1.1                          A bill for an act 
  1.2             relating to children; consolidating the MFIP and basic 
  1.3             sliding fee child care assistance programs; requiring 
  1.4             projected costs of the consolidated child care 
  1.5             assistance program to be forecasted and recognized in 
  1.6             the fund balance; amending Minnesota Statutes 1998, 
  1.7             sections 119B.01, subdivisions 12 and 15; 119B.02; 
  1.8             119B.03, subdivisions 1, 2, 3, 5, 10, and by adding a 
  1.9             subdivision; 119B.04, subdivision 1; 119B.05, 
  1.10            subdivision 5; 119B.061, subdivisions 1, 2, 3, and 4; 
  1.11            119B.07; 119B.08, subdivisions 2 and 3; 119B.09, 
  1.12            subdivisions 1, 2, 7, and by adding a subdivision; 
  1.13            119B.11, subdivision 1; and 119B.15; proposing coding 
  1.14            for new law in Minnesota Statutes, chapter 119B; 
  1.15            repealing Minnesota Statutes 1998, sections 119B.01, 
  1.16            subdivision 16; 119B.03, subdivisions 4, 6, 7, 8, and 
  1.17            9; 119B.05, subdivisions 1, 6, and 7; 119B.075; 
  1.18            119B.09, subdivisions 3 and 4; and 119B.10. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 1998, section 119B.01, 
  1.21  subdivision 12, is amended to read: 
  1.22     Subd. 12.  [INCOME.] "Income" means earned or unearned 
  1.23  income received by all family members, including public 
  1.24  assistance cash benefits, unless specifically excluded.  The 
  1.25  following are excluded from income:  funds used to pay for 
  1.26  health insurance premiums for family members, Supplemental 
  1.27  Security Income, scholarships, work-study income, and grants 
  1.28  that cover costs for tuition, fees, books, and educational 
  1.29  supplies; student loans for tuition, fees, books, supplies, and 
  1.30  living expenses; earned income tax credits; in-kind income such 
  1.31  as food stamps, energy assistance, medical assistance, child 
  1.32  care assistance, and housing subsidies; earned income of full or 
  2.1   part-time secondary school students up to the age of 19, 
  2.2   including summer employment; grant awards under the family 
  2.3   subsidy program; nonrecurring lump sum income only to the extent 
  2.4   that it is earmarked and used for the purpose for which it is 
  2.5   paid; and any income assigned to the public authority according 
  2.6   to section 256.74 or 256.741, if enacted. 
  2.7      Sec. 2.  Minnesota Statutes 1998, section 119B.01, 
  2.8   subdivision 15, is amended to read: 
  2.9      Subd. 15.  [AFDC MFIP.] "AFDC" "MFIP"  means the aid to 
  2.10  families with dependent children program under sections 256.72 
  2.11  to 256.87; the MFIP program under sections 256.031 to 256.0361 
  2.12  and 256.0475 to 256.049; the MFIP-S Minnesota family investment 
  2.13  program under chapter 256J; and the work first program under 
  2.14  chapter 256K, whichever program is in effect. 
  2.15     Sec. 3.  Minnesota Statutes 1998, section 119B.02, is 
  2.16  amended to read: 
  2.17     119B.02 [DUTIES OF COMMISSIONER.] 
  2.18     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
  2.19  shall develop standards for county and human services boards to 
  2.20  provide child care services to enable eligible families to 
  2.21  participate in employment, training, or education programs.  
