1.1 	A bill for an act
1.2 	relating to human services; changing MFIP child care assistance provisions; 
1.3 	creating a Child Care Advisory Task Force; making technical changes;
1.4 	amending Minnesota Statutes 2006, sections 119B.011, subdivision 17; 119B.03, 
1.5 	subdivisions 1, 6; 119B.09, subdivisions 1, 9; 119B.125, by adding a subdivision; 
1.6 	119B.21, subdivision 10; 256E.30, subdivision 1; 256E.35, subdivision 7; 
1.7 	Minnesota Statutes 2007 Supplement, sections 119B.12; 119B.125, subdivision 
1.8 	2; 119B.13, subdivisions 1, 7; 119B.21, subdivision 5; 119B.231, subdivision 
1.9 	5; 245A.1435; 245C.08, subdivision 2; 256E.35, subdivision 2; repealing 
1.10 	Minnesota Statutes 2006, section 256K.25.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	CHILD CARE

1.14 	Section 1. Minnesota Statutes 2006, section 119B.03, subdivision 6, is amended to read:
1.15 		Subd. 6.Allocation formula. The basic sliding fee state and federal funds shall be 
1.16 	allocated on a calendar year basis. Funds shall be allocated first in amounts equal to each 
1.17 	county's guaranteed floor according to subdivision 8, with any remaining available funds 
1.18 	allocated according to the following formula:
1.19 	(a) One-fourth of the funds shall be allocated in proportion to each county's total 
1.20 	expenditures for the basic sliding fee child care program reported during the most recent 
1.21 	fiscal year completed at the time of the notice of allocation.
1.22 	(b) Up to one-fourth of the funds shall be allocated based onin proportion to the 
1.23 	number of families participating in the transition year child care program as reported 
1.24 	during and averaged over the most recent quarter six months completed at the time of the 
1.25 	notice of allocation. Funds in excess of the amount necessary to serve all families in this 
1.26 	category shall be allocated according to paragraph (f).
2.1 	(c) Up to one-fourth of the funds shall be allocated in proportion to the average of
2.2 	each county's most recently recent six months of reported first, second, and third priority 
2.3 	waiting list as defined in subdivision 2 and the reinstatement list of those families whose 
2.4 	assistance was terminated with the approval of the commissioner under Minnesota Rules, 
2.5 	part 3400.0183, subpart 1. Funds in excess of the amount necessary to serve all families in 
2.6 	this category shall be allocated according to paragraph (f).
2.7 	(d) Up to one-fourth of the funds must shall be allocated in proportion to the average 
2.8 	of each county's most recentlyrecent six months of reported waiting list as defined in 
2.9 	subdivision 2 and the reinstatement list of those families whose assistance was terminated 
2.10 	with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart 
2.11 	1. Funds in excess of the amount necessary to serve all families in this category shall 
2.12 	be allocated according to paragraph (f).
2.13 	(e) The amount necessary to serve all families in paragraphs (b), (c), and (d) shall be 
2.14 	calculated based on the basic sliding fee average cost of care per family in the county with 
2.15 	the highest cost in the most recently completed calendar year.
2.16 	(f) Funds in excess of the amount necessary to serve all families in paragraphs (b), 
2.17 	(c), and (d) shall be allocated in proportion to each county's total expenditures for the basic 
2.18 	sliding fee child care program reported during the most recent fiscal year completed at the 
2.19 	time of the notice of allocation.

2.20 	Sec. 2. Minnesota Statutes 2006, section 119B.09, subdivision 9, is amended to read:
2.21 		Subd. 9.Licensed and legal nonlicensed family child care providers; assistance.
 2.22 	Licensed and legal nonlicensed family child care providers and their employees are not 
2.23 	eligible to receive child care assistance subsidies under this chapter for their own children 
2.24 	or children in their family during the hours they are providing child care or being paid to 
2.25 	provide child care. Child care providers and their employees are eligible to receive child 
2.26 	care assistance subsidies for their children when they are engaged in other activities that 
2.27 	meet the requirements of this chapter and for which child care assistance can be paid. The 
2.28 	hours for which the provider or their employee receives a child care subsidy for their own 
2.29 	children must not overlap with the hours the provider provides child care services.

