Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1916 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to child care; establishing program integrity requirements in the child care
3	3		1.3 assistance program; directing the commissioner of children, youth, and families
4	4		1.4 to establish an electronic record-keeping system for child care enrollment; requiring
5	5		1.5 reports; appropriating money; amending Minnesota Statutes 2024, sections 13.461,
6	6		1.6 subdivision 28; 142A.03, subdivision 2; 142E.17, subdivision 9; proposing coding
7	7		1.7 for new law in Minnesota Statutes, chapters 142D; 142E.
8	8		1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
9	9		1.9 Section 1. Minnesota Statutes 2024, section 13.461, subdivision 28, is amended to read:
10		-	1.10 Subd. 28.Child care assistance program ~~programs~~.(a) Data collected, maintained,
11		-	1.~~11used, or disseminated~~ by the welfare system pertaining to persons selected as legal
12		-	1.~~12nonlicensed child care~~ providers by families receiving child care assistance are classified
13		-	1.~~13under section 142E.02, subdivision~~ 6, paragraph (a). Child care assistance program payment
14		-	1.~~14data is classified under section~~ 142E.02, subdivision 6, paragraph (b).
15		-	1.15 (b) Video footage of child care provider ~~and early childhood program~~ operations collected
16		-	1.~~16or maintained by a government entity~~ is classified under ~~sections 142D~~.~~251, subdivision 5~~,
17		-	1.~~17and 142E.161, subdivision~~ 5.
	10	+	1.10 Subd. 28.Child care assistance program.(a) Data collected, maintained, used, or
	11	+	1.11disseminated by the welfare system pertaining to persons selected as legal nonlicensed child
	12	+	1.12care providers by families receiving child care assistance are classified under section 142E.02,
	13	+	1.13subdivision 6, paragraph (a). Child care assistance program payment data is classified under
	14	+	1.14section 142E.02, subdivision 6, paragraph (b).
	15	+	1.15 (b) Video footage of child care provider operations collected or maintained by the
	16	+	1.16commissioner of children, youth, and families is classified under section 142E.161,
	17	+	1.17subdivision 5.
18	18		1.18 Sec. 2. Minnesota Statutes 2024, section 142A.03, subdivision 2, is amended to read:
19	19		1.19 Subd. 2.Duties of the commissioner.(a) The commissioner may apply for and accept
20	20		1.20on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying
21	21		1.21out the duties and responsibilities of the commissioner. Any money received under this
22	22		1.22paragraph is appropriated and dedicated for the purpose for which the money is granted.
23	23		1.23The commissioner must biennially report to the chairs and ranking minority members of
24	24		1Sec. 2.
25		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT
	25	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT
26	26		State of Minnesota
27	27		This Document can be made available
28	28		in alternative formats upon request
29	29		HOUSE OF REPRESENTATIVES
30	30		H. F. No. 1916
31	31		NINETY-FOURTH SESSION
32		-	Authored by West ~~and Zeleznikar~~03/05/2025
	32	+	Authored by West03/05/2025
33	33		The bill was read for the first time and referred to the Committee on Children and Families Finance and Policy
34		-	Adoption of Report: Amended and re-referred to the Committee on Judiciary Finance and Civil Law03/13/2025
35		-	Adoption of Report: Amended and re-referred to the Committee on Children and Families Finance and Policy04/01/2025 2.1relevant legislative committees and divisions by January 15 of each even-numbered year a
	34	+	Adoption of Report: Amended and re-referred to the Committee on Judiciary Finance and Civil Law03/13/2025 2.1relevant legislative committees and divisions by January 15 of each even-numbered year a
36	35		2.2list of all grants and gifts received under this subdivision.
37	36		2.3 (b) Pursuant to law, the commissioner may apply for and receive money made available
38	37		2.4from federal sources for the purpose of carrying out the duties and responsibilities of the
39	38		2.5commissioner.
40	39		2.6 (c) The commissioner may make contracts with and grants to Tribal Nations, public and
41	40		2.7private agencies, for-profit and nonprofit organizations, and individuals using appropriated
42	41		2.8money.
43	42		2.9 (d) The commissioner must develop program objectives and performance measures for
44	43		2.10evaluating progress toward achieving the objectives. The commissioner must identify the
45	44		2.11objectives, performance measures, and current status of achieving the measures in a biennial
46	45		2.12report to the chairs and ranking minority members of relevant legislative committees and
47	46		2.13divisions. The report is due no later than January 15 each even-numbered year. The report
48	47		2.14must include, when possible, the following objectives:
49	48		2.15 (1) centering and including the lived experiences of children and youth, including those
50	49		2.16with disabilities and mental illness and their families, in all aspects of the department's work;
51	50		2.17 (2) increasing the effectiveness of the department's programs in addressing the needs of
52	51		2.18children and youth facing racial, economic, or geographic inequities;
53	52		2.19 (3) increasing coordination and reducing inefficiencies among the department's programs
54	53		2.20and the funding sources that support the programs;
55	54		2.21 (4) increasing the alignment and coordination of family access to child care and early
56	55		2.22learning programs and improving systems of support for early childhood and learning
57	56		2.23providers and services;
58	57		2.24 (5) improving the connection between the department's programs and the kindergarten
59	58		2.25through grade 12 and higher education systems; and
60	59		2.26 (6) minimizing and streamlining the effort required of youth and families to receive
61	60		2.27services to which the youth and families are entitled.
62	61		2.28 (e) The commissioner shall administer and supervise the forms of public assistance and
63	62		2.29other activities or services that are vested in the commissioner. Administration and
64	63		2.30supervision of activities or services includes but is not limited to assuring timely and accurate
65	64		2.31distribution of benefits, completeness of service, and quality program management. In
66	65		2.32addition to administering and supervising activities vested by law in the department, the
67	66		2.33commissioner has the authority to:
68	67		2Sec. 2.
69		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 3.1 (1) require county agency participation in training and technical assistance programs to
	68	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 3.1 (1) require county agency participation in training and technical assistance programs to
70	69		3.2promote compliance with statutes, rules, federal laws, regulations, and policies governing
71	70		3.3the programs and activities administered by the commissioner;
72	71		3.4 (2) monitor, on an ongoing basis, the performance of county agencies in the operation
73	72		3.5and administration of activities and programs; enforce compliance with statutes, rules,
74	73		3.6federal laws, regulations, and policies governing welfare services; and promote excellence
75	74		3.7of administration and program operation;
76	75		3.8 (3) develop a quality control program or other monitoring program to review county
77	76		3.9performance and accuracy of benefit determinations;
78	77		3.10 (4) require county agencies to make an adjustment to the public assistance benefits issued
79	78		3.11to any individual consistent with federal law and regulation and state law and rule and to
80	79		3.12issue or recover benefits as appropriate;
81	80		3.13 (5) delay or deny payment of all or part of the state and federal share of benefits and
82	81		3.14administrative reimbursement according to the procedures set forth in section 142A.10;
83	82		3.15 (6) make contracts with and grants to public and private agencies and organizations,
84	83		3.16both for-profit and nonprofit, and individuals, using appropriated funds; and
85	84		3.17 (7) enter into contractual agreements with federally recognized Indian Tribes with a
86	85		3.18reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved
87	86		3.19family assistance program or any other program under the supervision of the commissioner.
