251.7 	early learning scholarship, a program must:
251.8 	(1) participate in the quality rating and improvement system under section 124D.142; 
251.9 	and.
251.10 	(2) beginning July 1, 2024, have a three- or four-star rating in the quality rating and 
251.11 	improvement system.
251.12 	(b) Any program accepting scholarships must use the revenue to supplement and not 
251.13 	supplant federal funding.

251.14 	Sec. 15. Minnesota Statutes 2022, section 124D.165, subdivision 6, is amended to read:
251.15 		Subd. 6.Early learning scholarship account. (a) An account is established in the 
251.16 	special revenue fund known as the "early learning scholarship account."
251.17 	(b) Funds appropriated for early learning scholarships under this section must be 
251.18 	transferred to the early learning scholarship account in the special revenue fund.
251.19 	(c) Money in the account is annually appropriated to the commissioner for early learning 
251.20 	scholarships under this section. Any returned funds are available to be regranted.
251.21 	(d) Up to $950,000 $2,133,000 annually is appropriated to the commissioner for costs 
251.22 	associated with administering and monitoring early learning scholarships.
251.23 	(e) The commissioner may use funds under paragraph (c) for the purpose of family 
251.24 	outreach and distribution of scholarships.

251.25 	Sec. 16. Minnesota Statutes 2022, section 125A.13, is amended to read:
251.26 	125A.13 SCHOOL OF PARENTS' CHOICE.
251.27 	(a) Nothing in this chapter must be construed as preventing parents of a child with a 
251.28 	disability from sending the child to a school of their choice, if they so elect, subject to 
251.29 	admission standards and policies adopted according to sections 125A.62 to 125A.64 and 
251.30 	125A.66 to 125A.73, and all other provisions of chapters 120A to 129C.
252.1 	(b) The parent of a student with a disability not yet enrolled in kindergarten and not open 
252.2 	enrolled in a nonresident district may request that the resident district enter into a tuition 
252.3 	agreement with elect, in the same manner as the parent of a resident student with a disability, 
252.4 	a school in the nonresident district if:
252.5 	(1) where the child is enrolled in a Head Start program or a licensed child care setting 
252.6 	in the nonresident district; and, provided
252.7 	(2) the child can be served in the same setting as other children in the nonresident district 
252.8 	with the same level of disability.

252.9 	Sec. 17. Minnesota Statutes 2022, section 179A.03, subdivision 18, is amended to read:
252.10 		Subd. 18.Teacher. "Teacher" means any public employee other than a superintendent 
252.11 	or assistant superintendent, principal, assistant principal, or a supervisory or confidential 
252.12 	employee, employed by a school district:
252.13 	(1) in a position for which the person must be licensed by the Professional Educator 
252.14 	Licensing and Standards Board or the commissioner of education; or
252.15 	(2) in a position as a physical therapist, occupational therapist, art therapist, music 
252.16 	therapist, or audiologist.; or
252.17 	(3) in a position providing instruction to children in a preschool, school readiness, school 
252.18 	readiness plus, or prekindergarten program or other school district or charter school-based 
252.19 	early education program, except that an employee in a bargaining unit certified before 
252.20 	January 1, 2023, may remain in a bargaining unit that does not include teachers unless an 
252.21 	exclusive representative files a petition for a unit clarification or to transfer exclusive 
252.22 	representative status.

252.23 	Sec. 18. APPROPRIATIONS GIVEN EFFECT ONCE.
 252.24 	If an appropriation or transfer in this article is enacted more than once during the 2023 
252.25 	regular session, the appropriation or transfer must be given effect once.

APPENDIX 

Repealed Minnesota Statutes: H0238-1 

119B.011 DEFINITIONS.Subd. 10a.Diversionary work program. 
"Diversionary work program" means the program established under section 256J.95. 

119B.03 BASIC SLIDING FEE PROGRAM.Subd. 4.Funding priority. 
(a) First priority for child care assistance under the basic sliding fee program must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used: 

(1) child care needs of minor parents; 

(2) child care needs of parents under 21 years of age; and 

(3) child care needs of other parents within the priority group described in this paragraph. 

(b) Second priority must be given to parents who have completed their MFIP or DWP transition year, or parents who are no longer receiving or eligible for diversionary work program supports. 

(c) Third priority must be given to families who are eligible for portable basic sliding fee assistance through the portability pool under subdivision 9. 

(d) Fourth priority must be given to families in which at least one parent is a veteran as defined under section 197.447. 

(e) Families under paragraph (b) must be added to the basic sliding fee waiting list on the date they begin the transition year under section 119B.011, subdivision 20, and must be moved into the basic sliding fee program as soon as possible after they complete their transition year. 

245C.11 BACKGROUND STUDY; COUNTY AGENCIES.Subd. 3.Criminal history data. 
County agencies shall have access to the criminal history data in the same manner as county licensing agencies under this chapter for purposes of background studies completed before the implementation of NETStudy 2.0 by county agencies on legal nonlicensed child care providers to determine eligibility for child care funds under chapter 119B. 

