HF4525
Human services background studies and variances modified, data and language for licensing laws aligned, human services licensing procedures clarified, and program integrity provisions added.
Legislative Session 94 (2025-2026)
Related bill: SF4777
AI Generated Summary
Purpose
- Update how Minnesota handles human services background checks, licensing procedures, and program integrity. The bill aims to improve data alignment, clarify licensing processes, and add safeguards against fraud and misuse of programs.
Main Provisions
- Law enforcement notification delay: Allows law enforcement to delay notifying a customer about a background check result if sharing notification would compromise an ongoing criminal investigation. A written determination must be renewed every 90 days.
- New and expanded definitions for program integrity: Creates clear terms for assessing fraud risk, including “associated entity,” “associated individual,” and “credible allegation of fraud.”
- Withholding payments for fraud concerns: Gives the commissioner authority to withhold payments to providers, vendors, associated individuals, or associated entities if there is:
- a credible allegation of fraud (verified from sources like hotlines, audits, investigations, court filings, etc.);
- a conviction for fraud or theft against a program;
- an order suspending, revoking, or decertifying a license or certification, or a temporary immediate suspension;
- a background study disqualification (without a set-aside or granted variance).
- Notice and challenge process for withholdings: The commissioner must notify the affected party within five days, sharing general reasons (not revealing ongoing investigation specifics), the temporary nature of the withholding, and how to contest in writing. There is an administrative reconsideration process with a 60-day review window.
- Temporary action: Withholding is treated as temporary and not appealable under certain state rules; it can be ended if evidence of fraud is insufficient or if legal proceedings are completed, unless notice has already been given.
- Expanded relationship definitions: Adds the term “individual who is related” to cover more family or guardian relationships for licensing and background checks.
- Repeals/alignments: Repeals or updates certain older statutory provisions and aligns cited sections with the 2025 statutory supplements.
Significant Changes to Existing Law
- Introduces a formal framework for withholding payments pending fraud investigations, including notice and administrative reconsideration rights.
- Broadens the scope of who can be considered a “provider,” “associated entity,” and “associated individual.”
- Adds flexibility for law enforcement to delay notifications in sensitive investigations.
- Expands definitions around family/related relationships in licensing contexts.
- Updates multiple human services and licensing statutes to reflect newer terminology and processes.
Implications and Who is Affected
- Providers, vendors, and individuals/entities receiving payments from human services programs may see withholdings if fraud is suspected or licenses are under action.
- Agencies supervising human services programs gain tools to protect funds and ensure program integrity, while needing to manage notification and reconsideration procedures.
- Individuals involved in background studies may face new timelines and definitions affecting their eligibility or ability to participate in programs.
Notable Terms and Concepts (for quick reference)
- human services, background studies, program integrity, licensing procedures
- credible allegation of fraud, associated entity, associated individual
- provider, vendor, interest in programs
- excluded, disqualification, license suspension, decertification
- withholding of payments, administrative reconsideration, notice
- delay notification, law enforcement, ongoing criminal investigation
- individual who is related (family/guardian relationships)
Relevant Terms - credible allegation of fraud - associated entity - associated individual - provider - vendor - license/s certification - background study/disqualification - withholding of payments - administrative reconsideration - law enforcement notification delay - ongoing criminal investigation - individual who is related - program integrity - Minnesota human services statutes (various sections)
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Children and Families Finance and Policy on: March 25, 2026 15:00
- Children and Families Finance and Policy on: April 08, 2026 15:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2026 | House | Action | Introduction and first reading, referred to | Children and Families Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Subd. 2a: Exception allowing delay of notification by law enforcement when it would jeopardize an ongoing investigation.",
"Written determination by law enforcement required, renewed every 90 days."
],
"removed": [],
"summary": "Adds Subd. 2a to 13A.03 to create an exception allowing law enforcement to delay customer notification under section 13A.02 when delaying would compromise an ongoing criminal investigation; the written determination must be renewed every 90 days.",
"modified": []
},
"citation": "13A.03 Subd. 2a",
"subdivision": "Subd. 2a"
},
{
"analysis": {
"added": [
"Definitions for associated entity, associated individual, convicted, credible allegation of fraud, excluded, provider (and related terms) added to Subd. 2."
],
"removed": [],
"summary": "Amends Subd. 2 to codify definitions for program integrity concepts, including associated entity/individual, convicted, credible allegation of fraud, excluded, provider, and related terms.",
"modified": []
},
"citation": "245.095 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [
"Withholding of payments authorized for credible allegations of fraud, convictions involving fraud or theft against a program, license suspensions or decertifications, and background study disqualifications.",
"Notice requirements within five days, right to contest, and a 60-day review period."
