SF 2760

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/28/2025 09:57 a.m.

A bill for an act
relating to child care; establishing the rural child care stabilization and support
payment program; requiring a report; appropriating money; proposing coding for
new law in Minnesota Statutes, chapter 142D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [142D.211] RURAL CHILD CARE STABILIZATION AND SUPPORT
PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of children, youth, and families must
establish and administer the rural child care stabilization and support payments program to
provide eligible child care and early learning programs with payments to improve access
to early care and learning in Minnesota and strengthen the ability of programs to recruit and
retain early educators.
new text end

new text begin Subd. 2. new text end

new text begin Eligible programs. new text end

new text begin (a) The following programs are eligible to receive payments
under this section:
new text end

new text begin (1) family day care and group family day care homes licensed under Minnesota Rules,
chapter 9502;
new text end

new text begin (2) child care centers licensed under Minnesota Rules, chapter 9503;
new text end

new text begin (3) certified license-exempt child care centers under chapter 142C;
new text end

new text begin (4) Tribally licensed child care programs; and
new text end

new text begin (5) other programs as determined by the commissioner.
new text end

new text begin (b) To be eligible, a program must be located in a statutory or home rule charter city or
town with a population of 2,500 or fewer.
new text end

new text begin (c) To be eligible, a program must not be:
new text end

new text begin (1) the subject of a finding of fraud for which the program is currently serving a penalty
or exclusion;
new text end

new text begin (2) the subject of suspended, denied, or terminated payments to a provider under section
142E.17, subdivision 9, paragraph (d), clauses (1) and (2); 142E.51, subdivision 7, paragraph
(c), clause (4); or 256.98, subdivision 1, regardless of whether the action is under appeal;
new text end

new text begin (3) prohibited from receiving public funds under section 142A.12, regardless of whether
the action is under appeal; or
new text end

new text begin (4) under license revocation, suspension, temporary immediate suspension, or
decertification, regardless of whether the action is under appeal.
new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin (a) As a condition of payment under this section, a program
must:
new text end

new text begin (1) complete an application developed by the commissioner for each payment period
for which the program applies for funding;
new text end

new text begin (2) submit data on child enrollment and attendance to the commissioner in the form and
manner specified by the commissioner; and
new text end

new text begin (3) attest and agree in writing that the program was open and operating and served a
minimum number of children, as determined by the commissioner, during the funding
period, with the exceptions of:
new text end

new text begin (i) service disruptions that were necessary to protect the safety and health of children
and child care programs based on public health guidance issued by the Centers for Disease
Control and Prevention; the commissioner of health; the commissioner of children, youth,
and families; or a local public health agency; and
new text end

new text begin (ii) planned temporary closures for provider vacations and holidays during each payment
period. The commissioner must establish the maximum allowed duration for vacations and
holidays.
new text end

new text begin (b) A program must expend money received under this section no later than six months
after the date the payment was received.
new text end

new text begin (c) A program that receives a payment under this section must comply with all
requirements listed in the application. The commissioner must establish methods to determine
that the application requirements have been met.
new text end

new text begin Subd. 4. new text end

new text begin Record retention. new text end

new text begin (a) A program that receives a payment under this section
must keep accurate and legible records of the following:
new text end

new text begin (1) use of money;
new text end

new text begin (2) staff employment, compensation, and benefits, which must include time sheets or
other records of daily hours worked; documentation of compensation and benefits;
documentation of written changes to employees' rate or rates of pay and basis thereof as a
result of payments received under this section, as required under section 181.032, paragraphs
(d) to (f); and any other records required to be maintained under section 177.30; and
new text end

new text begin (3) attendance. Daily attendance records must be completed every day and must include
the date, the first and last name of each child in attendance, and the time each child is dropped
off at and picked up from the program. To the extent possible, the person dropping off or
picking up the child must enter the times.
new text end

new text begin (b) The requirement to document compensation and benefits under paragraph (a), clause
(2), applies to family day care and group family day care homes only if a payment received
under this section is used for employee compensation or benefits.
new text end

new text begin (c) Records identified in paragraph (a) must be retained at the site where services are
delivered for six years after the date of receipt of payment and must be made immediately
available to the commissioner upon request. Any records not provided to the commissioner
at the date and time of request are deemed inadmissible if offered as evidence by a program
in any proceeding to contest an overpayment or disqualification of the program.
new text end

