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HF 2575

as introduced - 91st Legislature (2019 - 2020) Posted on 03/18/2019 02:41pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to human services; modifying provisions governing children and families
services; appropriating money; amending Minnesota Statutes 2018, sections
119B.011, subdivisions 19, 20, by adding a subdivision; 119B.02, subdivision 7;
119B.025, subdivision 1; 119B.03, subdivision 9; 119B.09, subdivision 1;
119B.095, subdivision 2, by adding a subdivision; 119B.13, subdivision 1; 119B.16,
subdivisions 1, 1a, 1b, by adding subdivisions; 245E.06, subdivision 3; 245H.07;
proposing coding for new law in Minnesota Statutes, chapter 119B; repealing
Minnesota Statutes 2018, sections 119B.16, subdivision 2; 245E.06, subdivisions
2, 4, 5; Minnesota Rules, part 3400.0185, subpart 5.

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

Section 1.

Minnesota Statutes 2018, section 119B.011, is amended by adding a subdivision
to read:


new text begin Subd. 13b. new text end

new text begin Homeless. new text end

new text begin "Homeless" means a self-declared housing status as defined in
the McKinney-Vento Homeless Assistance Act and United States Code, title 42, section
11302, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 119B.011, subdivision 19, is amended to read:


Subd. 19.

Provider.

"Provider" means:

(1) an individual or child care center or facilitydeleted text begin , either licensed or unlicensed, providing
legal child care services as defined
deleted text end new text begin licensed to provide child carenew text end under deleted text begin section 245A.03deleted text end new text begin
chapter 245A when operating within the terms of the license
new text end ; deleted text begin or
deleted text end

(2)new text begin a license exempt center required to be certified under chapter 245H;
new text end

new text begin (3)new text end an individual or child care center or facility deleted text begin holdingdeleted text end new text begin that: (i) holds new text end a valid child care
license issued by another state or a tribe deleted text begin and providingdeleted text end new text begin ; (ii) providesnew text end child care services in
the licensing state or in the area under the licensing tribe's jurisdictionnew text begin ; and (iii) is in
compliance with federal health and safety requirements as certified by the licensing state
or tribe, or as determined by receipt of child care development block grant funds in the
licensing state; or
new text end

new text begin (4) a legal nonlicensed child care provider as defined under section 119B.011, subdivision
16, providing legal child care services
new text end . A deleted text begin legally unlicensed familydeleted text end new text begin legal nonlicensed new text end child
care provider must be at least 18 years of age, and not a member of the MFIP assistance
unit or a member of the family receiving child care assistance to be authorized under this
chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 3.

Minnesota Statutes 2018, section 119B.011, subdivision 20, is amended to read:


Subd. 20.

Transition year families.

"Transition year families" means families who have
received MFIP assistance, or who were eligible to receive MFIP assistance after choosing
to discontinue receipt of the cash portion of MFIP assistance under section 256J.31,
subdivision 12
, or families who have received DWP assistance under section 256J.95 for
at least deleted text begin threedeleted text end new text begin onenew text end of the last six months before losing eligibility for MFIP or DWP.
Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, subpart 2,
transition year child care may be used to support employment, approved education or training
programs, or job search that meets the requirements of section 119B.10. Transition year
child care is not available to families who have been disqualified from MFIP or DWP due
to fraud.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 23, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, section 119B.02, subdivision 7, is amended to read:


Subd. 7.

Child care market rate survey.

deleted text begin Biennially,deleted text end The commissioner shall new text begin conduct
the next
new text end survey new text begin of new text end prices charged by child care providers in Minnesota new text begin in state fiscal year
2021 and every three years thereafter
new text end to determine the 75th percentile for like-care
arrangements in county price clusters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2018, section 119B.025, subdivision 1, is amended to read:


Subdivision 1.

Applications.

