1.1                          A bill for an act
  1.2             relating to state government; providing for child 
  1.3             care, Minnesota Economic Opportunity grants, and food 
  1.4             shelves; appropriating money; amending Minnesota 
  1.5             Statutes 2002, sections 119B.011, subdivisions 6, 15; 
  1.6             119B.09, subdivision 7; 119B.12, subdivision 2; 
  1.7             119B.13, subdivision 2, by adding a subdivision; 
  1.8             repealing Minnesota Statutes 2002, sections 119A.46; 
  1.9             119B.061. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 119B.011, 
  1.12  subdivision 6, is amended to read: 
  1.13     Subd. 6.  [CHILD CARE FUND.] "Child care fund" means a 
  1.14  program under this chapter providing:  
  1.15     (1) financial assistance for child care to parents engaged 
  1.16  in employment, job search, or education and training leading to 
  1.17  employment, or an at-home infant care subsidy; and 
  1.18     (2) grants to develop, expand, and improve the access and 
  1.19  availability of child care services statewide. 
  1.20     Sec. 2.  Minnesota Statutes 2002, section 119B.011, 
  1.21  subdivision 15, is amended to read: 
  1.22     Subd. 15.  [INCOME.] "Income" means earned or unearned 
  1.23  income received by all family members, including public 
  1.24  assistance cash benefits and at-home infant care subsidy 
  1.25  payments, unless specifically excluded and child support and 
  1.26  maintenance distributed to the family under section 256.741, 
  1.27  subdivision 15.  The following are excluded from income:  funds 
  2.1   used to pay for health insurance premiums for family members, 
  2.2   Supplemental Security Income, scholarships, work-study income, 
  2.3   and grants that cover costs or reimbursement for tuition, fees, 
  2.4   books, and educational supplies; student loans for tuition, 
  2.5   fees, books, supplies, and living expenses; state and federal 
  2.6   earned income tax credits; in-kind income such as food stamps, 
  2.7   energy assistance, foster care assistance, medical assistance, 
  2.8   child care assistance, and housing subsidies; earned income of 
  2.9   full-time or part-time students up to the age of 19, who have 
  2.10  not earned a high school diploma or GED high school equivalency 
  2.11  diploma including earnings from summer employment; grant awards 
  2.12  under the family subsidy program; nonrecurring lump sum income 
  2.13  only to the extent that it is earmarked and used for the purpose 
  2.14  for which it is paid; and any income assigned to the public 
  2.15  authority according to section 256.741. 
  2.16     Sec. 3.  Minnesota Statutes 2002, section 119B.09, 
  2.17  subdivision 7, is amended to read: 
  2.18     Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] (a) The 
  2.19  date of eligibility for child care assistance under this chapter 
  2.20  is the later of the date the application was signed; the 
  2.21  beginning date of employment, education, or training; or the 
  2.22  date a determination has been made that the applicant is a 
  2.23  participant in employment and training services under Minnesota 
  2.24  Rules, part 3400.0080, subpart 2a, or chapter 256J or 256K.  The 
  2.25  date of eligibility for the basic sliding fee at-home infant 
  2.26  child care program is the later of the date the infant is born 
  2.27  or, in a county with a basic sliding fee waiting list, the date 
  2.28  the family applies for at-home infant child care.  
  2.29     (b) Payment ceases for a family under the at-home infant 
  2.30  child care program when a family has used a total of 12 months 
  2.31  of assistance as specified under section 119B.061.  Payment of 
  2.32  child care assistance for employed persons on MFIP is effective 
  2.33  the date of employment or the date of MFIP eligibility, 
  2.34  whichever is later.  Payment of child care assistance for MFIP 
  2.35  or work first participants in employment and training services 
  2.36  is effective the date of commencement of the services or the 
  3.1   date of MFIP or work first eligibility, whichever is later.  
  3.2   Payment of child care assistance for transition year child care 
  3.3   must be made retroactive to the date of eligibility for 
  3.4   transition year child care. 
  3.5      Sec. 4.  Minnesota Statutes 2002, section 119B.12, 
  3.6   subdivision 2, is amended to read: 
  3.7      Subd. 2.  [PARENT FEE.] A family's monthly parent fee must 
  3.8   be a fixed percentage of its annual gross income.  Parent fees 
  3.9   must apply to families eligible for child care assistance under 
  3.10  sections 119B.03 and 119B.05.  Income must be as defined in 
  3.11  section 119B.011, subdivision 15.  The fixed percent is based on 
  3.12  the relationship of the family's annual gross income to 100 
  3.13  percent of state median income.  Beginning January 1, 1998, 
  3.14  parent fees must begin at 75 percent of the poverty level.  The 
  3.15  minimum parent fees for families between 75 percent and 100 
  3.16  percent of poverty level must be $5 $10 per month.  Parent fees 
  3.17  must be established in rule and must provide for graduated 
  3.18  movement to full payment. 
  3.19     Sec. 5.  Minnesota Statutes 2002, section 119B.13, is 
  3.20  amended by adding a subdivision to read: 
  3.21     Subd. 1a.  [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 
  3.22  RATES.] (a) Legal nonlicensed family child care providers 
  3.23  receiving reimbursement under this chapter must be paid in 
  3.24  hourly blocks of time for families receiving assistance. 