88	87		3.20The commissioner shall consult with the affected county or counties in the contractual
89	88		3.21agreement negotiations, if the county or counties wish to be included, in order to avoid the
90	89		3.22duplication of county and Tribal assistance program services. The commissioner may
91	90		3.23establish necessary accounts for the purposes of receiving and disbursing funds as necessary
92	91		3.24for the operation of the programs.
93	92		3.25The commissioner shall work in conjunction with the commissioner of human services to
94	93		3.26carry out the duties of this paragraph when necessary and feasible.
95	94		3.27 (f) The commissioner shall inform county agencies, on a timely basis, of changes in
96	95		3.28statute, rule, federal law, regulation, and policy necessary to county agency administration
97	96		3.29of the programs and activities administered by the commissioner.
98	97		3.30 (g) The commissioner shall administer and supervise child welfare activities, including
99	98		3.31promoting the enforcement of laws preventing child maltreatment and protecting children
100	99		3.32with a disability and children who are in need of protection or services, licensing and
101	100		3.33supervising child care and child-placing agencies, and supervising the care of children in
102	101		3Sec. 2.
103		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 4.1foster care. The commissioner shall coordinate with the commissioner of human services
	102	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 4.1foster care. The commissioner shall coordinate with the commissioner of human services
104	103		4.2on activities impacting children overseen by the Department of Human Services, such as
105	104		4.3disability services, behavioral health, and substance use disorder treatment.
106	105		4.4 (h) The commissioner shall assist and cooperate with local, state, and federal departments,
107	106		4.5agencies, and institutions.
108	107		4.6 (i) The commissioner shall establish and maintain any administrative units reasonably
109	108		4.7necessary for the performance of administrative functions common to all divisions of the
110	109		4.8department.
111	110		4.9 (j) The commissioner shall act as designated guardian of children pursuant to chapter
112	111		4.10260C. For children under the guardianship of the commissioner or a Tribe in Minnesota
113	112		4.11recognized by the Secretary of the Interior whose interests would be best served by adoptive
114	113		4.12placement, the commissioner may contract with a licensed child-placing agency or a
115	114		4.13Minnesota Tribal social services agency to provide adoption services. A contract with a
116	115		4.14licensed child-placing agency must be designed to supplement existing county efforts and
117	116		4.15may not replace existing county programs or Tribal social services, unless the replacement
118	117		4.16is agreed to by the county board and the appropriate exclusive bargaining representative,
119	118		4.17Tribal governing body, or the commissioner has evidence that child placements of the county
120	119		4.18continue to be substantially below that of other counties. Funds encumbered and obligated
121	120		4.19under an agreement for a specific child shall remain available until the terms of the agreement
122	121		4.20are fulfilled or the agreement is terminated.
123	122		4.21 (k) The commissioner has the authority to conduct and administer experimental projects
124	123		4.22to test methods and procedures of administering assistance and services to recipients or
125	124		4.23potential recipients of public benefits. To carry out the experimental projects, the
126	125		4.24commissioner may waive the enforcement of existing specific statutory program
127	126		4.25requirements, rules, and standards in one or more counties. The order establishing the waiver
128	127		4.26must provide alternative methods and procedures of administration and must not conflict
129	128		4.27with the basic purposes, coverage, or benefits provided by law. No project under this
130	129		4.28paragraph shall exceed four years. No order establishing an experimental project as authorized
131	130		4.29by this paragraph is effective until the following conditions have been met:
132	131		4.30 (1) the United States Secretary of Health and Human Services has agreed, for the same
133	132		4.31project, to waive state plan requirements relative to statewide uniformity; and
134	133		4.32 (2) a comprehensive plan, including estimated project costs, has been approved by the
135	134		4.33Legislative Advisory Commission and filed with the commissioner of administration.
136	135		4Sec. 2.
137		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 5.1 (l) The commissioner shall, according to federal requirements and in coordination with
	136	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 5.1 (l) The commissioner shall, according to federal requirements and in coordination with
138	137		5.2the commissioner of human services, establish procedures to be followed by local welfare
139	138		5.3boards in creating citizen advisory committees, including procedures for selection of
140	139		5.4committee members.
141	140		5.5 (m) The commissioner shall allocate federal fiscal disallowances or sanctions that are
142	141		5.6based on quality control error rates for the aid to families with dependent children (AFDC)
143	142		5.7program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition
144	143		5.8Assistance Program (SNAP) in the following manner:
145	144		5.9 (1) one-half of the total amount of the disallowance shall be borne by the county boards
146	145		5.10responsible for administering the programs. For AFDC, disallowances shall be shared by
147	146		5.11each county board in the same proportion as that county's expenditures to the total of all
148	147		5.12counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county
149	148		5.13board, with 50 percent of the sanction being distributed to each county in the same proportion
150	149		5.14as that county's administrative costs for SNAP benefits are to the total of all SNAP
151	150		5.15administrative costs for all counties, and 50 percent of the sanctions being distributed to
152	151		5.16each county in the same proportion as that county's value of SNAP benefits issued are to
153	152		5.17the total of all benefits issued for all counties. Each county shall pay its share of the
154	153		5.18disallowance to the state of Minnesota. When a county fails to pay the amount due under
155	154		5.19this paragraph, the commissioner may deduct the amount from reimbursement otherwise
156	155		5.20due the county, or the attorney general, upon the request of the commissioner, may institute
157	156		5.21civil action to recover the amount due; and
158	157		5.22 (2) notwithstanding the provisions of clause (1), if the disallowance results from knowing
159	158		5.23noncompliance by one or more counties with a specific program instruction, and that knowing
160	159		5.24noncompliance is a matter of official county board record, the commissioner may require
161	160		5.25payment or recover from the county or counties, in the manner prescribed in clause (1), an
162	161		5.26amount equal to the portion of the total disallowance that resulted from the noncompliance
163	162		5.27and may distribute the balance of the disallowance according to clause (1).
164	163		5.28 (n) The commissioner shall develop and implement special projects that maximize
165	164		5.29reimbursements and result in the recovery of money to the state. For the purpose of recovering
166	165		5.30state money, the commissioner may enter into contracts with third parties. Any recoveries
167	166		5.31that result from projects or contracts entered into under this paragraph shall be deposited
168	167		5.32in the state treasury and credited to a special account until the balance in the account reaches
169	168		5.33$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
170	169		5.34transferred and credited to the general fund. All money in the account is appropriated to the
171	170		5.35commissioner for the purposes of this paragraph.
