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 for individual providers of direct support services, with state contributions as per collective bargaining agreements. The bill also clarifies that contributions to this trust will not be deemed unfair labor practices. Additionally, it 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.

Moreover, the bill modifies worker retention components for personal care assistance services and CFSS, introducing new retention percentages based on cumulative hours worked, with a maximum of 12.69 percent for those exceeding 10,000 hours. It also mandates increases in consumer-directed community support budgets and stipulates that the commissioner must raise the authorized amount for CFSS participant-employers employing individual providers with over 1,000 hours of service. The bill includes provisions for stipend payments to members of the SEIU Healthcare Minnesota & Iowa bargaining unit, which will not count as income for various assistance programs, and allocates funds for retention, health insurance costs, training stipends, and an orientation program. Most sections will take effect the day after final enactment, with specific provisions effective on January 1, 2026, or upon federal approval.

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