2.30 	Sec. 3. Minnesota Statutes 2007 Supplement, section 119B.231, subdivision 5, is 
2.31 	amended to read:
2.32 		Subd. 5.Relationship to current law. (a) The following provisions in chapter 119B 
2.33 	must be waived or modified for families receiving services under this section.
3.1 	(b) Notwithstanding section 119B.13, subdivisions 1 and 1a, maximum weekly rates 
3.2 	under this section are 125 percent of the existing maximum weekly rate for like-care. 
3.3 	Providers eligible for a differential rate under section 119B.13, subdivision 3a, remain 
3.4 	eligible for the differential above the rate identified in this section. Only care for children 
3.5 	who have not yet entered kindergarten may be paid at the maximum rate under this 
3.6 	section. The provider's charge for service provided through an SRSA may not exceed the 
3.7 	rate that the provider charges a private-pay family for like-care arrangements.
3.8 	(c) A family or child care provider may not be assessed an overpayment for care 
3.9 	provided through an SRSA unless: 
3.10 	(1) there was an error in the amount of care authorized for the family; or 
3.11 	(2) the family or provider did not timely report a change as required under the law.
3.12 	(d) Care provided through an SRSA is authorized on a weekly basis.
3.13 	(e) Funds appropriated under this section to serve families eligible under section 
3.14 	119B.03 are not allocated through the basic sliding fee formula under section 119B.03. 
3.15 	Funds appropriated under this section are used to offset increased costs when payments 
3.16 	are made under SRSA's.
3.17 	(f) Notwithstanding section 119B.09, subdivision 6, the maximum amount of child 
3.18 	care assistance that may be authorized for a child receiving care through an SRSA in a 
3.19 	two-week period is 160 hours per child.
3.20 	(g) Effective upon date of enactment, absent day payment limits under section 
3.21 	119B.13, subdivision 7, do not apply to children for care paid through SRSA's provided 
3.22 	the family remains eligible under subdivision 3.

3.23 	Sec. 4. Minnesota Statutes 2007 Supplement, section 245A.1435, is amended to read:
3.24 	245A.1435 REDUCTION OF RISK OF SUDDEN INFANT DEATH 
3.25 	SYNDROME IN LICENSED PROGRAMS.
3.26 	When a license holder is placing an infant to sleep, the license holder must place 
3.27 	the infant on the infant's back, unless the license holder has documentation from the 
3.28 	infant's parentdoctor directing an alternative sleeping position for the infant, and must 
3.29 	place the infant in a crib with a firm mattress. The license holder must not place pillows, 
3.30 	quilts, comforters, sheepskin, pillow-like stuffed toys, or other soft products in the crib 
3.31 	with the infant. Licensed child care providers must meet the crib requirements under 
3.32 	section 245A.146.

3.33 	Sec. 5. CHILD CARE ADVISORY TASK FORCE.
 4.1 		Subdivision 1.Establishment. The commissioner of human services shall establish 
4.2 	a Child Care Advisory Task Force of stakeholders to review and make recommendations 
4.3 	to the legislature to remove barriers facing families applying for and receiving child care 
4.4 	assistance under Minnesota Statutes, chapter 119B.
4.5 		Subd. 2.Membership. The commissioner of human services shall appoint Child 
4.6 	Care Advisory Task Force members. The Child Care Advisory Task Force shall include, 
4.7 	but is not limited to, representatives from:
4.8 	(1) the Department of Human Services; 
4.9 	(2) counties and nonprofit organizations administering the child care assistance 
4.10 	programs;
4.11 	(3) a parent receiving child care assistance;
4.12 	(4) the child care advocacy community; and
4.13 	(5) the antipoverty advocacy community.
4.14 		Subd. 3.Duties. The Child Care Advisory Task Force shall review child care 
4.15 	assistance laws, rules, and policies and make recommendations to remove barriers facing 
4.16 	families applying for child care assistance or completing reauthorization for child care 
4.17 	assistance to the legislative committees with jurisdiction over the child care assistance 
4.18 	programs under Minnesota Statutes, chapter 119B. Barriers to review include, but are 
4.19 	not limited to:
4.20 	(1) length of application forms;
4.21 	(2) consistency of application and reauthorization forms statewide;
4.22 	(3) documentation requirements, including frequency of producing documentation;
4.23 	(4) barriers facing parents with limited English; and
4.24 	(5) length of reauthorization periods.
4.25 		Subd. 4.Report. By January 15, 2010, the Department of Human Services shall 
4.26 	report to the legislative committees with jurisdiction over the child care assistance 
4.27 	programs with the Child Care Advisory Task Force recommendations to remove the 
4.28 	barriers facing families in applying for and receiving child care assistance.
4.29 		Subd. 5.Task force expenses. Notwithstanding Minnesota Statutes, section 15.059, 
4.30 	task force members must not be paid a per diem or reimbursed for any expenses associated 
4.31 	with their membership on the task force.
4.32 		Subd. 6.Expiration. The Child Care Advisory Task Force expires June 30, 2010.

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

5.1 	ARTICLE 2
5.2 	CHILD CARE TECHNICAL

5.3 	Section 1. Minnesota Statutes 2006, section 119B.011, subdivision 17, is amended to 
5.4 	read:
5.5 		Subd. 17.MFIP. "MFIP" means the Minnesota family investment program, the 
5.6 	state's TANF program under Public Law 104-193, Title I, and includes the MFIP program 
5.7 	under chapter 256J, the work first program under chapter 256K, and tribal contracts under 
5.8 	section 119B.02, subdivision 2, or 256.01, subdivision 2. 

