1.1 A bill for an act
1.2 relating to child care; establishing program integrity requirements in the child care
1.3 assistance program; directing the commissioner of children, youth, and families
1.4 to establish an electronic record-keeping system for child care enrollment; requiring
1.5 reports; appropriating money; amending Minnesota Statutes 2024, sections 13.461,
1.6 subdivision 28; 142A.03, subdivision 2; 142E.17, subdivision 9; proposing coding
1.7 for new law in Minnesota Statutes, chapters 142D; 142E.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2024, section 13.461, subdivision 28, is amended to read:
1.10 Subd. 28.Child care assistance program programs.(a) Data collected, maintained,
1.11used, or disseminated by the welfare system pertaining to persons selected as legal
1.12nonlicensed child care providers by families receiving child care assistance are classified
1.13under section 142E.02, subdivision 6, paragraph (a). Child care assistance program payment
1.14data is classified under section 142E.02, subdivision 6, paragraph (b).
1.15 (b) Video footage of child care provider and early childhood program operations collected
1.16or maintained by a government entity is classified under sections 142D.251, subdivision 5,
1.17and 142E.161, subdivision 5.
1.18 Sec. 2. Minnesota Statutes 2024, section 142A.03, subdivision 2, is amended to read:
1.19 Subd. 2.Duties of the commissioner.(a) The commissioner may apply for and accept
1.20on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying
1.21out the duties and responsibilities of the commissioner. Any money received under this
1.22paragraph is appropriated and dedicated for the purpose for which the money is granted.
1.23The commissioner must biennially report to the chairs and ranking minority members of
1Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1916
NINETY-FOURTH SESSION
Authored by West and Zeleznikar03/05/2025
The bill was read for the first time and referred to the Committee on Children and Families Finance and Policy
Adoption of Report: Amended and re-referred to the Committee on Judiciary Finance and Civil Law03/13/2025
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
2.2list of all grants and gifts received under this subdivision.
2.3 (b) Pursuant to law, the commissioner may apply for and receive money made available
2.4from federal sources for the purpose of carrying out the duties and responsibilities of the
2.5commissioner.
2.6 (c) The commissioner may make contracts with and grants to Tribal Nations, public and
2.7private agencies, for-profit and nonprofit organizations, and individuals using appropriated
2.8money.
2.9 (d) The commissioner must develop program objectives and performance measures for
2.10evaluating progress toward achieving the objectives. The commissioner must identify the
2.11objectives, performance measures, and current status of achieving the measures in a biennial
2.12report to the chairs and ranking minority members of relevant legislative committees and
2.13divisions. The report is due no later than January 15 each even-numbered year. The report
2.14must include, when possible, the following objectives:
2.15 (1) centering and including the lived experiences of children and youth, including those
2.16with disabilities and mental illness and their families, in all aspects of the department's work;
2.17 (2) increasing the effectiveness of the department's programs in addressing the needs of
2.18children and youth facing racial, economic, or geographic inequities;
2.19 (3) increasing coordination and reducing inefficiencies among the department's programs
2.20and the funding sources that support the programs;
2.21 (4) increasing the alignment and coordination of family access to child care and early
2.22learning programs and improving systems of support for early childhood and learning
2.23providers and services;
2.24 (5) improving the connection between the department's programs and the kindergarten
2.25through grade 12 and higher education systems; and
2.26 (6) minimizing and streamlining the effort required of youth and families to receive
2.27services to which the youth and families are entitled.
