This bill seeks to enhance community first services and supports (CFSS) in Minnesota by modifying reimbursement rates, increasing budgets for consumer-directed community supports, 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 individual providers of direct support services, with the state making financial contributions as per collective bargaining agreements. The bill introduces enhanced reimbursement rates for personal care assistance services and CFSS, increasing the rates to 112.5% effective January 1, 2026, or upon federal approval. It also amends various sections of Minnesota Statutes to reflect these changes, including adjustments to the service budget for budget model participants and the requirements for support workers.

Additionally, the bill establishes new worker retention components based on cumulative hours worked, with percentages ranging from zero to 12.69 percent for various hour thresholds, effective January 1, 2026, or upon federal approval. It mandates an increase in consumer-directed community support budgets and budget exception percentages, and requires the commissioner to increase the authorized amount for CFSS participant-employers employing individual providers who have provided more than 1,000 hours of services. The bill allocates $30.75 million for stipend payments to members of the SEIU Healthcare Minnesota & Iowa bargaining unit for retention and health care costs, training stipends, and orientation programs, while ensuring that these stipend payments will not be considered income or assets for eligibility determinations in various assistance programs. Overall, the bill aims to improve financial support and resources for personal care workers and enhance the effectiveness of service delivery.

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