5.9 	Sec. 2. Minnesota Statutes 2006, section 119B.03, subdivision 1, is amended to read:
5.10 		Subdivision 1.Allocation period; Notice of allocation. When the commissioner 
5.11 	notifies county and human service boards of the forms and instructions they are to 
5.12 	follow in the development of their child care fund plans required under section 119B.08, 
5.13 	subdivision 3, the commissioner shall also notify county and human services boards of 
5.14 	their estimated child care fund program allocation for the two years covered by the plan.
5.15 	By October 1 of each year, the commissioner shall notify all counties of their final child 
5.16 	care fund program allocation. 

5.17 	Sec. 3. Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:
5.18 		Subdivision 1.General eligibility requirements for all applicants for child 
5.19 	care assistance. (a) Child care services must be available to families who need child 
5.20 	care to find or keep employment or to obtain the training or education necessary to find 
5.21 	employment and who:
5.22 	(1) have household income less than or equal to 250 percent of the federal poverty 
5.23 	guidelines, adjusted for family size, and meet the requirements of section 119B.05; 
5.24 	receive MFIP assistance; and are participating in employment and training services under 
5.25 	chapter 256J or 256K; or
5.26 	(2) have household income less than or equal to 175 percent of the federal poverty 
5.27 	guidelines, adjusted for family size, at program entry and less than 250 percent of the 
5.28 	federal poverty guidelines, adjusted for family size, at program exit.
5.29 	(b) Child care services must be made available as in-kind services.
5.30 	(c) All applicants for child care assistance and families currently receiving child care 
5.31 	assistance must be assisted and required to cooperate in establishment of paternity and 
5.32 	enforcement of child support obligations for all children in the family as a condition 
5.33 	of program eligibility. For purposes of this section, a family is considered to meet the 
6.1 	requirement for cooperation when the family complies with the requirements of section 
6.2 	256.741.

6.3 	Sec. 4. Minnesota Statutes 2007 Supplement, section 119B.12, is amended to read:
6.4 	119B.12 SLIDING FEE SCALE.
6.5 		Subdivision 1.Fee schedule. In setting the sliding fee schedule, the commissioner 
6.6 	shall exclude from the amount of income used to determine eligibility an amount for 
6.7 	federal and state income and Social Security taxes attributable to that income level 
6.8 	according to federal and state standardized tax tables. The commissioner shall base the 
6.9 	parent fee on the ability of the family to pay for child care. The fee schedule must be 
6.10 	designed to use any available tax credits.
6.11 	PARENT FEE SCHEDULE.   The parent fee schedule is as follows, except as noted 
6.12 	in subdivision 2: 

6.13
6.14
6.15	Income Range (as a percent of the federal 
poverty guidelinesstate median income, 
except at the start of the first tier)
	Co-payment (as a percentage of adjusted 
gross income)
	
