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HF3819 • 2026

Licensing inspection requirements for child care providers modified, program integrity requirements for child care assistance program established, and report required.

Licensing inspection requirements for child care providers modified, program integrity requirements for child care assistance program established, and report required.

Children
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
West, Robbins, Scott, Zeleznikar, Davis
Last action
2026-03-26
Official status
Authors added Zeleznikar and Davis
Effective date
Not listed

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Bill History

  1. 2026-03-26 House

    Authors added Zeleznikar and Davis

  2. 2026-03-02 House

    Introduction and first reading, referred to Children and Families Finance and Policy

Official Summary Text

Licensing inspection requirements for child care providers modified, program integrity requirements for child care assistance program established, and report required.

Current Bill Text

Read the full stored bill text
A bill for an act

relating to child care; modifying licensing inspection requirements for child care

providers; establishing program integrity requirements for the child care assistance

program; requiring a report; amending Minnesota Statutes 2024, section 142B.02,

subdivision 7; Minnesota Statutes 2025 Supplement, sections 142A.03, subdivision

2; 142E.16, subdivision 7; 142E.17, subdivision 9; proposing coding for new law

in Minnesota Statutes, chapter 142E.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 142A.03, subdivision 2, is

amended to read:

Subd. 2.

Duties of the commissioner.

(a) The commissioner may apply for and accept

on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying

out the duties and responsibilities of the commissioner. Any money received under this

paragraph is appropriated and dedicated for the purpose for which the money is granted.

The commissioner must biennially report to the chairs and ranking minority members of

relevant legislative committees and divisions by January 15 of each even-numbered year a

list of all grants and gifts received under this subdivision.

(b) Pursuant to law, the commissioner may apply for and receive money made available

from federal sources for the purpose of carrying out the duties and responsibilities of the

commissioner.

(c) The commissioner may make contracts with and grants to Tribal Nations, public and

private agencies, for-profit and nonprofit organizations, and individuals using appropriated

money.

(d) The commissioner must develop program objectives and performance measures for

evaluating progress toward achieving the objectives. The commissioner must identify the

objectives, performance measures, and current status of achieving the measures in a biennial

report to the chairs and ranking minority members of relevant legislative committees and

divisions. The report is due no later than January 15 each even-numbered year. The report

must include, when possible, the following objectives:

(1) centering and including the lived experiences of children and youth, including those

with disabilities and mental illness and their families, in all aspects of the department's work;

(2) increasing the effectiveness of the department's programs in addressing the needs of

children and youth facing racial, economic, or geographic inequities;

(3) increasing coordination and reducing inefficiencies among the department's programs

and the funding sources that support the programs;

(4) increasing the alignment and coordination of family access to child care and early

learning programs and improving systems of support for early childhood and learning

providers and services;

(5) improving the connection between the department's programs and the kindergarten

through grade 12 and higher education systems; and

(6) minimizing and streamlining the effort required of youth and families to receive

services to which the youth and families are entitled.

(e) The commissioner shall administer and supervise the forms of public assistance and

other activities or services that are vested in the commissioner. Administration and

supervision of activities or services includes but is not limited to assuring timely and accurate

distribution of benefits, completeness of service, and quality program management. In

addition to administering and supervising activities vested by law in the department, the

commissioner has the authority to:

(1) require county agency participation in training and technical assistance programs to

promote compliance with statutes, rules, federal laws, regulations, and policies governing

the programs and activities administered by the commissioner;

(2) monitor, on an ongoing basis, the performance of county agencies in the operation

and administration of activities and programs; enforce compliance with statutes, rules,

federal laws, regulations, and policies governing welfare services; and promote excellence

of administration and program operation;

(3) develop a quality control program or other monitoring program to review county

performance and accuracy of benefit determinations;

(4) require county agencies to make an adjustment to the public assistance benefits issued

to any individual consistent with federal law and regulation and state law and rule and to

issue or recover benefits as appropriate;

(5) delay or deny payment of all or part of the state and federal share of benefits and

administrative reimbursement according to the procedures set forth in section
142A.10
;

(6) make contracts with and grants to public and private agencies and organizations,

both for-profit and nonprofit, and individuals, using appropriated funds; and

(7) enter into contractual agreements with federally recognized Indian Tribes with a

reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved

family assistance program or any other program under the supervision of the commissioner.