  2.22  Within the limits of available appropriations, The commissioner 
  2.23  shall distribute money to counties to reduce the costs of child 
  2.24  care for eligible families.  The commissioner shall adopt rules 
  2.25  to govern the program in accordance with this section.  The 
  2.26  rules must establish a sliding schedule of fees for parents 
  2.27  receiving child care services.  The rules shall provide that 
  2.28  funds received as a lump sum payment of child support arrearages 
  2.29  shall not be counted as income to a family in the month received 
  2.30  but shall be prorated over the 12 months following receipt and 
  2.31  added to the family income during those months.  In the rules 
  2.32  adopted under this section, county and human services boards 
  2.33  shall be authorized to establish policies for payment of child 
  2.34  care spaces for absent children, when the payment is required by 
  2.35  the child's regular provider.  The rules shall not set a maximum 
  2.36  number of days for which absence payments can be made, but 
  3.1   instead shall direct the county agency to set limits and pay for 
  3.2   absences according to the prevailing market practice in the 
  3.3   county.  County policies for payment of absences shall be 
  3.4   subject to the approval of the commissioner.  The commissioner 
  3.5   shall maximize the use of federal money in section 256.736 and 
  3.6   other programs that provide federal or state reimbursement for 
  3.7   child care services for low-income families who are in 
  3.8   education, training, job search, or other activities allowed 
  3.9   under those programs.  Money appropriated under this section 
  3.10  must be coordinated with the programs that provide federal 
  3.11  reimbursement for child care services to accomplish this 
  3.12  purpose.  The commissioner shall allocate federal reimbursement 
  3.13  obtained must be allocated to the county counties that spent 
  3.14  money for child care that is on federally reimbursable under 
  3.15  programs that provide federal reimbursement for child care 
  3.16  services.  The counties shall use the federal money to expand 
  3.17  child care services.  The commissioner may adopt rules under 
  3.18  chapter 14 to implement and coordinate federal program 
  3.19  requirements. 
  3.20     Subd. 2.  [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 
  3.21  commissioner may enter into contractual agreements with a 
  3.22  federally recognized Indian tribe with a reservation in 
  3.23  Minnesota to carry out the responsibilities of county human 
  3.24  service agencies to the extent necessary for the tribe to 
  3.25  operate child care assistance programs under sections 119B.03 
  3.26  and 119B.05.  An agreement may allow for the tribe to be 
  3.27  reimbursed for child care assistance services provided under 
  3.28  section 119B.05.  The commissioner shall consult with the 
  3.29  affected county or counties in the contractual agreement 
  3.30  negotiations, if the county or counties wish to be included, in 
  3.31  order to avoid the duplication of county and tribal child care 
  3.32  services.  Funding to support services under section 119B.03 may 
  3.33  be transferred to the federally recognized Indian tribe with a 
  3.34  reservation in Minnesota from allocations funds available to 
  3.35  serve eligible families residing in counties in which 
  3.36  reservation boundaries lie.  When funding is transferred under 
  4.1   section 119B.03, the amount shall be commensurate to estimates 
  4.2   of the proportion of reservation residents with characteristics 
  4.3   identified in section 119B.03, subdivision 6, to the total 
  4.4   population of county residents with those same characteristics.  
  4.5      Sec. 4.  Minnesota Statutes 1998, section 119B.03, 
  4.6   subdivision 1, is amended to read: 
  4.7      Subdivision 1.  [ALLOCATION PERIOD; NOTICE OF ALLOCATION 
  4.8   ELIGIBLE RECIPIENTS.] When the commissioner notifies county and 
  4.9   human service boards of the forms and instructions they are to 
  4.10  follow in the development of their biennial community social 
  4.11  services plans required under section 256E.08, the commissioner 
  4.12  shall also notify county and human services boards of their 
  4.13  estimated child care fund program allocation for the two years 
  4.14  covered by the plan.  By October 1 of each year, the 
  4.15  commissioner shall notify all counties of their final child care 
  4.16  fund program allocation.  Families that meet eligibility 
  4.17  requirements under section 119B.09, have incomes below 75 
  4.18  percent of the state median income, and participate in at least 
  4.19  one of the authorized activities listed in subdivision 2, must 
  4.20  receive child care assistance under the child care fund. 
