Purpose

• Expand and tighten how public assistance programs, especially SNAP, are administered in Minnesota.
• Increase state leadership and oversight over county-administered programs, improve coordination with Tribes, and strengthen accountability for program accuracy and fraud prevention.
• Align multiple child, family, and education-related services to reduce duplication, improve access, and better consider the experiences of children and families, including those with disabilities or facing inequities.

Main Provisions

• County administrative cost share for SNAP

  • A county agency may not pay more than 50% of the total SNAP administrative costs.
  • The commissioner must reimburse the difference between federal SNAP reimbursement and the county’s share.

• Commissioner duties and program administration (Minnesota Statutes 142A.03, 142F.05, 256.017)

  • The commissioner can apply for and accept grants, gifts, and federal funds to support duties; must report gifts and grants biennially.
  • Authority to contract with Tribal Nations, public/private agencies, for-profit and nonprofit organizations, and individuals; funds must have clear objectives and performance measures.
  • Develop and report on program objectives and performance measures every two years, including:
  • Centering the lived experiences of children and youth (including those with disabilities and their families).
  • Addressing needs of children/youth facing racial, economic, or geographic inequities.
  • Improving coordination to reduce program inefficiencies.
  • Aligning family access to child care and early learning with support systems.
  • Improving links between early learning programs, K-12, and higher education.
  • Reducing the effort required for youth and families to receive entitlements.
  • Administer all public assistance programs; ensure timely, complete, and high-quality services; monitor county performance; enforce compliance with laws and policies.
  • Require county participation in training and technical assistance; monitor county performance; promote program excellence.
  • Develop and oversee a quality control program to review county performance and accuracy of benefit determinations; set up procedures to adjust benefits as allowed by law.
  • May delay or deny payments of state/federal shares of benefits and administrative reimbursements as described in related statutes.
  • Enter into contracts with and grants to Tribes and other entities; coordinate with counties to avoid duplicating services; may create accounts for program funds.
  • Inform counties promptly about changes in statutes, rules, and federal requirements affecting the programs.
  • Administer child welfare activities (child maltreatment prevention, protection, licensing, foster care, and adoption-related services); coordinate with the Department of Human Services on disability services, behavioral health, and substance use treatment.
  • Exercise guardianship authority over certain children and coordinate with licensed child-placing agencies or Tribal agencies for adoption and permanency services; contracts may supplement but not replace existing county or Tribal programs unless agreed.
  • Establish experimental projects to test new methods; may waive certain requirements in selected counties; must meet federal waiver conditions and plan approvals; projects cannot exceed four years.

• Experimental projects and federal waivers

  • Experimental projects require U.S. Health and Human Services waiver agreement and Legislative Advisory Commission approval; must include a comprehensive plan and cost estimates.
  • Provide procedures for local welfare boards to create citizen advisory committees.

• Penalties and disallowances; recovery of funds

  • The commissioner bears the total amount of any SNAP disallowance or sanction, with formula-based sharing to counties for SNAP and AFDC (historical program) disallowances and sanctions.
  • For AFDC, county expenditures determine each county’s share; for SNAP, penalties are shared using both administrative costs and the value of benefits issued.
  • Counties must pay their share to the state; penalties can be recovered via county reimbursement or legal action; nonpayment procedures are described.

• Special projects and third-party recoveries

  • The commissioner may run special projects to maximize reimbursements and recover state money, including contracting with third parties.
  • Recoveries go to a state treasury special account; once the balance hits $1,000,000, excess is transferred to the general fund; money in the account is appropriated to the commissioner for these purposes.

• Reporting, audits, and integrity

  • The commissioner sets up fiscal and statistical reporting requirements; counties must submit monthly or quarterly reports; late or incomplete reports can trigger delayed payments or withholding of funds.
  • Noncompliance (two of three consecutive late/invalid reports) can lead to corrective action plans; failure to meet deadlines can result in funding forfeiture or repayment.
  • If the commissioner fails to provide necessary guidance, the county may not be penalized for late reporting.
  • The commissioner coordinates with federal and state agencies to detect and prevent fraud; supports child care program integrity; identifies and recovers overpayments.
  • Counties must identify overpayments and use cost-effective methods to recover them.
  • Standards for foster care homes with specialized therapeutic services may be developed.

