This bill seeks to improve community first services and supports (CFSS) in Minnesota by modifying reimbursement rates and establishing the Minnesota Caregiver Defined Contribution Retirement Fund Trust. Key provisions include the creation of a joint labor and management trust to administer a retirement plan for direct support service providers, with state contributions aligned with collective bargaining agreements. The bill proposes enhanced reimbursement rates for personal care assistance services and CFSS, increasing these rates to 112.5% effective January 1, 2026, or upon federal approval. It also amends various sections of Minnesota Statutes to adjust service budgets and payment methodologies, ensuring that support workers meet training and competency standards to qualify for these enhanced rates.

Additionally, the bill introduces amendments related to worker retention for personal care assistance services, establishing new retention percentages based on cumulative hours worked, effective January 1, 2026, or upon federal approval. It includes provisions for increasing consumer-directed community support budgets and stipends for SEIU Healthcare Minnesota & Iowa members to assist with retention and health insurance costs. Notably, stipend payments received by SEIU members will not be counted as income or assets for eligibility in assistance programs. The bill allocates funding for training stipends, orientation programs, and the caregiver retirement fund, with most provisions set to take effect on January 1, 2026, or upon federal approval, aiming to enhance support for personal care workers and improve the sustainability of care services in Minnesota.

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