256.8799 SUPPLEMENTAL NUTRITION ASSISTANCE OUTREACH PROGRAM.Subdivision 1.Establishment. 
The commissioner of human services shall establish, in consultation with the representatives from community action agencies, a statewide outreach program to better inform potential recipients of the existence and availability of Supplemental Nutrition Assistance Program (SNAP) benefits under SNAP. As part of the outreach program, the commissioner and community action agencies shall encourage recipients in the use of SNAP benefits at food cooperatives. The commissioner shall explore and pursue federal funding sources, and specifically, apply for funding from the United States Department of Agriculture for the SNAP outreach program. 

Subd. 2.Administration of the program. 
A community association representing community action agencies under section 256E.31, in consultation with the commissioner shall administer the outreach program, issue the request for proposals, and review and approve the potential grantee's plan. Grantees shall comply with the monitoring and reporting requirements as developed by the commissioner in accordance with subdivision 4, and must also participate in the evaluation process as directed by the commissioner. Grantees must successfully complete one year of outreach and demonstrate compliance with all monitoring and reporting requirements in order to be eligible for additional funding. 

Subd. 3.Plan content. 
In approving the plan, the association shall evaluate the plan and give highest priority to a plan that: 

(1) targets communities in which 50 percent or fewer of the residents with incomes below 125 percent of the poverty level receive SNAP benefits; 

(2) demonstrates that the grantee has the experience necessary to administer the program; 

(3) demonstrates a cooperative relationship with the local county social service agencies; 

(4) provides ways to improve the dissemination of information on SNAP as well as other assistance programs through a statewide hotline or other community agencies; 

(5) provides direct advocacy consisting of face-to-face assistance with the potential applicants; 

(6) improves access to SNAP by documenting barriers to participation and advocating for changes in the administrative structure of the program; and 

(7) develops strategies for combatting community stereotypes about SNAP benefit recipients and SNAP, misinformation about the program, and the stigma associated with using SNAP benefits. 

Subd. 4.Coordinated development. 
The commissioner shall consult with representatives from the United States Department of Agriculture, Minnesota Community Action Association, Food First Coalition, Minnesota Department of Human Services, Urban Coalition/University of Minnesota extension services, county social service agencies, local social service agencies, and organizations that have previously administered the state-funded SNAP outreach programs to: 

(1) develop the reporting requirements for the program; 

(2) develop and implement the monitoring of the program; 

(3) develop, coordinate, and assist in the evaluation process; and 

(4) provide an interim report to the legislature by January 1997, and a final report to the legislature by January 1998, which includes the results of the evaluation and recommendations. 

256.9864 REPORTS BY RECIPIENT.
(a) An assistance unit with a recent work history or with earned income shall report monthly to the county agency on income received and other circumstances affecting eligibility or assistance amounts. All other assistance units shall report on income and other circumstances affecting eligibility and assistance amounts, as specified by the state agency. 

(b) An assistance unit required to submit a report on the form designated by the commissioner and within ten days of the due date or the date of the significant change, whichever is later, or otherwise report significant changes which would affect eligibility or assistance amounts, is considered to have continued its application for assistance effective the date the required report is received by the county agency, if a complete report is received within a calendar month in which assistance was received. 

256D.63 EXPIRATION OF SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS AND REPORTING REQUIREMENTS.Subdivision 1.Expiration of SNAP benefits. 
Supplemental Nutrition Assistance Program (SNAP) benefits shall not be stored off line or expunged from a recipient's account unless the benefits have not been accessed for 12 months after the month they were issued. 

256J.08 DEFINITIONS.Subd. 10.Budget month. 
"Budget month" means the calendar month which the county agency uses to determine the income or circumstances of an assistance unit to calculate the amount of the assistance payment in the payment month. 

Subd. 24b.Diversionary work program or DWP. 
"Diversionary work program" or "DWP" has the meaning given in section 256J.95. 

Subd. 53.Lump sum. 
"Lump sum" means nonrecurring income as described in section 256P.06, subdivision 3, clause (2), item (ix). 

Subd. 61.Monthly income test. 
"Monthly income test" means the test used to determine ongoing eligibility and the assistance payment amount according to section 256J.21. 

Subd. 62.Nonrecurring income. 
"Nonrecurring income" means a form of income which is received: 

(1) only one time or is not of a continuous nature; or 

(2) in a prospective payment month but is no longer received in the corresponding retrospective payment month. 

Subd. 81.Retrospective budgeting. 
"Retrospective budgeting" means a method of determining the amount of the assistance payment in which the payment month is the second month after the budget month. 

Subd. 83.Significant change. 
"Significant change" means a decline in gross income of the amount of the disregard as defined in section 256P.03 or more from the income used to determine the grant for the current month. 

256J.30 APPLICANT AND PARTICIPANT REQUIREMENTS AND RESPONSIBILITIES.Subd. 5.Monthly MFIP household reports. 
Each assistance unit with a member who has earned income or a recent work history, and each assistance unit that has income deemed to it from a financially responsible person must complete a monthly MFIP household report form. "Recent work history" means the individual received earned income in the report month or any of the previous three calendar months even if the earnings are excluded. To be complete, the MFIP household report form must be signed and dated by the caregivers no earlier than the last day of the reporting period. All questions required to determine assistance payment eligibility must be answered, and documentation of earned income must be included. 

