1.1 	A bill for an act
1.2 	relating to human services; modifying child care assistance parent fees;amending 
1.3 	Minnesota Statutes 2004, section 119B.12, subdivision 2.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2004, section 119B.12, subdivision 2, is amended to read:
1.6 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
1.7 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
1.8 	must apply to families eligible for child care assistance under sections  119B.03 and  
1.9 	119B.05. Income must be as defined in section  119B.011, subdivision 15. The fixed 
1.10 	percent is based on the relationship of the family's annual gross income to 100 percent of 
1.11 	the annual federal poverty guidelines. Parent fees must begin at 75 percent of the poverty 
1.12 	level. The minimum parent fees for families between 75 percent and 100 percent of 
1.13 	poverty level must be $10 per month. Parent fees must provide for graduated movement to 
1.14 	full payment. Payment of part or all of a family's parent fee directly to the family's child 
1.15 	care provider on behalf of the family by a source other than the family shall not affect 
1.16 	the family's eligibility for child care assistance, and the amount paid shall be excluded 
1.17 	from the family's income. Child care providers who accept third-party payments must 
1.18 	maintain family specific documentation of payment source, amount, and time period 
1.19 	covered by the payment.

1.20 	EFFECTIVE DATE. This section is effective the day following final enactment.