Federal Supplemental Nutrition Assistance Program Disallowances modification

A bill for an act

relating to children; modifying federal Supplemental Nutrition Assistance Program

disallowances; codifying and modernizing child care licensing provisions; requiring

a report; appropriating money; amending Minnesota Statutes 2024, sections

142E.16, by adding a subdivision; 142F.05, by adding a subdivision; Minnesota

Statutes 2025 Supplement, sections 142A.03, subdivision 2; 256.043, subdivision

3; Laws 2024, chapter 117, section 22; Laws 2025, First Special Session chapter

3, article 20, section 18; Laws 2025, First Special Session chapter 10, article 10,

section 9, subdivision 2; proposing coding for new law in Minnesota Statutes,

chapter 142D.

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

ARTICLE 1

DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES

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
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under United States Code, title 7, section 2025(c),
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for
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the aid to families with dependent children (AFDC) program formerly codified in sections

256.72
to
256.87
or
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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.
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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,
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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;
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and
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(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)
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.
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; and
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(3) the commissioner's allocation requirements under this paragraph shall not apply to

the state share of SNAP benefit costs under section 142F.05, subdivision 5.

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(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.

(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.

Sec. 2.

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[142D.095] PRESCHOOL ASSESSMENT.

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(a) The commissioner of children, youth, and families shall implement a preschool

assessment of children's development in the year prior to kindergarten entry.

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(b) School districts and charter schools must choose a commissioner-approved formative

and developmentally appropriate assessment tool approved by the department that is:

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(1) aligned to the state early childhood indicators of progress and based on the criteria

to be an early learning assessment approved by the department; and

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(2) based, in part, on information collected from teachers, early learning professionals,

families, and other partners.

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(c) The department may provide technical assistance and professional development

related to the assessment to educators, school districts, and charter schools.

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Sec. 3.

Minnesota Statutes 2024, section 142E.16, is amended by adding a subdivision to

read:

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Subd. 1a.

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Training required for payments.

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(a) As a condition of payment and prior to

authorization, all providers receiving child care assistance payments must complete

compliance training developed by the commissioner that addresses program integrity

requirements including but not limited to record keeping and billing requirements. The

commissioner shall develop criteria, reporting requirements, and standards for when providers

need to renew training after their initial registration.

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(b) Providers that do not have an active registration to receive child care assistance on

or before April 12, 2027, must complete the training under this subdivision prior to

authorization. Providers with an active registration on or before April 12, 2027, must

complete the training under this subdivision before the provider's first renewal after April

12, 2027, or April 10, 2028, whichever is later.

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Sec. 4.

Minnesota Statutes 2024, section 142F.05, is amended by adding a subdivision to

read:

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Subd. 5.

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State share of SNAP benefit costs.

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The commissioner of children, youth, and

families shall pay the state share of SNAP benefit costs as determined by the United States

Department of Agriculture to meet the state cost share requirements under United States

Code, title 7, section 2013(a)(2)(B).

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Sec. 5.
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DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND

FAMILIES; PHASED ROADMAP TO MODERNIZED APPLICATION AND

ELIGIBILITY TECHNOLOGY.
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(a) The commissioner of children, youth, and families must undertake a study on and

create a comprehensive phased roadmap for modernized program application and eligibility

technology and processes for a cross-agency, universal eligibility determination capability

for human services programs. At a minimum, the study must include:

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(1) economic assistance and food support;

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(2) child care and related early childhood programs;

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(3) child welfare;

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(4) long-term services and supports;

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(5) behavioral health; and

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(6) health care programs.

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(b) The study must incorporate and build upon relevant current and prior modernization

reports, implementation efforts, and engagement and include:

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(1) feedback solicited from counties, Tribal Nations, and individuals with lived experience

participating in human services programs and using state technology systems;

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(2) information collected from other states regarding comparable eligibility technology

modernization efforts;

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(3) information on how the phased roadmap will simplify policies and processes, reduce

inefficiencies and duplication, and improve service delivery through technology

modernization and alignment of state technology systems;

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(4) options and high-level considerations for integration with other human services

technology platforms to improve coordination of eligibility and services, streamline eligibility

and renewal determinations, and enhance accuracy and timeliness; and

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(5) a phased timeline and estimate of the costs associated with implementation of the

roadmap to modernized eligibility technology.