• Child welfare and guardianship

  • The department has authority to act as designated guardian for certain children; may contract for adoption and permanency services when appropriate; contracts must supplement rather than replace county efforts unless agreed.
  • Funds encumbered for a child remain available until the agreement ends or is terminated.

• Forms, agreements, and interagency cooperation

  • The commissioner and DHS cooperate on duties, forms, and agreements; counties and Tribes may receive blank applications and forms as needed for public assistance programs.
  • Federal cooperation and compliance with Title I of PRWORA (and related federal requirements) are maintained; reports may be shared with the federal Social Security Advisory Board.

• Immunization reminders and voluntary measures

  • The state will explore using statewide computer systems to remind recipient families with at least one child under five to immunize against childhood diseases.

• Other administrative provisions

  • The commissioner may accept additional gifts and benefits for purposes related to guardianship or custody of children.
  • Gifts and benefits for these children may be deposited in a designated social welfare fund.

Significant Changes to Existing Law

• Introduces a hard cap on county admin costs for SNAP at 50%, with the state reimbursing the remainder.
• Expands the commissioner’s duties to include broader performance metrics, stronger oversight, and mandatory coordination with Tribes and counties.
• Establishes new penalty structures (administrative penalties and quality control penalties) tied to program accuracy and compliance, with specific recovery mechanisms.
• Requires comprehensive, biennial reporting on program objectives and outcomes, with emphasis on equity, living experiences of children, and cross-system alignment (early learning, K-12, higher education).
• Creates or expands mechanisms for waivers, experimental projects, and performance-based funding adjustments, including federal waivers and advisory commission approvals.
• Strengthens fraud prevention, overpayment recovery, and audit procedures across public assistance programs.
• Increases duties around child welfare, guardianship, adoption, and permanency services, including potential contracting with Tribes or child-placing agencies.
• Shifts some financial risk and administrative burden to counties through penalties and reporting requirements, while maintaining protections not to reduce benefits to cover penalties.

Implementation and Oversight

• Biennial reporting to legislative leaders and governor; ongoing consultation with counties and Tribes.
• Ongoing county training, monitoring, and quality control activities by the commissioner.
• Potential use of state accounts and third-party contractors to recover funds and maximize reimbursements.
• Clear procedures for witholding payments and addressing late or incomplete reporting, with appeal rights.

Potential Impacts

• Counties: lower share of SNAP administrative costs (up to 50% cap), but new reporting, monitoring, and penalties increase administrative workload and potential financial risk if not compliant.
• Tribes: new opportunities for contracts and partnerships to operate or co-manage programs, with guardrails to avoid duplication.
• Public assistance recipients: continued access to SNAP and other benefits, with safeguards not to reduce benefits to cover penalties; greater focus on accuracy and fraud prevention.
• State government: stronger centralized control, improved program performance data, and enhanced ability to recover funds and maximize federal reimbursements.

Relevant Terms - Supplemental Nutrition Assistance Program (SNAP) - AFDC (Aid to Families with Dependent Children) - Minnesota Family Investment Program (MFIP) - 142A.03, 142F.05, 256.017 (statutory sections involved) - county administrative cost share - administrative penalties - quality control penalty / quality control / quality assurance - disallowance / sanctions - federal reimbursement / state reimbursement - Tribes / Tribal Nations - child welfare / guardianship / adoption / permanency services - experimental projects / waivers - grants, gifts, contracts, subcontracts - performance measures / objectives - living experiences of children and youth - racial, economic, geographic inequities - coordination with K-12 and higher education - fraud prevention and overpayments - reporting requirements (monthly/quarterly) - remedies for late/invalid reports - immunization reminders (MFIP-related) - social welfare fund / special accounts - interagency cooperation (with DHS, education, etc.)