SF3698

Purpose

• Update licensing rules for crisis nurseries and a wide range of children, youth, and family programs.
• Reduce unnecessary or duplicative licensing requirements while preserving child safety.
• Create a formal licensing framework for crisis nurseries and require a legislative report with proposed changes.

What the bill changes (Main Provisions)

• Exclusion from licensure (expanded list): The bill adds many programs to the exemptions from state licensure, meaning they would not need to be licensed under Chapter 142B. Key categories exempted include:
  • Programs operated by a related-individual (family members) in residential or nonresidential settings, with specific exceptions.
  • Nonresidential programs run by a related family for certain circumstances.
  • Programs operated by public schools for children aged 33 months and older.
  • Short, on-site programs where a parent is in the same building (or directly contiguous building) and the child is cared for less than three hours per day.
  • Homes providing programs for children placed for legal adoption (county or licensed agency involvement required if adoption not completed within two years).
  • Programs licensed or certified by the commissioner of corrections.
  • Recreation, youth programs, or clubs (e.g., YMCA, YWCA, JCC) whose primary purpose is recreational.
  • Head Start nonresidential programs with limited duration (less than 45 days overall per year).
  • Scouting, boys/girls clubs, sports, and arts programs.
  • Religious instruction and congregate care provided by churches or religious groups during regular worship periods.
  • Camps licensed by the health department under relevant rules.
  • Residential programs for school-age children whose sole purpose is cultural or educational exchange (until rules are adopted).
  • Community support services programs and family community support services.
  • Pre-adoptive placements and certain nonpublic school-operated youth programs (with specific accreditation and background-study criteria).
  • Programs run by nonprofits that serve kindergarten through 12th grade and provide structured youth development activities outside regular school hours (with conditions that such programs publish written policies, obtain parental consent, and notify parents that they are not licensed or eligible for child care assistance).
  • Programs run by accrediting agencies recognized by the commissioner that require background studies and handle complaints.
  • Programs serving youth with on-site director oversight and written parent consent/notice requirements, not eligible for child care assistance.
• Crisis nurseries exemption (temporary): Crisis nurseries currently licensed as a children's residential facility under Chapter 245A and as a special family child care home under Chapter 142B may continue operating under those exemptions, but only until July 1, 2027. After that date, they would be subject to the new licensing framework.
• Definitions and clarifications: The bill defines terms such as “directly contiguous” buildings (sharing a wall or connected by skyway/atrium/common roof) to clarify when spaces are considered part of the same program.
• Federal waivers note: Nothing in the bill requires licensure for services funded under an approved federal waiver plan where licensure is specifically not required for those services and funding.

Crisis Nurseries: Licensing Framework (Section 2)

• The state’s Commissioner of Children, Youth, and Families must develop a licensing framework for crisis nurseries that provide safe, short-term care for children during caregiver crises.
• The framework must include:
  • Pathways to become licensed crisis nurseries.
  • Background study requirements and training standards.
  • Ways to reduce regulatory redundancy and resolve conflicting requirements.
• Stakeholder engagement: The commissioner must work with stakeholders and current crisis nursery organizations during development.
• Reporting requirement: By January 15, 2027, the commissioner must submit a report to the Legislature detailing:
  • An overview of the proposed licensing framework.
  • A detailed explanation of the framework and any needed statutory changes to implement a new crisis-nursery license.

Significant Changes to Existing Law

• Creates a broad set of exemptions from licensure for many types of child and youth programs, potentially reducing regulatory burden for numerous entities.
• Establishes a formal plan to license crisis nurseries with a structured framework and timeline, replacing or guiding current exemption status after a sunset date.
• Introduces specific on-site supervision and parental-consent requirements for certain exempt programs that choose to remain outside licensure.
• Sets a legislative access point for future licensing through a dedicated statutory report and proposed changes.

Administrative and Timing Details

• Temporary crisis-nursery exemption period: Exemption for crisis nurseries currently licensed under Chapter 245A and Chapter 142B expires July 1, 2027.
• Report deadline: By January 15, 2027, the commissioner must provide a comprehensive licensing framework and proposed statutory changes to implement it.

Why this matters

• Aims to reduce the administrative burden on many community programs while keeping protections for children where exemptions apply.
• Signals a shift toward modernizing and clarifying crisis-nursery regulation, with a concrete plan and timeline for future licensing.
• Keeps critical child-care services operating without interruption during the transition, especially crisis nurseries.

Relevant Terms - crisis nurseries - licensure / exempt from licensure - Minnesota Statutes 2024 section 142B.05 subdivision 2 - Exclusion from licensure - commissioner of children, youth and families - background study - training requirements - directly contiguous - special family child care home - residential facility - Chapter 245A - Chapter 142B - Head Start - YMCA / YWCA / JCC - nonpublic school accreditation - accreditation - child care assistance (chapter 142E) - preadoptive home - cultural or educational exchange - community support services - crisis-nursery licensing framework - proposed legislation to implement licensing framework - sunset/expiration date (July 1, 2027) - federal waiver plan