  4.21     Sec. 5.  Minnesota Statutes 1998, section 119B.03, 
  4.22  subdivision 2, is amended to read: 
  4.23     Subd. 2.  [WAITING LIST AUTHORIZED ACTIVITIES.] Each county 
  4.24  that receives funds under this section must keep a written 
  4.25  record and report to the commissioner the number of eligible 
  4.26  families who have applied for a child care subsidy or have 
  4.27  requested child care assistance.  Counties shall perform a 
  4.28  cursory determination of eligibility when a family requests 
  4.29  information about child care assistance.  A family that appears 
  4.30  to be eligible must be put on a waiting list if funds are not 
  4.31  immediately available.  The waiting list must identify students 
  4.32  in need of child care.  When money is available counties shall 
  4.33  expedite the processing of student applications during key 
  4.34  enrollment periods.  Families must be participating in at least 
  4.35  one of the following authorized activities: 
  4.36     (1)_employment orientation or job search, or other 
  5.1   employment or training activities that are included in an 
  5.2   approved employability development plan under chapter 256K; 
  5.3      (2) work activities as required in their job search support 
  5.4   or employment plan, or in appeals, hearings, assessments, or 
  5.5   orientations under chapter 256J.  Child care assistance to 
  5.6   support work activities under section 256J.49 must be available 
  5.7   according to sections 119A.52, 119B.01, subdivision 8; 124D.13; 
  5.8   256E.08; and 611A.32, and titles IVA; IVB; IVE; and XX of the 
  5.9   Social Security Act of 1935; 
  5.10     (3) a job search conducted outside of an approved 
  5.11  employability development plan under chapter 256K, not to exceed 
  5.12  240 hours of child care assistance per calendar year; or 
  5.13     (4) employment outside of an employment plan under section 
  5.14  119B.01, subdivision 9, in which the caregiver works at least an 
  5.15  average of 20 hours and students not participating in MFIP who 
  5.16  work at least an average of ten hours a week and receive at 
  5.17  least minimum wage for all hours worked.  For purposes of this 
  5.18  section, work-study programs must be counted as employment.  
  5.19  Child care assistance must be authorized as provided in items 
  5.20  (i) or (ii): 
  5.21     (i) when the caregiver or student works for an hourly wage 
  5.22  and the hourly wage is equal to or greater than the applicable 
  5.23  minimum wage, child care assistance shall be provided for the 
  5.24  actual hours of employment, break, and mealtime during the 
  5.25  employment and travel time up to two hours per day, and 
  5.26  classroom time in the case of students; or 
  5.27     (ii) when the caregiver does not work for an hourly wage, 
  5.28  child care assistance must be provided for the lesser of: 
  5.29     (A) the amount of child care determined by dividing gross 
  5.30  earned income by the applicable minimum wage, up to one hour 
  5.31  every eight hours for meals and break time, plus up to two hours 
  5.32  per day for travel time, and classroom time; or 
  5.33     (B) the amount of child care equal to the actual amount of 
  5.34  child care used during employment, including break and mealtime 
  5.35  during employment, and travel time up to two hours per day, and 
  5.36  classroom time. 
  6.1      Sec. 6.  Minnesota Statutes 1998, section 119B.03, is 
  6.2   amended by adding a subdivision to read: 
  6.3      Subd. 2a.  [ELIGIBILITY; ANNUAL INCOME; CALCULATION.] 
  6.4   Annual income of the family is the current monthly income of the 
  6.5   family multiplied by 12 or the income for the 12-month period 
  6.6   immediately preceding the date of application, or income 
  6.7   calculated by the method which provides the most accurate 
  6.8   assessment of income available to the family.  Self-employment 
  6.9   income must be calculated based on gross receipts less operating 
  6.10  expenses.  Income must be redetermined when the family's income 
  6.11  changes, and at least every six months.  Income must be verified 
  6.12  with documentary evidence.  If the applicant does not have 
  6.13  sufficient evidence of income, verification must be obtained 
  6.14  from the source of the income. 
