Purpose

The bill requires two state departments to create and share annual reports with legislators focused on program integrity. Specifically, it adds new reporting duties for the Department of Children Youth and Families (CYF) and the Department of Human Services (DHS), including updates from their Offices of Inspector General (OIG) on various integrity and licensing activities. The goal is to improve transparency about how programs are being administered, including licensing, background checks, and fraud investigations.

Main Provisions

• For the Department of Children Youth and Families (CYF) (added Subd.36 to Minnesota Statutes 2024 section 142A.03):

  • Beginning November 30, 2026, and every year after, the commissioner must deliver a program integrity report to the chairs and ranking minority members of the legislative committees with jurisdiction over children, youth, and families.
  • The report must include two major updates from the CYF Office of Inspector General:
  • An update with historical metrics and descriptive data on licensing functions, including:
    • Capacity to meet licensing demands
    • Data from the past five years on maltreatment reports and licensing complaints
    • Results of maltreatment investigations
    • Number of licenses issued for each provider type
    • Number of licensing investigations and reviews completed
    • Number of correction orders issued
  • An update covering caseload, site visit data, and fraud-related matters, including:
    • Number of child care assistance program investigations and administrative reviews in the past five years
    • Recipient fraud investigations involving multiple benefits in the past five years
    • Updates on major fraud investigations

• For the Department of Human Services (DHS) (added Subd.45 to Minnesota Statutes 2024 section 256.01):

  • Beginning November 30, 2026, and every year after, the commissioner must deliver a program integrity report to the chairs and ranking minority members of the legislative committees with jurisdiction over human services.
  • The report must include three sections of updates from the DHS Office of Inspector General:
  • Background Studies Division update:
    • Historical metrics and data on background studies and licensure
    • Number of background studies completed in the past five years
    • Number of disqualifications that occurred
  • Licensing Division update:
    • Historical metrics on licensing and capacity to meet licensing demands
    • Data from the past five years on maltreatment reports and licensing complaints
    • Results of maltreatment investigations
    • Number of licenses issued for each provider type
    • Number of licensing investigations and reviews completed
    • Number of correction orders issued
  • Financial Fraud and Abuse Investigations Division update:
    • Caseload screening and site visit data
    • Number of provider medical assistance managed care investigations in the past five years
    • Number of screening investigations in the past five years
    • Updates on major fraud investigations

Significant Changes to Law

• Adds new, annual program integrity reporting requirements to two statutes:
  • For CYF: Subdivision 36 in Section 142A.03.
  • For DHS: Subdivision 45 in Section 256.01.
• Creates a formal, recurring reporting cycle to the Legislature's chairs and ranking minority members, based on roles within the Office of Inspector General in each department.
• Requires comprehensive data and metrics across licensing, maltreatment, background checks, and fraud investigations, drawing from multiple OIG divisions.

Implementation Details and Timing

• Reports must be submitted beginning November 30, 2026, and annually thereafter.
• Reports are directed to the chairs and ranking minority members of the relevant legislative committees (those with jurisdiction over children, youth and families, and over human services).

Why This Matters

• Increases transparency and oversight of program integrity and licensing activities.
• Provides legislators with multi-year data on maltreatment, licensing, background checks, and fraud investigations to inform policy decisions.
• Consolidates key performance indicators from several inspector general divisions into a single annual update for each department.

Relevant Terms - program integrity - Office of Inspector General (OIG) - Department of Children Youth and Families (CYF) - Department of Human Services (DHS) - Background Studies Division - Licensing Division - Financial Fraud and Abuse Investigations Division - maltreatment reports - licensing complaints - correction orders - disqualifications - licensure - background studies - child care assistance program investigations - provider type - caseload - site visits - major fraud investigations - recipient fraud - medical assistance managed care investigations