],
"removed": [],
"summary": "Adds Subd. 5 regarding withholding of payments based on fraud-related or program integrity concerns.",
"modified": []
},
"citation": "245.095 Subd. 5",
"subdivision": "Subd. 5"
},
{
"analysis": {
"added": [
"Subd. 13: Definition of related includes spouse, parent, birth/adopted child or stepchild, stepparent, stepbrother, stepsister, niece, nephew, adoptive parent, grandparent, sibling, aunt, uncle, cousin, or legal guardian, including relationships through marriage."
],
"removed": [],
"summary": "Adds Subd. 13 defining 'Individual who is related' for purposes of related-party determinations.",
"modified": []
},
"citation": "245A.02 Subd. 13",
"subdivision": "Subd. 13"
},
{
"analysis": {
"added": [],
"removed": [
"245A.02 Subd. 10b is repealed."
],
"summary": "Repeals Minnesota Statutes 2024 section 245A.02, subdivision 10b.",
"modified": []
},
"citation": "245A.02 Subd. 10b",
"subdivision": "Subd. 10b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2), details not provided in the bill text excerpt."
]
},
"citation": "245A.03 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2a), details not provided in the bill text excerpt."
]
},
"citation": "245A.043 Subd. 2a",
"subdivision": "Subd. 2a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 3), details not provided in the bill text excerpt."
]
},
"citation": "245A.07 Subd. 3",
"subdivision": "Subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 4), details not provided in the bill text excerpt."
]
},
"citation": "245A.10 Subd. 4",
"subdivision": "Subd. 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 3), details not provided in the bill text excerpt."
]
},
"citation": "245A.142 Subd. 3",
"subdivision": "Subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2), details not provided in the bill text excerpt."
]
},
"citation": "245A.242 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 18), details not provided in the bill text excerpt."
]
},
"citation": "245C.02 Subd. 18",
"subdivision": "Subd. 18"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 1), details not provided in the bill text excerpt."
]
},
"citation": "245C.03 Subd. 1",
"subdivision": "Subd. 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 1), details not provided in the bill text excerpt."
]
},
"citation": "245C.04 Subd. 1",
"subdivision": "Subd. 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2), details not provided in the bill text excerpt."
]
},
"citation": "245C.15 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 3), details not provided in the bill text excerpt."
]
},
"citation": "245C.15 Subd. 3",
"subdivision": "Subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 4), details not provided in the bill text excerpt."
]
},
"citation": "245C.15 Subd. 4",
"subdivision": "Subd. 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2), details not provided in the bill text excerpt."
]
},
"citation": "245C.24 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 3), details not provided in the bill text excerpt."
]
},
"citation": "245D.04 Subd. 3",
"subdivision": "Subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 4), details not provided in the bill text excerpt."
]
},
"citation": "245D.10 Subd. 4",
"subdivision": "Subd. 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 10), details not provided in the bill text excerpt."
]
},
"citation": "256B.04 Subd. 10",
"subdivision": "Subd. 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2), details not provided in the bill text excerpt."
]
},
"citation": "256B.064 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 3), details not provided in the bill text excerpt."
]
},
"citation": "256B.27 Subd. 3",
"subdivision": "Subd. 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 6), details not provided in the bill text excerpt."
]
},
"citation": "260E.03 Subd. 6",
"subdivision": "Subd. 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 1), details not provided in the bill text excerpt."
]
},
"citation": "260E.11 Subd. 1",
"subdivision": "Subd. 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 1), details not provided in the bill text excerpt."
]
},
"citation": "260E.14 Subd. 1",
"subdivision": "Subd. 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 13), details not provided in the bill text excerpt."
]
},
"citation": "626.5572 Subd. 13",
"subdivision": "Subd. 13"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 3a), details not provided in the bill text excerpt."
]
},
"citation": "245A.10 Subd. 3a",
"subdivision": "Subd. 3a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (245C.07), details not provided in the bill text excerpt."
]
},
"citation": "245C.07",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 2), details not provided in the bill text excerpt."
]
},
"citation": "245C.13 Subd. 2",
"subdivision": "Subd. 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 4a), details not provided in the bill text excerpt."
]
},
"citation": "245C.15 Subd. 4a",
"subdivision": "Subd. 4a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (Subd. 5), details not provided in the bill text excerpt."
]
},
"citation": "245C.22 Subd. 5",
"subdivision": "Subd. 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced as amended in Minnesota Statutes 2025 Supplement; specific changes not described in the text provided.",
"modified": [
"Amendment planned in 2025 Supplement (245C.07), details not provided in the bill text excerpt."
]
},
"citation": "245C.07",
"subdivision": ""
}
]Progress through the legislative process
In Committee