  6.15     Sec. 7.  Minnesota Statutes 1998, section 119B.03, 
  6.16  subdivision 3, is amended to read: 
  6.17     Subd. 3.  [ELIGIBLE RECIPIENTS; FUNDING 
  6.18  RESTRICTIONS.] Families that meet the eligibility requirements 
  6.19  under sections 119B.09, except AFDC recipients, MFIP recipients, 
  6.20  and transition year families, and 119B.10 are eligible for child 
  6.21  care assistance under the basic sliding fee program.  Families 
  6.22  enrolled in the basic sliding fee child care assistance program 
  6.23  shall be continued until they are no longer eligible.  Child 
  6.24  care assistance provided through the child care fund is 
  6.25  considered assistance to the parent. 
  6.26     Families with incomes below 75 percent of the state median 
  6.27  income who are eligible under section 119B.09 and who do not 
  6.28  meet the requirements for authorized activities under section 
  6.29  119B.03, subdivision 2, may be eligible for child care 
  6.30  assistance for post-secondary education under section 119B.07, 
  6.31  or to provide full-time care for an infant under section 
  6.32  119B.061.  Child care assistance under sections 119B.07 and 
  6.33  119B.061 shall not be included in the forecast program but shall 
  6.34  be appropriated to the commissioner.  Counties shall verify with 
  6.35  the commissioner that funds are available before enrolling a 
  6.36  family under section 119B.07 or 119B.061. 
  7.1      Sec. 8.  Minnesota Statutes 1998, section 119B.03, 
  7.2   subdivision 5, is amended to read: 
  7.3      Subd. 5.  [REVIEW OF USE OF FUNDS; REALLOCATION 
  7.4   CARRYFORWARD.] (a) After each quarter, the commissioner shall 
  7.5   review the use of basic sliding fee program allocations by 
  7.6   county.  The commissioner may reallocate unexpended or 
  7.7   unencumbered money among those counties who have expended their 
  7.8   full allocation or may allow a county to expend up to ten 
  7.9   percent of its allocation in the subsequent allocation period.  
  7.10     (b) Any unexpended state and federal appropriations from 
  7.11  the first year of the biennium may be carried forward to the 
  7.12  second year of the biennium.  
  7.13     Sec. 9.  Minnesota Statutes 1998, section 119B.03, 
  7.14  subdivision 10, is amended to read: 
  7.15     Subd. 10.  [APPLICATION; ENTRY POINTS.] Two or more methods 
  7.16  of applying for the basic sliding fee child care assistance 
  7.17  program must be available to applicants in each county.  To meet 
  7.18  the requirements of this subdivision, a county may provide 
  7.19  alternative methods of applying for assistance, including, but 
  7.20  not limited to, a mail application, or application sites that 
  7.21  are located outside of government offices. 
  7.22     Sec. 10.  [119B.031] [FORECASTING FUNDS.] 
  7.23     For the child care assistance program, the commissioner of 
  7.24  children, families, and learning shall not expend more funds 
  7.25  than the appropriations made available by the legislature.  
  7.26  Appropriations made available must include the state 
  7.27  appropriated funds and federal funds specified for this purpose 
  7.28  and other available funds transferred from other accounts as 
  7.29  allowed by Minnesota law.  Regardless of this limitation on 
  7.30  expenditures, the total projected costs of this program must be 
  7.31  forecasted and recognized in the fund balance. 
  7.32     Sec. 11.  Minnesota Statutes 1998, section 119B.04, 
  7.33  subdivision 1, is amended to read: 
  7.34     Subdivision 1.  [COMMISSIONER TO ADMINISTER PROGRAM.] The 
  7.35  commissioner of children, families, and learning is authorized 
  7.36  and directed to receive, administer, and expend funds available 
  8.1   under the child care and development fund under Public Law 
  8.2   Number 104-193, Title I VI.  
  8.3      Sec. 12.  Minnesota Statutes 1998, section 119B.05, 
  8.4   subdivision 5, is amended to read: 
  8.5      Subd. 5.  [FEDERAL REIMBURSEMENT.] Counties shall maximize 
  8.6   their federal reimbursement under federal reimbursement programs 
  8.7   for money spent for persons eligible under this chapter.  The 
  8.8   commissioner shall allocate any federal earnings to the county 
  8.9   to be used to expand child care services under this chapter. 