(a) new text begin Except as provided in paragraph (c), clause (4), new text end the
county shall verify the following at all initial child care applications using the universal
application:

(1) identity of adults;

(2) presence of the minor child in the home, if questionable;

(3) relationship of minor child to the parent, stepparent, legal guardian, eligible relative
caretaker, or the spouses of any of the foregoing;

(4) age;

(5) immigration status, if related to eligibility;

(6) Social Security number, if given;

(7) counted income;

(8) spousal support and child support payments made to persons outside the household;

(9) residence; and

(10) inconsistent information, if related to eligibility.

(b) The county must mail a notice of approval or denial of assistance to the applicant
within 30 calendar days after receiving the application. The county may extend the response
time by 15 calendar days if the applicant is informed of the extension.

new text begin (c) For an applicant who declares that the applicant is homeless and who meets the
definition of homeless in section 119B.011, subdivision 13b, the county must:
new text end

new text begin (1) if information is needed to determine eligibility, send a request for information to
the applicant within five working days after receiving the application;
new text end

new text begin (2) if the applicant is eligible, send a notice of approval of assistance within five working
days after receiving the application;
new text end

new text begin (3) if the applicant is ineligible, send a notice of denial of assistance within 30 days after
receiving the application. The county may extend the response time by 15 calendar days if
the applicant is informed of the extension;
new text end

new text begin (4) not require verifications required by paragraph (a) before issuing the notice of approval
or denial; and
new text end

new text begin (5) follow limits set by the commissioner for how frequently expedited application
processing may be used for an applicant under this paragraph.
new text end

new text begin (d) An applicant who declares that the applicant is homeless must submit proof of
eligibility within three months of the date the application was received. If proof of eligibility
is not submitted within three months, eligibility ends. A 15-day adverse action notice is
required to end eligibility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 6.

Minnesota Statutes 2018, section 119B.03, subdivision 9, is amended to read:


Subd. 9.

Portability pool.

(a) The commissioner shall establish a pool of up to five
percent of the annual appropriation for the basic sliding fee program to provide continuous
child care assistance for eligible families who move between Minnesota counties. At the
end of each allocation period, any unspent funds in the portability pool must be used for
assistance under the basic sliding fee program. If expenditures from the portability pool
exceed the amount of money available, the reallocation pool must be reduced to cover these
shortages.

(b) deleted text begin To be eligible for portable basic sliding fee assistance,deleted text end A family that has moved from
a county in which it was receiving basic sliding fee assistance to a county with a waiting
list for the basic sliding fee program must:

(1) meet the income and eligibility guidelines for the basic sliding fee program; and

(2) notify deleted text begin the new county of residence within 60 days of moving and submit information
to the new county of residence to verify eligibility for the basic sliding fee program
deleted text end new text begin the
family's previous county of residence of the family's move to a new county of residence
new text end .

(c) The receiving county must:

(1) accept administrative responsibility for applicants for portable basic sliding fee
assistance at the end of the two months of assistance under the Unitary Residency Act;

(2) continue new text begin portability pool new text end basic sliding fee assistance deleted text begin for the lesser of six months ordeleted text end
until the family is able to receive assistance under the county's regular basic sliding program;
and

(3) notify the commissioner through the quarterly reporting process of any family that
meets the criteria of the portable basic sliding fee assistance pool.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 2, 2019.
new text end

Sec. 7.

Minnesota Statutes 2018, section 119B.09, subdivision 1, is amended to read:


Subdivision 1.

General eligibility requirements.

(a) Child care services must be
available to families who need child care to find or keep employment or to obtain the training
or education necessary to find employment and who:

(1) have household income less than or equal to 67 percent of the state median income,
adjusted for family size, at application and redetermination, and meet the requirements of
section 119B.05; receive MFIP assistance; and are participating in employment and training
services under chapter 256J; or

(2) have household income less than or equal to 47 percent of the state median income,
adjusted for family size, at application and less than or equal to 67 percent of the state
median income, adjusted for family size, at redetermination.

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family at application and
redetermination as a condition of program eligibility. For purposes of this section, a family
is considered to meet the requirement for cooperation when the family complies with the
requirements of section 256.741.

