SF 4520

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/08/2026 10:03 a.m.

A bill for an act
relating to children; allowing nonprofit limited liability companies to apply for a
license to be a child-placing agency; modifying the timing for a child care
background study; modifying provisions on foster care, child placement, and child
maltreatment; amending Minnesota Statutes 2024, sections 142B.10, subdivision
18; 245C.04, subdivision 1; 259.83, subdivision 1; 260.67, subdivision 1; 260C.190,
subdivision 1; 260C.212, subdivision 4a.

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

Section 1.

Minnesota Statutes 2024, section 142B.10, subdivision 18, is amended to read:

Subd. 18.

Adoption agency; additional requirements.

In addition to the other
requirements of this section, an individual or organization applying for a license to place
children for adoption must:

(1) incorporate as a nonprofit corporation under chapter 317A new text begin or a nonprofit limited
liability company under chapter 322C new text end ;

(2) file with the application for licensure a copy of the disclosure form required under
section 259.37, subdivision 2;

(3) provide evidence that a bond has been obtained and will be continuously maintained
throughout the entire operating period of the agency, to cover the cost of transfer of records
to and storage of records by the agency which has agreed, according to rule established by
the commissioner, to receive the applicant agency's records if the applicant agency voluntarily
or involuntarily ceases operation and fails to provide for proper transfer of the records. The
bond must be made in favor of the agency which has agreed to receive the records; and

(4) submit a financial review completed by an accountant to the commissioner each year
the license is renewed as required under section 142B.05, subdivision 1.

Sec. 2.

Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs; other child care programs.

(a) The commissioner
shall conduct a background study of an individual required to be studied under section
245C.03, subdivision 1, at least upon application for initial license for all license types.

(b) The commissioner shall conduct a background study of an individual required to be
studied under section 245C.03, subdivision 1, including a child care background study
subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed
child care center, certified license-exempt child care center, or legal nonlicensed child care
provider, on a schedule determined by the commissioner. Except as provided in section
245C.05, subdivision 5a, a child care background study must include submission of
fingerprints for a national criminal history record check and a review of the information
under section 245C.08. A background study for a child care program must be repeated
within five years from the most recent study conducted under this paragraph.

(c) deleted text begin At reauthorization or deleted text end When a new background study is needed under section 142E.16,
subdivision 2, for a legal nonlicensed child care provider authorized under chapter 142E:

(1) for a background study affiliated with a legal nonlicensed child care provider, the
individual shall provide information required under section 245C.05, subdivision 1,
paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed
under section 245C.05, subdivision 5; and

(2) the commissioner shall verify the information received under clause (1) and submit
the request in NETStudy 2.0 to complete the background study.

(d) At reapplication for a family child care license:

(1) for a background study affiliated with a licensed family child care center, the
individual shall provide information required under section 245C.05, subdivision 1,
paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed
under section 245C.05, subdivision 5;

(2) the county agency shall verify the information received under clause (1) and forward
the information to the commissioner and submit the request in NETStudy 2.0 to complete
the background study; and

(3) the background study conducted by the commissioner under this paragraph must
include a review of the information required under section 245C.08.

(e) The commissioner is not required to conduct a study of an individual at the time of
reapplication for a license if the individual's background study was completed by the
commissioner of human services and the following conditions are met:

(1) a study of the individual was conducted either at the time of initial licensure or when
the individual became affiliated with the license holder;

(2) the individual has been continuously affiliated with the license holder since the last
study was conducted; and

(3) the last study of the individual was conducted on or after October 1, 1995.

(f) The commissioner of human services shall conduct a background study of an
individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6),
who is newly affiliated with a child foster family setting license holder:

(1) the county or private agency shall collect and forward to the commissioner the
information required under section 245C.05, subdivisions 1 and 5, when the child foster
family setting applicant or license holder resides in the home where child foster care services
are provided; and

(2) the background study conducted by the commissioner of human services under this
paragraph must include a review of the information required under section 245C.08,
subdivisions 1, 3, and 4.