  8.10     Sec. 13.  Minnesota Statutes 1998, section 119B.061, 
  8.11  subdivision 1, is amended to read: 
  8.12     Subdivision 1.  [ESTABLISHMENT.] Beginning July 1, 1998, A 
  8.13  family receiving or eligible to receive assistance under 
  8.14  the basic sliding fee child care assistance program is, except 
  8.15  MFIP participants, may be eligible for assistance for a parent 
  8.16  to provide short-term child care for the family's infant child.  
  8.17  An eligible family must meet the eligibility factors under 
  8.18  section 119B.09, the income criteria under section 119B.12, and 
  8.19  the requirements of this section.  The commissioner shall 
  8.20  establish a pool of up to seven percent of the annual 
  8.21  appropriation for the basic sliding fee program to provide 
  8.22  assistance under the at-home infant child care program.  At the 
  8.23  end of the fiscal year, any unspent unexpended funds must be 
  8.24  used for assistance under the basic sliding fee program to 
  8.25  students under section 119B.03, subdivision 3. 
  8.26     Sec. 14.  Minnesota Statutes 1998, section 119B.061, 
  8.27  subdivision 2, is amended to read: 
  8.28     Subd. 2.  [ELIGIBLE FAMILIES.] A family with an infant 
  8.29  under the age of one year is may be eligible for assistance if: 
  8.30     (1) the family is not receiving MFIP-S MFIP, other cash 
  8.31  assistance, or other child care assistance; 
  8.32     (2) the family has not previously received the one-year 
  8.33  exemption from the work requirement for infant care under the 
  8.34  MFIP-S MFIP program; 
  8.35     (3) the family has not previously received a lifelong total 
  8.36  of 12 months of assistance under this section; and 
  9.1      (4) the family is participating in the basic sliding fee 
  9.2   program or, for the first child in a family, provides 
  9.3   verification of employment at the time of application and meets 
  9.4   the program requirements. 
  9.5      Sec. 15.  Minnesota Statutes 1998, section 119B.061, 
  9.6   subdivision 3, is amended to read: 
  9.7      Subd. 3.  [ELIGIBLE PARENT.] Only one parent, in a 
  9.8   two-parent family, is eligible for assistance.  The eligible 
  9.9   parent must: 
  9.10     (1) be over the age of 18; 
  9.11     (2) provide full-time care for the child in the child's 
  9.12  home; and 
  9.13     (3) provide child care for any other children in the family 
  9.14  that are eligible for child care. 
  9.15     The date of eligibility is the later of the date the infant 
  9.16  is born or the date the family applies for at-home infant child 
  9.17  care. 
  9.18     Sec. 16.  Minnesota Statutes 1998, section 119B.061, 
  9.19  subdivision 4, is amended to read: 
  9.20     Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
  9.21  lifetime total of 12 months of assistance under this section.  
  9.22  The maximum rate of assistance must be at 75 percent of the rate 
  9.23  established under section 119B.13 for care of infants in 
  9.24  licensed family day care in the applicant's county of 
  9.25  residence.  Assistance must be calculated to reflect the copay 
  9.26  requirement and the family's income level. 
  9.27     (b) A participating family must continue to report income 
  9.28  and other family changes as specified in the county's plan under 
  9.29  section 119B.08, subdivision 3.  The family must treat any 
  9.30  assistance received under this section as unearned income. 
  9.31     (c) Participation in the at-home infant child care program 
  9.32  must be considered participation in the basic sliding fee child 
  9.33  care assistance program for purposes of continuing eligibility 
  9.34  under section 119B.03, subdivision 3. 
  9.35     (d) The time that a family that receives assistance under 
  9.36  this section is ineligible for must be deducted from the 
 10.1   one-year exemption from work requirements under the MFIP-S MFIP 
 10.2   program. 
 10.3      Sec. 17.  Minnesota Statutes 1998, section 119B.07, is 
 10.4   amended to read: 
 10.5      119B.07 [USE OF MONEY STUDENTS.] 