(d) All applicants for child care assistance and families currently receiving child care
assistance must pay the co-payment fee under section 119B.12, subdivision 2, as a condition
of eligibility. The co-payment fee may include additional recoupment fees due to a child
care assistance program overpayment.

new text begin (e) If a family has one child with a child care authorization and the child reaches 13
years of age or the child has a disability and reaches 15 years of age, the family remains
eligible until the redetermination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 29, 2020.
new text end

Sec. 8.

Minnesota Statutes 2018, section 119B.095, subdivision 2, is amended to read:


Subd. 2.

Maintain steady child care authorizations.

(a) Notwithstanding Minnesota
Rules, chapter 3400, the amount of child care authorized under section 119B.10 for
employment, education, or an MFIP or DWP employment plan shall continue at the same
number of hours or more hours until redetermination, including:

(1) when the other parent moves in and is employed or has an education plan under
section 119B.10, subdivision 3, or has an MFIP or DWP employment plan; or

(2) when the participant's work hours are reduced or a participant temporarily stops
working or attending an approved education program. Temporary changes include, but are
not limited to, a medical leave, seasonal employment fluctuations, or a school break between
semesters.

(b) The county may increase the amount of child care authorized at any time if the
participant verifies the need for increased hours for authorized activities.

(c) The county may reduce the amount of child care authorized if a parent requests a
reduction or because of a change in:

(1) the child's school schedule;

(2) the custody schedule; or

(3) the provider's availability.

(d) The amount of child care authorized for a family subject to subdivision 1, paragraph
(b), must change when the participant's activity schedule changes. Paragraph (a) does not
apply to a family subject to subdivision 1, paragraph (b).

new text begin (e) When a child reaches 13 years of age or a child with a disability reaches 15 years of
age, the amount of child care authorized shall continue at the same number of hours or more
hours until redetermination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 29, 2020.
new text end

Sec. 9.

Minnesota Statutes 2018, section 119B.095, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Assistance for persons who are homeless. new text end

new text begin An applicant who is homeless and
eligible for child care assistance is exempt from the activity participation requirements under
this chapter for three months. The applicant under this subdivision is eligible for 60 hours
of child care assistance per service period for three months from the date the county receives
the application. Additional hours may be authorized as needed based on the applicant's
participation in employment, education, or MFIP or DWP employment plan. To continue
receiving child care assistance after the initial three months, the applicant must verify that
the applicant meets eligibility and activity requirements for child care assistance under this
chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 10.

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 2011deleted text end new text begin most recentnew text end child care provider
rate survey new text begin under section 119B.02, subdivision 7, new text end 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 updatenew text end . new text begin The first maximum rate update must be
based on the 2018 rate survey and take effect September 20, 2019. Thereafter, maximum
rate updates are effective the first biweekly period following September 1 after the most
recent rate survey.
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 3400.0130, subpart 7, maximum registration
fees in effect on January 1, 2013, shall remain in effect.
deleted text end new text begin 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 most recent child care provider rate survey under
section 119B.02, subdivision 7, or the registration fee in effect at the time of the update.
The first maximum registration fee update must be based on the 2018 rate survey and is
effective September 23, 2019. Thereafter, maximum registration fee updates are effective
the first biweekly period following September 1 after the most recent rate survey. Maximum
registration fees must be set for licensed family child care and for child care centers. 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 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 Paragraph (a) is effective September 20, 2019. Paragraph (i) is
effective September 23, 2019.
new text end

Sec. 11.

Minnesota Statutes 2018, section 119B.16, subdivision 1, is amended to read:


Subdivision 1.

Fair hearing allowednew text begin for applicants and recipientsnew text end .

new text begin (a) new text end An applicant
or recipient adversely affected by new text begin an action of new text end a county agency deleted text begin actiondeleted text end new text begin or the commissioner,
for an action taken directly against the applicant or recipient,
new text end may request new text begin and receive new text end a fair
hearing in accordance with new text begin this subdivision and new text end section 256.045.new text begin An applicant or recipient
does not have a right to a fair hearing if a county agency or the commissioner takes action
against a provider.
new text end

new text begin (b) A county agency must offer an informal conference to an applicant or recipient who
is entitled to a fair hearing under this section. A county agency must advise an applicant or
recipient that a request for a conference is optional and does not delay or replace the right
to a fair hearing.
new text end

new text begin (c) If a provider's authorization is suspended, denied, or revoked, a county agency or
the commissioner must mail notice to each child care assistance program recipient receiving
care from the provider.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 12.