172	171		5Sec. 2.
173		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 6.1 (o) The commissioner has the authority to establish and enforce the following county
	172	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 6.1 (o) The commissioner has the authority to establish and enforce the following county
174	173		6.2reporting requirements:
175	174		6.3 (1) the commissioner shall establish fiscal and statistical reporting requirements necessary
176	175		6.4to account for the expenditure of funds allocated to counties for programs administered by
177	176		6.5the commissioner. When establishing financial and statistical reporting requirements, the
178	177		6.6commissioner shall evaluate all reports, in consultation with the counties, to determine if
179	178		6.7the reports can be simplified or the number of reports can be reduced;
180	179		6.8 (2) the county board shall submit monthly or quarterly reports to the department as
181	180		6.9required by the commissioner. Monthly reports are due no later than 15 working days after
182	181		6.10the end of the month. Quarterly reports are due no later than 30 calendar days after the end
183	182		6.11of the quarter, unless the commissioner determines that the deadline must be shortened to
184	183		6.1220 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss
185	184		6.13of federal funding. Only reports that are complete, legible, and in the required format shall
186	185		6.14be accepted by the commissioner;
187	186		6.15 (3) if the required reports are not received by the deadlines established in clause (2), the
188	187		6.16commissioner may delay payments and withhold funds from the county board until the next
189	188		6.17reporting period. When the report is needed to account for the use of federal funds and the
190	189		6.18late report results in a reduction in federal funding, the commissioner shall withhold from
191	190		6.19the county boards with late reports an amount equal to the reduction in federal funding until
192	191		6.20full federal funding is received;
193	192		6.21 (4) a county board that submits reports that are late, illegible, incomplete, or not in the
194	193		6.22required format for two out of three consecutive reporting periods is considered
195	194		6.23noncompliant. When a county board is found to be noncompliant, the commissioner shall
196	195		6.24notify the county board of the reason the county board is considered noncompliant and
197	196		6.25request that the county board develop a corrective action plan stating how the county board
198	197		6.26plans to correct the problem. The corrective action plan must be submitted to the
199	198		6.27commissioner within 45 days after the date the county board received notice of
200	199		6.28noncompliance;
201	200		6.29 (5) the final deadline for fiscal reports or amendments to fiscal reports is one year after
202	201		6.30the date the report was originally due. If the commissioner does not receive a report by the
203	202		6.31final deadline, the county board forfeits the funding associated with the report for that
204	203		6.32reporting period and the county board must repay any funds associated with the report
205	204		6.33received for that reporting period;
206	205		6Sec. 2.
207		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 7.1 (6) the commissioner may not delay payments, withhold funds, or require repayment
	206	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 7.1 (6) the commissioner may not delay payments, withhold funds, or require repayment
208	207		7.2under clause (3) or (5) if the county demonstrates that the commissioner failed to provide
209	208		7.3appropriate forms, guidelines, and technical assistance to enable the county to comply with
210	209		7.4the requirements. If the county board disagrees with an action taken by the commissioner
211	210		7.5under clause (3) or (5), the county board may appeal the action according to sections 14.57
212	211		7.6to 14.69; and
213	212		7.7 (7) counties subject to withholding of funds under clause (3) or forfeiture or repayment
214	213		7.8of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover
215	214		7.9costs incurred due to actions taken by the commissioner under clause (3) or (5).
216	215		7.10 (p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit
217	216		7.11exceptions when federal fiscal disallowances or sanctions are based on a statewide random
218	217		7.12sample in direct proportion to each county's claim for that period.
219	218		7.13 (q) The commissioner is responsible for ensuring the detection, prevention, investigation,
220	219		7.14and resolution of fraudulent activities or behavior by applicants, recipients, and other
221	220		7.15participants in the programs administered by the department. The commissioner shall
222	221		7.16cooperate with the commissioner of education to enforce the requirements for program
223	222		7.17integrity and fraud prevention for investigation for child care assistance under chapter 142E.
224	223		7.18By January 15 each year, the commissioner must publish a report on the department's website
225	224		7.19that summarizes the actions the department took in the previous calendar year to comply
226	225		7.20with this paragraph and provides the results of the department's actions, disaggregated by
227	226		7.21program.
228	227		7.22 (r) The commissioner shall require county agencies to identify overpayments, establish
229	228		7.23claims, and utilize all available and cost-beneficial methodologies to collect and recover
230	229		7.24these overpayments in the programs administered by the department.
231	230		7.25 (s) The commissioner shall develop recommended standards for child foster care homes
232	231		7.26that address the components of specialized therapeutic services to be provided by child
233	232		7.27foster care homes with those services.
234	233		7.28 (t) The commissioner shall authorize the method of payment to or from the department
235	234		7.29as part of the programs administered by the department. This authorization includes the
236	235		7.30receipt or disbursement of funds held by the department in a fiduciary capacity as part of
237	236		7.31the programs administered by the department.
238	237		7.32 (u) In coordination with the commissioner of human services, the commissioner shall
239	238		7.33create and provide county and Tribal agencies with blank applications, affidavits, and other
240	239		7.34forms as necessary for public assistance programs.
241	240		7Sec. 2.
242		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 8.1 (v) The commissioner shall cooperate with the federal government and its public welfare
	241	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 8.1 (v) The commissioner shall cooperate with the federal government and its public welfare
243	242		8.2agencies in any reasonable manner as may be necessary to qualify for federal aid for
244	243		8.3temporary assistance for needy families and in conformity with Title I of Public Law 104-193,
245	244		8.4the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor
246	245		8.5amendments, including making reports that contain information required by the federal
247	246		8.6Social Security Advisory Board and complying with any provisions the board may find
248	247		8.7necessary to assure the correctness and verification of the reports.
249	248		8.8 (w) On or before January 15 in each even-numbered year, the commissioner shall make
250	249		8.9a biennial report to the governor concerning the activities of the agency.
251	250		8.10 (x) The commissioner shall enter into agreements with other departments of the state as
252	251		8.11necessary to meet all requirements of the federal government.
253	252		8.12 (y) The commissioner may cooperate with other state agencies in establishing reciprocal
254	253		8.13agreements in instances where a child receiving Minnesota family investment program
255	254		8.14(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out
256	255		8.15of the state, in order that the child may continue to receive MFIP or equivalent aid from the
257	256		8.16state moved from until the child has resided for one year in the state moved to.
258	257		8.17 (z) The commissioner shall provide appropriate technical assistance to county agencies
259	258		8.18to develop methods to have county financial workers remind and encourage recipients of
260	259		8.19aid to families with dependent children, the Minnesota family investment program, the
261	260		8.20Minnesota family investment plan, family general assistance, or SNAP benefits whose
262	261		8.21assistance unit includes at least one child under the age of five to have each young child
263	262		8.22immunized against childhood diseases. The commissioner must examine the feasibility of
264	263		8.23utilizing the capacity of a statewide computer system to assist county agency financial
265	264		8.24workers in performing this function at appropriate intervals.