2.28 (e) The commissioner shall administer and supervise the forms of public assistance and
2.29other activities or services that are vested in the commissioner. Administration and
2.30supervision of activities or services includes but is not limited to assuring timely and accurate
2.31distribution of benefits, completeness of service, and quality program management. In
2.32addition to administering and supervising activities vested by law in the department, the
2.33commissioner has the authority to:
2Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 3.1 (1) require county agency participation in training and technical assistance programs to
3.2promote compliance with statutes, rules, federal laws, regulations, and policies governing
3.3the programs and activities administered by the commissioner;
3.4 (2) monitor, on an ongoing basis, the performance of county agencies in the operation
3.5and administration of activities and programs; enforce compliance with statutes, rules,
3.6federal laws, regulations, and policies governing welfare services; and promote excellence
3.7of administration and program operation;
3.8 (3) develop a quality control program or other monitoring program to review county
3.9performance and accuracy of benefit determinations;
3.10 (4) require county agencies to make an adjustment to the public assistance benefits issued
3.11to any individual consistent with federal law and regulation and state law and rule and to
3.12issue or recover benefits as appropriate;
3.13 (5) delay or deny payment of all or part of the state and federal share of benefits and
3.14administrative reimbursement according to the procedures set forth in section 142A.10;
3.15 (6) make contracts with and grants to public and private agencies and organizations,
3.16both for-profit and nonprofit, and individuals, using appropriated funds; and
3.17 (7) enter into contractual agreements with federally recognized Indian Tribes with a
3.18reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved
3.19family assistance program or any other program under the supervision of the commissioner.
3.20The commissioner shall consult with the affected county or counties in the contractual
3.21agreement negotiations, if the county or counties wish to be included, in order to avoid the
3.22duplication of county and Tribal assistance program services. The commissioner may
3.23establish necessary accounts for the purposes of receiving and disbursing funds as necessary
3.24for the operation of the programs.
3.25The commissioner shall work in conjunction with the commissioner of human services to
3.26carry out the duties of this paragraph when necessary and feasible.
3.27 (f) The commissioner shall inform county agencies, on a timely basis, of changes in
3.28statute, rule, federal law, regulation, and policy necessary to county agency administration
3.29of the programs and activities administered by the commissioner.
3.30 (g) The commissioner shall administer and supervise child welfare activities, including
3.31promoting the enforcement of laws preventing child maltreatment and protecting children
3.32with a disability and children who are in need of protection or services, licensing and
3.33supervising child care and child-placing agencies, and supervising the care of children in
3Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 4.1foster care. The commissioner shall coordinate with the commissioner of human services
4.2on activities impacting children overseen by the Department of Human Services, such as
4.3disability services, behavioral health, and substance use disorder treatment.
4.4 (h) The commissioner shall assist and cooperate with local, state, and federal departments,
4.5agencies, and institutions.
4.6 (i) The commissioner shall establish and maintain any administrative units reasonably
4.7necessary for the performance of administrative functions common to all divisions of the
4.8department.
4.9 (j) The commissioner shall act as designated guardian of children pursuant to chapter
4.10260C. For children under the guardianship of the commissioner or a Tribe in Minnesota
4.11recognized by the Secretary of the Interior whose interests would be best served by adoptive
4.12placement, the commissioner may contract with a licensed child-placing agency or a
4.13Minnesota Tribal social services agency to provide adoption services. A contract with a
4.14licensed child-placing agency must be designed to supplement existing county efforts and
4.15may not replace existing county programs or Tribal social services, unless the replacement
4.16is agreed to by the county board and the appropriate exclusive bargaining representative,
4.17Tribal governing body, or the commissioner has evidence that child placements of the county
4.18continue to be substantially below that of other counties. Funds encumbered and obligated
4.19under an agreement for a specific child shall remain available until the terms of the agreement
4.20are fulfilled or the agreement is terminated.
4.21 (k) The commissioner has the authority to conduct and administer experimental projects
4.22to test methods and procedures of administering assistance and services to recipients or
4.23potential recipients of public benefits. To carry out the experimental projects, the
4.24commissioner may waive the enforcement of existing specific statutory program
4.25requirements, rules, and standards in one or more counties. The order establishing the waiver
4.26must provide alternative methods and procedures of administration and must not conflict
4.27with the basic purposes, coverage, or benefits provided by law. No project under this
4.28paragraph shall exceed four years. No order establishing an experimental project as authorized
4.29by this paragraph is effective until the following conditions have been met:
4.30 (1) the United States Secretary of Health and Human Services has agreed, for the same
4.31project, to waive state plan requirements relative to statewide uniformity; and
4.32 (2) a comprehensive plan, including estimated project costs, has been approved by the
4.33Legislative Advisory Commission and filed with the commissioner of administration.
4Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 5.1 (l) The commissioner shall, according to federal requirements and in coordination with
5.2the commissioner of human services, establish procedures to be followed by local welfare
5.3boards in creating citizen advisory committees, including procedures for selection of
5.4committee members.