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(c) The commissioner must submit a report to the chairs and ranking minority members

of the legislative committees with jurisdiction over children and families, health and human

services, and information technology services by September 1, 2029. The commissioner

must coordinate with the commissioners of human services, information technology services,

and management and budget and engage counties and Tribal Nations.

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Sec. 6.
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DIRECTION TO COMMISSIONER OF CHILDREN, YOUTH, AND

FAMILIES; HUMAN SERVICES REDESIGN STUDY.
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(a) The commissioner of children, youth, and families must prepare a study that assesses

state and local social services agency roles for administering economic assistance, child

support, and child care programs, as well as provider licensing and recipient fraud

investigation functions. The study must:

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(1) identify and assess the current roles and responsibilities held by local social services

agencies and the state for oversight and administration;

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(2) evaluate impacts on efficiencies, effectiveness, and outcomes associated with

county-administered and state-administered models;

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(3) estimate current costs for county-administered functions and the fiscal impact of

moving to a state-administered system;

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(4) analyze current financing models and resources that support county-administered

human services and the impact of shifting to a state administered model; and

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(5) assess changes to policy, legal, operational, information technology, human resources,

and other areas needed to shift county-administered functions to the state.

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(b) The commissioner must, at a minimum, engage with providers, advocates, and

stakeholders, including:

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(1) local social services agencies;

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(2) individuals and providers who have lived experience with applying for and receiving

public assistance;

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(3) family child care providers that have been licensed by counties and family child care

licensing county workers; and

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(4) local social service agency fraud investigators and law enforcement agencies,

including the Office of the Attorney General, the Bureau of Criminal Apprehension, and

county attorneys.

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(c) Notwithstanding chapter 13 or other statute or rule to the contrary, counties must

provide financial, human resources, and other information necessary to complete the study

to the commissioner in the form, in the manner, and on the timeline requested by the

commissioner.

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(d) The commissioner must submit a report on the study under this section to the chairs

and ranking minority members of the legislative committees with jurisdiction over children,

youth, and families by October 1, 2028.

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ARTICLE 2

DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS

Section 1.
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CHILDREN, YOUTH, AND FAMILIES APPROPRIATIONS.
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The dollar amounts shown in the columns marked "Appropriations" are added to or, if

shown in parentheses, are subtracted from the appropriations in Laws 2025, First Special

Session chapter 3, article 22, from the general fund or any fund named for the purposes

specified in this article, to be available for the fiscal year indicated for each purpose. The

figures "2026" and "2027" used in this article mean that the appropriations listed under them

are available for the fiscal years ending June 30, 2026, or June 30, 2027, respectively. "The

first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is

fiscal years 2026 and 2027.

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APPROPRIATIONS

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Available for the Year

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Ending June 30

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2026

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2027

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Sec. 2.
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COMMISSIONER OF CHILDREN,

YOUTH, AND FAMILIES
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$

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1,113,000

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$

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45,114,000

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Appropriations by Fund

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2026

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2027

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General

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1,113,000

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45,114,000

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The amounts that may be spent for each

purpose are specified in the following sections.

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Sec. 3.
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OPERATIONS AND

ADMINISTRATION; AGENCY-WIDE

SUPPORTS
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Subdivision 1.

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Total Appropriation

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$

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-0-

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$

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38,993,000

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Appropriations by Fund

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2026

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2027

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General

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-0-

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38,994,000

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Subd. 2.

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Supplemental Nutrition Assistance

Program Systems Improvement

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$8,217,000 in fiscal year 2027 is from the

general fund to improve and sustain

information technology systems supporting

the delivery of the Supplemental Nutrition

Assistance Program. The general fund base

for this appropriation is $10,993,000 in fiscal

year 2028 and $10,147,000 in fiscal year 2029.