Minnesota Statutes 2018, section 119B.16, subdivision 1a, is amended to read:


Subd. 1a.

Fair hearing allowed for providers.

(a) This subdivision applies to providers
caring for children receiving child care assistance.

deleted text begin (b) A provider to whom a county agency has assigned responsibility for an overpayment
may request a fair hearing in accordance with section 256.045 for the limited purpose of
challenging the assignment of responsibility for the overpayment and the amount of the
overpayment. The scope of the fair hearing does not include the issues of whether the
provider wrongfully obtained public assistance in violation of section 256.98 or was properly
disqualified under section 256.98, subdivision 8, paragraph (c), unless the fair hearing has
been combined with an administrative disqualification hearing brought against the provider
under section 256.046.
deleted text end

new text begin (b) A provider may request a fair hearing according to sections 256.045 and 256.046
only if a county agency or the commissioner:
new text end

new text begin (1) denies or revokes a provider's authorization, unless the action entitles the provider
to an administrative review under section 119B.161;
new text end

new text begin (2) assigns responsibility for an overpayment to a provider under section 119B.11,
subdivision 2a;
new text end

new text begin (3) establishes an overpayment for failure to comply with section 119B.125, subdivision
6;
new text end

new text begin (4) seeks monetary recovery or recoupment under section 245E.02, subdivision 4,
paragraph (c), clause (2);
new text end

new text begin (5) initiates an administrative fraud disqualification hearing; or
new text end

new text begin (6) issues a payment and the provider disagrees with the amount of the payment.
new text end

new text begin (c) A provider may request a fair hearing by submitting a written request to the
Department of Human Services, Appeals Division. A provider's request must be received
by the Appeals Division no later than 30 days after the date a county or the commissioner
mails the notice.
new text end

new text begin (d) The provider's appeal request must contain the following:
new text end

new text begin (1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the
dollar amount involved for each disputed item;
new text end

new text begin (2) the computation the provider believes to be correct, if applicable;
new text end

new text begin (3) the statute or rule relied on for each disputed item; and
new text end

new text begin (4) the name, address, and telephone number of the person at the provider's place of
business with whom contact may be made regarding the appeal.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 13.

Minnesota Statutes 2018, section 119B.16, subdivision 1b, is amended to read:


Subd. 1b.

Joint fair hearings.

deleted text begin When a provider requests a fair hearing under subdivision
1a, the family in whose case the overpayment was created must be made a party to the fair
hearing. All other issues raised by the family must be resolved in the same proceeding.
When a family requests a fair hearing and claims that the county should have assigned
responsibility for an overpayment to a provider, the provider must be made a party to the
fair hearing.
deleted text end The human services judge assigned to a fair hearing may join a family or a
provider as a party to the fair hearing whenever joinder of that party is necessary to fully
and fairly resolve deleted text begin overpaymentdeleted text end issues raised in the appeal.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 14.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision
to read:


new text begin Subd. 1c. new text end

new text begin Notice to providers. new text end

new text begin (a) Before taking an action appealable under subdivision
1a, paragraph (b), a county agency or the commissioner must mail written notice to the
provider against whom the action is being taken. Unless otherwise specified under chapter
119B or 245E or Minnesota Rules, chapter 3400, a county agency or the commissioner must
mail the written notice at least 15 calendar days before the adverse action's effective date.
new text end

new text begin (b) The notice shall state (1) the factual basis for the department's determination, (2) the
action the department intends to take, (3) the dollar amount of the monetary recovery or
recoupment, if known, and (4) the provider's right to appeal the department's proposed
action.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 15.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Fair hearing stayed. new text end

new text begin (a) If a county agency or the commissioner denies or
revokes a provider's authorization based on a licensing action under section 245A.07, and
the provider appeals, the provider's fair hearing must be stayed until the commissioner issues
an order as required under section 245A.08, subdivision 5.
new text end

new text begin (b) If the commissioner denies or revokes a provider's authorization based on
decertification under section 245H.07, and the provider appeals, the provider's fair hearing
must be stayed until the commissioner issues a final order as required under section 245H.07.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 16.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Final department action. new text end

new text begin Unless the commissioner receives a timely and
proper request for an appeal, a county agency's or the commissioner's action shall be
considered a final department action.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 17.