5.5 (m) The commissioner shall allocate federal fiscal disallowances or sanctions that are
5.6based on quality control error rates for the aid to families with dependent children (AFDC)
5.7program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition
5.8Assistance Program (SNAP) in the following manner:
5.9 (1) one-half of the total amount of the disallowance shall be borne by the county boards
5.10responsible for administering the programs. For AFDC, disallowances shall be shared by
5.11each county board in the same proportion as that county's expenditures to the total of all
5.12counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county
5.13board, with 50 percent of the sanction being distributed to each county in the same proportion
5.14as that county's administrative costs for SNAP benefits are to the total of all SNAP
5.15administrative costs for all counties, and 50 percent of the sanctions being distributed to
5.16each county in the same proportion as that county's value of SNAP benefits issued are to
5.17the total of all benefits issued for all counties. Each county shall pay its share of the
5.18disallowance to the state of Minnesota. When a county fails to pay the amount due under
5.19this paragraph, the commissioner may deduct the amount from reimbursement otherwise
5.20due the county, or the attorney general, upon the request of the commissioner, may institute
5.21civil action to recover the amount due; and
5.22 (2) notwithstanding the provisions of clause (1), if the disallowance results from knowing
5.23noncompliance by one or more counties with a specific program instruction, and that knowing
5.24noncompliance is a matter of official county board record, the commissioner may require
5.25payment or recover from the county or counties, in the manner prescribed in clause (1), an
5.26amount equal to the portion of the total disallowance that resulted from the noncompliance
5.27and may distribute the balance of the disallowance according to clause (1).
5.28 (n) The commissioner shall develop and implement special projects that maximize
5.29reimbursements and result in the recovery of money to the state. For the purpose of recovering
5.30state money, the commissioner may enter into contracts with third parties. Any recoveries
5.31that result from projects or contracts entered into under this paragraph shall be deposited
5.32in the state treasury and credited to a special account until the balance in the account reaches
5.33$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
5.34transferred and credited to the general fund. All money in the account is appropriated to the
5.35commissioner for the purposes of this paragraph.
5Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 6.1 (o) The commissioner has the authority to establish and enforce the following county
6.2reporting requirements:
6.3 (1) the commissioner shall establish fiscal and statistical reporting requirements necessary
6.4to account for the expenditure of funds allocated to counties for programs administered by
6.5the commissioner. When establishing financial and statistical reporting requirements, the
6.6commissioner shall evaluate all reports, in consultation with the counties, to determine if
6.7the reports can be simplified or the number of reports can be reduced;
6.8 (2) the county board shall submit monthly or quarterly reports to the department as
6.9required by the commissioner. Monthly reports are due no later than 15 working days after
6.10the end of the month. Quarterly reports are due no later than 30 calendar days after the end
6.11of the quarter, unless the commissioner determines that the deadline must be shortened to
6.1220 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss
6.13of federal funding. Only reports that are complete, legible, and in the required format shall
6.14be accepted by the commissioner;
6.15 (3) if the required reports are not received by the deadlines established in clause (2), the
6.16commissioner may delay payments and withhold funds from the county board until the next
6.17reporting period. When the report is needed to account for the use of federal funds and the
6.18late report results in a reduction in federal funding, the commissioner shall withhold from
6.19the county boards with late reports an amount equal to the reduction in federal funding until
6.20full federal funding is received;
6.21 (4) a county board that submits reports that are late, illegible, incomplete, or not in the
6.22required format for two out of three consecutive reporting periods is considered
6.23noncompliant. When a county board is found to be noncompliant, the commissioner shall
6.24notify the county board of the reason the county board is considered noncompliant and
6.25request that the county board develop a corrective action plan stating how the county board
6.26plans to correct the problem. The corrective action plan must be submitted to the
6.27commissioner within 45 days after the date the county board received notice of
6.28noncompliance;
6.29 (5) the final deadline for fiscal reports or amendments to fiscal reports is one year after
6.30the date the report was originally due. If the commissioner does not receive a report by the
6.31final deadline, the county board forfeits the funding associated with the report for that
6.32reporting period and the county board must repay any funds associated with the report
6.33received for that reporting period;
6Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 7.1 (6) the commissioner may not delay payments, withhold funds, or require repayment
7.2under clause (3) or (5) if the county demonstrates that the commissioner failed to provide
7.3appropriate forms, guidelines, and technical assistance to enable the county to comply with
7.4the requirements. If the county board disagrees with an action taken by the commissioner
7.5under clause (3) or (5), the county board may appeal the action according to sections 14.57
7.6to 14.69; and
7.7 (7) counties subject to withholding of funds under clause (3) or forfeiture or repayment
7.8of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover
7.9costs incurred due to actions taken by the commissioner under clause (3) or (5).