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Subd. 3.

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MAXIS

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$25,000,000 in fiscal year 2027 is for

information technology improvements to

MAXIS and related systems. The base for this

appropriation is $2,500,000 in fiscal year 2028

and $2,500,000 in fiscal year 2029.

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Subd. 4.

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Information Technology Systems Study

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$2,650,000 in fiscal year 2027 is for a study

on eligibility processes, policies, and

modernization approaches for information

technology systems. This is a onetime

appropriation.

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Subd. 5.

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Modernized Eligibility Systems

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$653,000 in fiscal year 2027 is for the

development and implementation of

modernized program eligibility processes and

information technology solutions. The base

for this appropriation is $1,306,000 in fiscal

year 2028 and $1,306,000 in fiscal year 2029.

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Subd. 6.

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Program Integrity Technology

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$922,000 in fiscal year 2027 is for enhancing

program integrity information technology

resources. The base for this appropriation is

$519,000 in fiscal year 2028 and $520,000 in

fiscal year 2029.

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Subd. 7.

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Expanded Program Integrity Capacity

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$1,201,000 in fiscal year 2027 is for enhanced

program integrity capacity within the Office

of Inspector General. The base for this

appropriation is $1,387,000 in fiscal year 2028

and $1,387,000 in fiscal year 2029.

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Subd. 8.

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Training Compliance Information

Technology

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$350,000 in fiscal year 2027 is for updated

information technology to track compliance

with training requirements for the child care

assistance program. The base for this

appropriation is $153,000 in fiscal year 2028

and $153,000 in fiscal year 2029.

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Sec. 4.
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OPERATIONS AND

ADMINISTRATION; EARLY CHILDHOOD
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$

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281,000

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$

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893,000

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Subdivision 1.

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Child Care Provider Training

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$465,000 in fiscal year 2027 is for increased

training for child care providers participating

in the child care assistance program and other

related programs administered by the

commissioner of children, youth, and families.

The base for this appropriation is $354,000 in

fiscal year 2028 and $515,000 in fiscal year

2029.

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Subd. 2.

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Early Childhood Program Integrity

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$147,000 in fiscal year 2027 is for enhanced

program integrity capacity within the Early

Childhood Administration. The base for this

appropriation is $172,000 in fiscal year 2028

and $172,000 in fiscal year 2029.

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Sec. 5.
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OPERATIONS AND

ADMINISTRATION; FAMILY WELL-BEING
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Subdivision 1.

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Total Appropriation

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$

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-0-

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$

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3,577,000

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Appropriations by Fund

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2026

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2027

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General

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-0-

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3,577,000

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Subd. 2.

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Supplemental Nutrition Assistance

Program Training and Oversight

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$3,577,000 in fiscal year 2027 is from the

general fund for additional staffing to enhance

oversight, training, and administration for the

Supplemental Nutrition Assistance Program.

The general fund base for this appropriation

is $4,201,000 in fiscal year 2028 and

$4,201,000 in fiscal year 2029.

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Sec. 6.
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GRANT PROGRAMS; CHILD AND

ECONOMIC SUPPORT GRANTS
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$

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832,000

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$

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1,651,000

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$819,000 in fiscal year 2027 is from the

general fund for the fraud prevention

investigation grants under Minnesota Statutes,

section 256.983. The general fund base for

this appropriation is $803,000 in fiscal year

2028 and $803,000 in fiscal year 2029.

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Sec. 7.

Minnesota Statutes 2025 Supplement, section 256.043, subdivision 3, is amended

to read:

Subd. 3.

Appropriations from registration and license fee account.

(a) The

appropriations in paragraphs (b) to (n) shall be made from the registration and license fee

account on a fiscal year basis in the order specified.

(b) The appropriations specified in Laws 2019, chapter 63, article 3, section 1, paragraphs

(b), (f), (g), and (h), as amended by Laws 2020, chapter 115, article 3, section 35, shall be

made accordingly.