new text begin [119B.161] ADMINISTRATIVE REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin A provider has the right to an administrative review under
this section if (1) a payment was suspended under chapter 245E, or (2) the provider's
authorization was denied or revoked under section 119B.13, subdivision 6, paragraph (d),
clause (1) or (2).
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin (a) A county agency or the commissioner must mail written notice to
a provider within five days of suspending payment or denying or revoking the provider's
authorization under subdivision 1.
new text end

new text begin (b) The notice must:
new text end

new text begin (1) state the provision under which a county agency or the commissioner is denying,
revoking, or suspending the provider's authorization or suspending payment to the provider;
new text end

new text begin (2) set forth the general allegations leading to the denial, revocation, or suspension of
the provider's authorization. The notice need not disclose any specific information concerning
an ongoing investigation;
new text end

new text begin (3) state that the denial, revocation, or suspension of the provider's authorization is for
a temporary period and explain the circumstances under which the action expires; and
new text end

new text begin (4) inform the provider of the right to submit written evidence and argument for
consideration by the commissioner.
new text end

new text begin (c) Notwithstanding Minnesota Rules, part 3400.0185, if a county agency or the
commissioner suspends payment to a provider under chapter 245E or denies or revokes a
provider's authorization under section 119B.13, subdivision 6, paragraph (d), clause (1) or
(2), a county agency or the commissioner must send notice of service authorization closure
to each affected family. The notice sent to an affected family is effective on the date the
notice is created.
new text end

new text begin Subd. 3. new text end

new text begin Duration. new text end

new text begin If a provider's payment is suspended under chapter 245E or a
provider's authorization is denied or revoked under section 119B.13, subdivision 6, paragraph
(d), clause (1) or (2), the provider's denial, revocation, temporary suspension, or payment
suspension remains in effect until:
new text end

new text begin (1) the commissioner or a law enforcement authority determines that there is insufficient
evidence warranting the action and a county agency or the commissioner does not pursue
an additional administrative remedy under chapter 245E or section 256.98; or
new text end

new text begin (2) all criminal, civil, and administrative proceedings related to the provider's alleged
misconduct conclude and any appeal rights are exhausted.
new text end

new text begin Subd. 4. new text end

new text begin Good cause exception. new text end

new text begin The commissioner may find that good cause exists not
to deny, revoke, or suspend a provider's authorization, or not to continue a denial, revocation,
or suspension of a provider's authorization if any of the following are applicable:
new text end

new text begin (1) a law enforcement authority specifically requested that a provider's authorization
not be denied, revoked, or suspended because that action may compromise an ongoing
investigation;
new text end

new text begin (2) the commissioner determines that the denial, revocation, or suspension should be
removed based on the provider's written submission; or
new text end

new text begin (3) the commissioner determines that the denial, revocation, or suspension is not in the
best interests of the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 18.

Minnesota Statutes 2018, section 245E.06, subdivision 3, is amended to read:


Subd. 3.