7.10 (p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit
7.11exceptions when federal fiscal disallowances or sanctions are based on a statewide random
7.12sample in direct proportion to each county's claim for that period.
7.13 (q) The commissioner is responsible for ensuring the detection, prevention, investigation,
7.14and resolution of fraudulent activities or behavior by applicants, recipients, and other
7.15participants in the programs administered by the department. The commissioner shall
7.16cooperate with the commissioner of education to enforce the requirements for program
7.17integrity and fraud prevention for investigation for child care assistance under chapter 142E.
7.18By January 15 each year, the commissioner must publish a report on the department's website
7.19that summarizes the actions the department took in the previous calendar year to comply
7.20with this paragraph and provides the results of the department's actions, disaggregated by
7.21program.
7.22 (r) The commissioner shall require county agencies to identify overpayments, establish
7.23claims, and utilize all available and cost-beneficial methodologies to collect and recover
7.24these overpayments in the programs administered by the department.
7.25 (s) The commissioner shall develop recommended standards for child foster care homes
7.26that address the components of specialized therapeutic services to be provided by child
7.27foster care homes with those services.
7.28 (t) The commissioner shall authorize the method of payment to or from the department
7.29as part of the programs administered by the department. This authorization includes the
7.30receipt or disbursement of funds held by the department in a fiduciary capacity as part of
7.31the programs administered by the department.
7.32 (u) In coordination with the commissioner of human services, the commissioner shall
7.33create and provide county and Tribal agencies with blank applications, affidavits, and other
7.34forms as necessary for public assistance programs.
7Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 8.1 (v) The commissioner shall cooperate with the federal government and its public welfare
8.2agencies in any reasonable manner as may be necessary to qualify for federal aid for
8.3temporary assistance for needy families and in conformity with Title I of Public Law 104-193,
8.4the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor
8.5amendments, including making reports that contain information required by the federal
8.6Social Security Advisory Board and complying with any provisions the board may find
8.7necessary to assure the correctness and verification of the reports.
8.8 (w) On or before January 15 in each even-numbered year, the commissioner shall make
8.9a biennial report to the governor concerning the activities of the agency.
8.10 (x) The commissioner shall enter into agreements with other departments of the state as
8.11necessary to meet all requirements of the federal government.
8.12 (y) The commissioner may cooperate with other state agencies in establishing reciprocal
8.13agreements in instances where a child receiving Minnesota family investment program
8.14(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out
8.15of the state, in order that the child may continue to receive MFIP or equivalent aid from the
8.16state moved from until the child has resided for one year in the state moved to.
8.17 (z) The commissioner shall provide appropriate technical assistance to county agencies
8.18to develop methods to have county financial workers remind and encourage recipients of
8.19aid to families with dependent children, the Minnesota family investment program, the
8.20Minnesota family investment plan, family general assistance, or SNAP benefits whose
8.21assistance unit includes at least one child under the age of five to have each young child
8.22immunized against childhood diseases. The commissioner must examine the feasibility of
8.23utilizing the capacity of a statewide computer system to assist county agency financial
8.24workers in performing this function at appropriate intervals.
8.25 (aa) The commissioner shall have the power and authority to accept on behalf of the
8.26state contributions and gifts for the use and benefit of children under the guardianship or
8.27custody of the commissioner. The commissioner may also receive and accept on behalf of
8.28such children money due and payable to them as old age and survivors insurance benefits,
8.29veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions,
8.30and benefits under this paragraph must be deposited in and disbursed from the social welfare
8.31fund provided for in sections 256.88 to 256.92.
