1.1 	A bill for an act
1.2 	relating to human services; modifying child care
1.3 	provider rates; amending Laws 2003, First Special
1.4 	Session chapter 14, article 9, section 34.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Laws 2003, First Special Session chapter 14,
1.7 	article 9, section 34, is amended to read:
1.8 	Sec. 34DIRECTION TO COMMISSIONER; PROVIDER RATES.
 1.9 	(a) The provider rates determined under Minnesota Statutes,
1.10 	section 119B.13, for fiscal year 2003 and implemented on July 1,
1.11 	2002, are to be continued in effect through June 30, 2005.
1.12 	Retroactive to July 1, 2003, no provider shall be reimbursed at
1.13 	a rate less than the rate in effect on June 30, 2003.  Counties
1.14 	or the state shall reimburse providers who received a decreased
1.15 	reimbursement rate beginning July 1, 2003, for the difference in
1.16 	rates.
1.17 	(b) The commissioner of human services is directed to
1.18 	evaluate the costs of child care in Minnesota, to examine the
1.19 	differences in the cost of child care in rural and metropolitan
1.20 	areas, and to make recommendations to the legislature for
1.21 	containing future cost increases in the child care program under
1.22 	Minnesota Statutes, chapter 119B, in a manner that complies with
1.23 	federal child care and development block grant requirements for
1.24 	promoting parental choice and permits the department to track
1.25 	the effect of rate changes on child care assistance program
2.1 	costs, the availability of different types of care throughout
2.2 	the state, the length of waiting lists, and the care options
2.3 	available to program participants.  The commissioner shall also
2.4 	examine the allocation formula under Minnesota Statutes, section
2.5 	119B.03, and make recommendations to the legislature in order to
2.6 	create a more equitable formula.  The commissioner shall
2.7 	consider the impact any recommendations might have on work
2.8 	incentives for low and middle income families and possible
2.9 	changes to MFIP child care, basic sliding fee child care, and
2.10 	the dependent care tax credit.  The commissioner shall make
2.11 	recommendations to the legislature by January 15, 2005.
2.12 	The commissioner shall also study the relationship between
2.13 	child care assistance subsidies and tax credits or tax
2.14 	incentives related to child care expenses, and include this
2.15 	information in the January 15, 2005, report to the legislature
2.16 	under this section.