Appeal of department deleted text begin sanctiondeleted text end new text begin actionnew text end .

deleted text begin (a) If the department does not pursue
a criminal action against a provider, license holder, controlling individual, or recipient for
financial misconduct, but the department imposes an administrative sanction under section
245E.02, subdivision 4, paragraph (c), any individual or entity against whom the sanction
was imposed may appeal the department's administrative sanction under this section pursuant
to section 119B.16 or 256.045 with the additional requirements in clauses (1) to (4). An
appeal must specify:
deleted text end

deleted text begin (1) each disputed item, the reason for the dispute, and an estimate of the dollar amount
involved for each disputed item, if appropriate;
deleted text end

deleted text begin (2) the computation that is believed to be correct, if appropriate;
deleted text end

deleted text begin (3) the authority in the statute or rule relied upon for each disputed item; and
deleted text end

deleted text begin (4) the name, address, and phone number of the person at the provider's place of business
with whom contact may be made regarding the appeal.
deleted text end

deleted text begin (b) Notwithstanding section 245E.03, subdivision 4, an appeal is considered timely only
if postmarked or received by the department's Appeals Division within 30 days after receiving
a notice of department sanction.
deleted text end

deleted text begin (c) Before the appeal hearing, the department may deny or terminate authorizations or
payment to the entity or individual if the department determines that the action is necessary
to protect the public welfare or the interests of the child care assistance program.
deleted text end

new text begin A provider's rights related to the department's action taken under this chapter against a
provider are established in sections 119B.16 and 119B.161.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 19.

Minnesota Statutes 2018, section 245H.07, is amended to read:


245H.07 DECERTIFICATION.

new text begin Subdivision 1. new text end

new text begin Generally. new text end

(a) The commissioner may decertify a center if a certification
holder:

(1) failed to comply with an applicable law or rule; deleted text begin or
deleted text end

(2) knowingly withheld relevant information from or gave false or misleading information
to the commissioner in connection with an application for certification, in connection with
the background study status of an individual, during an investigation, or regarding compliance
with applicable laws or rulesdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) has authorization to receive child care assistance payments revoked pursuant to
chapter 119B.
new text end

(b) When considering decertification, the commissioner shall consider the nature,
chronicity, or severity of the violation of law or rule.

(c) When a center is decertified, the center is ineligible to receive a child care assistance
paymentnew text begin under chapter 119Bnew text end .

new text begin Subd. 2. new text end

new text begin Reconsideration. new text end

new text begin (a) The certification holder may request reconsideration of
the decertification by notifying the commissioner by certified mail or personal service. The
request must be made in writing. If sent by certified mail, the request must be postmarked
and sent to the commissioner within ten calendar days after the certification holder received
the order. If a request is made by personal service, it must be received by the commissioner
within ten calendar days after the certification holder received the order. The certification
holder may submit with the request for reconsideration written argument or evidence in
support of the request for reconsideration.
new text end

new text begin (b) If the commissioner decertifies a center pursuant to subdivision 1, paragraph (a),
clause (3), and if the center appeals the revocation of the center's authorization to receive
child care assistance payments, the final decertification determination is stayed until the
appeal of the center's authorization under chapter 119B is resolved. If the center also requests
reconsideration of the decertification, the center must do so according to paragraph (a). The
final decision on reconsideration is stayed until the appeal of the center's authorization under
chapter 119B is resolved.
new text end

new text begin (c) The commissioner's disposition of a request for reconsideration is final and not subject
to appeal under chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 20. new text begin APPROPRIATION; BASIC SLIDING FEE WAITING LIST ALLOCATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 119B.03, $8,676,000 in fiscal year 2020
and $17,701,000 in fiscal year 2021 are appropriated from the general fund to the
commissioner of human services to reduce the basic sliding fee program waiting list as
follows:
new text end

new text begin (1) the calendar year 2020 allocation shall be increased to serve families on the waiting
list. To receive funds appropriated for this purpose, a county must have a waiting list in the
most recent published waiting list month;
new text end

new text begin (2) funds shall be distributed proportionately based on the average of the most recent
six months of published waiting lists to counties that meet the criteria in clause (1);
new text end

new text begin (3) allocations in calendar years 2021 and beyond shall be calculated using the allocation
formula in Minnesota Statutes, section 119B.03; and
new text end

new text begin (4) the guaranteed floor for calendar year 2021 shall be based on the revised calendar
year 2020 allocation.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b,
the commissioner must allocate the additional basic sliding fee child care funds for calendar
year 2020 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. 21. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 119B.16, subdivision 2; and 245E.06, subdivisions
2, 4, and 5,
new text end new text begin and new text end new text begin Minnesota Rules, part 3400.0185, subpart 5, new text end new text begin are repealed effective February
26, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-4694

119B.16 FAIR HEARING PROCESS.