8.32 (bb) The specific enumeration of powers and duties in this section must not be construed
8.33to be a limitation upon the general powers granted to the commissioner.
8.34 EFFECTIVE DATE.This section is effective the day following final enactment.
8Sec. 2.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 9.1 Sec. 3. [142D.251] INSPECTIONS AND VIDEO MONITORING FOR EARLY
9.2LEARNING SCHOLARSHIPS.
9.3 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
9.4subdivision have the meanings given.
9.5 (b) "Facility" means the indoor and outdoor space in which child care is provided that
9.6is owned, leased, or operated by the program.
9.7 (c) "Video monitoring" means the ability for the commissioner to see recorded video of
9.8public and shared areas of the program's facility any time the program has children on the
9.9premises.
9.10 Subd. 2.General requirements.(a) The commissioner must conduct inspections and
9.11video monitoring of early childhood programs that receive funding under section 142D.25
9.12in accordance with this section.
9.13 (b) The video monitoring system must:
9.14 (1) be turned on and recording any time the program has children on the premises;
9.15 (2) record and display the accurate date and time;
9.16 (3) have a display resolution of 720p or higher; and
9.17 (4) have a frame-per-second rate of 15 or higher.
9.18 Subd. 3.Inspections.(a) If a program receives $1,000,000 or more under section 142D.25
9.19in a calendar year, the commissioner may:
9.20 (1) conduct unannounced inspections of the program's facility in the year following the
9.21receipt of the funding; and
9.22 (2) review video footage collected pursuant to subdivision 4.
9.23 (b) Inspections required under this section must be in addition to any licensing inspections
9.24required under chapter 142B.
9.25 Subd. 4.Video monitoring.(a) A program that receives $1,000,000 or more under
9.26section 142D.25 in a calendar year is subject to video monitoring by the commissioner for
9.27one year following the receipt of the funding.
9.28 (b) Within 90 days of being notified by the commissioner that a program is subject to
9.29video monitoring under this subdivision, a program is required to:
9.30 (1) install video cameras or other devices that capture or record video in public and
9.31shared areas of the program's facility and cover public entrances and exits to the facility
9Sec. 3.
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
10.2the facility; and
10.3 (2) notify all parents and legal guardians who apply for placement or enroll a child in
10.4the program that the program is subject to video monitoring by the commissioner.
10.5 (c) The commissioner may review recordings or copies of a program's operation during
10.6certain times and dates. If the program fails to produce recordings or copies for any of the
10.7requested times and dates, the commissioner may use that failure as prima facie evidence
10.8that the program cared for zero children during the missing times and dates.
10.9 Subd. 5.Government data practices.(a) To the extent data are not classified under
10.10section 13.32, video footage collected or maintained by the commissioner under this section
10.11is classified as protected nonpublic data, as defined in section 13.02, subdivision 13.
10.12 (b) Video footage collected, created, or maintained by an early childhood program that
10.13is a government entity, as defined in section 13.02, subdivision 7a, is classified as private
10.14data on individuals, as defined in section 13.02, subdivision 12, and is subject to the
10.15requirements under subdivision 6.
10.16 (c) If the requirements under section 13.32 conflict with the requirements under
10.17subdivision 6, the requirements of subdivision 6 prevail.
10.18 (d) Audit reports submitted to the commissioner under subdivision 7 are classified as
10.19public data not on individuals, as defined in section 13.02, subdivision 14.
10.20 Subd. 6.Retention, dissemination, and disposal of recordings; access to
10.21recordings.(a) A program must retain video monitoring recordings required under this
10.22section for 60 calendar days after the date of the recording. Except as provided under
10.23paragraph (b), a program must dispose of video monitoring recordings required under this
10.24section after 60 calendar days.
10.25 (b) A program that receives notice from a law enforcement official of a suspected crime
10.26committed against a child at the facility must not dispose of any video monitoring recordings
10.27required under this section until the law enforcement investigation of the suspected crime
10.28is complete.
10.29 (c) A program must adhere to additional requirements issued by the commissioner
10.30regarding the retention and disposal of video monitoring recordings required under this
10.31section.
10.32 (d) A program must not sell, share, transmit, or disseminate a video monitoring recording
10.33required under this section to any person except as authorized by this section.
