Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2760 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to child care; establishing the rural child care stabilization and support
3	3	1.3 payment program; requiring a report; appropriating money; proposing coding for
4	4	1.4 new law in Minnesota Statutes, chapter 142D.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [142D.211] RURAL CHILD CARE STABILIZATION AND SUPPORT
7	7	1.7PAYMENTS.
8	8	1.8 Subdivision 1.Establishment.The commissioner of children, youth, and families must
9	9	1.9establish and administer the rural child care stabilization and support payments program to
10	10	1.10provide eligible child care and early learning programs with payments to improve access
11	11	1.11to early care and learning in Minnesota and strengthen the ability of programs to recruit and
12	12	1.12retain early educators.
13	13	1.13 Subd. 2.Eligible programs.(a) The following programs are eligible to receive payments
14	14	1.14under this section:
15	15	1.15 (1) family day care and group family day care homes licensed under Minnesota Rules,
16	16	1.16chapter 9502;
17	17	1.17 (2) child care centers licensed under Minnesota Rules, chapter 9503;
18	18	1.18 (3) certified license-exempt child care centers under chapter 142C;
19	19	1.19 (4) Tribally licensed child care programs; and
20	20	1.20 (5) other programs as determined by the commissioner.
21	21	1Section 1.
22	22	25-03581 as introduced02/18/25 REVISOR DTT/BM
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 2760NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: HAUSCHILD)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading03/20/2025
29	29	Referred to Health and Human Services 2.1 (b) To be eligible, a program must be located in a statutory or home rule charter city or
30	30	2.2town with a population of 2,500 or fewer.
31	31	2.3 (c) To be eligible, a program must not be:
32	32	2.4 (1) the subject of a finding of fraud for which the program is currently serving a penalty
33	33	2.5or exclusion;
34	34	2.6 (2) the subject of suspended, denied, or terminated payments to a provider under section
35	35	2.7142E.17, subdivision 9, paragraph (d), clauses (1) and (2); 142E.51, subdivision 7, paragraph
36	36	2.8(c), clause (4); or 256.98, subdivision 1, regardless of whether the action is under appeal;
37	37	2.9 (3) prohibited from receiving public funds under section 142A.12, regardless of whether
38	38	2.10the action is under appeal; or
39	39	2.11 (4) under license revocation, suspension, temporary immediate suspension, or
40	40	2.12decertification, regardless of whether the action is under appeal.
41	41	2.13 Subd. 3.Requirements.(a) As a condition of payment under this section, a program
42	42	2.14must:
43	43	2.15 (1) complete an application developed by the commissioner for each payment period
44	44	2.16for which the program applies for funding;
45	45	2.17 (2) submit data on child enrollment and attendance to the commissioner in the form and
46	46	2.18manner specified by the commissioner; and
47	47	2.19 (3) attest and agree in writing that the program was open and operating and served a
48	48	2.20minimum number of children, as determined by the commissioner, during the funding
49	49	2.21period, with the exceptions of:
50	50	2.22 (i) service disruptions that were necessary to protect the safety and health of children
51	51	2.23and child care programs based on public health guidance issued by the Centers for Disease
52	52	2.24Control and Prevention; the commissioner of health; the commissioner of children, youth,
53	53	2.25and families; or a local public health agency; and
54	54	2.26 (ii) planned temporary closures for provider vacations and holidays during each payment
55	55	2.27period. The commissioner must establish the maximum allowed duration for vacations and
56	56	2.28holidays.
57	57	2.29 (b) A program must expend money received under this section no later than six months
58	58	2.30after the date the payment was received.
59	59	2Section 1.
60	60	25-03581 as introduced02/18/25 REVISOR DTT/BM 3.1 (c) A program that receives a payment under this section must comply with all
61	61	3.2requirements listed in the application. The commissioner must establish methods to determine
62	62	3.3that the application requirements have been met.
63	63	3.4 Subd. 4.Record retention.(a) A program that receives a payment under this section
64	64	3.5must keep accurate and legible records of the following:
65	65	3.6 (1) use of money;
66	66	3.7 (2) staff employment, compensation, and benefits, which must include time sheets or
67	67	3.8other records of daily hours worked; documentation of compensation and benefits;
68	68	3.9documentation of written changes to employees' rate or rates of pay and basis thereof as a
69	69	3.10result of payments received under this section, as required under section 181.032, paragraphs
70	70	3.11(d) to (f); and any other records required to be maintained under section 177.30; and
71	71	3.12 (3) attendance. Daily attendance records must be completed every day and must include
72	72	3.13the date, the first and last name of each child in attendance, and the time each child is dropped
73	73	3.14off at and picked up from the program. To the extent possible, the person dropping off or
74	74	3.15picking up the child must enter the times.
75	75	3.16 (b) The requirement to document compensation and benefits under paragraph (a), clause
76	76	3.17(2), applies to family day care and group family day care homes only if a payment received
77	77	3.18under this section is used for employee compensation or benefits.
78	78	3.19 (c) Records identified in paragraph (a) must be retained at the site where services are
79	79	3.20delivered for six years after the date of receipt of payment and must be made immediately
80	80	3.21available to the commissioner upon request. Any records not provided to the commissioner
81	81	3.22at the date and time of request are deemed inadmissible if offered as evidence by a program
82	82	3.23in any proceeding to contest an overpayment or disqualification of the program.