The commissioner shall consult with the affected county or counties in the contractual

agreement negotiations, if the county or counties wish to be included, in order to avoid the

duplication of county and Tribal assistance program services. The commissioner may

establish necessary accounts for the purposes of receiving and disbursing funds as necessary

for the operation of the programs.

The commissioner shall work in conjunction with the commissioner of human services to

carry out the duties of this paragraph when necessary and feasible.

(f) The commissioner shall inform county agencies, on a timely basis, of changes in

statute, rule, federal law, regulation, and policy necessary to county agency administration

of the programs and activities administered by the commissioner.

(g) The commissioner shall administer and supervise child welfare activities, including

promoting the enforcement of laws preventing child maltreatment and protecting children

with a disability and children who are in need of protection or services, licensing and

supervising child care and child-placing agencies, and supervising the care of children in

foster care. The commissioner shall coordinate with the commissioner of human services

on activities impacting children overseen by the Department of Human Services, such as

disability services, behavioral health, and substance use disorder treatment.

(h) The commissioner shall assist and cooperate with local, state, and federal departments,

agencies, and institutions.

(i) The commissioner shall establish and maintain any administrative units reasonably

necessary for the performance of administrative functions common to all divisions of the

department.

(j) The commissioner shall act as designated guardian of children pursuant to chapter

260C. For children under the guardianship of the commissioner or a Tribe in Minnesota

recognized by the Secretary of the Interior whose interests would be best served by adoptive

placement, the commissioner may contract with a licensed child-placing agency or a

Minnesota Tribal social services agency to provide adoption services. For children in

out-of-home care whose interests would be best served by a transfer of permanent legal and

physical custody to a relative under section
260C.515, subdivision 4
, or equivalent in Tribal

code, the commissioner may contract with a licensed child-placing agency or a Minnesota

Tribal social services agency to provide permanency services. A contract with a licensed

child-placing agency must be designed to supplement existing county efforts and may not

replace existing county programs or Tribal social services, unless the replacement is agreed

to by the county board and the appropriate exclusive bargaining representative, Tribal

governing body, or the commissioner has evidence that child placements of the county

continue to be substantially below that of other counties. Funds encumbered and obligated

under an agreement for a specific child shall remain available until the terms of the agreement

are fulfilled or the agreement is terminated.

(k) The commissioner has the authority to conduct and administer experimental projects

to test methods and procedures of administering assistance and services to recipients or

potential recipients of public benefits. To carry out the experimental projects, the

commissioner may waive the enforcement of existing specific statutory program

requirements, rules, and standards in one or more counties. The order establishing the waiver

must provide alternative methods and procedures of administration and must not conflict

with the basic purposes, coverage, or benefits provided by law. No project under this

paragraph shall exceed four years. No order establishing an experimental project as authorized

by this paragraph is effective until the following conditions have been met:

(1) the United States Secretary of Health and Human Services has agreed, for the same

project, to waive state plan requirements relative to statewide uniformity; and

(2) a comprehensive plan, including estimated project costs, has been approved by the

Legislative Advisory Commission and filed with the commissioner of administration.

(l) The commissioner shall, according to federal requirements and in coordination with

the commissioner of human services, establish procedures to be followed by local welfare

boards in creating citizen advisory committees, including procedures for selection of

committee members.

(m) The commissioner shall allocate federal fiscal disallowances or sanctions that are

based on quality control error rates for the aid to families with dependent children (AFDC)

program formerly codified in sections
256.72
to
256.87
or the Supplemental Nutrition

Assistance Program (SNAP) in the following manner:

(1) one-half of the total amount of the disallowance shall be borne by the county boards

responsible for administering the programs. For AFDC, disallowances shall be shared by

each county board in the same proportion as that county's expenditures to the total of all

counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county

board, with 50 percent of the sanction being distributed to each county in the same proportion

as that county's administrative costs for SNAP benefits are to the total of all SNAP

administrative costs for all counties, and 50 percent of the sanctions being distributed to

each county in the same proportion as that county's value of SNAP benefits issued are to

the total of all benefits issued for all counties. Each county shall pay its share of the

disallowance to the state of Minnesota. When a county fails to pay the amount due under

this paragraph, the commissioner may deduct the amount from reimbursement otherwise

due the county, or the attorney general, upon the request of the commissioner, may institute

civil action to recover the amount due; and

(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing

noncompliance by one or more counties with a specific program instruction, and that knowing

noncompliance is a matter of official county board record, the commissioner may require

payment or recover from the county or counties, in the manner prescribed in clause (1), an

amount equal to the portion of the total disallowance that resulted from the noncompliance

and may distribute the balance of the disallowance according to clause (1).