Subd. 7.Due date of MFIP household report form. 
An MFIP household report form must be received by the county agency by the eighth calendar day of the month following the reporting period covered by the form. When the eighth calendar day of the month falls on a weekend or holiday, the MFIP household report form must be received by the county agency the first working day that follows the eighth calendar day. 

Subd. 8.Late MFIP household report forms. 
(a) Paragraphs (b) to (e) apply to the reporting requirements in subdivision 7. 

(b) When the county agency receives an incomplete MFIP household report form, the county agency must immediately contact the caregiver by phone or in writing to acquire the necessary information to complete the form. 

(c) The automated eligibility system must send a notice of proposed termination of assistance to the assistance unit if a complete MFIP household report form is not received by a county agency. The automated notice must be mailed to the caregiver by approximately the 16th of the month. When a caregiver submits an incomplete form on or after the date a notice of proposed termination has been sent, the termination is valid unless the caregiver submits a complete form before the end of the month. 

(d) An assistance unit required to submit an MFIP household report form is considered to have continued its application for assistance if a complete MFIP household report form is received within a calendar month after the month in which the form was due and assistance shall be paid for the period beginning with the first day of that calendar month. 

(e) A county agency must allow good cause exemptions from the reporting requirements under subdivision 5 when any of the following factors cause a caregiver to fail to provide the county agency with a completed MFIP household report form before the end of the month in which the form is due: 

(1) an employer delays completion of employment verification; 

(2) a county agency does not help a caregiver complete the MFIP household report form when the caregiver asks for help; 

(3) a caregiver does not receive an MFIP household report form due to mistake on the part of the department or the county agency or due to a reported change in address; 

(4) a caregiver is ill, or physically or mentally incapacitated; or 

(5) some other circumstance occurs that a caregiver could not avoid with reasonable care which prevents the caregiver from providing a completed MFIP household report form before the end of the month in which the form is due. 

256J.33 PROSPECTIVE AND RETROSPECTIVE MFIP ELIGIBILITY.Subd. 3.Retrospective eligibility. 
After the first two months of MFIP eligibility, a county agency must continue to determine whether an assistance unit is prospectively eligible for the payment month by looking at all factors other than income and then determine whether the assistance unit is retrospectively income eligible by applying the monthly income test to the income from the budget month. When the monthly income test is not satisfied, the assistance payment must be suspended when ineligibility exists for one month or ended when ineligibility exists for more than one month. 

Subd. 4.Monthly income test. 
A county agency must apply the monthly income test retrospectively for each month of MFIP eligibility. An assistance unit is not eligible when the countable income equals or exceeds the MFIP standard of need or the family wage level for the assistance unit. The income applied against the monthly income test must include: 

(1) gross earned income from employment as described in chapter 256P, prior to mandatory payroll deductions, voluntary payroll deductions, wage authorizations, and after the disregards in section 256J.21, subdivision 4, and the allocations in section 256J.36; 

(2) gross earned income from self-employment less deductions for self-employment expenses in section 256J.37, subdivision 5, but prior to any reductions for personal or business state and federal income taxes, personal FICA, personal health and life insurance, and after the disregards in section 256J.21, subdivision 4, and the allocations in section 256J.36; 

(3) unearned income as described in section 256P.06, subdivision 3, after deductions for allowable expenses in section 256J.37, subdivision 9, and allocations in section 256J.36; 

(4) gross earned income from employment as determined under clause (1) which is received by a member of an assistance unit who is a minor child or minor caregiver and less than a half-time student; 

(5) child support received by an assistance unit, excluded under section 256P.06, subdivision 3, clause (2), item (xvi); 

(6) spousal support received by an assistance unit; 

(7) the income of a parent when that parent is not included in the assistance unit; 

(8) the income of an eligible relative and spouse who seek to be included in the assistance unit; and 

(9) the unearned income of a minor child included in the assistance unit. 

Subd. 5.When to terminate assistance. 
When an assistance unit is ineligible for MFIP assistance for two consecutive months, the county agency must terminate MFIP assistance. 

256J.34 CALCULATING ASSISTANCE PAYMENTS.Subdivision 1.Prospective budgeting. 
A county agency must use prospective budgeting to calculate the assistance payment amount for the first two months for an applicant who has not received assistance in this state for at least one payment month preceding the first month of payment under a current application. Notwithstanding subdivision 3, paragraph (a), clause (2), a county agency must use prospective budgeting for the first two months for a person who applies to be added to an assistance unit. Prospective budgeting is not subject to overpayments or underpayments unless fraud is determined under section 256.98. 

(a) The county agency must apply the income received or anticipated in the first month of MFIP eligibility against the need of the first month. The county agency must apply the income received or anticipated in the second month against the need of the second month. 

(b) When the assistance payment for any part of the first two months is based on anticipated income, the county agency must base the initial assistance payment amount on the information available at the time the initial assistance payment is made. 