10Sec. 3.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 11.1 (e) A program must disseminate a video monitoring recording required under this section
11.2pursuant to a valid court order, search warrant, or subpoena in a civil, criminal, or
11.3administrative proceeding, including an investigation by the commissioner.
11.4 (f) A program must establish appropriate security safeguards for video monitoring
11.5recordings required under this section, including procedures to ensure that the recordings
11.6are only accessible to individuals whose work assignments reasonably require access to the
11.7recordings and are only accessed by those individuals for purposes described in the
11.8procedures. All queries and responses, and all actions in which the recordings are accessed,
11.9shared, or disseminated, must be recorded in a data audit trail. Data contained in the audit
11.10trail are subject to the same requirements as the underlying recording under this section.
11.11 Subd. 7.Audits.(a) A program that is not licensed under chapter 142B must arrange
11.12for an independent, biennial audit to determine whether the program's video monitoring
11.13complies with the requirements of this section, including but not limited to the requirements
11.14under subdivision 6. A report summarizing the results of each audit must be provided to
11.15the commissioner no later than 30 days following completion of the audit. The report must
11.16not contain a video monitoring recording or identifying information on children enrolled
11.17in the program.
11.18 (b) For a program licensed under chapter 142B, the commissioner must conduct, as part
11.19of the annual licensing inspection required under chapter 142B, an audit to determine whether
11.20the program's video monitoring complies with the requirements of this section, including
11.21but not limited to the requirements under subdivision 6.
11.22 EFFECTIVE DATE.This section is effective September 1, 2025. Initial biennial audits
11.23under subdivision 7, paragraph (a), are due by December 1, 2027.
11.24Sec. 4. [142E.161] INSPECTIONS; VIDEO MONITORING.
11.25 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in this
11.26subdivision have the meanings given.
11.27 (b) "Facility" means the indoor and outdoor space in which child care is provided that
11.28is owned, leased, or operated by the provider.
11.29 (c) "Video monitoring" means the ability for the commissioner to see recorded video of
11.30public and shared areas of the provider's facility any time the provider has children on the
11.31premises.
11Sec. 4.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 12.1 Subd. 2.General requirements.(a) The commissioner must conduct inspections and
12.2video monitoring of providers that receive funding under this chapter in accordance with
12.3this section.
12.4 (b) The video monitoring system must:
12.5 (1) be turned on and recording any time the provider has children on the premises;
12.6 (2) record and display the accurate date and time;
12.7 (3) have a display resolution of 720p or higher; and
12.8 (4) have a frame-per-second rate of 15 or higher.
12.9 Subd. 3.Inspections.(a) If a provider receives $1,000,000 or more under this chapter
12.10in a calendar year, the commissioner may:
12.11 (1) conduct unannounced inspections of the provider's facility in the year following the
12.12receipt of the funding; and
12.13 (2) review video footage collected pursuant to subdivision 4.
12.14 (b) Inspections required under this section must be in addition to any licensing inspections
12.15required under chapter 142B.
12.16 Subd. 4.Video monitoring.(a) A provider that receives $1,000,000 or more under this
12.17chapter in a calendar year is subject to video monitoring by the commissioner for one year
12.18following the receipt of the funding.
12.19 (b) Within 90 days of being notified by the commissioner that a program is subject to
12.20video monitoring under this subdivision, a provider is required to:
12.21 (1) install video cameras or other devices that capture or record video in public and
12.22shared areas of the provider's facility and cover public entrances and exits to the facility
12.23and entrances and exits to areas where a parent or legal guardian signs a child in or out of
12.24the facility; and
12.25 (2) notify all parents and legal guardians who apply for placement or enroll a child in
12.26the program that the program is subject to video monitoring by the commissioner.
12.27 (c) The commissioner may review recordings or copies of a provider's operation during
12.28certain times and dates. If the provider fails to produce recordings or copies for any of the
12.29requested times and dates, the commissioner may use that failure as prima facie evidence
12.30that the provider cared for zero children during the missing times and dates.
12Sec. 4.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 13.1 Subd. 5.Government data practices.(a) To the extent data are not classified under
13.2section 13.32, video footage collected or maintained by the commissioner under this section
13.3is classified as protected nonpublic data, as defined in section 13.02, subdivision 13.