Subd. 2.

Informal conference.

The county agency shall offer an informal conference to applicants and recipients adversely affected by an agency action to attempt to resolve the dispute. The county agency shall offer an informal conference to providers to whom the county agency has assigned responsibility for an overpayment in an attempt to resolve the dispute. The county agency or the provider may ask the family in whose case the overpayment arose to participate in the informal conference, but the family may refuse to do so. The county agency shall advise adversely affected applicants, recipients, and providers that a request for a conference with the agency is optional and does not delay or replace the right to a fair hearing.

245E.06 ADMINISTRATIVE SANCTIONS.

Subd. 2.

Written notice of department sanction; sanction effective date; informal meeting.

(a) The department shall give notice in writing to a person of an administrative sanction that is to be imposed. The notice shall be sent by mail as defined in section 245E.01, subdivision 11.

(b) The notice shall state:

(1) the factual basis for the department's determination;

(2) the sanction the department intends to take;

(3) the dollar amount of the monetary recovery or recoupment, if any;

(4) how the dollar amount was computed;

(5) the right to dispute the department's determination and to provide evidence;

(6) the right to appeal the department's proposed sanction; and

(7) the option to meet informally with department staff, and to bring additional documentation or information, to resolve the issues.

(c) In cases of determinations resulting in denial or termination of payments, in addition to the requirements of paragraph (b), the notice must state:

(1) the length of the denial or termination;

(2) the requirements and procedures for reinstatement; and

(3) the provider's right to submit documents and written arguments against the denial or termination of payments for review by the department before the effective date of denial or termination.

(d) The submission of documents and written argument for review by the department under paragraph (b), clause (5) or (7), or paragraph (c), clause (3), does not stay the deadline for filing an appeal.

(e) Notwithstanding section 245E.03, subdivision 4, the effective date of the proposed sanction shall be 30 days after the license holder's, provider's, controlling individual's, or recipient's receipt of the notice, unless timely appealed. If a timely appeal is made, the proposed sanction shall be delayed pending the final outcome of the appeal. Implementation of a proposed sanction following the resolution of a timely appeal may be postponed if, in the opinion of the department, the delay of sanction is necessary to protect the health or safety of children in care. The department may consider the economic hardship of a person in implementing the proposed sanction, but economic hardship shall not be a determinative factor in implementing the proposed sanction.

(f) Requests for an informal meeting to attempt to resolve issues and requests for appeals must be sent or delivered to the department's Office of Inspector General, Financial Fraud and Abuse Division.

Subd. 4.

Consolidated hearings with licensing sanction.

If a financial misconduct sanction has an appeal hearing right and it is timely appealed, and a licensing sanction exists for which there is an appeal hearing right and the sanction is timely appealed, and the overpayment recovery action and licensing sanction involve the same set of facts, the overpayment recovery action and licensing sanction must be consolidated in the contested case hearing related to the licensing sanction.

Subd. 5.

Effect of department's administrative determination or sanction.

Unless a timely and proper appeal is received by the department, the department's administrative determination or sanction shall be considered a final department determination.

Repealed Minnesota Rule: 19-4694

3400.0185 TERMINATION AND ADVERSE ACTIONS; NOTICE REQUIRED.

Subp. 5.

Notice to providers of actions adverse to the provider.

The county must give a provider written notice of the following actions adverse to the provider: a denial of authorization, a termination of authorization, a reduction in the number of hours of care with that provider, and a determination that the provider has an overpayment. The notice must include the following information:

A.

a description of the adverse action;

B.

the effective date of the adverse action; and

C.

a statement that unless a family appeals the adverse action before the effective date or the provider appeals the overpayment determination, the adverse action will occur on the effective date. The notice must be mailed to the provider at least 15 calendar days before the effective date of the adverse action.