  3.25     (b) The maximum rate paid to legal nonlicensed family child 
  3.26  care providers must be 90 percent of the county maximum hourly 
  3.27  rate for licensed family child care providers.  In counties 
  3.28  where the maximum hourly rate for licensed family child care 
  3.29  providers is higher than the maximum weekly rate for those 
  3.30  providers divided by 50, the maximum hourly rate that may be 
  3.31  paid to legal nonlicensed family child care providers is the 
  3.32  rate equal to the maximum weekly rate for licensed family child 
  3.33  care providers divided by 50 and then multiplied by 0.90. 
  3.34     (c) A rate which includes a provider bonus paid under 
  3.35  subdivision 2 or a special needs rate paid under subdivision 3 
  3.36  may be in excess of the maximum rate allowed under this 
  4.1   subdivision. 
  4.2      (d) Legal nonlicensed family child care providers receiving 
  4.3   reimbursement under this chapter may not be paid registration 
  4.4   fees for families receiving assistance. 
  4.5      Sec. 6.  Minnesota Statutes 2002, section 119B.13, 
  4.6   subdivision 2, is amended to read: 
  4.7      Subd. 2.  [PROVIDER RATE BONUS FOR ACCREDITATION.] A family 
  4.8   child care provider or child care center shall be paid a ten 
  4.9   percent bonus above the maximum rate established in subdivision 
  4.10  1 or 1a, if the provider or center holds a current early 
  4.11  childhood development credential approved by the commissioner, 
  4.12  up to the actual provider rate.  
  4.13     Sec. 7.  [CHILD CARE ASSISTANCE PARENT FEE SCHEDULE, 
  4.14  RULEMAKING.] 
  4.15     The commissioner of children, families, and learning shall 
  4.16  adopt rules under Minnesota Statutes, chapter 14, to amend the 
  4.17  parent fee schedule in Minnesota Rules, chapter 3400, as follows:
  4.18     (1) parent fees for families with incomes between 101.01 
  4.19  percent of the federal poverty guidelines and 35 percent of the 
  4.20  state median income must equal 2.42 percent of adjusted gross 
  4.21  income for families at 35 percent of the state median income; 
  4.22     (2) parent fees for families with incomes between 35.01 
  4.23  percent of the state median income and 42 percent of the state 
  4.24  median income must equal 2.97 percent of adjusted gross income 
  4.25  for families at 42 percent of the state median income; 
  4.26     (3) parent fees for families with incomes between 42.01 
  4.27  percent of the state median income and 75 percent of the state 
  4.28  median income must begin at 4.13 percent of adjusted gross 
  4.29  income and provide for graduated movement of fee increases; and 
  4.30     (4) parent fees for families at 75 percent of the state 
  4.31  median income must equal 22.0 percent of gross annual income. 
  4.32     Sec. 8.  [APPROPRIATIONS.] 
  4.33     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  4.34  LEARNING.] The sums indicated in this section are appropriated 
  4.35  from the general fund to the department of children, families, 
  4.36  and learning for the fiscal years designated. 
  5.1      Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
  5.2   assistance according to Minnesota Statutes, section 119B.03: 
  5.3        $42,528,000     .....     2004 
  5.4        $41,774,000     .....     2005 
  5.5      These appropriations are available to be spent in either 
  5.6   year. 
  5.7      Subd. 3.  [MFIP CHILD CARE.] For MFIP child care: 
  5.8        $78,247,000    .....     2004
  5.9        $79,970,000    .....     2005
  5.10     Subd. 4.  [CHILD CARE PROGRAM INTEGRITY.] For the 
  5.11  administrative costs of program integrity and fraud prevention 
  5.12  for child care assistance under Minnesota Statutes, chapter 119B:
  5.13       $175,000       .....     2004 
  5.14       $175,000       .....     2005 
  5.15     Subd. 5.  [CHILD CARE DEVELOPMENT.] For child care 
  5.16  development grants according to Minnesota Statutes, section 
  5.17  119B.21: 
  5.18       $1,365,000     .....     2004
  5.19       $1,365,000     .....     2005
  5.20     Subd. 6.  [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For 
  5.21  Minnesota economic opportunity grants: 
  5.22       $4,000,000     .....     2004
  5.23       $4,000,000     .....     2005
  5.24     Subd. 7.  [FOOD SHELF PROGRAMS.] For food shelf programs 
  5.25  under Minnesota Statutes, section 119A.44: 
  5.26       $1,278,000     .....     2004
  5.27       $1,278,000     .....     2005
  5.28     Sec. 9.  [FEDERAL TANF TRANSFERS.] 
  5.29     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  5.30  LEARNING.] The sums indicated in this section are transferred 
  5.31  from the federal TANF fund to the child care and development 
  5.32  fund and appropriated to the department of children, families, 
  5.33  and learning for the fiscal years designated.  The commissioner 
  5.34  shall ensure that all transferred funds are expended in 
  5.35  accordance with the child care and development fund regulations 
  5.36  and that the maximum allowable transferred funds are used for 
  6.1   the programs in this section. 
  6.2      Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
  6.3   assistance according to Minnesota Statutes, section 119B.03:  
  6.4        $17,686,000    .....     2004 
  6.5        $17,700,000    .....     2005 
  6.6      Subd. 3.  [MFIP CHILD CARE.] For MFIP child care: 
  6.7        $7,428,000     .....     2004
  6.8        $2,943,000     .....     2005
  6.9      Sec. 10.  [REPEALER.] 
  6.10     Minnesota Statutes 2002, sections 119A.46 and 119B.061, are 
  6.11  repealed.