HF 41

3rd Engrossment - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/30/2020 12:14pm

A bill for an act
relating to human services; modifying the child care assistance provider
reimbursement rates; amending Minnesota Statutes 2018, section 119B.13,
subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) deleted text begin Beginning February 3, 2014, deleted text end The maximum
rate paid for child care assistance in any county or county price cluster under the child care
fund shall be the greater of the 25th percentile of the deleted text begin 2011 deleted text end new text begin 2018 new text end child care provider rate
survey or the deleted text begin maximum rate effective November 28, 2011 deleted text end new text begin rates in effect at the time of the
update new text end . For a child care provider located within the boundaries of a city located in two or
more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child
care assistance shall be equal to the maximum rate paid in the county with the highest
maximum reimbursement rates or the provider's charge, whichever is less. The commissioner
may: (1) assign a county with no reported provider prices to a similar price cluster; and (2)
consider county level access when determining final price clusters.

(b) A rate which includes a special needs rate paid under subdivision 3 may be in excess
of the maximum rate allowed under this subdivision.

(c) The department shall monitor the effect of this paragraph on provider rates. The
county shall pay the provider's full charges for every child in care up to the maximum
established. The commissioner shall determine the maximum rate for each type of care on
an hourly, full-day, and weekly basis, including special needs and disability care.

(d) If a child uses one provider, the maximum payment for one day of care must not
exceed the daily rate. The maximum payment for one week of care must not exceed the
weekly rate.

(e) If a child uses two providers under section 119B.097, the maximum payment must
not exceed:

(1) the daily rate for one day of care;

(2) the weekly rate for one week of care by the child's primary provider; and

(3) two daily rates during two weeks of care by a child's secondary provider.

(f) Child care providers receiving reimbursement under this chapter must not be paid
activity fees or an additional amount above the maximum rates for care provided during
nonstandard hours for families receiving assistance.

(g) If the provider charge is greater than the maximum provider rate allowed, the parent
is responsible for payment of the difference in the rates in addition to any family co-payment
fee.

(h) All maximum provider rates changes shall be implemented on the Monday following
the effective date of the maximum provider rate.

(i) deleted text begin Notwithstanding Minnesota Rules, part , subpart 7, maximum registration
fees in effect on January 1, 2013, shall remain in effect. deleted text end new text begin Beginning September 21, 2020,
the maximum registration fee paid for child care assistance in any county or county price
cluster under the child care fund shall be the greater of the 25th percentile of the 2018 child
care provider rate survey or the registration fee in effect at the time of the update. Maximum
registration fees must be set for licensed family child care and for child care centers. For a
child care provider located in the boundaries of a city located in two or more of the counties
of Benton, Sherburne, and Stearns, the maximum registration fee paid for child care assistance
shall be equal to the maximum registration fee paid in the county with the highest maximum
registration fee or the provider's charge, whichever is less.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 18, 2020.
new text end

Sec. 2. new text begin DIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING FEE
FUNDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the
commissioner of human services must allocate the additional basic sliding fee child care
funds for calendar year 2021 to counties for updated maximum rates based on relative need
to cover maximum rate increases. In distributing the additional funds, the commissioner
shall consider the following factors by county:
new text end

new text begin (1) number of children;
new text end

new text begin (2) provider type;
new text end

new text begin (3) age of children; and
new text end

new text begin (4) amount of the increase in maximum rates.
new text end

Sec. 3. new text begin DIRECTION TO THE COMMISSIONER; CHILD CARE AND
DEVELOPMENT BLOCK GRANT ALLOCATION.
new text end

new text begin (a) The commissioner shall allocate $20,439,000 in fiscal year 2021, $32,710,000 in
fiscal year 2022, and $32,648,000 in fiscal year 2023, from the child care development
block grant amount in the federal fund for the rate increase under Minnesota Statutes, section
119B.13, subdivision 1, paragraph (a).
new text end

new text begin (b) When increased federal discretionary child care development block grant funding is
used to pay for the rate increase under paragraph (a) of this section, the commissioner, in
consultation with the commissioner of management and budget, may adjust the amount of
working family credit expenditures as needed to meet the state's maintenance of effort
requirements for the TANF block grant.
new text end