266	265		8.25 (aa) The commissioner shall have the power and authority to accept on behalf of the
267	266		8.26state contributions and gifts for the use and benefit of children under the guardianship or
268	267		8.27custody of the commissioner. The commissioner may also receive and accept on behalf of
269	268		8.28such children money due and payable to them as old age and survivors insurance benefits,
270	269		8.29veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions,
271	270		8.30and benefits under this paragraph must be deposited in and disbursed from the social welfare
272	271		8.31fund provided for in sections 256.88 to 256.92.
273	272		8.32 (bb) The specific enumeration of powers and duties in this section must not be construed
274	273		8.33to be a limitation upon the general powers granted to the commissioner.
275	274		8.34 EFFECTIVE DATE.This section is effective the day following final enactment.
276	275		8Sec. 2.
277		-	REVISOR DTT H1916-2HF1916 ~~SECOND~~ ENGROSSMENT 9.1 Sec. 3. [142D.251] INSPECTIONS AND VIDEO MONITORING FOR EARLY
	276	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 9.1 Sec. 3. [142D.251] INSPECTIONS AND VIDEO MONITORING FOR EARLY
278	277		9.2LEARNING SCHOLARSHIPS.
279	278		9.3 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
280	279		9.4subdivision have the meanings given.
281	280		9.5 (b) "Facility" means the indoor and outdoor space in which child care is provided that
282	281		9.6is owned, leased, or operated by the program.
283	282		9.7 (c) "Video monitoring" means the ability for the commissioner to see recorded video of
284	283		9.8public and shared areas of the program's facility any time the program has children on the
285	284		9.9premises.
286	285		9.10 Subd. 2.General requirements.(a) The commissioner must conduct inspections and
287	286		9.11video monitoring of early childhood programs that receive funding under section 142D.25
288	287		9.12in accordance with this section.
289	288		9.13 (b) The video monitoring system must:
290		-	9.14 (1) be turned on and recording ~~any time~~ the program has children on the premises;
	289	+	9.14 (1) be turned on and recording at all times the program has children on the premises;
291	290		9.15 (2) record and display the accurate date and time;
292	291		9.16 (3) have a display resolution of 720p or higher; and
293	292		9.17 (4) have a frame-per-second rate of 15 or higher.
294	293		9.18 Subd. 3.Inspections.(a) If a program receives $1,000,000 or more under section 142D.25
295		-	9.19in a calendar year, the commissioner may:
296		-	9.~~20 (1) conduct unannounced inspections of the program's facility~~ in the year following the
297		-	9.~~21receipt of the funding;~~ ~~and~~
298		-	9.~~22 (2) review video footage collected pursuant to subdivision 4~~.
299		-	9.23 (b) ~~Inspections required~~ under ~~this section must be in addition to any licensing inspections~~
300		-	9.~~24required under chapter 142B.~~
301		-	9.~~25 Subd~~. ~~4.Video monitoring.(a) A program that receives $1,000,000 or more under~~
302		-	9.~~26section 142D.25 in a calendar year is subject to video monitoring~~ by the commissioner ~~for~~
303		-	9.~~27one year following the receipt of the funding.~~
304		-	9.28 (b) ~~Within 90 days of being notified by the commissioner~~ that ~~a program is subject to~~
305		-	9.~~29video monitoring under this subdivision, a~~ program ~~is required~~ to:
306		-	9.~~30 (1) install video cameras~~ or ~~other devices that capture~~ or ~~record video in public and~~
307		-	9.~~31shared areas of the program's~~ facility and ~~cover public entrances and exits to the facility~~
	294	+	9.19in a calendar year, the commissioner may conduct unannounced inspections of the program's
	295	+	9.20facility in the year following the receipt of the funding.
	296	+	9.21 (b) Inspections required under this section must be in addition to any licensing inspections
	297	+	9.22required under chapter 142B.
	298	+	9.23 Subd. 4.Video monitoring.(a) A program that receives $1,000,000 or more under
	299	+	9.24section 142D.25 in a calendar year is subject to video monitoring by the commissioner for
	300	+	9.25one year following the receipt of the funding.
	301	+	9.26 (b) Within 90 days of being notified by the commissioner that a program is subject to
	302	+	9.27video monitoring under this subdivision, a program is required to:
	303	+	9.28 (1) install video cameras or other devices that capture or record video in public and
	304	+	9.29shared areas of the program's facility and cover public entrances and exits to the facility
	305	+	9.30and entrances and exits to areas where a parent or legal guardian signs a child in or out of
	306	+	9.31the facility; and
308	307		9Sec. 3.
309		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 10.1and entrances and exits to areas where a parent or legal guardian signs a child in or out of
310		-	10.2the facility; and
311		-	10.3 (2) notify all parents and legal guardians who apply for placement or enroll a child in
312		-	10.4the program that the program is subject to video monitoring by the commissioner.
313		-	10.5 (c) The commissioner may review recordings or copies of a program's operation during
314		-	10.6certain times and dates. If the program fails to produce recordings or copies for any of the
315		-	10.7requested times and dates, the commissioner may use that failure as prima facie evidence
316		-	10.8that the program cared for zero children during the missing times and dates.
317		-	10.9 Subd. 5.Government data practices.(a) To the extent data are not classified under
318		-	10.10section 13.32, video footage collected or maintained by the commissioner under this section
319		-	10.11is classified as protected nonpublic data, as defined in section 13.02, subdivision 13.
320		-	10.12 (b) Video footage collected, created, or maintained by an early childhood program that
321		-	10.13is a government entity, as defined in section 13.02, subdivision 7a, is classified as private
322		-	10.14data on individuals, as defined in section 13.02, subdivision 12, and is subject to the
323		-	10.15requirements under subdivision 6.
324		-	10.16 (c) If the requirements under section 13.32 conflict with the requirements under
325		-	10.17subdivision 6, the requirements of subdivision 6 prevail.
326		-	10.18 (d) Audit reports submitted to the commissioner under subdivision 7 are classified as
327		-	10.19public data not on individuals, as defined in section 13.02, subdivision 14.
328		-	10.20 Subd. 6.Retention, dissemination, and disposal of recordings; access to
329		-	10.21recordings.(a) A program must retain video monitoring recordings required under this
330		-	10.22section for 60 calendar days after the date of the recording. Except as provided under
331		-	10.23paragraph (b), a program must dispose of video monitoring recordings required under this
332		-	10.24section after 60 calendar days.
333		-	10.25 (b) A program that receives notice from a law enforcement official of a suspected crime
334		-	10.26committed against a child at the facility must not dispose of any video monitoring recordings
335		-	10.27required under this section until the law enforcement investigation of the suspected crime
336		-	10.28is complete.