6.16	 0-74.99% of federal poverty guidelines
	$0/month
	
6.17	75.00-99.99% of federal poverty guidelines
	$5/month
	
6.18
6.19	100.00-104.99%100.00% of federal 
poverty guidelines-27.72%
	2.61%
	
6.20	105.00-109.99%27.73-29.04%
	2.61%
	
6.21	110.00-114.99%29.05-30.36%
	2.61%
	
6.22	115.00-119.99%30.37-31.68%
	2.61%
	
6.23	120.00-124.99%31.69-33.00%
	2.91%
	
6.24	125.00-129.99%33.01-34.32%
	2.91%
	
6.25	130.00-134.99%34.33-35.65%
	2.91%
	
6.26	135.00-139.99%35.66-36.96%
	2.91%
	
6.27	140.00-144.99%36.97-38.29%
	3.21%
	
6.28	145.00-149.99%38.30-39.61%
	3.21%
	
6.29	150.00-154.99%39.62-40.93%
	3.21%
	
6.30	155.00-159.99%40.94-42.25%
	3.84%
	
6.31	160.00-164.99%42.26-43.57%
	3.84%
	
6.32	165.00-169.99%43.58-44.89%
	4.46%
	
6.33	170.00-174.99%44.90-46.21%
	4.76%
	
6.34	175.00-179.99%46.22-47.53%
	5.05%
	
6.35	180.00-184.99%47.54-48.85%
	5.65%
	
6.36	185.00-189.99%48.86-50.17%
	5.95%
	
6.37	190.00-194.99%50.18-51.49%
	6.24%
	
6.38	195.00-199.99%51.50-52.81%
	6.84%
	
6.39	200.00-204.99%52.82-54.13%
	7.58%
	
6.40	205.00-209.99%54.14-55.45%
	8.33%
	
7.1	210.00-214.99%55.46-56.77%
	9.20%
	
7.2	215.00-219.99%56.78-58.09%
	10.07%
	
7.3	220.00-224.99%58.10-59.41%
	10.94%
	
7.4	225.00-229.99%59.42-60.73%
	11.55%
	
7.5	230.00-234.99%60.74-62.06%
	12.16%
	
7.6	235.00-239.99%62.07-63.38%
	12.77%
	
7.7	240.00-244.99%63.39-64.70%
	13.38%
	
7.8	245.00-249.99%64.71-66.99%
	14.00%
	
7.9	250%67.00%
	ineligible
	
7.10 	A family's monthly co-payment fee is the fixed percentage established for the 
7.11 	income range multiplied by the highest possible income within that income range.
7.12 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
7.13 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
7.14 	must apply to families eligible for child care assistance under sections 119B.03 and 
7.15 	119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed 
7.16 	percent is based on the relationship of the family's annual gross income to 100 percent 
7.17 	of the annual federal poverty guidelines state median income. Parent fees must begin 
7.18 	at 75 percent of the poverty level. The minimum parent fees for families between 75 
7.19 	percent and 100 percent of poverty level must be $5 per month. Parent fees must provide 
7.20 	for graduated movement to full payment. Payment of part or all of a family's parent 
7.21 	fee directly to the family's child care provider on behalf of the family by a source other 
7.22 	than the family shall not affect the family's eligibility for child care assistance, and the 
7.23 	amount paid shall be excluded from the family's income. Child care providers who accept 
7.24 	third-party payments must maintain family specific documentation of payment source, 
7.25 	amount, and time period covered by the payment.

7.26 	EFFECTIVE DATE. This section is effective July 1, 2008.

7.27 	Sec. 5. Minnesota Statutes 2006, section 119B.125, is amended by adding a subdivision 
7.28 	to read:
7.29 		Subd. 1a.Background study required. This subdivision only applies to legal, 
7.30 	nonlicensed family child care providers. Prior to authorization, and as part of each 
7.31 	reauthorization required in subdivision 1, the county shall perform a background study on 
7.32 	every member of the provider's household who is age 13 and older. The background study 
7.33 	shall be conducted according to the procedures under subdivision 2.