(g) The commissioner shall conduct a background study of an individual specified under
section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly affiliated
with an adult foster care or family adult day services and with a family child care license
holder or a legal nonlicensed child care provider authorized under chapter 142E and:

(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and
forward to the commissioner the information required under section 245C.05, subdivision
1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted
by the commissioner for all family adult day services, for adult foster care when the adult
foster care license holder resides in the adult foster care residence, and for family child care
and legal nonlicensed child care authorized under chapter 142E;

(2) the license holder shall collect and forward to the commissioner the information
required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs
(a) and (b), for background studies conducted by the commissioner for adult foster care
when the license holder does not reside in the adult foster care residence; and

(3) the background study conducted by the commissioner under this paragraph must
include a review of the information required under section 245C.08, subdivision 1, paragraph
(a), and subdivisions 3 and 4.

(h) Applicants for licensure, license holders, and other entities as provided in this chapter
must submit completed background study requests to the commissioner using the electronic
system known as NETStudy before individuals specified in section 245C.03, subdivision
1, begin positions allowing direct contact in any licensed program.

(i) For an individual who is not on the entity's active roster, the entity must initiate a
new background study through NETStudy when:

(1) an individual returns to a position requiring a background study following an absence
of 120 or more consecutive days; or

(2) a program that discontinued providing licensed direct contact services for 120 or
more consecutive days begins to provide direct contact licensed services again.

The license holder shall maintain a copy of the notification provided to the commissioner
under this paragraph in the program's files. If the individual's disqualification was previously
set aside for the license holder's program and the new background study results in no new
information that indicates the individual may pose a risk of harm to persons receiving
services from the license holder, the previous set-aside shall remain in effect.

(j) For purposes of this section, a physician licensed under chapter 147, advanced practice
registered nurse licensed under chapter 148, or physician assistant licensed under chapter
147A is considered to be continuously affiliated upon the license holder's receipt from the
commissioner of health or human services of the physician's, advanced practice registered
nurse's, or physician assistant's background study results.

(k) For purposes of family child care, a substitute caregiver must receive repeat
background studies at the time of each license renewal.

(l) A repeat background study at the time of license renewal is not required if the family
child care substitute caregiver's background study was completed by the commissioner on
or after October 1, 2017, and the substitute caregiver is on the license holder's active roster
in NETStudy 2.0.

(m) Before and after school programs authorized under chapter 142E, are exempt from
the background study requirements under section 123B.03, for an employee for whom a
background study under this chapter has been completed.

Sec. 3.

Minnesota Statutes 2024, section 259.83, subdivision 1, is amended to read:

Subdivision 1.

Services provided.

(a) Agencies shall provide assistance and counseling
services upon receiving a request for current information from adoptive parents, birth parents,
adopted persons aged 18 years of age and older, or adult siblings of adopted persons. The
agency shall contact the other adult persons or the adoptive parents of a minor child in a
personal and confidential manner to determine whether there is a desire to receive or share
information or to have contact. If there is such a desire, the agency shall provide the services
requested. The agency shall complete the search request within six months of the request
being made. If the agency is unable to complete the search request within the specified time
frame, the agency shall inform the requester of the status of the request and include a
reasonable estimate of when the request can be completed.

(b) Upon a request for assistance or services from an adoptive parent of a minor child,
birth parent, or an adopted person 18 years of age or older, the agency must inform the
person:

(1) about the right of an adopted person to request and obtain a copy of the adopted
person's original birth record at the age and circumstances specified in section deleted text begin 144.2253 deleted text end new text begin
144.2252 new text end ; and

(2) about the right of the birth parent named on the adopted person's original birth record
to file a contact preference form with the state registrar pursuant to section 144.2253.

When making or supervising an adoptive placement, the agency must provide in writing to
the birth parents listed on the original birth record the information required under this
paragraph and section 259.37, subdivision 2, clause (7).

Sec. 4.

Minnesota Statutes 2024, section 260.67, subdivision 1, is amended to read:

Subdivision 1.

Preference for permanency placement with a relative.