13.4 (b) Video footage collected, created, or maintained by a provider that is a government
13.5entity, as defined in section 13.02, subdivision 7a, is classified as private data on individuals,
13.6as defined in section 13.02, subdivision 12, and is subject to the requirements under
13.7subdivision 6.
13.8 (c) If the requirements under section 13.32 conflict with the requirements under
13.9subdivision 6, the requirements of subdivision 6 prevail.
13.10 (d) Audit reports submitted to the commissioner under subdivision 7 are classified as
13.11public data not on individuals, as defined in section 13.02, subdivision 14.
13.12 Subd. 6.Retention, dissemination, and disposal of recordings; access to
13.13recordings.(a) A provider must retain video monitoring recordings required under this
13.14section for 60 calendar days after the date of the recording. Except as provided under
13.15paragraph (b), a provider must dispose of video monitoring recordings required under this
13.16section after 60 calendar days.
13.17 (b) A provider that receives notice from a law enforcement official of a suspected crime
13.18committed against a child at the facility must not dispose of any video monitoring recordings
13.19required under this section until the law enforcement investigation of the suspected crime
13.20is complete.
13.21 (c) A provider must adhere to additional requirements issued by the commissioner
13.22regarding the retention and disposal of video monitoring recordings required under this
13.23section.
13.24 (d) A provider must not sell, share, transmit, or disseminate a video monitoring recording
13.25required under this section to any person except as authorized by this section.
13.26 (e) A provider must disseminate a video monitoring recording required under this section
13.27pursuant to a valid court order, search warrant, or subpoena in a civil, criminal, or
13.28administrative proceeding, including an investigation by the commissioner.
13.29 (f) A provider must establish appropriate security safeguards for video monitoring
13.30recordings required under this section, including procedures to ensure that the recordings
13.31are only accessible to individuals whose work assignments reasonably require access to the
13.32recordings and are only accessed by those individuals for purposes described in the
13.33procedures. All queries and responses, and all actions in which the recordings are accessed,
13Sec. 4.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 14.1shared, or disseminated, must be recorded in a data audit trail. Data contained in the audit
14.2trail are subject to the same requirements as the underlying recording under this section.
14.3 Subd. 7.Audits.(a) A provider that is not licensed under chapter 142B must arrange
14.4for an independent, biennial audit to determine whether the provider's video monitoring
14.5complies with the requirements of this section, including but not limited to the requirements
14.6under subdivision 6. A report summarizing the results of each audit must be provided to
14.7the commissioner no later than 30 days following completion of the audit. The report must
14.8not contain a video monitoring recording or identifying information on children enrolled
14.9in the program.
14.10 (b) For a provider licensed under chapter 142B, the commissioner must conduct, as part
14.11of the annual licensing inspection required under chapter 142B, an audit to determine whether
14.12the provider's video monitoring complies with the requirements of this section, including
14.13but not limited to the requirements under subdivision 6.
14.14 EFFECTIVE DATE.This section is effective September 1, 2025. Initial biennial audits
14.15under subdivision 7, paragraph (a), are due by December 1, 2027.
14.16Sec. 5. Minnesota Statutes 2024, section 142E.17, subdivision 9, is amended to read:
14.17 Subd. 9.Provider payments.(a) A provider shall bill only for services documented
14.18according to section 142E.16, subdivision 7. The provider shall bill for services provided
14.19within ten days of the end of the service period. A provider must sign each bill and declare,
14.20under penalty of perjury as provided in section 609.48, that the information in the bill is
14.21true and correct. Payments under the child care fund shall be made within 21 days of
14.22receiving a complete bill from the provider. Counties or the state may establish policies that
14.23make payments on a more frequent basis.
14.24 (b) If a provider has received an authorization of care and been issued a billing form for
14.25an eligible family, the bill must be submitted within 60 days of the last date of service on
14.26the bill. A bill submitted more than 60 days after the last date of service must be paid if the
14.27county determines that the provider has shown good cause why the bill was not submitted
14.28within 60 days. Good cause must be defined in the county's child care fund plan under
14.29section 142E.09, subdivision 3, and the definition of good cause must include county error.