7.34 	Sec. 6. Minnesota Statutes 2007 Supplement, section 119B.125, subdivision 2, is 
7.35 	amended to read:
8.1 		Subd. 2.Persons who cannot be authorized. (a) A person whoWhen any 
8.2 	member of the legal, nonlicensed family child care provider's household meets any of the 
8.3 	conditions under paragraphs (b) to (n), the provider must not be authorized as a legal 
8.4 	nonlicensed family child care provider. To determine whether any of the listed conditions 
8.5 	exist, the county must request information about the provider and other household 
8.6 	members for whom a background study is required under subdivision 1a from the Bureau 
8.7 	of Criminal Apprehension, the juvenile courts, and social service agencies. When one 
8.8 	of the listed entities does not maintain information on a statewide basis, the county must 
8.9 	contact the entity in the county where the provider resides and any other county in which 
8.10 	the provider or any household member previously resided in the past year. For purposes of 
8.11 	this subdivision, a finding that a delinquency petition is proven in juvenile court must be 
8.12 	considered a conviction in state district court. If a county has determined that a provider 
8.13 	is able to be authorized in that county, and a family in another county later selects that 
8.14 	provider, the provider is able to be authorized in the second county without undergoing a 
8.15 	new background investigation unless one of the following conditions exists:
8.16 	(1) two years have passed since the first authorization;
8.17 	(2) another person age 13 or older has joined the provider's household since the 
8.18 	last authorization;
8.19 	(3) a current household member has turned 13 since the last authorization; or
8.20 	(4) there is reason to believe that a household member has a factor that prevents 
8.21 	authorization.
8.22 	(b) The person has been convicted of one of the following offenses or has admitted to 
8.23 	committing or a preponderance of the evidence indicates that the person has committed an 
8.24 	act that meets the definition of one of the following offenses: sections 609.185 to 609.195, 
8.25 	murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn 
8.26 	child in the first, second, or third degree; 609.322, solicitation, inducement, promotion 
8.27 	of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual 
8.28 	conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to 
8.29 	engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a 
8.30 	child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial 
8.31 	representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense 
8.32 	of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime 
8.33 	against children; or an attempt or conspiracy to commit any of these offenses as defined in 
8.34 	Minnesota Statutes; or an offense in any other state or country where the elements are 
8.35 	substantially similar to any of the offenses listed in this paragraph.
9.1 	(c) Less than 15 years have passed since the discharge of the sentence imposed for 
9.2 	the offense and the person has received a felony conviction for one of the following 
9.3 	offenses, or the person has admitted to committing or a preponderance of the evidence 
9.4 	indicates that the person has committed an act that meets the definition of a felony 
9.5 	conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter in 
9.6 	the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding suicide 
9.7 	or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, third, or 
9.8 	fourth degree; 609.224, repeat offenses of fifth degree assault; 609.228, great bodily 
9.9 	harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable adult; 
9.10 	609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to injure or 
9.11 	facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene materials 
9.12 	and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, false 
9.13 	imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or 
9.14 	second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third 
9.15 	degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27, 
9.16 	coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor 
9.17 	engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth 
9.18 	degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of 
9.19 	shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582, 
9.20 	burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63, 
9.21 	forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature 
9.22 	by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67, 
9.23 	unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71, 
9.24 	riot; 609.713, terrorist threats; 609.749, harassment, stalking; 260C.301, termination of 
9.25 	parental rights; 152.021 to 152.022 and 152.0262, controlled substance crime in the first 
9.26 	or second degree; 152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2, 
9.27 	clause (4), controlled substance crime in third degree; 152.024, subdivision 1, clause 
9.28 	(2), (3), or (4), controlled substance crime in fourth degree; 617.23, repeat offenses of 
9.29 	indecent exposure; an attempt or conspiracy to commit any of these offenses as defined in 
9.30 	Minnesota Statutes; or an offense in any other state or country where the elements are 
9.31 	substantially similar to any of the offenses listed in this paragraph.
9.32 	(d) Less than ten years have passed since the discharge of the sentence imposed for 
9.33 	the offense and the person has received a gross misdemeanor conviction for one of the 
9.34 	following offenses or the person has admitted to committing or a preponderance of the 
9.35 	evidence indicates that the person has committed an act that meets the definition of a gross 
9.36 	misdemeanor conviction for one of the following offenses: sections 609.224, fifth degree 
10.1 	assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of 
10.2 	an order for protection; 609.3451, fifth degree criminal sexual conduct; 609.746, repeat 
10.3 	offenses of interference with privacy; 617.23, repeat offenses of indecent exposure; 
10.4 	617.241, obscene materials and performances; 617.243, indecent literature, distribution; 
10.5 	617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66, 
10.6 	dangerous weapons; 609.749, harassment, stalking; 609.224, subdivision 2, paragraph 
10.7 	(c), fifth degree assault against a vulnerable adult by a caregiver; 609.23, mistreatment 
10.8 	of persons confined; 609.231, mistreatment of residents or patients; 609.2325, criminal 
10.9 	abuse of a vulnerable adult; 609.2335, financial exploitation of a vulnerable adult; 
10.10 	609.233, criminal neglect of a vulnerable adult; 609.234, failure to report maltreatment of 
10.11 	a vulnerable adult; 609.72, subdivision 3, disorderly conduct against a vulnerable adult; 
10.12 	609.265, abduction; 609.378, neglect or endangerment of a child; 609.377, malicious 
10.13 	punishment of a child; 609.324, subdivision 1a, other prohibited acts, minor engaged 
10.14 	in prostitution; 609.33, disorderly house; 609.52, theft; 609.582, burglary in the first, 
10.15 	second, third, or fourth degree; 609.631, check forgery, offering a forged check; 609.275, 
10.16 	attempt to coerce; an attempt or conspiracy to commit any of these offenses as defined in 
10.17 	Minnesota Statutes; or an offense in any other state or country where the elements are 
10.18 	substantially similar to any of the offenses listed in this paragraph.
10.19 	(e) Less than seven years have passed since the discharge of the sentence imposed 
10.20 	for the offense and the person has received a misdemeanor conviction for one of the 
10.21 	following offenses or the person has admitted to committing or a preponderance of 
10.22 	the evidence indicates that the person has committed an act that meets the definition 
10.23 	of a misdemeanor conviction for one of the following offenses: sections 609.224, fifth 
10.24 	degree assault; 609.2242, domestic assault; 518B.01, violation of an order for protection; 
10.25 	609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79, 
10.26 	obscene or harassing telephone calls; 609.795, letter, telegram, or package opening, 
10.27 	harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree; 
10.28 	617.293, dissemination and display of harmful materials to minors; 609.66, dangerous 
10.29 	weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses 
10.30 	as defined in Minnesota Statutes; or an offense in any other state or country where the 
10.31 	elements are substantially similar to any of the offenses listed in this paragraph.
10.32 	(f) The person has been identified by the child protection agency in the county where 
10.33 	the provider resides or a county where the provider has resided or by the statewide child 
10.34 	protection database as a person found by a preponderance of evidence under section 
10.35 	626.556 to be responsible for physical or sexual abuse of a child within the last seven years.
11.1 	(g) The person has been identified by the adult protection agency in the county 
11.2 	where the provider resides or a county where the provider has resided or by the statewide 
11.3 	adult protection database as the person responsible for abuse or neglect of a vulnerable 
11.4 	adult within the last seven years.
11.5 	(h) The person has refused to give written consent for disclosure of criminal history 
11.6 	records.
11.7 	(i) The person has been denied a family child care license or has received a fine or a 
11.8 	sanction as a licensed child care provider that has not been reversed on appeal.
11.9 	(j) The person has a family child care licensing disqualification that has not been 
11.10 	set aside.
11.11 	(k) The person has admitted or a county has found that there is a preponderance of 
11.12 	evidence that fraudulent information was given to the county for child care assistance 
11.13 	application purposes or was used in submitting child care assistance bills for payment.
11.14 	(l) The person has been convicted of the crime of theft by wrongfully obtaining 
11.15 	public assistance or has been found guilty of wrongfully obtaining public assistance by a 
11.16 	federal court, state court, or an administrative hearing determination or waiver, through a 
11.17 	disqualification consent agreement, as part of an approved diversion plan under section 
11.18 	401.065, or a court-ordered stay with probationary or other conditions.
11.19 	(m) The person has a household member age 13 or older who has access to children 
11.20 	during the hours that care is provided and who meets one of the conditions listed in 
11.21 	paragraphs (b) to (l).
11.22 	(n) The person has a household member ages ten to 12 who has access to children 
11.23 	during the hours that care is provided; information or circumstances exist which provide 
11.24 	the county with articulable suspicion that further pertinent information may exist showing 
11.25 	the household member meets one of the conditions listed in paragraphs (b) to (l); and the 
11.26 	household member actually meets one of the conditions listed in paragraphs (b) to (l).