 10.6      Money for persons listed in sections section 119B.03, 
 10.7   subdivision 3, and 119B.05, subdivision 1, shall be used to 
 10.8   reduce the costs of child care for students, including the costs 
 10.9   of child care for students while employed if enrolled in an 
 10.10  eligible education program at the same time and making 
 10.11  satisfactory progress towards completion of the program.  
 10.12  Counties may not limit the duration of child care subsidies 
 10.13  assistance for a person in an employment or educational 
 10.14  program student, except when the person student is found to be 
 10.15  ineligible under the child care fund eligibility standards.  Any 
 10.16  limitation must be based on a person's employability employment 
 10.17  plan in the case of an AFDC MFIP recipient, and county policies 
 10.18  included in the child care allocation fund plan.  The maximum 
 10.19  length of time a student is eligible for child care assistance 
 10.20  under the child care fund for education and training is no more 
 10.21  than the time necessary to complete the credit requirements for 
 10.22  an associate or baccalaureate degree as determined by the 
 10.23  educational institution, excluding basic or remedial education 
 10.24  programs needed to prepare for post-secondary education or 
 10.25  employment.  To be eligible, the student must be in good 
 10.26  standing and be making satisfactory progress toward the degree.  
 10.27  Time limitations for child care assistance do not apply to basic 
 10.28  or remedial educational programs needed to prepare for 
 10.29  post-secondary education or employment.  These programs 
 10.30  include:  high school, general equivalency diploma, and English 
 10.31  as a second language.  Programs exempt from this time limit must 
 10.32  not run concurrently with a post-secondary program.  High school 
 10.33  students who are participating in a post-secondary options 
 10.34  program and who receive a high school diploma issued by the 
 10.35  school district are exempt from the time limitations while 
 10.36  pursuing a high school diploma.  Financially eligible students 
 11.1   who have received child care assistance for one academic year 
 11.2   shall be provided child care assistance in the following 
 11.3   academic year if funds allocated under sections section 119B.03 
 11.4   and 119B.05, subdivision 3, are available.  If an AFDC recipient 
 11.5   MFIP caregiver who is receiving AFDC child care assistance under 
 11.6   this chapter moves to another county, continues to participate 
 11.7   in educational or training programs authorized in their 
 11.8   employability development plans employment plan, and continues 
 11.9   to be eligible for AFDC child care assistance under this 
 11.10  chapter, the AFDC caretaker MFIP caregiver must receive 
 11.11  continued child care assistance from the county responsible for 
 11.12  their current employability development employment plan, without 
 11.13  interruption. 
 11.14     Sec. 18.  Minnesota Statutes 1998, section 119B.08, 
 11.15  subdivision 2, is amended to read: 
 11.16     Subd. 2.  [QUARTERLY PAYMENTS.] The commissioner may make 
 11.17  payments to each county in quarterly monthly installments.  The 
 11.18  commissioner may certify an advance up to 25 percent of the 
 11.19  allocation of payments.  Subsequent payments shall be made on a 
 11.20  reimbursement basis for reported expenditures and may be 
 11.21  adjusted for anticipated spending patterns.  Payments may be 
 11.22  withheld if quarterly reports are incomplete or untimely. 
 11.23     Sec. 19.  Minnesota Statutes 1998, section 119B.08, 
 11.24  subdivision 3, is amended to read: 
 11.25     Subd. 3.  [CHILD CARE FUND PLAN.] Effective January 1, 
 11.26  1992, the county will include the plan required under this 
 11.27  subdivision in its biennial community social services plan 
 11.28  required in this under section 258E.09, for the group described 
 11.29  in section 256E.03, subdivision 2, paragraph (h) clause (8).  