337		-	10.29 (c) A program must adhere to additional requirements issued by the commissioner
338		-	10.30regarding the retention and disposal of video monitoring recordings required under this
339		-	10.31section.
340		-	10.32 (d) A program must not sell, share, transmit, or disseminate a video monitoring recording
341		-	10.33required under this section to any person except as authorized by this section.
342		-	10Sec. 3.
343		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 11.1 (e) A program must disseminate a video monitoring recording required under this section
344		-	11.2pursuant to a valid court order, search warrant, or subpoena in a civil, criminal, or
345		-	11.3administrative proceeding, including an investigation by the commissioner.
346		-	11.4 (f) A program must establish appropriate security safeguards for video monitoring
347		-	11.5recordings required under this section, including procedures to ensure that the recordings
348		-	11.6are only accessible to individuals whose work assignments reasonably require access to the
349		-	11.7recordings and are only accessed by those individuals for purposes described in the
350		-	11.8procedures. All queries and responses, and all actions in which the recordings are accessed,
351		-	11.9shared, or disseminated, must be recorded in a data audit trail. Data contained in the audit
352		-	11.10trail are subject to the same requirements as the underlying recording under this section.
353		-	11.11 Subd. 7.Audits.(a) A program that is not licensed under chapter 142B must arrange
354		-	11.12for an independent, biennial audit to determine whether the program's video monitoring
355		-	11.13complies with the requirements of this section, including but not limited to the requirements
356		-	11.14under subdivision 6. A report summarizing the results of each audit must be provided to
357		-	11.15the commissioner no later than 30 days following completion of the audit. The report must
358		-	11.16not contain a video monitoring recording or identifying information on children enrolled
359		-	11.17in the program.
360		-	11.18 (b) For a program licensed under chapter 142B, the commissioner must conduct, as part
361		-	11.19of the annual licensing inspection required under chapter 142B, an audit to determine whether
362		-	11.20the program's video monitoring complies with the requirements of this section, including
363		-	11.21but not limited to the requirements under subdivision 6.
364		-	11.22 EFFECTIVE DATE.This section is effective September 1, 2025. Initial biennial audits
365		-	11.23under subdivision 7, paragraph (a), are due by December 1, 2027.
366		-	11.24Sec. 4. [142E.161] INSPECTIONS; VIDEO MONITORING.
367		-	11.25 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
368		-	11.26subdivision have the meanings given.
369		-	11.27 (b) "Facility" means the indoor and outdoor space in which child care is provided that
370		-	11.28is owned, leased, or operated by the provider.
371		-	11.29 (c) "Video monitoring" means the ability for the commissioner to see recorded video of
372		-	11.30public and shared areas of the provider's facility any time the provider has children on the
373		-	11.31premises.
	308	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 10.1 (2) notify all parents and legal guardians who apply for placement or enroll a child in
	309	+	10.2the program that the program is subject to video monitoring by the commissioner.
	310	+	10.3 (c) If the commissioner requests recordings or copies of a program's operation during
	311	+	10.4certain times and dates and the program fails to produce recordings or copies for any of the
	312	+	10.5requested times and dates, the commissioner may use that failure as prima facie evidence
	313	+	10.6that the program cared for zero children during the missing times and dates.
	314	+	10.7 Subd. 5.Department data practices.Video footage collected or maintained by the
	315	+	10.8commissioner under this section is classified as protected nonpublic data, as defined by
	316	+	10.9section 13.02, subdivision 13.
	317	+	10.10 Subd. 6.Retention, dissemination, and disposal of recordings.(a) A program must
	318	+	10.11retain video monitoring recordings required under this section for 30 calendar days after
	319	+	10.12the date of the recording. Except as provided under paragraph (b), a program must dispose
	320	+	10.13of video monitoring recordings required under this section after 30 calendar days.
	321	+	10.14 (b) A program that receives notice from a law enforcement official of a suspected crime
	322	+	10.15committed against a child at the facility may not dispose of any video monitoring recordings
	323	+	10.16required under this section until the law enforcement investigation of the suspected crime
	324	+	10.17is complete.
	325	+	10.18 (c) A program must adhere to additional requirements issued by the commissioner
	326	+	10.19regarding the retention and disposal of video monitoring recordings required under this
	327	+	10.20section.
	328	+	10.21 (d) A program may not sell, share, transmit, or disseminate a video monitoring recording
	329	+	10.22required under this section to any person except as authorized by this section.
	330	+	10.23 (e) A program may disseminate a video monitoring recording required under this section
	331	+	10.24pursuant to a valid court order, search warrant, or subpoena in a civil, criminal, or
	332	+	10.25administrative proceeding, including an investigation by the commissioner.
	333	+	10.26 EFFECTIVE DATE.This section is effective September 1, 2025.
	334	+	10.27Sec. 4. [142E.161] INSPECTIONS; VIDEO MONITORING.
	335	+	10.28 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
	336	+	10.29subdivision have the meanings given.
	337	+	10.30 (b) "Facility" means the indoor and outdoor space in which child care is provided that
	338	+	10.31is owned, leased, or operated by the provider.
	339	+	10Sec. 4.
	340	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 11.1 (c) "Video monitoring" means the ability for the commissioner to see recorded video of
	341	+	11.2public and shared areas of the provider's facility any time the provider has children on the
	342	+	11.3premises.
	343	+	11.4 Subd. 2.General requirements.(a) The commissioner must conduct inspections and
	344	+	11.5video monitoring of providers that receive funding under this chapter in accordance with
	345	+	11.6this section.
	346	+	11.7 (b) The video monitoring system must:
	347	+	11.8 (1) be turned on and recording at all times the provider has children on the premises;
	348	+	11.9 (2) record and display the accurate date and time;
	349	+	11.10 (3) have a display resolution of 720p or higher; and
	350	+	11.11 (4) have a frame-per-second rate of 15 or higher.
	351	+	11.12 Subd. 3.Inspections.(a) If a provider receives $1,000,000 or more under this chapter
	352	+	11.13in a calendar year, the commissioner may conduct unannounced inspections of the provider's
	353	+	11.14facility in the year following the receipt of the funding.
	354	+	11.15 (b) Inspections required under this section must be in addition to any licensing inspections
	355	+	11.16required under chapter 142B.
	356	+	11.17 Subd. 4.Video monitoring.(a) A provider that receives $1,000,000 or more under this
	357	+	11.18chapter in a calendar year is subject to video monitoring by the commissioner for one year
	358	+	11.19following the receipt of the funding.