11.27 	Sec. 7. Minnesota Statutes 2007 Supplement, section 119B.13, subdivision 1, is 
11.28 	amended to read:
11.29 		Subdivision 1.Subsidy restrictions. (a) Beginning July 1, 2006, the maximum rate 
11.30 	paid for child care assistance in any county or multicounty region under the child care 
11.31 	fund shall be the  rate for like-care arrangements in the county effective January 1, 2006, 
11.32 	increased by six percent.
11.33 	(b) Rate changes shall be implemented for services provided in September 2006 
11.34 	unless a participant eligibility redetermination or a new provider agreement is completed 
11.35 	between July 1, 2006, and August 31, 2006.
12.1 	As necessary, appropriate notice of adverse action must be made according to 
12.2 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
12.3 	New cases approved on or after  July 1, 2006, shall have the maximum rates under 
12.4 	paragraph (a), implemented immediately.
12.5 	(c) Every year, the commissioner shall survey rates charged by child care providers in 
12.6 	Minnesota to determine the 75th percentile for like-care arrangements in counties. When 
12.7 	the commissioner determines that, using the commissioner's established protocol, the 
12.8 	number of providers responding to the survey is too small to determine the 75th percentile 
12.9 	rate for like-care arrangements in a county or multicounty region, the commissioner may 
12.10 	establish the 75th percentile maximum rate based on like-care arrangements in a county, 
12.11 	region, or category that the commissioner deems to be similar.
12.12 	(d) A rate which includes a special needs rate paid under subdivision 3 or under a 
12.13 	school readiness service agreement paid under section 119B.231, may be in excess of the 
12.14 	maximum rate allowed under this subdivision.
12.15 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
12.16 	county shall pay the provider's full charges for every child in care up to the maximum 
12.17 	established. The commissioner shall determine the maximum rate for each type of care on 
12.18 	an hourly, full-day, and weekly basis, including special needs and disability care.
12.19 	(f) When the provider charge is greater than the maximum provider rate allowed, 
12.20 	the parent is responsible for payment of the difference in the rates in addition to any 
12.21 	family co-payment fee.
12.22 	(g) All maximum provider rates changes shall be implemented on the Monday 
12.23 	following the effective date of the maximum provider rate.