(c) The county agency must determine the assistance payment amount for the first two months of MFIP eligibility by budgeting both recurring and nonrecurring income for those two months. 

Subd. 2.Retrospective budgeting. 
The county agency must use retrospective budgeting to calculate the monthly assistance payment amount after the payment for the first two months has been made under subdivision 1. 

Subd. 3.Additional uses of retrospective budgeting. 
Notwithstanding subdivision 1, the county agency must use retrospective budgeting to calculate the monthly assistance payment amount for the first two months under paragraphs (a) and (b). 

(a) The county agency must use retrospective budgeting to determine the amount of the assistance payment in the first two months of MFIP eligibility: 

(1) when an assistance unit applies for assistance for the same month for which assistance has been interrupted, the interruption in eligibility is less than one payment month, the assistance payment for the preceding month was issued in this state, and the assistance payment for the immediately preceding month was determined retrospectively; or 

(2) when a person applies in order to be added to an assistance unit, that assistance unit has received assistance in this state for at least the two preceding months, and that person has been living with and has been financially responsible for one or more members of that assistance unit for at least the two preceding months. 

(b) Except as provided in clauses (1) to (4), the county agency must use retrospective budgeting and apply income received in the budget month by an assistance unit and by a financially responsible household member who is not included in the assistance unit against the MFIP standard of need or family wage level to determine the assistance payment to be issued for the payment month. 

(1) When a source of income ends prior to the third payment month, that income is not considered in calculating the assistance payment for that month. When a source of income ends prior to the fourth payment month, that income is not considered when determining the assistance payment for that month. 

(2) When a member of an assistance unit or a financially responsible household member leaves the household of the assistance unit, the income of that departed household member is not budgeted retrospectively for any full payment month in which that household member does not live with that household and is not included in the assistance unit. 

(3) When an individual is removed from an assistance unit because the individual is no longer a minor child, the income of that individual is not budgeted retrospectively for payment months in which that individual is not a member of the assistance unit, except that income of an ineligible child in the household must continue to be budgeted retrospectively against the child's needs when the parent or parents of that child request allocation of their income against any unmet needs of that ineligible child. 

(4) When a person ceases to have financial responsibility for one or more members of an assistance unit, the income of that person is not budgeted retrospectively for the payment months which follow the month in which financial responsibility ends. 

Subd. 4.Significant change in gross income. 
The county agency must recalculate the assistance payment when an assistance unit experiences a significant change, as defined in section 256J.08, resulting in a reduction in the gross income received in the payment month from the gross income received in the budget month. The county agency must issue a supplemental assistance payment based on the county agency's best estimate of the assistance unit's income and circumstances for the payment month. Supplemental assistance payments that result from significant changes are limited to two in a 12-month period regardless of the reason for the change. Notwithstanding any other statute or rule of law, supplementary assistance payments shall not be made when the significant change in income is the result of receipt of a lump sum, receipt of an extra paycheck, business fluctuation in self-employment income, or an assistance unit member's participation in a strike or other labor action. 

256J.37 TREATMENT OF INCOME AND LUMP SUMS.Subd. 10.Treatment of lump sums. 
(a) The agency must treat lump-sum payments as earned or unearned income. If the lump-sum payment is included in the category of income identified in subdivision 9, it must be treated as unearned income. A lump sum is counted as income in the month received and budgeted either prospectively or retrospectively depending on the budget cycle at the time of receipt. When an individual receives a lump-sum payment, that lump sum must be combined with all other earned and unearned income received in the same budget month, and it must be applied according to paragraphs (a) to (c). A lump sum may not be carried over into subsequent months. Any funds that remain in the third month after the month of receipt are counted in the asset limit. 

(b) For a lump sum received by an applicant during the first two months, prospective budgeting is used to determine the payment and the lump sum must be combined with other earned or unearned income received and budgeted in that prospective month. 

(c) For a lump sum received by a participant after the first two months of MFIP eligibility, the lump sum must be combined with other income received in that budget month, and the combined amount must be applied retrospectively against the applicable payment month. 

(d) When a lump sum, combined with other income under paragraphs (b) and (c), is less than the MFIP transitional standard for the appropriate payment month, the assistance payment must be reduced according to the amount of the countable income. When the countable income is greater than the MFIP standard or family wage level, the assistance payment must be suspended for the payment month. 

256J.425 HARDSHIP EXTENSIONS.Subd. 6.Sanctions for extended cases. 
(a) If one or both participants in an assistance unit receiving assistance under subdivision 3 or 4 are not in compliance with the employment and training service requirements in sections 256J.521 to 256J.57, the sanctions under this subdivision apply. For a first occurrence of noncompliance, an assistance unit must be sanctioned under section 256J.46, subdivision 1, paragraph (c), clause (1). For a second or third occurrence of noncompliance, the assistance unit must be sanctioned under section 256J.46, subdivision 1, paragraph (c), clause (2). For a fourth occurrence of noncompliance, the assistance unit is disqualified from MFIP. If a participant is determined to be out of compliance, the participant may claim a good cause exception under section 256J.57. 

