The Commissioner of the Department of Human Services (DHS) testified in front of the newly formed House Fraud Prevention and State Agency Oversight Committee on Monday morning.

Interim DHS Commissioner Shireen Gandhi told the House Fraud Committee the law limits stopping Child Care Assistance Program funding, also known as CCAP, payments until a daycare center license is suspended or revoked and, “If the provider intentionally gives false information on billing forms, or submits false attendance records — if there’s a credible allegation of fraud.”

Between 2019 and 2023, the Quality Learning Center in Daycare in Minneapolis had 95 violations for having hazardous items around children and no records for 16 kids.

The daycare was placed on a conditional license for two years, but it still received nearly $8 million in CCAP funding.

The “Intisar” daycare had a revoked license in 2021 and dozens of safety problems over several years — yet it still received nearly $2 million in CCAP money.

The fraud committee chair, Rep. Kristin Robbins (R – Maple Grove), asked during the meeting why some daycare centers have incomplete child attendance records but still receive CCAP money.

“You find that that’s not fraudulent; it’s just bad record keeping, but yet they are being overpaid, correct?” asked Rep. Robbins to DHS Deputy Inspector General Tom Johnson.

Johnson responded, saying, “Madam Chair, correct. There are cases where they just aren’t good at keeping records, but there’s no suspicion that they’re not actually providing services.”

The DHS says there are certain reasons that allow them to stop payments, including the provider intentionally giving false information or if their license is suspended. Some state lawmakers want state regulators to have more power to stop CCAP when facilities have ongoing safety problems.

“The statute says they may stop payment under certain conditions; it doesn’t say they must,” said Committee Chair Kristin Robbins (R-Maple Grove).

This comes after 5 EYEWITNESS NEWS reported on daycare centers – with lengthy patterns of safety violations stretching over several years – still receive state and county funding. Some of those violations include having dangerous items around kids or not doing staff background checks – both of which are a red flag for state leaders.

Recently, investigations began at two other childcare facilities – one where a child tested positive for meth, and the other for an employee yelling and yanking a child around.

RELATED: City council member, who owns day care under investigation, receives support and calls to resign

Currently, there are now more than 60 active investigations into childcare centers under the program.

RELATED: Minnesota lawmaker proposes new law making it easier to cutoff public funds for problem daycare providers I 4 members of Minnesota’s congressional delegation request investigative records of DHS I ‘It’s horrifying’: Minnesota lawmaker proposes having cameras in daycares after recent allegations