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin A program that receives a payment under this section that fails
to meet the requirements of this section is subject to discontinuation of future installment
payments, recovery of overpayments, and actions under sections 142E.50 to 142E.58. Except
when based on a finding of fraud, actions to establish an overpayment must be made within
six years of receipt of the payments. Once an overpayment is established, collection may
continue until money has been repaid in full. The appeal process under section 142E.18
applies to actions taken for failure to meet the requirements of this section.
new text end

new text begin Subd. 6. new text end

new text begin Payments. new text end

new text begin (a) The commissioner shall provide payments under this section to
all eligible programs on a noncompetitive basis. The payment amounts shall be based on
the number of full-time equivalent staff who regularly care for children in the program,
including any employees, sole proprietors, or independent contractors.
new text end

new text begin (b) For purposes of this section, "one full-time equivalent" means an individual caring
for children 32 hours per week. An individual can count as more or less than one full-time
equivalent staff, but as no more than two full-time equivalent staff.
new text end

new text begin (c) The commissioner must establish an amount to award per full-time equivalent
individual who regularly cares for children in the program.
new text end

new text begin (d) Payments must be increased by ten percent for programs receiving child care
assistance payments under section 142E.08 or 142E.17, early learning scholarships under
section 142D.25, or for programs located in a child care access equity area. The commissioner
must develop a method for establishing child care access equity areas. For purposes of this
section, "child care access equity area" means an area with low access to child care, high
poverty rates, high unemployment rates, low homeownership rates, and low median
household incomes.
new text end

new text begin (e) The commissioner shall establish the form, frequency, and manner for making
payments under this section.
new text end

new text begin Subd. 7. new text end

new text begin Eligible uses of money. new text end

new text begin (a) Child care centers licensed under Minnesota Rules,
chapter 9503, certified license-exempt child care centers under chapter 142C, and Tribally
licensed child care centers must use money received under this section for the following
purposes:
new text end

new text begin (1) paying rent, including rent under a lease agreement;
new text end

new text begin (2) purchasing or updating equipment, supplies, goods, or services;
new text end

new text begin (3) purchasing training or other professional development; or
new text end

new text begin (4) paying for increases in compensation, benefits, premium pay, or additional federal
taxes assessed on the compensation of employees as a result of paying increased
compensation or premium pay to all paid employees or independent contractors regularly
caring for children.
new text end

new text begin (b) Family day care and group family day care homes licensed under Minnesota Rules,
chapter 9502, and Tribally licensed family child care homes must use money received under
this section for one or more of the following purposes:
new text end

new text begin (1) paying personnel costs, such as payroll, salaries, or similar compensation; employee
benefits; premium pay; or financial incentives for recruitment and retention for an employee,
a sole proprietor, or an independent contractor;
new text end

new text begin (2) paying rent, including rent under a lease agreement, or making payments on any
mortgage obligation, utilities, facility maintenance or improvements, property taxes, or
insurance;
new text end

new text begin (3) purchasing or updating equipment, supplies, goods, or services;
new text end

new text begin (4) providing mental health supports for children; or
new text end

new text begin (5) purchasing training or other professional development products or services.
new text end

new text begin Subd. 8. new text end

new text begin Legal nonlicensed child care provider payments. new text end

new text begin (a) Legal nonlicensed child
care providers, as defined in section 142E.01, subdivision 19, are eligible to apply for a
payment of up to $500 for costs incurred before the first month when payments from the
child care assistance program are issued.
new text end

new text begin (b) A payment received under this subdivision must be used for one or more of the
following activities:
new text end

new text begin (1) purchasing or updating equipment, supplies, goods, or services; or
new text end

new text begin (2) purchasing training or other professional development products or services.
new text end

new text begin (c) The commissioner shall determine the form and manner of the application for a
payment under this subdivision.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin By January 1 each year, the commissioner must report to the chairs
and ranking minority members of the legislative committees with jurisdiction over child
care and early learning the number of payments provided to programs and related outcomes
since the last report. This subdivision expires January 31, 2035.
new text end

Sec. 2. new text begin APPROPRIATION; RURAL CHILD CARE STABILIZATION AND
SUPPORT PAYMENTS.
new text end

new text begin $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
fund to the commissioner of children, youth, and families for the rural child care stabilization
and support payments program under Minnesota Statutes, section 142D.211.
new text end