(n) The commissioner shall develop and implement special projects that maximize

reimbursements and result in the recovery of money to the state. For the purpose of recovering

state money, the commissioner may enter into contracts with third parties. Any recoveries

that result from projects or contracts entered into under this paragraph shall be deposited

in the state treasury and credited to a special account until the balance in the account reaches

$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be

transferred and credited to the general fund. All money in the account is appropriated to the

commissioner for the purposes of this paragraph.

(o) The commissioner has the authority to establish and enforce the following county

reporting requirements:

(1) the commissioner shall establish fiscal and statistical reporting requirements necessary

to account for the expenditure of funds allocated to counties for programs administered by

the commissioner. When establishing financial and statistical reporting requirements, the

commissioner shall evaluate all reports, in consultation with the counties, to determine if

the reports can be simplified or the number of reports can be reduced;

(2) the county board shall submit monthly or quarterly reports to the department as

required by the commissioner. Monthly reports are due no later than 15 working days after

the end of the month. Quarterly reports are due no later than 30 calendar days after the end

of the quarter, unless the commissioner determines that the deadline must be shortened to

20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss

of federal funding. Only reports that are complete, legible, and in the required format shall

be accepted by the commissioner;

(3) if the required reports are not received by the deadlines established in clause (2), the

commissioner may delay payments and withhold funds from the county board until the next

reporting period. When the report is needed to account for the use of federal funds and the

late report results in a reduction in federal funding, the commissioner shall withhold from

the county boards with late reports an amount equal to the reduction in federal funding until

full federal funding is received;

(4) a county board that submits reports that are late, illegible, incomplete, or not in the

required format for two out of three consecutive reporting periods is considered

noncompliant. When a county board is found to be noncompliant, the commissioner shall

notify the county board of the reason the county board is considered noncompliant and

request that the county board develop a corrective action plan stating how the county board

plans to correct the problem. The corrective action plan must be submitted to the

commissioner within 45 days after the date the county board received notice of

noncompliance;

(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after

the date the report was originally due. If the commissioner does not receive a report by the

final deadline, the county board forfeits the funding associated with the report for that

reporting period and the county board must repay any funds associated with the report

received for that reporting period;

(6) the commissioner may not delay payments, withhold funds, or require repayment

under clause (3) or (5) if the county demonstrates that the commissioner failed to provide

appropriate forms, guidelines, and technical assistance to enable the county to comply with

the requirements. If the county board disagrees with an action taken by the commissioner

under clause (3) or (5), the county board may appeal the action according to sections
14.57

to
14.69
; and

(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment

of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover

costs incurred due to actions taken by the commissioner under clause (3) or (5).

(p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit

exceptions when federal fiscal disallowances or sanctions are based on a statewide random

sample in direct proportion to each county's claim for that period.

(q) The commissioner is responsible for ensuring the detection, prevention, investigation,

and resolution of fraudulent activities or behavior by applicants, recipients, and other

participants in the programs administered by the department. The commissioner shall

cooperate with the commissioner of education to enforce the requirements for program

integrity and fraud prevention for investigation for child care assistance under chapter 142E.
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By January 15 of each year, the commissioner must publish a report on the department's

website that summarizes the actions the department took in the previous calendar year to

comply with this paragraph and provides the results of the department's actions, disaggregated

by program.
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(r) The commissioner shall require county agencies to identify overpayments, establish

claims, and utilize all available and cost-beneficial methodologies to collect and recover

these overpayments in the programs administered by the department.

(s) The commissioner shall develop recommended standards for child foster care homes

that address the components of specialized therapeutic services to be provided by child

foster care homes with those services.

(t) The commissioner shall authorize the method of payment to or from the department

as part of the programs administered by the department. This authorization includes the

receipt or disbursement of funds held by the department in a fiduciary capacity as part of

the programs administered by the department.

