Purpose

• Update how the state manages federal welfare funds, especially SNAP (the Supplemental Nutrition Assistance Program) and related disallowances or sanctions.
• Give the commissioner broader authority to seek grants, contracts, and partnerships; improve program planning, reporting, and performance measurement; and strengthen coordination with counties, Tribal Nations, and other partners.
• Improve efficiency, equity, and accountability in administering public assistance and child welfare programs.

Main Provisions

• MAXIS definition and use

  • Adds MAXIS as the official computer system used to determine eligibility for public assistance and health programs, and to set benefit levels and issue benefits.

• Expanded duties and authorities for the commissioner

  • The commissioner can apply for and receive grants, gifts, and other funds to carry out duties, with money dedicated for those purposes.
  • The commissioner must biennially report to legislative leaders about grants received and progress toward stated objectives.

• Federal funds, grants, and contracts

  • The commissioner may obtain and use federal funds and may contract with Tribal Nations, public/private agencies, for-profit and nonprofit organizations, and individuals.
  • The commissioner can enter into agreements with federally recognized Tribes to operate family assistance or related programs and must coordinate with counties to avoid duplicating services.

• Program objectives and performance measures

  • The commissioner must develop objectives and performance measures and report on them every two years.
  • Objectives should include:
  • Centering the lived experiences of children and families (including those with disabilities and mental illness) in all work.
  • Increasing effectiveness in meeting needs and reducing inequities (racial, economic, geographic).
  • Improving coordination and reducing inefficiencies across programs and funding sources.
  • Aligning family access to child care and early learning with supports for providers.
  • Strengthening connections between early learning, K-12, and higher education systems.
  • Streamlining access so youth and families receive entitled services more easily.

• Administration of public assistance and supervision

  • The commissioner oversees public assistance programs, with emphasis on timely, accurate benefits, and high-quality program management.
  • May require county agencies to participate in training and technical assistance to ensure compliance with laws, rules, and policies.

• County roles and monitoring

  • The commissioner will monitor county performance, enforce compliance, and may create quality control or monitoring programs to review benefit determinations.
  • Counties may be required to adjust benefits as allowed by federal and state law, and to issue or recover benefits as appropriate.

• Payments, reimbursements, and sanctions

  • The commissioner can delay or deny payment of all or part of state and federal shares of benefits and administrative reimbursements as allowed by law.
  • The commissioner may make contracts and grants using appropriated funds and can contract with tribes to provide services.
  • The administration of disallowances and sanctions for AFDC (Aid to Families with Dependent Children) and SNAP will be allocated across counties using specified formulas.
  • If a county does not pay its share of disallowances or sanctions, the commissioner may deduct from reimbursements or pursue legal action.
  • Before MAXIS is replaced, the state bears 100% of SNAP disallowances; after replacement, costs are shared 50/50 between the state and counties, with specific formulas for how the 50/50 share is allocated (based on SNAP administrative costs and SNAP benefits issued).

• Special projects and recovery of state funds

  • The commissioner may develop special projects to maximize reimbursements and recover state money, including contracting with third parties.
  • Recoveries go into a state treasury account; funds above a set balance are transferred to the general fund.

• County reporting requirements and enforcement

  • Counties must submit monthly or quarterly financial and statistical reports; deadlines can be tightened if federal deadlines require it.
  • If reports are late, incomplete, illegible, or not in required format for two of three periods, counties may be deemed noncompliant.
  • Noncompliant counties receive notice and may be required to submit corrective action plans; continued noncompliance can lead to withholding of funds or repayment of funds.
  • Provisions ensure that clients are not penalized for delays caused by the commissioner’s own failure to provide needed forms or guidance.

• Fraud prevention, program integrity, and overpayments

  • The commissioner is responsible for detecting and addressing fraud and must cooperate with other agencies to enforce integrity standards.
  • Counties must identify overpayments, establish recovery or claims, and use appropriate methods to collect debts.
  • The commissioner will coordinate with the Department of Education to prevent fraud in child care assistance programs and establish foster care standards.

• Child welfare, guardianship, and adoption

  • The commissioner has authority related to child welfare, guardianship under chapter 260C, and may contract for adoption and permanency services when appropriate, in coordination with counties and Tribes.
  • Contracts should supplement, not replace, existing county or Tribal programs unless agreed.

• Immunization and cross-state coordination

  • The commissioner may pursue immunization efforts for children in programs like MFIP/SNAP and explore using statewide computer system capacity to assist counties with immunization reminders.
  • The commissioner may cooperate with other states to ensure continued eligibility for cross-state public assistance for moving families (e.g., MFIP recipients).

• General administration and coordination

  • The commissioner can establish administrative units, administer and supervise program forms, and coordinate with federal and state partners to secure federal aid and meet federal requirements.
  • The commissioner must provide technical assistance to counties and tribes and report biennially to the governor on agency activities.

Significant Changes to Existing Law

• Explicit definition and central role of MAXIS in benefit determination and administration.
• Expanded authority for the commissioner to seek grants, gifts, and federal funds; broadened ability to contract with Tribes, agencies, and private entities.
• Introduction of formal program objectives and measurable performance reporting, with a focus on equity, coordination, and alignment across education and child services systems.
• New framework for allocating SNAP and AFDC-related federal disallowances or sanctions to counties, including a shift from state-only bearing to shared responsibility after MAXIS replacement, with detailed formulas for distribution.
• Stronger county oversight and enforcement tools, including reporting requirements, withholding of funds for noncompliance, and corrective action processes.
• Increased emphasis on fraud prevention, recovery of overpayments, and program integrity across public assistance programs.
• Expanded child welfare authority, including guardianship and permanency services, and enhanced coordination with the Department of Human Services and Tribes.
• Provisions for experimental projects or waivers under federal approvals to test new administration methods, with sunset limits and conditions.
• New or strengthened mechanisms for cross-state coordination, immunization efforts, and alignment with MFIP/SNAP recipients.

Potential Impacts

• Counties: Greater responsibility for reporting accuracy, timely data, and sharing in disallowances; potential financial penalties for late or incomplete reporting.
• Tribes and Tribal agencies: Increased partnership opportunities to operate or co-manage programs; need for coordination to avoid service duplication.
• Recipients and families: Efforts to center lived experiences and reduce inequities; potential changes in how benefits are determined and adjusted; more targeted efforts to improve immunizations and service access.
• State government: Greater oversight of federal funds, increased ability to recover funds, and a stronger framework for program integrity and performance measurement.

Relevant Terms - MAXIS - SNAP (Supplemental Nutrition Assistance Program) - AFDC (Aid to Families with Dependent Children) - MFIP (Minnesota Family Investment Plan) - 142A.01, 142A.03 (Minnesota Statutes sections involved) - Grants, gifts, and contributions - Federal fiscal disallowances and sanctions - County boards / county agencies - Federally recognized Indian Tribes / Tribal Nations - Child welfare, guardianship (Chapter 260C) - Adoption, permanency services - Quality control / performance measures - Equity and lived experiences of children and families - Eligibility determination and benefit issuance (MAXIS) - Reimbursements and administrative funding - Experimental projects / waivers - Fraud prevention and program integrity - Reporting requirements and compliance - Cross-state cooperation (MFIP / other programs)