This bill seeks to improve community first services and supports (CFSS) by adjusting reimbursement rates and creating the Minnesota Caregiver Defined Contribution Retirement Fund Trust. It introduces a new subdivision to Minnesota Statutes 2024, section 179A.54, allowing the state and an exclusive representative to establish a joint trust for retirement plans tailored for individual providers of direct support services. The state will contribute to this trust in accordance with collective bargaining agreements, and a board of trustees will manage its administration. Notably, contributions to this trust will not be classified as unfair labor practices. Additionally, the bill amends reimbursement rates for personal care assistance services, establishing an enhanced rate of 112.5% for those qualifying for ten or more hours of assistance per day, effective January 1, 2026, or upon federal approval.

The legislation also introduces amendments related to worker retention components for personal care assistance services and consumer-directed community supports, establishing new retention percentages based on cumulative hours worked, effective January 1, 2026, or upon federal approval. For example, workers with fewer than 1,001 cumulative hours will receive a retention component of zero percent, while those exceeding 10,000 hours will receive 12.69 percent. The bill allocates $30.75 million for fiscal year 2026 for various initiatives, including stipends for collective bargaining unit members, training stipends, and funding for an orientation program as defined by the SEIU collective bargaining agreement. Additionally, it appropriates $350,000 for the establishment of the Minnesota Caregiver Defined Contribution Retirement Fund Trust, all aimed at enhancing support for personal care workers and improving care quality for individuals in need.

Statutes affected:
Introduction: 179A.54, 256B.0659, 256B.85, 256B.851
1st Engrossment: 179A.54, 256B.0659, 256B.85, 256B.851