12.24 	Sec. 8. Minnesota Statutes 2007 Supplement, section 119B.13, subdivision 7, is 
12.25 	amended to read:
12.26 		Subd. 7.Absent days. (a) Child care providers may not be reimbursed for more 
12.27 	than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more 
12.28 	than ten consecutive full-day absent days, unless the child has a documented medical 
12.29 	condition that causes more frequent absences. Absences due to a documented medical 
12.30 	condition of a parent or sibling who lives in the same residence as the child receiving 
12.31 	child care assistance do not count against the 25-day absent day limit in a fiscal year. 
12.32 	Documentation of medical conditions must be on the forms and submitted according to 
12.33 	the timelines established by the commissioner. A public health nurse or school nurse 
12.34 	may verify the illness in lieu of a medical practitioner. If a provider sends a child home 
12.35 	early due to a medical reason, including, but not limited to, fever or contagious illness, 
13.1 	the child care center director or lead teacher may verify the illness in lieu of a medical 
13.2 	practitioner. If a child attends for part of the time authorized to be in care in a day, but is 
13.3 	absent for part of the time authorized to be in care in that same day, the absent time will be 
13.4 	reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent 
13.5 	day limits. Children in families where at least one parent is under the age of 21, does not 
13.6 	have a high school or general equivalency diploma, and is a student in a school district 
13.7 	or another similar program that provides or arranges for child care, as well as parenting, 
13.8 	social services, career and employment supports, and academic support to achieve high 
13.9 	school graduation, may be exempt from the absent day limits upon request of the program 
13.10 	and approval of the county. If a child attends part of an authorized day, payment to the 
13.11 	provider must be for the full amount of care authorized for that day. Child care providers 
13.12 	may only be reimbursed for absent days if the provider has a written policy for child 
13.13 	absences and charges all other families in care for similar absences. 
13.14 	(b) Child care providers must be reimbursed for up to ten federal or state holidays 
13.15 	or designated holidays per year when the provider charges all families for these days 
13.16 	and the holiday or designated holiday falls on a day when the child is authorized to be 
13.17 	in attendance. Parents may substitute other cultural or religious holidays for the ten 
13.18 	recognized state and federal holidays. Holidays do not count toward the ten consecutive or 
13.19 	25 cumulative absent day limits. 
13.20 	(c) A family or child care provider may not be assessed an overpayment for an 
13.21 	absent day payment unless (1) there was an error in the amount of care authorized for the 
13.22 	family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
13.23 	the family or provider did not timely report a change as required under law.
13.24 	(d) The provider and family must receive notification of the number of absent days 
13.25 	used upon initial provider authorization for a family and when the family has used 15 
13.26 	cumulative absent days. Upon statewide implementation of the Minnesota Electronic 
13.27 	Child Care System, the provider and family shall receive notification of the number of 
13.28 	absent days used upon initial provider authorization for a family and ongoing notification 
13.29 	of the number of absent days used as of the date of the notification.
13.30 	(e) A county may pay for more absent days than the statewide absent day policy 
13.31 	established under this subdivision if current market practice in the county justifies payment 
13.32 	for those additional days. County policies for payment of absent days in excess of the 
13.33 	statewide absent day policy and justification for these county policies must be included in 
13.34 	the county's child care fund plan under section 119B.08, subdivision 3. 

14.1 	Sec. 9. Minnesota Statutes 2007 Supplement, section 119B.21, subdivision 5, is 
14.2 	amended to read:
14.3 		Subd. 5.Child care services grants. (a) A child care resource and referral program 
14.4 	designated under section 119B.19, subdivision 1a, may award child care services grants 
14.5 	for: 
14.6 	(1) creating new licensed child care facilities and expanding existing facilities, 
14.7 	including, but not limited to, supplies, equipment, facility renovation, and remodeling;
14.8 	(2) improving licensed child care facility programs;
14.9 	(3) staff training and development services including, but not limited to, in-service 
14.10 	training, curriculum development, accreditation, certification, consulting, resource 
14.11 	centers, program and resource materials, supporting effective teacher-child interactions, 
14.12 	child-focused teaching, and content-driven classroom instruction;
14.13 	(4) interim financing;
14.14 	(5) capacity building through the purchase of appropriate technology to create, 
14.15 	enhance, and maintain business management systems;
14.16 	(6) emergency assistance for child care programs;
14.17 	(7) new programs or projects for the creation, expansion, or improvement of 
14.18 	programs that serve ethnic immigrant and refugee communities; and
14.19 	(8) targeted recruitment initiatives to expand and build the capacity of the child 
14.20 	care system and to improve the quality of care provided by legal nonlicensed child care 
14.21 	providers.
14.22 	(b) A child care resource and referral program designated under section 119B.19, 
14.23 	subdivision 1a, may award child care services grants to: 
14.24 	(1) licensed providers;
14.25 	(2) providers in the process of being licensed;
14.26 	(3) corporations or public agencies that develop or provide child care services;
14.27 	(4) school-age care programs;
14.28 	(5) legal nonlicensed or family, friend, and neighbor care providers; or
14.29 	(5)(6) any combination of clauses (1) to (4) (5).
14.30 	Unlicensed providers are only eligible for grants under paragraph (a), clause (7).
14.31 	(c) A recipient of a child care services grant for facility improvements, interim 
14.32 	financing, or staff training and development must provide a 25 percent local match.