(u) In coordination with the commissioner of human services, the commissioner shall

create and provide county and Tribal agencies with blank applications, affidavits, and other

forms as necessary for public assistance programs.

(v) The commissioner shall cooperate with the federal government and its public welfare

agencies in any reasonable manner as may be necessary to qualify for federal aid for

temporary assistance for needy families and in conformity with Title I of Public Law 104-193,

the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor

amendments, including making reports that contain information required by the federal

Social Security Advisory Board and complying with any provisions the board may find

necessary to assure the correctness and verification of the reports.

(w) On or before January 15 in each even-numbered year, the commissioner shall make

a biennial report to the governor concerning the activities of the agency.

(x) The commissioner shall enter into agreements with other departments of the state as

necessary to meet all requirements of the federal government.

(y) The commissioner may cooperate with other state agencies in establishing reciprocal

agreements in instances where a child receiving Minnesota family investment program

(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out

of the state, in order that the child may continue to receive MFIP or equivalent aid from the

state moved from until the child has resided for one year in the state moved to.

(z) The commissioner shall provide appropriate technical assistance to county agencies

to develop methods to have county financial workers remind and encourage recipients of

aid to families with dependent children, the Minnesota family investment program, the

Minnesota family investment plan, family general assistance, or SNAP benefits whose

assistance unit includes at least one child under the age of five to have each young child

immunized against childhood diseases. The commissioner must examine the feasibility of

utilizing the capacity of a statewide computer system to assist county agency financial

workers in performing this function at appropriate intervals.

(aa) The commissioner shall have the power and authority to accept on behalf of the

state contributions and gifts for the use and benefit of children under the guardianship or

custody of the commissioner. The commissioner may also receive and accept on behalf of

such children money due and payable to them as old age and survivors insurance benefits,

veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions,

and benefits under this paragraph must be deposited in and disbursed from the social welfare

fund provided for in sections
256.88
to
256.92
.

(bb) The specific enumeration of powers and duties in this section must not be construed

to be a limitation upon the general powers granted to the commissioner.

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EFFECTIVE DATE.

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This section is effective January 15, 2027.

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Sec. 2.

Minnesota Statutes 2024, section 142B.02, subdivision 7, is amended to read:

Subd. 7.

Regulatory methods.

(a) Where appropriate and feasible, the commissioner

shall identify and implement alternative methods of regulation and enforcement to the extent

authorized in this subdivision. These methods shall include:

(1) expansion of the types and categories of licenses that may be granted;

(2) when the standards of another state or federal governmental agency or an independent

accreditation body have been shown to require the same standards, methods, or alternative

methods to achieve substantially the same intended outcomes as the licensing standards,

the commissioner shall consider compliance with the governmental or accreditation standards

to be equivalent to partial compliance with the licensing standards; and

(3) use of an abbreviated inspection that employs key standards that have been shown

to predict full compliance with the rules.

(b) If the commissioner accepts accreditation as documentation of compliance with a

licensing standard under paragraph (a), the commissioner shall continue to investigate

complaints related to noncompliance with all licensing standards. The commissioner may

take a licensing action for noncompliance under this chapter and shall recognize all existing

appeal rights regarding any licensing actions taken under this chapter.

(c) The commissioner shall work with the commissioners of human services, health,

public safety, administration, and education in consolidating duplicative licensing and

certification rules and standards if the commissioner determines that consolidation is

administratively feasible, would significantly reduce the cost of licensing, and would not

reduce the protection given to persons receiving services in licensed programs. Where

administratively feasible and appropriate, the commissioner shall work with the

commissioners of human services, health, public safety, administration, and education in

conducting joint agency inspections of programs.

(d) The commissioner shall work with the commissioners of human services, health,

public safety, administration, and education in establishing a single point of application for

applicants who are required to obtain concurrent licensure from more than one of the

commissioners listed in this paragraph.

(e) Unless otherwise specified in statute, the commissioner may conduct routine

inspections biennially.