Consistent with
section 260C.513, if an African American or disproportionately represented child cannot
be returned to the child's parent, permanency placement with a relative is preferred. The
court shall consider the requirements of and responsibilities under section 260.012, paragraph
(a), and, if possible and if requirements under section 260C.515, subdivision 4, are met,
transfer permanent legal and physical custody of the child to:

(1) a noncustodial parent under section 260C.515, subdivision 4, if the child cannot
return to the care of the parent or custodian from whom the child was removed or who had
legal custody at the time that the child was placed in foster care; or

(2) a willing and able relative, according to the requirements of section 260C.515,
subdivision 4. When the responsible social services agency is the petitioner, prior to the
court ordering a transfer of permanent legal and physical custody to a relative, the responsible
social services agency must inform the relative of Northstar kinship assistance benefits and
eligibility requirements and of the relative's ability to apply for benefits on behalf of the
child under deleted text begin chapter deleted text end deleted text begin 256N deleted text end new text begin sections 142A.60 to 142A.612 new text end .

Sec. 5.

Minnesota Statutes 2024, section 260C.190, subdivision 1, is amended to read:

Subdivision 1.

Placement.

(a) An agency with legal responsibility for a child under
section 260C.178, subdivision 1, paragraph (c), or legal custody of a child under section
260C.201, subdivision 1, paragraph (a), clause deleted text begin (3) deleted text end new text begin (2) new text end , may colocate a child with a parent
who is receiving services in a licensed residential family-based substance use disorder
treatment program for up to 12 months.

(b) During the child's placement under paragraph (a), the agency: (1) may visit the child
as the agency deems necessary and appropriate; (2) shall continue to have access to
information under section 260C.208; and (3) shall continue to provide appropriate services
to both the parent and the child.

(c) The agency may terminate the child's placement under paragraph (a) to protect the
child's health, safety, or welfare and may remove the child to foster care without a prior
court order or authorization.

Sec. 6.

Minnesota Statutes 2024, section 260C.212, subdivision 4a, is amended to read:

Subd. 4a.

Monthly caseworker visits.

(a) Every child in foster care or on a trial home
visit shall be visited by the child's caseworker or another person who has responsibility for
visitation of the child on a monthly basis, with the majority of visits occurring in the child's
residence. The responsible social services agency may designate another person responsible
for monthly case visits. For the purposes of this section, the following definitions apply:

(1) "visit" is defined as a face-to-face contact between a child and the child's caseworker new text begin .
For a youth 18 years of age or older, a visit may be conducted via video conference with
the youth's informed consent new text end ;

(2) "visited on a monthly basis" is defined as at least one visit per calendar month;

(3) "the child's caseworker" is defined as the person who has responsibility for managing
the child's foster care placement case as assigned by the responsible social services agency;

(4) "another person" means the professional staff whom the responsible social services
agency has assigned in the out-of-home placement plan or case plan. Another person must
be professionally trained to assess the child's safety, permanency, well-being, and case
progress. The agency may not designate the guardian ad litem, the child foster care provider,
residential facility staff, or a qualified individual as defined in section 260C.007,
subdivision26b, as another person; and

(5) "the child's residence" is defined as the home where the child is residing, and can
include the foster home, child care institution, or the home from which the child was removed
if the child is on a trial home visit.

(b) Caseworker visits shall be of sufficient substance and duration to address issues
pertinent to case planning and service delivery to ensure the safety, permanency, and
well-being of the child, including whether the child is enrolled and attending school as
required by law.

(c) Every effort shall be made by the responsible social services agency and professional
staff to have the monthly visit with the child outside the presence of the child's parents,
foster parents, or facility staff. There may be situations related to the child's needs when a
caseworker visit cannot occur with the child alone. The reason the caseworker visit occurred
in the presence of others must be documented in the case record and may include:

(1) that the child exhibits intense emotion or behavior indicating that visiting without
the presence of the parent, foster parent, or facility staff would be traumatic for the child;

(2) that despite a caseworker's efforts, the child declines to visit with the caseworker
outside the presence of the parent, foster parent, or facility staff; and

(3) that the child has a specific developmental delay, physical limitation, incapacity,
medical device, or significant medical need, such that the parent, foster parent, or facility
staff is required to be present with the child during the visit.