83	83	3.24 Subd. 5.Enforcement.A program that receives a payment under this section that fails
84	84	3.25to meet the requirements of this section is subject to discontinuation of future installment
85	85	3.26payments, recovery of overpayments, and actions under sections 142E.50 to 142E.58. Except
86	86	3.27when based on a finding of fraud, actions to establish an overpayment must be made within
87	87	3.28six years of receipt of the payments. Once an overpayment is established, collection may
88	88	3.29continue until money has been repaid in full. The appeal process under section 142E.18
89	89	3.30applies to actions taken for failure to meet the requirements of this section.
90	90	3.31 Subd. 6.Payments.(a) The commissioner shall provide payments under this section to
91	91	3.32all eligible programs on a noncompetitive basis. The payment amounts shall be based on
92	92	3Section 1.
93	93	25-03581 as introduced02/18/25 REVISOR DTT/BM 4.1the number of full-time equivalent staff who regularly care for children in the program,
94	94	4.2including any employees, sole proprietors, or independent contractors.
95	95	4.3 (b) For purposes of this section, "one full-time equivalent" means an individual caring
96	96	4.4for children 32 hours per week. An individual can count as more or less than one full-time
97	97	4.5equivalent staff, but as no more than two full-time equivalent staff.
98	98	4.6 (c) The commissioner must establish an amount to award per full-time equivalent
99	99	4.7individual who regularly cares for children in the program.
100	100	4.8 (d) Payments must be increased by ten percent for programs receiving child care
101	101	4.9assistance payments under section 142E.08 or 142E.17, early learning scholarships under
102	102	4.10section 142D.25, or for programs located in a child care access equity area. The commissioner
103	103	4.11must develop a method for establishing child care access equity areas. For purposes of this
104	104	4.12section, "child care access equity area" means an area with low access to child care, high
105	105	4.13poverty rates, high unemployment rates, low homeownership rates, and low median
106	106	4.14household incomes.
107	107	4.15 (e) The commissioner shall establish the form, frequency, and manner for making
108	108	4.16payments under this section.
109	109	4.17 Subd. 7.Eligible uses of money.(a) Child care centers licensed under Minnesota Rules,
110	110	4.18chapter 9503, certified license-exempt child care centers under chapter 142C, and Tribally
111	111	4.19licensed child care centers must use money received under this section for the following
112	112	4.20purposes:
113	113	4.21 (1) paying rent, including rent under a lease agreement;
114	114	4.22 (2) purchasing or updating equipment, supplies, goods, or services;
115	115	4.23 (3) purchasing training or other professional development; or
116	116	4.24 (4) paying for increases in compensation, benefits, premium pay, or additional federal
117	117	4.25taxes assessed on the compensation of employees as a result of paying increased
118	118	4.26compensation or premium pay to all paid employees or independent contractors regularly
119	119	4.27caring for children.
120	120	4.28 (b) Family day care and group family day care homes licensed under Minnesota Rules,
121	121	4.29chapter 9502, and Tribally licensed family child care homes must use money received under
122	122	4.30this section for one or more of the following purposes:
123	123	4Section 1.
124	124	25-03581 as introduced02/18/25 REVISOR DTT/BM 5.1 (1) paying personnel costs, such as payroll, salaries, or similar compensation; employee
125	125	5.2benefits; premium pay; or financial incentives for recruitment and retention for an employee,
126	126	5.3a sole proprietor, or an independent contractor;
127	127	5.4 (2) paying rent, including rent under a lease agreement, or making payments on any
128	128	5.5mortgage obligation, utilities, facility maintenance or improvements, property taxes, or
129	129	5.6insurance;
130	130	5.7 (3) purchasing or updating equipment, supplies, goods, or services;
131	131	5.8 (4) providing mental health supports for children; or
132	132	5.9 (5) purchasing training or other professional development products or services.
133	133	5.10 Subd. 8.Legal nonlicensed child care provider payments.(a) Legal nonlicensed child
134	134	5.11care providers, as defined in section 142E.01, subdivision 19, are eligible to apply for a
135	135	5.12payment of up to $500 for costs incurred before the first month when payments from the
136	136	5.13child care assistance program are issued.
137	137	5.14 (b) A payment received under this subdivision must be used for one or more of the
138	138	5.15following activities:
139	139	5.16 (1) purchasing or updating equipment, supplies, goods, or services; or
140	140	5.17 (2) purchasing training or other professional development products or services.
141	141	5.18 (c) The commissioner shall determine the form and manner of the application for a
142	142	5.19payment under this subdivision.
143	143	5.20 Subd. 9.Report.By January 1 each year, the commissioner must report to the chairs
144	144	5.21and ranking minority members of the legislative committees with jurisdiction over child
145	145	5.22care and early learning the number of payments provided to programs and related outcomes
146	146	5.23since the last report. This subdivision expires January 31, 2035.
147	147	5.24 Sec. 2. APPROPRIATION; RURAL CHILD CARE STABILIZATION AND
148	148	5.25SUPPORT PAYMENTS.
149	149	5.26 $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the general
150	150	5.27fund to the commissioner of children, youth, and families for the rural child care stabilization
151	151	5.28and support payments program under Minnesota Statutes, section 142D.211.
152	152	5Sec. 2.
153	153	25-03581 as introduced02/18/25 REVISOR DTT/BM