(f) For a licensed child care center, the commissioner shall
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:
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(1)
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conduct one
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in-person
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unannounced licensing inspection at least once per calendar

year
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without providing advance notice of the inspection or information about the timeline

of the inspection;
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(2) conduct one additional unannounced licensing inspection at least once per calendar

year without providing advance notice of the inspection or information about the timeline

of the inspection if the child care center received $500,000 or more in child care assistance

program funds under chapter 142E, early learning scholarships under section 142D.25, or

a combination thereof in the previous calendar year; and

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(3) reference the electronic attendance system under section 142E.16, subdivision 7,

while conducting the inspections under clause (1)
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.

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EFFECTIVE DATE.

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This section is effective January 15, 2027.

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Sec. 3.

Minnesota Statutes 2025 Supplement, section 142E.16, subdivision 7, is amended

to read:

Subd. 7.

Record-keeping requirement.

(a) As a condition of payment, all providers

receiving child care assistance payments must:

(1) keep accurate and legible daily attendance records at the site where services are

delivered for children receiving child care assistance;

(2) make those records available immediately to the county or the commissioner upon

request. Any records not provided to a county or the commissioner at the date and time of

the request are deemed inadmissible if offered as evidence by the provider in any proceeding

to contest an overpayment or disqualification of the provider; and

(3) submit data on child enrollment and attendance
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in the form and manner specified
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through a statewide electronic attendance and record-keeping system established
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by the

commissioner.

(b) As a condition of payment, attendance records must be completed daily and include

the date, the first and last name of each child in attendance, and the times when each child

is dropped off and picked up. To the extent possible, the times that the child was dropped

off to and picked up from the child care provider must be entered by the person dropping

off or picking up the child. The daily attendance records must be retained at the site where

services are delivered for six years after the date of service.

(c) When the county or the commissioner knows or has reason to believe that a current

or former provider has not complied with the record-keeping requirement in this subdivision:

(1) the commissioner may:

(i) deny or revoke a provider's authorization to receive child care assistance payments

under section
142E.17, subdivision 9
, paragraph (d);

(ii) pursue an administrative disqualification under sections
142E.51, subdivision 5
, and

256.98
; or

(iii) take an action against the provider under section
142E.51
; or

(2) a county or the commissioner may establish an attendance record overpayment under

paragraph (d).

(d) To calculate an attendance record overpayment under this subdivision, the

commissioner or county agency shall subtract the maximum daily rate from the total amount

paid to a provider for each day that a child's attendance record is missing, unavailable,

incomplete, inaccurate, or otherwise inadequate.

(e) The commissioner shall develop criteria for a county to determine an attendance

record overpayment under this subdivision.

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EFFECTIVE DATE.

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This section is effective January 15, 2027.

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Sec. 4.

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[142E.161] INSPECTIONS; VIDEO MONITORING.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Facility" means the indoor space in which child care is provided that is owned,

leased, or operated by a licensed child care provider and does not include any outdoor space.

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(c) "Licensed provider" means family and group family child care homes licensed under

Minnesota Rules, chapter 9502, and child care centers licensed under Minnesota Rules,

chapter 9503.

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(d) "Video monitoring" means the ability for the commissioner to see recorded video of

public and shared areas of the licensed provider's facility any time the licensed provider has

children on the premises.

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(e) "Video security camera" means a closed-circuit video camera or other closed circuit

device that captures or records video.

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Subd. 2.

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Inspections.

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(a) If a licensed provider receives $500,000 or more under this

chapter in a calendar year, the commissioner must:

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(1) conduct unannounced video monitoring inspections of the licensed provider's facility

in the year following the receipt of the funding; and

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(2) review video footage collected pursuant to subdivision 3.

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(b) Inspections conducted under this section must be in addition to any licensing

inspections required under chapter 142B.

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Subd. 3.

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Video monitoring.

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(a) A licensed provider that receives $500,000 or more

under this chapter in a calendar year is subject to video monitoring by the commissioner

for one year following the receipt of the funding.

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(b) Within 90 days of being notified by the commissioner that a program is subject to

video monitoring under this subdivision, a licensed provider is required to:

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(1) install video security cameras in public and shared areas of the licensed provider's

facility and cover public entrances and exits to the facility and entrances and exits to areas

where a parent or legal guardian signs a child in or out of the facility; and

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(2) notify all parents and legal guardians who apply for placement or enroll a child in

the program that the program is subject to video monitoring by the commissioner.