(b) If both participants in a two-parent assistance unit are out of compliance at the same time, it is considered one occurrence of noncompliance. 

(c) When a parent in an extended two-parent assistance unit who has not used 60 months of assistance is out of compliance with the employment and training service requirements in sections 256J.521 to 256J.57, sanctions must be applied as specified in clauses (1) and (2). 

(1) If the assistance unit is receiving assistance under subdivision 3 or 4, the assistance unit is subject to the sanction policy in this subdivision. 

(2) If the assistance unit is receiving assistance under subdivision 2, the assistance unit is subject to the sanction policy in section 256J.46. 

(d) If a two-parent assistance unit is extended under subdivision 3 or 4, and a parent who has not reached the 60-month time limit is out of compliance with the employment and training services requirements in sections 256J.521 to 256J.57 when the case is extended, the sanction in the 61st month is considered the first sanction for the purposes of applying the sanctions in this subdivision, except that the sanction amount shall be 30 percent. 

256J.95 DIVERSIONARY WORK PROGRAM.Subdivision 1.Establishing a diversionary work program (DWP). 
(a) The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, establishes block grants to states for temporary assistance for needy families (TANF). TANF provisions allow states to use TANF dollars for nonrecurrent, short-term diversionary benefits. The diversionary work program established on July 1, 2003, is Minnesota's TANF program to provide short-term diversionary benefits to eligible recipients of the diversionary work program. 

(b) The goal of the diversionary work program is to provide short-term, necessary services and supports to families which will lead to unsubsidized employment, increase economic stability, and reduce the risk of those families needing longer term assistance, under the Minnesota family investment program (MFIP). 

(c) When a family unit meets the eligibility criteria in this section, the family must receive a diversionary work program grant and is not eligible for MFIP. 

(d) A family unit is eligible for the diversionary work program for a maximum of four consecutive months. During the four consecutive months, family maintenance needs as defined in subdivision 2, shall be vendor paid, up to the cash portion of the MFIP standard of need for the same size household. To the extent there is a balance available between the amount paid for family maintenance needs and the cash portion of the transitional standard, a personal needs allowance of up to $70 per DWP recipient in the family unit shall be issued. The personal needs allowance payment plus the family maintenance needs shall not exceed the cash portion of the MFIP standard of need. Counties may provide supportive and other allowable services funded by the MFIP consolidated fund under section 256J.626 to eligible participants during the four-month diversionary period. 

Subd. 2.Definitions. 
The terms used in this section have the following meanings. 

(a) "Diversionary Work Program (DWP)" means the program established under this section. 

(b) "Employment plan" means a plan developed by the job counselor and the participant which identifies the participant's most direct path to unsubsidized employment, lists the specific steps that the caregiver will take on that path, and includes a timetable for the completion of each step. For participants who request and qualify for a family violence waiver in section 256J.521, subdivision 3, an employment plan must be developed by the job counselor, the participant, and a person trained in domestic violence and follow the employment plan provisions in section 256J.521, subdivision 3. Employment plans under this section shall be written for a period of time not to exceed four months. 

(c) "Employment services" means programs, activities, and services in this section that are designed to assist participants in obtaining and retaining employment. 

(d) "Family maintenance needs" means current housing costs including rent; manufactured home lot rental costs, or monthly principal, interest, insurance premiums, and property taxes due for mortgages or contracts for deed; association fees required for homeownership; utility costs for current month expenses of gas and electric, garbage, water and sewer; and a flat rate of $35 for telephone services. 

(e) "Family unit" means a group of people applying for or receiving DWP benefits together. For the purposes of determining eligibility for this program, the composition of the family unit is determined according to section 256J.24, subdivisions 1 to 4. 

(f) "Minnesota family investment program (MFIP)" means the assistance program as defined in section 256J.08, subdivision 57. 

(g) "Personal needs allowance" means an allowance of up to $70 per month per DWP unit member to pay for expenses such as household products and personal products. 

(h) "Work activities" means allowable work activities as defined in section 256J.49, subdivision 13. 

(i) "Caregiver" means the caregiver as defined in section 256J.08, subdivision 11. 

Subd. 3.Eligibility for diversionary work program. 
(a) Except for the categories of family units listed in clauses (1) to (8), all family units who apply for cash benefits and who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must participate in the diversionary work program. Family units or individuals that are not eligible for the diversionary work program include: 

(1) child only cases; 

(2) single-parent family units that include a child under 12 months of age. A parent is eligible for this exception once in a parent's lifetime; 

(3) family units with a minor parent without a high school diploma or its equivalent; 

(4) family units with an 18- or 19-year-old caregiver without a high school diploma or its equivalent who chooses to have an employment plan with an education option; 

(5) family units with a caregiver who received DWP benefits within the 12 months prior to the month the family applied for DWP, except as provided in paragraph (c); 

(6) family units with a caregiver who received MFIP within the 12 months prior to the month the family applied for DWP; 

(7) family units with a caregiver who received 60 or more months of TANF assistance; and 

(8) family units with a caregiver who is disqualified from the work participation cash benefit program, DWP, or MFIP due to fraud. 