 11.30  The commissioner shall establish the dates by which the county 
 11.31  must submit these plans.  The county and designated 
 11.32  administering agency shall submit to the commissioner an annual 
 11.33  child care fund allocation plan.  The plan shall include: 
 11.34     (1) a narrative of the total program for child care 
 11.35  services, including all policies and procedures that affect 
 11.36  eligible families and are used to administer the child care 
 12.1   funds; 
 12.2      (2) the methods used by the county to inform eligible 
 12.3   groups of the availability of child care assistance and related 
 12.4   services; 
 12.5      (3) the provider rates paid for all children by provider 
 12.6   type; and 
 12.7      (4) the county prioritization policy for all eligible 
 12.8   groups under the basic sliding fee program and AFDC child care 
 12.9   program; and 
 12.10     (5) other information as requested by the department to 
 12.11  ensure compliance with the child care fund statutes and rules 
 12.12  promulgated by the commissioner. 
 12.13     The commissioner shall notify counties within 60 days of 
 12.14  the date the plan is submitted whether the plan is approved or 
 12.15  the corrections or information needed to approve the plan.  The 
 12.16  commissioner shall withhold a county's allocation payments to a 
 12.17  county until it has an approved plan.  Plans not approved by the 
 12.18  end of the second quarter after the plan is due may result in a 
 12.19  25 percent reduction in allocation.  Plans not approved by the 
 12.20  end of the third quarter after the plan is due may result in a 
 12.21  100 percent reduction in the allocation to the county.  Counties 
 12.22  are to maintain services despite any reduction in their 
 12.23  allocation withholding of payments due to plans not being 
 12.24  approved. 
 12.25     Sec. 20.  Minnesota Statutes 1998, section 119B.09, 
 12.26  subdivision 1, is amended to read: 
 12.27     Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
 12.28  APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
 12.29  must be available to families who need child care to find or 
 12.30  keep employment or to obtain the training or education necessary 
 12.31  to find employment and who: are eligible under section 119B.03. 
 12.32     (1) meet the requirements of section 119B.05; receive aid 
 12.33  to families with dependent children, MFIP-S, or work first, 
 12.34  whichever is in effect; and are receiving employment and 
 12.35  training services under section 256.736 or chapter 256J or 256K; 
 12.36     (2) have household income below the eligibility levels for 
 13.1   aid to families with dependent children; or 
 13.2      (3) have household income within a range established by the 
 13.3   commissioner. 
 13.4      (b) Child care services for the families receiving aid to 
 13.5   families with dependent children must be made available as 
 13.6   in-kind services, to cover any difference between the actual 
 13.7   cost and the amount disregarded under the aid to families with 
 13.8   dependent children program.  Child care services to families 
 13.9   whose incomes are below the threshold of eligibility for aid to 
 13.10  families with dependent children, but are not AFDC caretakers, 
 13.11  must be made available with the same copayment required of AFDC 
 13.12  caretakers or MFIP-S caregivers. 
 13.13     (c) All applicants for child care assistance and families 
 13.14  currently receiving child care assistance must be assisted and 
 13.15  required to cooperate in establishment of paternity and 
 13.16  enforcement of child support obligations as a condition of 
 13.17  program eligibility.  For purposes of this section, a family is 
 13.18  considered to meet the requirement for cooperation when the 
 13.19  family complies with the requirements of section 256.741, if 
 13.20  enacted. 
 13.21     Sec. 21.  Minnesota Statutes 1998, section 119B.09, 
 13.22  subdivision 2, is amended to read: 
 13.23     Subd. 2.  [SLIDING FEE.] Child care services to eligible 
 13.24  families with incomes in the commissioner's established range 
 13.25  must be made available on a sliding fee basis.  The upper limit 
 13.26  of the range must be neither less than 70 percent nor more than 
 13.27  90 percent of the state median income for a family of four, 
 13.28  adjusted for family size.  
 13.29     Sec. 22.  Minnesota Statutes 1998, section 119B.09, is 
 13.30  amended by adding a subdivision to read: 
 13.31     Subd. 3a.  [COOPERATION WITH CHILD SUPPORT 
 13.32  ENFORCEMENT.] All applicants for child care assistance and 
 13.33  families currently receiving child care assistance must be 
 13.34  assisted and required to cooperate in establishment of paternity 
 13.35  and enforcement of child support obligations as a condition of 
 13.36  program eligibility.  For purposes of this section, a family is 
 14.1   considered to meet the requirement for cooperation when the 
 14.2   family complies with the requirements under section 256.741. 