(c) $100,000 is appropriated to the commissioner of human services for grants for opiate

antagonist distribution. Grantees may utilize funds for opioid overdose prevention,

community asset mapping, education, and opiate antagonist distribution.

(d) $2,000,000 is appropriated to the commissioner of human services for direct payments

to Tribal nations and five urban Indian communities for traditional healing practices for

American Indians and to increase the capacity of culturally specific providers in the

behavioral health workforce. Any evaluations of practices under this paragraph must be

designed cooperatively by the commissioner and Tribal nations or urban Indian communities.

The commissioner must not require recipients to provide the details of specific ceremonies

or identities of healers.

(e) $400,000 is appropriated to the commissioner of human services for competitive

grants for opioid-focused Project ECHO programs.

(f)
deleted text begin
$277,000
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$321,000
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in fiscal year
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2024
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2027
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and
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$321,000
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each year thereafter is

appropriated to the commissioner of
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human services
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children, youth, and families
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to

administer the funding distribution and reporting requirements in paragraph
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(o)
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(m)
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.

(g) $3,000,000 in fiscal year 2025 and $3,000,000 each year thereafter is appropriated

to the commissioner of human services for safe recovery sites start-up and capacity building

grants under section
254B.18
.

(h) $395,000 in fiscal year 2024 and $415,000 each year thereafter is appropriated to

the commissioner of human services for the opioid overdose surge alert system under section

245.891
.

(i) $300,000 is appropriated to the commissioner of management and budget for

evaluation activities under section
256.042, subdivision 1
, paragraph (c).

(j) $261,000 is appropriated to the commissioner of human services for the provision of

administrative services to the Opiate Epidemic Response Advisory Council and for the

administration of the grants awarded under paragraph (n).

(k) $126,000 is appropriated to the Board of Pharmacy for the collection of the registration

fees under section
151.066
.

(l) $672,000 is appropriated to the commissioner of public safety for the Bureau of

Criminal Apprehension. Of this amount, $384,000 is for drug scientists and lab supplies

and $288,000 is for special agent positions focused on drug interdiction and drug trafficking.

(m) After the appropriations in paragraphs (b) to (l) are made, 50 percent of the remaining

amount is appropriated to the commissioner of children, youth, and families for distribution

to county social service agencies and Tribal social service agency initiative projects

authorized under section
256.01, subdivision 14b
, to provide prevention and child protection

services to children and families who are affected by addiction. The commissioner shall

distribute this money proportionally to county social service agencies and Tribal social

service agency initiative projects through a formula based on intake data from the previous

three calendar years related to substance use and out-of-home placement episodes where

parental drug abuse is a reason for the out-of-home placement. County social service agencies

and Tribal social service agency initiative projects receiving funds from the opiate epidemic

response fund must annually report to the commissioner on how the funds were used to

provide prevention and child protection services, including measurable outcomes, as

determined by the commissioner. County social service agencies and Tribal social service

agency initiative projects must not use funds received under this paragraph to supplant

current state or local funding received for child protection services for children and families

who are affected by addiction.

(n) After the appropriations in paragraphs (b) to (m) are made, the remaining amount in

the account is appropriated to the commissioner of human services to award grants as

specified by the Opiate Epidemic Response Advisory Council in accordance with section

256.042
, unless otherwise appropriated by the legislature.

(o) Beginning in fiscal year 2022 and each year thereafter, funds for county social service

agencies and Tribal social service agency initiative projects under paragraph (m) and grant

funds specified by the Opiate Epidemic Response Advisory Council under paragraph (n)

may be distributed on a calendar year basis.

(p) Notwithstanding section
16A.28, subdivision 3
, funds appropriated in paragraphs

(c), (d), (e), (g), (m), and (n) are available for three years after the funds are appropriated.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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Sec. 8.

Laws 2024, chapter 117, section 22, is amended to read:

Sec. 22.
APPROPRIATIONS; MINNESOTA AFRICAN AMERICAN FAMILY

PRESERVATION AND CHILD WELFARE DISPROPORTIONALITY ACT.