(b) A two-parent family must participate in DWP unless both caregivers meet the criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit includes a parent who meets the criteria in paragraph (a), clause (6), (7), or (8). 

(c) Once DWP eligibility is determined, the four months run consecutively. If a participant leaves the program for any reason and reapplies during the four-month period, the county must redetermine eligibility for DWP. 

Subd. 4.Cooperation with program requirements. 
(a) To be eligible for DWP, an applicant must comply with the requirements of paragraphs (b) to (d). 

(b) Applicants and participants must cooperate with the requirements of the child support enforcement program but will not be charged a fee under section 518A.51. 

(c) The applicant must provide each member of the family unit's Social Security number to the county agency. This requirement is satisfied when each member of the family unit cooperates with the procedures for verification of numbers, issuance of duplicate cards, and issuance of new numbers which have been established jointly between the Social Security Administration and the commissioner. 

(d) Before DWP benefits can be issued to a family unit, the caregiver must, in conjunction with a job counselor, develop and sign an employment plan. In two-parent family units, both parents must develop and sign employment plans before benefits can be issued. Supplemental Nutrition Assistance Program (SNAP) and health care benefits are not contingent on the requirement for a signed employment plan. 

Subd. 5.Submitting application form. 
The eligibility date for the diversionary work program begins on the date that the combined application form (CAF) is received by the county agency either as a signed written application; an application submitted by telephone; or an application submitted through Internet telepresence; or on the date that diversionary work program eligibility criteria are met, whichever is later. The county agency must inform an applicant that when the applicant submits the application by telephone or through Internet telepresence, the county agency must receive a signed written application within 30 days of the date that the applicant submitted the application by telephone or through Internet telepresence. The county agency must inform the applicant that any delay in submitting the application will reduce the benefits paid for the month of application. The county agency must inform a person that an application may be submitted before the person has an interview appointment. Upon receipt of a signed application, the county agency must stamp the date of receipt on the face of the application. The applicant may withdraw the application at any time prior to approval by giving written or oral notice to the county agency. The county agency must follow the notice requirements in section 256J.09, subdivision 3, when issuing a notice confirming the withdrawal. 

Subd. 6.Initial screening of applications. 
Upon receipt of the application, the county agency must determine if the applicant may be eligible for other benefits as required in sections 256J.09, subdivision 3a, and 256J.28, subdivisions 1 and 5. The county must screen and the applicant must apply for other benefits as required under section 256J.30, subdivision 2. The county must also follow the provisions in section 256J.09, subdivision 3b, clause (2). 

Subd. 7.Program and processing standards. 
(a) The interview to determine financial eligibility for the diversionary work program must be conducted within five working days of the receipt of the cash application form. During the intake interview, the financial worker must discuss: 

(1) the goals, requirements, and services of the diversionary work program; 

(2) the availability of child care assistance. If child care is needed, the worker must obtain a completed application for child care from the applicant before the interview is terminated. The same day the application for child care is received, the application must be forwarded to the appropriate child care worker. For purposes of eligibility for child care assistance under chapter 119B, DWP participants shall be eligible for the same benefits as MFIP recipients; and 

(3) if the applicant has not requested SNAP benefits and health care assistance on the application, the county agency shall, during the interview process, talk with the applicant about the availability of these benefits. 

(b) The county shall follow section 256J.74, subdivision 2, paragraph (b), clauses (1) and (2), when an applicant or a recipient of DWP has a person who is a member of more than one assistance unit in a given payment month. 

(c) If within 30 days the county agency cannot determine eligibility for the diversionary work program, the county must deny the application and inform the applicant of the decision according to the notice provisions in section 256J.31. A family unit is eligible for a fair hearing under section 256J.40. 

Subd. 8.Verification requirements. 
(a) A county agency must only require verification of information necessary to determine DWP eligibility and the amount of the payment. The applicant or participant must document the information required or authorize the county agency to verify the information. The applicant or participant has the burden of providing documentary evidence to verify eligibility. The county agency shall assist the applicant or participant in obtaining required documents when the applicant or participant is unable to do so. 

(b) A county agency must not request information about an applicant or participant that is not a matter of public record from a source other than county agencies, the Department of Human Services, or the United States Department of Health and Human Services without the person's prior written consent. An applicant's signature on an application form constitutes consent for contact with the sources specified on the application. A county agency may use a single consent form to contact a group of similar sources, but the sources to be contacted must be identified by the county agency prior to requesting an applicant's consent. 

(c) Factors to be verified shall follow section 256P.04, subdivisions 4 and 5. Except for personal needs, family maintenance needs must be verified before the expense can be allowed in the calculation of the DWP grant. 

Subd. 9.Property and income limitations. 
The asset limits and exclusions in section 256P.02 apply to applicants and participants of DWP. All payments, as described in section 256P.06, subdivision 3, must be counted as income to determine eligibility for the diversionary work program. The agency shall treat income as outlined in section 256J.37, except for subdivision 3a. The initial income test and the disregards in section 256J.21, subdivision 3, shall be followed for determining eligibility for the diversionary work program. 