	359	+	11.20 (b) Within 90 days of being notified by the commissioner that a program is subject to
	360	+	11.21video monitoring under this subdivision, a provider is required to:
	361	+	11.22 (1) install video cameras or other devices that capture or record video in public and
	362	+	11.23shared areas of the provider's facility and cover public entrances and exits to the facility
	363	+	11.24and entrances and exits to areas where a parent or legal guardian signs a child in or out of
	364	+	11.25the facility; and
	365	+	11.26 (2) notify all parents and legal guardians who apply for placement or enroll a child in
	366	+	11.27the program that the program is subject to video monitoring by the commissioner.
	367	+	11.28 (c) If the commissioner requests recordings or copies of a provider's operation during
	368	+	11.29certain times and dates and the provider fails to produce recordings or copies for any of the
	369	+	11.30requested times and dates, the commissioner may use that failure as prima facie evidence
	370	+	11.31that the provider cared for zero children during the missing times and dates.
374	371		11Sec. 4.
375		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 12.1 Subd. 2.General requirements.(a) The commissioner must conduct inspections and
376		-	12.2video monitoring of providers that receive funding under this chapter in accordance with
377		-	12.3this section.
378		-	12.4 (b) The video monitoring system must:
379		-	12.5 (1) be turned on and recording any time the provider has children on the premises;
380		-	12.6 (2) record and display the accurate date and time;
381		-	12.7 (3) have a display resolution of 720p or higher; and
382		-	12.8 (4) have a frame-per-second rate of 15 or higher.
383		-	12.9 Subd. 3.Inspections.(a) If a provider receives $1,000,000 or more under this chapter
384		-	12.10in a calendar year, the commissioner may:
385		-	12.11 (1) conduct unannounced inspections of the provider's facility in the year following the
386		-	12.12receipt of the funding; and
387		-	12.13 (2) review video footage collected pursuant to subdivision 4.
388		-	12.14 (b) Inspections required under this section must be in addition to any licensing inspections
389		-	12.15required under chapter 142B.
390		-	12.16 Subd. 4.Video monitoring.(a) A provider that receives $1,000,000 or more under this
391		-	12.17chapter in a calendar year is subject to video monitoring by the commissioner for one year
392		-	12.18following the receipt of the funding.
393		-	12.19 (b) Within 90 days of being notified by the commissioner that a program is subject to
394		-	12.20video monitoring under this subdivision, a provider is required to:
395		-	12.21 (1) install video cameras or other devices that capture or record video in public and
396		-	12.22shared areas of the provider's facility and cover public entrances and exits to the facility
397		-	12.23and entrances and exits to areas where a parent or legal guardian signs a child in or out of
398		-	12.24the facility; and
399		-	12.25 (2) notify all parents and legal guardians who apply for placement or enroll a child in
400		-	12.26the program that the program is subject to video monitoring by the commissioner.
401		-	12.27 (c) The commissioner may review recordings or copies of a provider's operation during
402		-	12.28certain times and dates. If the provider fails to produce recordings or copies for any of the
403		-	12.29requested times and dates, the commissioner may use that failure as prima facie evidence
404		-	12.30that the provider cared for zero children during the missing times and dates.
405		-	12Sec. 4.
406		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 13.1 Subd. 5.Government data practices.(a) To the extent data are not classified under
407		-	13.2section 13.32, video footage collected or maintained by the commissioner under this section
408		-	13.3is classified as protected nonpublic data, as defined in section 13.02, subdivision 13.
409		-	13.4 (b) Video footage collected, created, or maintained by a provider that is a government
410		-	13.5entity, as defined in section 13.02, subdivision 7a, is classified as private data on individuals,
411		-	13.6as defined in section 13.02, subdivision 12, and is subject to the requirements under
412		-	13.7subdivision 6.
413		-	13.8 (c) If the requirements under section 13.32 conflict with the requirements under
414		-	13.9subdivision 6, the requirements of subdivision 6 prevail.
415		-	13.10 (d) Audit reports submitted to the commissioner under subdivision 7 are classified as
416		-	13.11public data not on individuals, as defined in section 13.02, subdivision 14.
417		-	13.12 Subd. 6.Retention, dissemination, and disposal of recordings; access to
418		-	13.13recordings.(a) A provider must retain video monitoring recordings required under this
419		-	13.14section for 60 calendar days after the date of the recording. Except as provided under
420		-	13.15paragraph (b), a provider must dispose of video monitoring recordings required under this
421		-	13.16section after 60 calendar days.
422		-	13.17 (b) A provider that receives notice from a law enforcement official of a suspected crime
423		-	13.18committed against a child at the facility must not dispose of any video monitoring recordings
424		-	13.19required under this section until the law enforcement investigation of the suspected crime
425		-	13.20is complete.
426		-	13.21 (c) A provider must adhere to additional requirements issued by the commissioner
427		-	13.22regarding the retention and disposal of video monitoring recordings required under this
428		-	13.23section.
429		-	13.24 (d) A provider must not sell, share, transmit, or disseminate a video monitoring recording
430		-	13.25required under this section to any person except as authorized by this section.
431		-	13.26 (e) A provider must disseminate a video monitoring recording required under this section
432		-	13.27pursuant to a valid court order, search warrant, or subpoena in a civil, criminal, or
433		-	13.28administrative proceeding, including an investigation by the commissioner.
434		-	13.29 (f) A provider must establish appropriate security safeguards for video monitoring
435		-	13.30recordings required under this section, including procedures to ensure that the recordings
436		-	13.31are only accessible to individuals whose work assignments reasonably require access to the
437		-	13.32recordings and are only accessed by those individuals for purposes described in the
438		-	13.33procedures. All queries and responses, and all actions in which the recordings are accessed,
439		-	13Sec. 4.
440		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 14.1shared, or disseminated, must be recorded in a data audit trail. Data contained in the audit
441		-	14.2trail are subject to the same requirements as the underlying recording under this section.
442		-	14.3 Subd. 7.Audits.(a) A provider that is not licensed under chapter 142B must arrange
443		-	14.4for an independent, biennial audit to determine whether the provider's video monitoring
444		-	14.5complies with the requirements of this section, including but not limited to the requirements
445		-	14.6under subdivision 6. A report summarizing the results of each audit must be provided to
446		-	14.7the commissioner no later than 30 days following completion of the audit. The report must
447		-	14.8not contain a video monitoring recording or identifying information on children enrolled
448		-	14.9in the program.
449		-	14.10 (b) For a provider licensed under chapter 142B, the commissioner must conduct, as part
450		-	14.11of the annual licensing inspection required under chapter 142B, an audit to determine whether
451		-	14.12the provider's video monitoring complies with the requirements of this section, including
452		-	14.13but not limited to the requirements under subdivision 6.
453		-	14.14 EFFECTIVE DATE.This section is effective September 1, 2025. Initial biennial audits
454		-	14.15under subdivision 7, paragraph (a), are due by December 1, 2027.