14.30Any bill submitted more than a year after the last date of service on the bill must not be
14.31paid.
14.32 (c) If a provider provided care for a time period without receiving an authorization of
14.33care and a billing form for an eligible family, payment of child care assistance may only be
14Sec. 5.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT 15.1made retroactively for a maximum of three months from the date the provider is issued an
15.2authorization of care and a billing form. For a family at application, if a provider provided
15.3child care during a time period without receiving an authorization of care and a billing form,
15.4a county may only make child care assistance payments to the provider retroactively from
15.5the date that child care began, or from the date that the family's eligibility began under
15.6section 142E.10, subdivision 7, or from the date that the family meets authorization
15.7requirements, not to exceed six months from the date that the provider is issued an
15.8authorization of care and a billing form, whichever is later.
15.9 (d) The commissioner may refuse to issue a child care authorization to a certified,
15.10licensed, or legal nonlicensed provider; revoke an existing child care authorization to a
15.11certified, licensed, or legal nonlicensed provider; stop payment issued to a certified, licensed,
15.12or legal nonlicensed provider; or refuse to pay a bill submitted by a certified, licensed, or
15.13legal nonlicensed provider if:
15.14 (1) the provider admits to intentionally giving the county materially false information
15.15on the provider's billing forms;
15.16 (2) the commissioner finds by a preponderance of the evidence that the provider
15.17intentionally gave the county materially false information on the provider's billing forms,
15.18or provided false attendance records to a county or the commissioner;
15.19 (3) the provider is in violation of child care assistance program rules, until the agency
15.20determines those violations have been corrected;
15.21 (4) the provider is operating after:
15.22 (i) an order of suspension of the provider's license issued by the commissioner;
15.23 (ii) an order of revocation of the provider's license issued by the commissioner; or
15.24 (iii) an order of decertification issued to the provider;
15.25 (5) the provider submits false attendance reports or refuses to provide documentation
15.26of the child's attendance upon request;
15.27 (6) the provider gives false child care price information; or
15.28 (7) the provider fails to report decreases in a child's attendance as required under section
15.29142E.16, subdivision 9.
15.30 (e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the commissioner may
15.31withhold the provider's authorization or payment for a period of time not to exceed three
15.32months beyond the time the condition has been corrected.
15Sec. 5.
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
16.2section 142E.09, subdivision 3. If payments are made by the state, in addition to being in
16.3compliance with this subdivision, the payments must be made in compliance with section
16.416A.124.
16.5 (g) If the commissioner suspends or refuses payment to a provider under paragraph (d),
16.6clause (1) or (2), or sections 142E.50 to 142E.58 and the provider has:
16.7 (1) a disqualification for wrongfully obtaining assistance under section 256.98,
16.8subdivision 8, paragraph (c);
16.9 (2) an administrative disqualification under section 142E.51, subdivision 5; or
16.10 (3) a termination under section 142E.51, subdivision 4, paragraph (c), clause (4), or
16.11142E.55;
16.12then the provider forfeits the payment to the commissioner or the responsible county agency,
16.13regardless of the amount assessed in an overpayment, charged in a criminal complaint, or
16.14ordered as criminal restitution.
16.15 EFFECTIVE DATE.This section is effective August 1, 2025.
16.16Sec. 6. STATEWIDE ELECTRONIC RECORD-KEEPING SYSTEM.
16.17 By July 1, 2026, the commissioner of children, youth, and families must establish and
16.18implement a statewide electronic records system for the child care assistance program
16.19(CCAP) to improve the program's integrity and internal controls. The system must provide
16.20the commissioner, county agencies, and Tribal Nations that administer CCAP with real-time
16.21access to electronic attendance records to verify children's enrollment in CCAP.
16.22 EFFECTIVE DATE.This section is effective the day following final enactment.
16.23Sec. 7. APPROPRIATION.
16.24 $3,778,000 in fiscal year 2026 and $1,115,000 in fiscal year 2027 are appropriated from
16.25the general fund to the commissioner of children, youth, and families for provisions required
16.26under this act. The base for this appropriation is $1,115,000 in fiscal year 2028 and beyond.
16Sec. 7.
REVISOR DTT H1916-2HF1916 SECOND ENGROSSMENT