Subd. 10.Diversionary work program grant. 
(a) The amount of cash benefits that a family unit is eligible for under the diversionary work program is based on the number of persons in the family unit, the family maintenance needs, personal needs allowance, and countable income. The county agency shall evaluate the income of the family unit that is requesting payments under the diversionary work program. Countable income means gross earned and unearned income not excluded or disregarded under MFIP. The same disregards for earned income that are allowed under MFIP are allowed for the diversionary work program. 

(b) The DWP grant is based on the family maintenance needs for which the DWP family unit is responsible plus a personal needs allowance. Housing and utilities, except for telephone service, shall be vendor paid. Unless otherwise stated in this section, actual housing and utility expenses shall be used when determining the amount of the DWP grant. 

(c) The maximum monthly benefit amount available under the diversionary work program is the difference between the family unit's needs under paragraph (b) and the family unit's countable income not to exceed the cash portion of the MFIP transitional standard as defined in sections 256J.08, subdivision 85, and 256J.24, subdivision 5, for the family unit's size. 

(d) Once the county has determined a grant amount, the DWP grant amount will not be decreased if the determination is based on the best information available at the time of approval and shall not be decreased because of any additional income to the family unit. The grant must be increased if a participant later verifies an increase in family maintenance needs or family unit size. The minimum cash benefit amount, if income and asset tests are met, is $10. Benefits of $10 shall not be vendor paid. 

(e) When all criteria are met, including the development of an employment plan as described in subdivision 14 and eligibility exists for the month of application, the amount of benefits for the diversionary work program retroactive to the date of application is as specified in section 256J.35, paragraph (b). 

(f) Any month during the four-month DWP period that a person receives a DWP benefit directly or through a vendor payment made on the person's behalf, that person is ineligible for MFIP or any other TANF cash assistance program except for benefits defined in section 256J.626, subdivision 2, clause (1). 

If during the four-month period a family unit that receives DWP benefits moves to a county that has not established a diversionary work program, the family unit may be eligible for MFIP the month following the last month of the issuance of the DWP benefit. 

Subd. 11.Universal participation required. 
(a) All DWP caregivers, except caregivers who meet the criteria in paragraph (d), are required to participate in DWP employment services. Except as specified in paragraphs (b) and (c), employment plans under DWP must, at a minimum, meet the requirements in section 256J.55, subdivision 1. 

(b) A caregiver who is a member of a two-parent family that is required to participate in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed to develop an employment plan under section 256J.521, subdivision 2, that may contain alternate activities and reduced hours. 

(c) A participant who is a victim of family violence shall be allowed to develop an employment plan under section 256J.521, subdivision 3. A claim of family violence must be documented by the applicant or participant by providing a sworn statement which is supported by collateral documentation in section 256J.545, paragraph (b). 

(d) One parent in a two-parent family unit that has a natural born child under 12 months of age is not required to have an employment plan until the child reaches 12 months of age unless the family unit has already used the exclusion under section 256J.561, subdivision 3, or the previously allowed child under age one exemption under section 256J.56, paragraph (a), clause (5). 

(e) The provision in paragraph (d) ends the first full month after the child reaches 12 months of age. This provision is allowable only once in a caregiver's lifetime. In a two-parent household, only one parent shall be allowed to use this category. 

(f) The participant and job counselor must meet in the month after the month the child reaches 12 months of age to revise the participant's employment plan. The employment plan for a family unit that has a child under 12 months of age that has already used the exclusion in section 256J.561 must be tailored to recognize the caregiving needs of the parent. 

Subd. 12.Conversion or referral to MFIP. 
(a) If at any time during the DWP application process or during the four-month DWP eligibility period, it is determined that a participant is unlikely to benefit from the diversionary work program, the county shall convert or refer the participant to MFIP as specified in paragraph (d). Participants who are determined to be unlikely to benefit from the diversionary work program must develop and sign an employment plan. 

(b) A participant who meets the eligibility requirements under section 256J.575, subdivision 3, must be considered to be unlikely to benefit from DWP, provided the necessary documentation is available to support the determination. 

(c) In a two-parent family unit, if one parent is determined to be unlikely to benefit from the diversionary work program, the family unit must be converted or referred to MFIP. 

(d) A participant who is determined to be unlikely to benefit from the diversionary work program shall be converted to MFIP and, if the determination was made within 30 days of the initial application for benefits, no additional application form is required. A participant who is determined to be unlikely to benefit from the diversionary work program shall be referred to MFIP and, if the determination is made more than 30 days after the initial application, the participant must submit a program change request form. The county agency shall process the program change request form by the first of the following month to ensure that no gap in benefits is due to delayed action by the county agency. In processing the program change request form, the county must follow section 256J.32, subdivision 1, except that the county agency shall not require additional verification of the information in the case file from the DWP application unless the information in the case file is inaccurate, questionable, or no longer current. 