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(c) The commissioner may request and review recordings or copies of recordings of a

licensed provider's operation from certain times and dates. If the licensed provider fails to

produce recordings or copies for any of the requested times and dates, the commissioner

may use that failure as prima facie evidence that the licensed provider cared for zero children

during the missing times and dates.

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Subd. 4.

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Licensed provider requirements.

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A licensed provider that is subject to video

monitoring under this section must comply with the requirements established under section

142B.68, subdivisions 3 to 10, that apply to a room designated for infants or toddlers within

a licensed child care center.

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EFFECTIVE DATE.

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This section is effective January 15, 2027.

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Sec. 5.

Minnesota Statutes 2025 Supplement, section 142E.17, subdivision 9, is amended

to read:

Subd. 9.

Provider payments.

(a) A provider shall bill only for services documented

according to section
142E.16, subdivision 7
. The provider shall bill for services provided

within ten days of the end of the service period.
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A provider must sign each bill and declare,

under penalty of perjury as provided in section 609.48, that the information in the bill is

true and correct.
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Payments under the child care fund shall be made within 21 days of

receiving a complete bill from the provider. Counties or the state may establish policies that

make payments on a more frequent basis.

(b) If a provider has received an authorization of care and been issued a billing form for

an eligible family, the bill must be submitted within 60 days of the last date of service on

the bill. A bill submitted more than 60 days after the last date of service must be paid if the

county determines that the provider has shown good cause why the bill was not submitted

within 60 days. Good cause must be defined in the county's child care fund plan under

section
142E.09, subdivision 3
, and the definition of good cause must include county error.

Any bill submitted more than a year after the last date of service on the bill must not be

paid.

(c) If a provider provided care for a time period without receiving an authorization of

care and a billing form for an eligible family, payment of child care assistance may only be

made retroactively for a maximum of three months from the date the provider is issued an

authorization of care and a billing form. For a family at application, if a provider provided

child care during a time period without receiving an authorization of care and a billing form,

a county may only make child care assistance payments to the provider retroactively from

the date that child care began, or from the date that the family's eligibility began under

section
142E.10, subdivision 7
, or from the date that the family meets authorization

requirements, not to exceed six months from the date that the provider is issued an

authorization of care and a billing form, whichever is later.

(d) The commissioner may refuse to issue a child care authorization to a certified,

licensed, or legal nonlicensed provider; revoke an existing child care authorization to a

certified, licensed, or legal nonlicensed provider; stop payment issued to a certified, licensed,

or legal nonlicensed provider; or refuse to pay a bill submitted by a certified, licensed, or

legal nonlicensed provider if:

(1) the provider admits to intentionally giving the county materially false information

on the provider's billing forms;

(2) the commissioner finds by a preponderance of the evidence that the provider

intentionally gave the county materially false information on the provider's billing forms,

or provided false attendance records to a county or the commissioner;

(3) the provider is in violation of child care assistance program rules, until the agency

determines those violations have been corrected;

(4) the provider is operating after:

(i) an order of suspension of the provider's license issued by the commissioner;

(ii) an order of revocation of the provider's license issued by the commissioner; or

(iii) an order of decertification issued to the provider;

(5) the provider submits false attendance reports or refuses to provide documentation

of the child's attendance upon request;

(6) the provider gives false child care price information; or

(7) the provider fails to report decreases in a child's attendance as required under section

142E.16, subdivision 9
.

(e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), the commissioner may

withhold the provider's authorization or payment for a period of time not to exceed three

months beyond the time the condition has been corrected.

(f) A county's payment policies must be included in the county's child care plan under

section
142E.09, subdivision 3
. If payments are made by the state, in addition to being in

compliance with this subdivision, the payments must be made in compliance with section

16A.124
.

(g) If the commissioner suspends or refuses payment to a provider under paragraph (d),

clause (1) or (2), or sections
142E.51
to
142E.58
and the provider has:

(1) a disqualification for wrongfully obtaining assistance under section
256.98
,

subdivision 8, paragraph (c);

(2) an administrative disqualification under section
142E.51, subdivision 5
; or

(3) a termination under section
142E.51, subdivision 4
, paragraph (c), clause (4), or

142E.55
;

then the provider forfeits the payment to the commissioner or the responsible county agency,

regardless of the amount assessed in an overpayment, charged in a criminal complaint, or

ordered as criminal restitution.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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