455		-	14.16Sec. 5. Minnesota Statutes 2024, section 142E.17, subdivision 9, is amended to read:
456		-	14.17 Subd. 9.Provider payments.(a) A provider shall bill only for services documented
457		-	14.18according to section 142E.16, subdivision 7. The provider shall bill for services provided
458		-	14.19within ten days of the end of the service period. A provider must sign each bill and declare,
459		-	14.20under penalty of perjury as provided in section 609.48, that the information in the bill is
460		-	14.21true and correct. Payments under the child care fund shall be made within 21 days of
461		-	14.22receiving a complete bill from the provider. Counties or the state may establish policies that
462		-	14.23make payments on a more frequent basis.
463		-	14.24 (b) If a provider has received an authorization of care and been issued a billing form for
464		-	14.25an eligible family, the bill must be submitted within 60 days of the last date of service on
465		-	14.26the bill. A bill submitted more than 60 days after the last date of service must be paid if the
466		-	14.27county determines that the provider has shown good cause why the bill was not submitted
467		-	14.28within 60 days. Good cause must be defined in the county's child care fund plan under
468		-	14.29section 142E.09, subdivision 3, and the definition of good cause must include county error.
469		-	14.30Any bill submitted more than a year after the last date of service on the bill must not be
470		-	14.31paid.
471		-	14.32 (c) If a provider provided care for a time period without receiving an authorization of
472		-	14.33care and a billing form for an eligible family, payment of child care assistance may only be
473		-	14Sec. 5.
474		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 15.1made retroactively for a maximum of three months from the date the provider is issued an
475		-	15.2authorization of care and a billing form. For a family at application, if a provider provided
476		-	15.3child care during a time period without receiving an authorization of care and a billing form,
477		-	15.4a county may only make child care assistance payments to the provider retroactively from
478		-	15.5the date that child care began, or from the date that the family's eligibility began under
479		-	15.6section 142E.10, subdivision 7, or from the date that the family meets authorization
480		-	15.7requirements, not to exceed six months from the date that the provider is issued an
481		-	15.8authorization of care and a billing form, whichever is later.
482		-	15.9 (d) The commissioner may refuse to issue a child care authorization to a certified,
483		-	15.10licensed, or legal nonlicensed provider; revoke an existing child care authorization to a
484		-	15.11certified, licensed, or legal nonlicensed provider; stop payment issued to a certified, licensed,
485		-	15.12or legal nonlicensed provider; or refuse to pay a bill submitted by a certified, licensed, or
486		-	15.13legal nonlicensed provider if:
487		-	15.14 (1) the provider admits to intentionally giving the county materially false information
488		-	15.15on the provider's billing forms;
489		-	15.16 (2) the commissioner finds by a preponderance of the evidence that the provider
490		-	15.17intentionally gave the county materially false information on the provider's billing forms,
491		-	15.18or provided false attendance records to a county or the commissioner;
492		-	15.19 (3) the provider is in violation of child care assistance program rules, until the agency
493		-	15.20determines those violations have been corrected;
494		-	15.21 (4) the provider is operating after:
495		-	15.22 (i) an order of suspension of the provider's license issued by the commissioner;
496		-	15.23 (ii) an order of revocation of the provider's license issued by the commissioner; or
497		-	15.24 (iii) an order of decertification issued to the provider;
498		-	15.25 (5) the provider submits false attendance reports or refuses to provide documentation
499		-	15.26of the child's attendance upon request;
500		-	15.27 (6) the provider gives false child care price information; or
501		-	15.28 (7) the provider fails to report decreases in a child's attendance as required under section
502		-	15.29142E.16, subdivision 9.
503		-	15.30 (e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the commissioner may
504		-	15.31withhold the provider's authorization or payment for a period of time not to exceed three
505		-	15.32months beyond the time the condition has been corrected.
506		-	15Sec. 5.
507		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 16.1 (f) A county's payment policies must be included in the county's child care plan under
508		-	16.2section 142E.09, subdivision 3. If payments are made by the state, in addition to being in
509		-	16.3compliance with this subdivision, the payments must be made in compliance with section
510		-	16.416A.124.
511		-	16.5 (g) If the commissioner suspends or refuses payment to a provider under paragraph (d),
512		-	16.6clause (1) or (2), or sections 142E.50 to 142E.58 and the provider has:
513		-	16.7 (1) a disqualification for wrongfully obtaining assistance under section 256.98,
514		-	16.8subdivision 8, paragraph (c);
515		-	16.9 (2) an administrative disqualification under section 142E.51, subdivision 5; or
516		-	16.10 (3) a termination under section 142E.51, subdivision 4, paragraph (c), clause (4), or
517		-	16.11142E.55;
518		-	16.12then the provider forfeits the payment to the commissioner or the responsible county agency,
519		-	16.13regardless of the amount assessed in an overpayment, charged in a criminal complaint, or
520		-	16.14ordered as criminal restitution.
521		-	16.15 EFFECTIVE DATE.This section is effective August 1, 2025.
522		-	16.16Sec. 6. STATEWIDE ELECTRONIC RECORD-KEEPING SYSTEM.
523		-	16.17 By July 1, 2026, the commissioner of children, youth, and families must establish and
524		-	16.18implement a statewide electronic records system for the child care assistance program
525		-	16.19(CCAP) to improve the program's integrity and internal controls. The system must provide
526		-	16.20the commissioner, county agencies, and Tribal Nations that administer CCAP with real-time
527		-	16.21access to electronic attendance records to verify children's enrollment in CCAP.
528		-	16.22 EFFECTIVE DATE.This section is effective the day following final enactment.
529		-	16.23Sec. 7. APPROPRIATION.
530		-	16.24 $3,778,000 in fiscal year 2026 and $1,115,000 in fiscal year 2027 are appropriated from
531		-	16.25the general fund to the commissioner of children, youth, and families for provisions required
532		-	16.26under this act. The base for this appropriation is $1,115,000 in fiscal year 2028 and beyond.
533		-	16Sec. 7.
534		-	REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT
	372	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 12.1 Subd. 5.Department data practices.Video footage collected or maintained by the
	373	+	12.2commissioner under this section is classified as protected nonpublic data, as defined by
	374	+	12.3section 13.02, subdivision 13.
	375	+	12.4 Subd. 6.Retention, dissemination, and disposal of recordings.(a) A provider must
	376	+	12.5retain video monitoring recordings required under this section for 30 calendar days after
	377	+	12.6the date of the recording. Except as provided under paragraph (b), a provider must dispose
	378	+	12.7of video monitoring recordings required under this section after 30 calendar days.
	379	+	12.8 (b) A provider that receives notice from a law enforcement official of a suspected crime
	380	+	12.9committed against a child at the facility may not dispose of any video monitoring recordings
	381	+	12.10required under this section until the law enforcement investigation of the suspected crime
	382	+	12.11is complete.
	383	+	12.12 (c) A provider must adhere to additional requirements issued by the commissioner
	384	+	12.13regarding the retention and disposal of video monitoring recordings required under this
	385	+	12.14section.