(e) The county shall not request a combined application form for a participant who has exhausted the four months of the diversionary work program, has continued need for cash and food assistance, and has completed, signed, and submitted a program change request form within 30 days of the fourth month of the diversionary work program. The county must process the program change request according to section 256J.32, subdivision 1, except that the county agency shall not require additional verification of information in the case file unless the information is inaccurate, questionable, or no longer current. When a participant does not request MFIP within 30 days of the diversionary work program benefits being exhausted, a new combined application form must be completed for any subsequent request for MFIP. 

Subd. 13.Immediate referral to employment services. 
Within one working day of determination that the applicant is eligible for the diversionary work program, but before benefits are issued to or on behalf of the family unit, the county shall refer all caregivers to employment services. The referral to the DWP employment services must be in writing and must contain the following information: 

(1) notification that, as part of the application process, applicants are required to develop an employment plan or the DWP application will be denied; 

(2) the employment services provider name and phone number; 

(3) the immediate availability of supportive services, including, but not limited to, child care, transportation, and other work-related aid; and 

(4) the rights, responsibilities, and obligations of participants in the program, including, but not limited to, the grounds for good cause, the consequences of refusing or failing to participate fully with program requirements, and the appeal process. 

Subd. 14.Employment plan; DWP benefits. 
As soon as possible, but no later than ten working days of being notified that a participant is financially eligible for the diversionary work program, the employment services provider shall provide the participant with an opportunity to meet to develop an initial employment plan. Once the initial employment plan has been developed and signed by the participant and the job counselor, the employment services provider shall notify the county within one working day that the employment plan has been signed. The county shall issue DWP benefits within one working day after receiving notice that the employment plan has been signed. 

Subd. 15.Limitations on certain work activities. 
(a) Except as specified in paragraphs (b) to (d), employment activities listed in section 256J.49, subdivision 13, are allowable under the diversionary work program. 

(b) Work activities under section 256J.49, subdivision 13, clause (5), shall be allowable only when in combination with approved work activities under section 256J.49, subdivision 13, clauses (1) to (4), and shall be limited to no more than one-half of the hours required in the employment plan. 

(c) In order for an English as a second language (ESL) class to be an approved work activity, a participant must: 

(1) be below a spoken language proficiency level of SPL6 or its equivalent, as measured by a nationally recognized test; and 

(2) not have been enrolled in ESL for more than 24 months while previously participating in MFIP or DWP. A participant who has been enrolled in ESL for 20 or more months may be approved for ESL until the participant has received 24 total months. 

(d) Work activities under section 256J.49, subdivision 13, clause (6), shall be allowable only when the training or education program will be completed within the four-month DWP period. Training or education programs that will not be completed within the four-month DWP period shall not be approved. 

Subd. 16.Failure to comply with requirements. 
A family unit that includes a participant who fails to comply with DWP employment service or child support enforcement requirements, without good cause as defined in sections 256.741 and 256J.57, shall be disqualified from the diversionary work program. The county shall provide written notice as specified in section 256J.31 to the participant prior to disqualifying the family unit due to noncompliance with employment service or child support. The disqualification does not apply to SNAP or health care benefits. 

Subd. 17.Good cause for not complying with requirements. 
A participant who fails to comply with the requirements of the diversionary work program may claim good cause for reasons listed in sections 256.741 and 256J.57, subdivision 1, clauses (1) to (14). The county shall not impose a disqualification if good cause exists. 

Subd. 18.Reinstatement following disqualification. 
A participant who has been disqualified from the diversionary work program due to noncompliance with employment services may regain eligibility for the diversionary work program by complying with program requirements. A participant who has been disqualified from the diversionary work program due to noncooperation with child support enforcement requirements may regain eligibility by complying with child support requirements under section 256.741. Once a participant has been reinstated, the county shall issue prorated benefits for the remaining portion of the month. A family unit that has been disqualified from the diversionary work program due to noncompliance shall not be eligible for MFIP or any other TANF cash program for the remainder of the four-month period. In a two-parent family, both parents must be in compliance before the family unit can regain eligibility for benefits. 

Subd. 19.DWP overpayments and underpayments. 
DWP benefits are subject to overpayments and underpayments. Anytime an overpayment or an underpayment is determined for DWP, the correction shall be calculated using prospective budgeting. Corrections shall be determined based on the policy in section 256J.34, subdivision 1, paragraphs (a), (b), and (c). ATM errors must be recovered as specified in section 256P.08, subdivision 7. Cross program recoupment of overpayments cannot be assigned to or from DWP. 

256P.07 REPORTING OF INCOME AND CHANGES.Subd. 5.DWP-specific reporting. 
In addition to subdivisions 3 and 4, an assistance unit participating in the diversionary work program under section 256J.95 must report on an application: 

(1) shelter expenses; and 

(2) utility expenses. 

518A.59 NOTICE OF INTEREST ON LATE CHILD SUPPORT.
Any judgment or decree of dissolution or legal separation containing a requirement of child support and any determination of parentage, order under chapter 518C, order under section 256.87, or order under section 260B.331 or 260C.331 must include a notice to the parties that section 548.091, subdivision 1a, provides for interest to begin accruing on a payment or installment of child support whenever the unpaid amount due is greater than the current support due.