(a) $5,000,000 in fiscal year 2025 is appropriated from the general fund to the

commissioner of human services for grants to Hennepin and Ramsey Counties to implement

the Minnesota African American Family Preservation and Child Welfare Disproportionality

Act phase-in program. Of this amount, $2,500,000 must be provided to Hennepin County

and $2,500,000 must be provided to Ramsey County. This is a onetime appropriation and

is available until
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June 30
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December 31
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, 2026.

(b) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the

commissioner of human services for the African American and disproportionately represented

family preservation grant program under Minnesota Statutes, section
260.693
.

Notwithstanding Minnesota Statutes, section
16B.98, subdivision 14
, the amount for

administrative costs under this paragraph is $0.

(c) $2,367,000 in fiscal year 2025 is appropriated from the general fund to the

commissioner of human services to implement the African American Family Preservation

and Child Welfare Disproportionality Act. The base for this appropriation is $3,251,000 in

fiscal year 2026 and $3,110,000 in fiscal year 2027.

Sec. 9.

Laws 2025, First Special Session chapter 3, article 20, section 18, is amended to

read:

Sec. 18.
GRANT PROGRAMS; HOUSING AND

SUPPORT SERVICES GRANTS

$

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91,001,000

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90,169,000

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$

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94,092,000

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93,260,000

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Subdivision 1.

Family Supportive Housing Grant

Program

$700,000 in fiscal year 2026 is for the family

supportive housing grant program. This is a

onetime appropriation and is available until

June 30, 2027.

Subd. 2.

Grant for Catholic Charities Homeless

Elders Program

$959,000 in fiscal year 2026 is for a grant to

Catholic Charities of St. Paul and Minneapolis

for the homeless elders program that helps

homeless, isolated, and low-income older

adults to move into stable housing. This is a

onetime appropriation and is available until

June 30, 2027.

Subd. 3.

The Bridge for Youth

$250,000 in fiscal year 2026 is for a grant to

The Bridge for Youth to predesign a new

multiuse facility in Hennepin County. The

predesign of the new facility must support

future shelter and housing infrastructure

expansion in Hennepin County for

unaccompanied homeless youth and young

families experiencing homelessness. This is a

onetime appropriation and is available until

June 30, 2027.

Subd. 4.

Base Level Adjustment

The general fund base for this section is
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$96,726,000
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$95,894,000
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in fiscal year 2028

and
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$96,726,000
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$95,894,000
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in fiscal year

2029.

Sec. 10.

Laws 2025, First Special Session chapter 10, article 10, section 9, subdivision 2,

is amended to read:

Subd. 2.

Kindergarten entry assessment.

For the kindergarten entry assessment under

Minnesota Statutes, section
124D.162
:

$

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2,357,000

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2,076,000

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.....

2026

$

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1,743,000

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1,462,000

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.....

2027

Sec. 11.
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APPROPRIATION; MODERNIZED INFORMATION TECHNOLOGY.
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$362,000 in fiscal year 2027 is appropriated from the general fund to the commissioner

of human services to support the development and implementation of modernized information

technology solutions. The general fund base for this appropriation is $724,000 in fiscal year

2028 and $724,000 in fiscal year 2029.

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Sec. 12.
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BASE ADJUSTMENT; SNAP COST SHARING.
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The general fund base for the commissioner of children, youth, and families for

Supplemental Nutrition Assistance Program benefit cost sharing under Minnesota Statutes,

section 142F.05, subdivision 5, is $71,239,000 in fiscal year 2028 and $96,735,000 in fiscal

year 2029.

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Sec. 13.
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CANCELLATION.
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$1,000,000 of the appropriation in fiscal year 2025 from the general fund for the

establishment of the Department of Children, Youth, and Families under Laws 2023, chapter

70, article 20, section 12, paragraph (b), is canceled to the general fund on June 30, 2026.

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Sec. 14.
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EFFECTIVE DATE.
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This article is effective the day following final enactment unless otherwise indicated.

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