 14.3      Sec. 23.  Minnesota Statutes 1998, section 119B.09, 
 14.4   subdivision 7, is amended to read: 
 14.5      Subd. 7.  [ELIGIBILITY FOR ASSISTANCE.] The date of 
 14.6   eligibility for child care assistance under this chapter is the 
 14.7   later of the date the application was signed; the beginning date 
 14.8   of employment, education, or training; or the date a 
 14.9   determination has been made that the applicant is a participant 
 14.10  in employment and training services under Minnesota Rules, part 
 14.11  3400.0080, subpart 2a, section 256.736, or chapter 256J or 
 14.12  256K.  The date of eligibility for the basic sliding fee at-home 
 14.13  infant child care program is the later of the date the infant is 
 14.14  born or, in a county with a basic sliding fee wait list, the 
 14.15  date the family applies for at-home infant child care.  Payment 
 14.16  ceases for a family under the at-home infant child care program 
 14.17  when a family has used a total of 12 months of assistance as 
 14.18  specified under section 119B.061.  Payment of child care 
 14.19  assistance for employed persons on AFDC MFIP is effective the 
 14.20  date of employment or the date of AFDC MFIP eligibility, 
 14.21  whichever is later.  Payment of child care assistance for MFIP-S 
 14.22  MFIP or work first participants in employment and training 
 14.23  services is effective the date of commencement of the services 
 14.24  or the date of MFIP-S MFIP or work first eligibility, whichever 
 14.25  is later.  Payment of child care assistance for transition year 
 14.26  child care must be made retroactive to the date of eligibility 
 14.27  for transition year child care. 
 14.28     Sec. 24.  Minnesota Statutes 1998, section 119B.11, 
 14.29  subdivision 1, is amended to read: 
 14.30     Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] Beginning 
 14.31  July 1, 1997 1999, in addition to payments copayments from 
 14.32  basic sliding fee child care program participants, each county 
 14.33  shall contribute from county tax or other sources a fixed local 
 14.34  match equal to its calendar year 1996 required county 
 14.35  contribution reduced by the administrative funding loss that 
 14.36  would have occurred in state fiscal year 1996 under section 
 15.1   119B.15.  The commissioner shall recover funds from the county 
 15.2   as necessary to bring county expenditures into compliance with 
 15.3   this subdivision. 
 15.4      Sec. 25.  Minnesota Statutes 1998, section 119B.15, is 
 15.5   amended to read: 
 15.6      119B.15 [ADMINISTRATIVE EXPENSES.] 
 15.7      The commissioner shall use up to 1/21 of the state and 
 15.8   federal funds available for the basic sliding fee program and 
 15.9   1/21 of the state and federal funds available for the AFDC child 
 15.10  care assistance program for payments to counties for 
 15.11  administrative expenses. 
 15.12     Sec. 26.  [INSTRUCTION TO REVISOR.] 
 15.13     The revisor of statutes shall change the headnote name of 
 15.14  section 119B.03 from "BASIC SLIDING FEE PROGRAM" to "CHILD CARE 
 15.15  ASSISTANCE ELIGIBILITY." 
 15.16     The revisor of statutes shall change the headnote name of 
 15.17  section 119B.05 from "AFDC CHILD CARE PROGRAM" to "CHILD CARE 
 15.18  ASSISTANCE PROGRAM." 
 15.19     The revisor of statutes shall change the headnote name of 
 15.20  section 119B.09 from "FINANCIAL ELIGIBILITY" to "GENERAL 
 15.21  ELIGIBILITY." 
 15.22     Sec. 27.  [REPEALER.] 
 15.23     Minnesota Statutes 1998, sections 119B.01, subdivision 16; 
 15.24  119B.03, subdivisions 4, 6, 7, 8, and 9; 119B.05, subdivisions 
 15.25  1, 6, and 7; 119B.075; 119B.09, subdivisions 3 and 4; and 
 15.26  119B.10, are repealed.