	386	+	12.15 (d) A provider may not sell, share, transmit, or disseminate a video monitoring recording
	387	+	12.16required under this section to any person except as authorized by this section.
	388	+	12.17 (e) A provider may disseminate a video monitoring recording required under this section
	389	+	12.18pursuant to a valid court order, search warrant, or subpoena in a civil, criminal, or
	390	+	12.19administrative proceeding, including an investigation by the commissioner.
	391	+	12.20 EFFECTIVE DATE.This section is effective September 1, 2025.
	392	+	12.21Sec. 5. Minnesota Statutes 2024, section 142E.17, subdivision 9, is amended to read:
	393	+	12.22 Subd. 9.Provider payments.(a) A provider shall bill only for services documented
	394	+	12.23according to section 142E.16, subdivision 7. The provider shall bill for services provided
	395	+	12.24within ten days of the end of the service period. A provider must sign each bill and declare,
	396	+	12.25under penalty of perjury as provided in section 609.48, that the information in the bill is
	397	+	12.26true and correct. Payments under the child care fund shall be made within 21 days of
	398	+	12.27receiving a complete bill from the provider. Counties or the state may establish policies that
	399	+	12.28make payments on a more frequent basis.
	400	+	12.29 (b) If a provider has received an authorization of care and been issued a billing form for
	401	+	12.30an eligible family, the bill must be submitted within 60 days of the last date of service on
	402	+	12.31the bill. A bill submitted more than 60 days after the last date of service must be paid if the
	403	+	12.32county determines that the provider has shown good cause why the bill was not submitted
	404	+	12.33within 60 days. Good cause must be defined in the county's child care fund plan under
	405	+	12Sec. 5.
	406	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 13.1section 142E.09, subdivision 3, and the definition of good cause must include county error.
	407	+	13.2Any bill submitted more than a year after the last date of service on the bill must not be
	408	+	13.3paid.
	409	+	13.4 (c) If a provider provided care for a time period without receiving an authorization of
	410	+	13.5care and a billing form for an eligible family, payment of child care assistance may only be
	411	+	13.6made retroactively for a maximum of three months from the date the provider is issued an
	412	+	13.7authorization of care and a billing form. For a family at application, if a provider provided
	413	+	13.8child care during a time period without receiving an authorization of care and a billing form,
	414	+	13.9a county may only make child care assistance payments to the provider retroactively from
	415	+	13.10the date that child care began, or from the date that the family's eligibility began under
	416	+	13.11section 142E.10, subdivision 7, or from the date that the family meets authorization
	417	+	13.12requirements, not to exceed six months from the date that the provider is issued an
	418	+	13.13authorization of care and a billing form, whichever is later.
	419	+	13.14 (d) The commissioner may refuse to issue a child care authorization to a certified,
	420	+	13.15licensed, or legal nonlicensed provider; revoke an existing child care authorization to a
	421	+	13.16certified, licensed, or legal nonlicensed provider; stop payment issued to a certified, licensed,
	422	+	13.17or legal nonlicensed provider; or refuse to pay a bill submitted by a certified, licensed, or
	423	+	13.18legal nonlicensed provider if:
	424	+	13.19 (1) the provider admits to intentionally giving the county materially false information
	425	+	13.20on the provider's billing forms;
	426	+	13.21 (2) the commissioner finds by a preponderance of the evidence that the provider
	427	+	13.22intentionally gave the county materially false information on the provider's billing forms,
	428	+	13.23or provided false attendance records to a county or the commissioner;
	429	+	13.24 (3) the provider is in violation of child care assistance program rules, until the agency
	430	+	13.25determines those violations have been corrected;
	431	+	13.26 (4) the provider is operating after:
	432	+	13.27 (i) an order of suspension of the provider's license issued by the commissioner;
	433	+	13.28 (ii) an order of revocation of the provider's license issued by the commissioner; or
	434	+	13.29 (iii) an order of decertification issued to the provider;
	435	+	13.30 (5) the provider submits false attendance reports or refuses to provide documentation
	436	+	13.31of the child's attendance upon request;
	437	+	13.32 (6) the provider gives false child care price information; or
	438	+	13Sec. 5.
	439	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT 14.1 (7) the provider fails to report decreases in a child's attendance as required under section
	440	+	14.2142E.16, subdivision 9.
	441	+	14.3 (e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the commissioner may
	442	+	14.4withhold the provider's authorization or payment for a period of time not to exceed three
	443	+	14.5months beyond the time the condition has been corrected.
	444	+	14.6 (f) A county's payment policies must be included in the county's child care plan under
	445	+	14.7section 142E.09, subdivision 3. If payments are made by the state, in addition to being in
	446	+	14.8compliance with this subdivision, the payments must be made in compliance with section
	447	+	14.916A.124.
	448	+	14.10 (g) If the commissioner suspends or refuses payment to a provider under paragraph (d),
	449	+	14.11clause (1) or (2), or sections 142E.50 to 142E.58 and the provider has:
	450	+	14.12 (1) a disqualification for wrongfully obtaining assistance under section 256.98,
	451	+	14.13subdivision 8, paragraph (c);
	452	+	14.14 (2) an administrative disqualification under section 142E.51, subdivision 5; or
	453	+	14.15 (3) a termination under section 142E.51, subdivision 4, paragraph (c), clause (4), or
	454	+	14.16142E.55;
	455	+	14.17then the provider forfeits the payment to the commissioner or the responsible county agency,
	456	+	14.18regardless of the amount assessed in an overpayment, charged in a criminal complaint, or
	457	+	14.19ordered as criminal restitution.
	458	+	14.20 EFFECTIVE DATE.This section is effective August 1, 2025.
	459	+	14.21Sec. 6. STATEWIDE ELECTRONIC RECORD-KEEPING SYSTEM.
	460	+	14.22 By July 1, 2026, the commissioner of children, youth, and families must establish and
	461	+	14.23implement a statewide electronic records system for the child care assistance program
	462	+	14.24(CCAP) to improve the program's integrity and internal controls. The system must provide
	463	+	14.25the commissioner, county agencies, and Tribal Nations that administer CCAP with real-time
	464	+	14.26access to electronic attendance records to verify children's enrollment in CCAP.
	465	+	14.27 EFFECTIVE DATE.This section is effective the day following final enactment.
	466	+	14.28Sec. 7. APPROPRIATION.
	467	+	14.29 $3,778,000 in fiscal year 2026 and $1,115,000 in fiscal year 2027 are appropriated from
	468	+	14.30the general fund to the commissioner of children, youth, and families for provisions required
	469	+	14.31under this act. The base for this appropriation is $1,115,000 in fiscal year 2028 and beyond.
	470	+	14Sec. 7.
	471	+	REVISOR DTT H1916-1HF1916 FIRST ENGROSSMENT