SF5021

Purpose

This bill would update how Minnesota manages child welfare and public assistance programs run by the Department of Children Youth and Families (DCYF). It aims to modernize program administration, strengthen program integrity and fraud prevention, improve child care licensing, begin a preschool assessment, and invest in information technology systems. It also seeks to study and potentially redesign how county and state agencies share responsibilities for these services, with a focus on better service, efficiency, and coordination across agencies, Tribes, and schools.

Main Provisions

• DCYF duties, governance, and reporting

  • The commissioner can obtain grants, gifts, and federal money to run DCYF programs and must report biennially (every two years) on grants, progress toward objectives, and the status of performance measures.
  • Objectives include centering children and families (including those with disabilities and mental illness), reducing inequities, coordinating programs, aligning family access to child care and early learning, and linking DCYF work with K-12 and higher education.
  • DCYF must monitor and guide county agencies to follow statutes and federal rules, ensure timely benefit distribution, and promote high-quality program management.
  • DCYF may require county agencies to participate in training and technical assistance to improve compliance and performance.
  • The department can contract with Tribal Nations, public/private organizations, and individuals; it can run pilot programs or experimental projects with waivers, up to four years, subject to federal and legislative approvals.

• Child welfare, licensing, and adoption services

  • DCYF will administer child welfare activities, including preventing child maltreatment and protecting at-risk children, and coordinate with the Department of Human Services on related services.
  • It can contract for adoption and permanency services (including transfers to relatives) and must ensure these efforts supplement, not replace, existing county or Tribal services unless agreed.
  • The department may set up specialized standards for foster homes and provide guidance for adoption and permanency.

• Public assistance administration and coordination

  • The bill strengthens DCYF’s role in administering public assistance programs (and coordinating with tribal and county partners) and clarifies authority to contract with Tribal Nations and Tribes for assistance programs.
  • It directs DCYF to develop and maintain forms and procedures needed for public assistance programs.

• Program integrity, fraud prevention, and overpayments

  • DCYF will lead fraud detection, prevention, investigation, and resolution for public assistance programs, and coordinate with education for child care program integrity.
  • The department will identify overpayments, establish claims, and use cost-effective methods to recover funds.
  • County agencies must cooperate with investigations and take steps to recover improper payments.

• Training and licensing for child care and preschool assessment

  • Child care providers who receive payments must complete a training on program integrity, record keeping, and billing; renewal criteria will be set.
  • A preschool assessment will be implemented in the year before kindergarten entry. Districts must use a Department-approved assessment aligned with state early childhood indicators.

• SNAP, AFDC, and state cost-sharing

  • The bill addresses how disallowances or sanctions related to SNAP and the old AFDC program are allocated between counties and the state, with specific formulas for distributing sanctions and disallowances.
  • It requires the state to pay its share of SNAP benefit costs as determined by federal law.

• Information technology modernization and eligibility systems

  • A phased, cross-agency roadmap will be created to modernize application and eligibility technology, aiming for a universal eligibility determination capability across economic assistance, food support, child care, child welfare, long-term supports, behavioral health, and health care programs.
  • The plan will include stakeholder feedback, cross-agency integration options, and a phased timeline with cost estimates, with a final report due by September 1, 2029.

• County and state redesign studies

  • The bill requires a study of current roles for administering economic assistance, child support, and child care programs, and evaluates the efficiency, costs, and potential shift from county-administered to state-administered models.
  • Counties, Tribes, providers, and other stakeholders must be engaged, and a detailed report is due October 1, 2028.

Significant Changes to Existing Law

• Expanded authority and duties for DCYF to oversee grants, contracts, performance measures, and interagency coordination with counties and Tribes.
• New or strengthened requirements for training providers and county staff, plus a formal preschool assessment process.
• A formal approach to modernizing IT systems (MAXIS and related platforms) and creating a cross-agency universal eligibility determination system.
• Clearer rules for handling public assistance disallowances and sanctions, including how costs are allocated between counties and the state.
• A mandated economic assistance and child welfare services redesign study, plus a feasibility study on shifting county-administered programs to state administration.
• New or strengthened requirements for fraud prevention, overpayment recovery, and program integrity across multiple public assistance programs.

Fiscal and Administrative Provisions

• The bill includes appropriations for:
  • Information technology improvements to support SNAP, MAXIS, and modernized eligibility systems.
  • A one-time and ongoing IT systems study and modernization funding.
  • Program integrity technology and enhanced capacity in relevant state offices.
  • Training compliance information technology to track training for child care providers.
• The appropriations outline multi-year funding through 2026–2029 for these IT and program integrity initiatives.

Potential Impacts

• More centralized state oversight of public assistance and child care programs, with continued collaboration with counties and Tribes.
• Increased investment in technology to speed up and simplify eligibility determinations and benefit delivery.
• Stronger focus on preventing fraud and recovering overpayments, potentially affecting counties’ financial penalties and timelines.
• Changes in how child care licensing, preschool readiness, and foster/adoption services are administered and monitored.
• Possible long-term shifts in who administers certain programs (county vs. state), based on study findings and phased implementation.

Timeline Highlights

• Preschool assessment implementation in the year before kindergarten entry (Sec.2).
• Cross-agency universal eligibility determination roadmap with a report due by September 1, 2029 (Sec.5).
• Redesign study on county vs. state administration due by October 1, 2028 (Sec.6).
• Biennial grant and performance reporting to legislative chairs and committees (every two years).

Oversight and Accountability

• Quarterly and monthly reporting requirements for counties, with potential withholding of payments for late or incomplete reports, subject to federal funding rules.
• Appeals processes preserved for counties or entities challenging actions by the DCYF commissioner.
• Regular coordination with the Department of Human Services and other state agencies to ensure alignment and compliance with federal requirements.

Relevant Terms - SNAP (Supplemental Nutrition Assistance Program) - AFDC (Aid to Families with Dependent Children) - MFIP (Minnesota Family Investment Program) - DCYF (Department of Children Youth and Families) - Child care licensing and licensing provisions - Preschool assessment - Program integrity and fraud prevention - Overpayments and recovery - MAXIS and information technology modernization - Eligibility determination / universal eligibility determination - Economic assistance, child support, and long-term services - Tribal Nations / Tribes - County boards and county reporting - Adoption, guardianship, and foster care - Grants, gifts, and federal funds - Experimental projects / waivers - Quality control and performance measures - Cross-agency coordination and shared services