14.33 	Sec. 10. Minnesota Statutes 2006, section 119B.21, subdivision 10, is amended to read:
15.1 		Subd. 10.Family child care technical assistance grants. (a) A child care resource 
15.2 	and referral organization designated under section 119B.19, subdivision 1a, may award 
15.3 	technical assistance grants of up to $1,000. These grants may be used for: 
15.4 	(1) facility improvements, including, but not limited to, improvements to meet 
15.5 	licensing requirements;
15.6 	(2) improvements to expand a child care facility or program;
15.7 	(3) toys and equipment;
15.8 	(4) technology and software to create, enhance, and maintain business management 
15.9 	systems;
15.10 	(5) start-up costs;
15.11 	(6) staff training and development; and
15.12 	(7) other uses approved by the commissioner.
15.13 	(b) A child care resource and referral program may award family child care technical 
15.14 	assistance grants to:
15.15 	(1) licensed family child care providers; or
15.16 	(2) child care providers in the process of becoming licensed.; or
15.17 	(3) legal nonlicensed or family, friends, and neighbor care providers. 
15.18 	(c) A local match is not required for a family child care technical assistance grant.

15.19 	Sec. 11. Minnesota Statutes 2006, section 256E.30, subdivision 1, is amended to read:
15.20 		Subdivision 1.Authorization. The commissioner of education human services may 
15.21 	provide financial assistance for community action agencies, Indian reservations, and 
15.22 	migrant and seasonal farmworker organizations to carry out community action programs 
15.23 	as described in section 256E.32 in accordance with the Omnibus Reconciliation Act of 
15.24 	1981, Public Law 97-35, as amended in 1984, Public Law 98-558, state law, and federal 
15.25 	law and regulation.

15.26 	Sec. 12. Minnesota Statutes 2006, section 256E.35, subdivision 7, is amended to read:
15.27 		Subd. 7.Program reporting. The fiscal agent on behalf of each fiduciary 
15.28 	organization participating in a family assets for independence initiative must report 
15.29 	quarterly to the commissioner of human services and to the commissioner of education
15.30 	identifying the participants with accounts, the number of accounts, the amount of savings 
15.31 	and matches for each participant's account, the uses of the account, and the number of 
15.32 	businesses, homes, and educational services paid for with money from the account, as 
15.33 	well as other information that may be required for the commissioner to administer the 
15.34 	program and meet federal TANF reporting requirements.

16.1 	Sec. 13. REVISOR'S INSTRUCTION.
 16.2 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 119A.45, 
16.3 	as Minnesota Statutes, section 256E.37.
16.4 	(b) The revisor of statutes shall make such cross-reference changes as are necessary 
16.5 	from the renumbering in this section whereever the reference appears in statute.

16.6 	ARTICLE 3
16.7 	MISCELLANEOUS TECHNICAL

16.8 	Section 1. Minnesota Statutes 2007 Supplement, section 245C.08, subdivision 2, is 
16.9 	amended to read:
16.10 		Subd. 2.Background studies conducted by a county agency. (a) For a background 
16.11 	study conducted by a county agency for adult foster care, family adult day services, and  
16.12 	family child care services, the commissioner shall review:
16.13 	(1) information from the county agency's record of substantiated maltreatment 
16.14 	of adults and the maltreatment of minors;
16.15 	(2) information from juvenile courts as required in subdivision 4 for individuals 
16.16 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); and
16.17 	(3) information from the Bureau of Criminal Apprehension.
16.18 	(b) If the individual has resided in the county for less than five years, the study shall 
16.19 	include the records specified under paragraph (a) for the previous county or counties of 
16.20 	residence for the past five years.
16.21 	(c) Notwithstanding expungement by a court, the county agency may consider 
16.22 	information obtained under paragraph (a), clauses clause (3) and (4), unless the 
16.23 	commissioner received notice of the petition for expungement and the court order for 
16.24 	expungement is directed specifically to the commissioner.

16.25 	Sec. 2. Minnesota Statutes 2007 Supplement, section 256E.35, subdivision 2, is 
16.26 	amended to read:
16.27 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
16.28 	(b) "Family asset account" means a savings account opened by a household 
16.29 	participating in the Minnesota family assets for independence initiative.
16.30 	(c) "Fiduciary organization" means:
16.31 	(1) a community action agency that has obtained recognition under section 256E.31;
16.32 	(2) a federal community development credit union serving the seven-county 
16.33 	metropolitan area; or
17.1 	(3) a women-oriented economic development agency serving the seven-county 
17.2 	metropolitan area.
17.3 	(d) "Financial institution" means a bank, bank and trust, savings bank, savings 
17.4 	association, or credit union, the deposits of which are insured by the Federal Deposit 
17.5 	Insurance Corporation or the National Credit Union Administration.
17.6 	(e) "Permissible use" means:
17.7 	(1) postsecondary educational expenses at an accredited public postsecondary
17.8 	eligible educational institution as defined in paragraph (g), including books, supplies, and 
17.9 	equipment required for courses of instruction;
17.10 	(2) acquisition costs of acquiring, constructing, or reconstructing a residence, 
17.11 	including any usual or reasonable settlement, financing, or other closing costs;
17.12 	(3) business capitalization expenses for expenditures on capital, plant, equipment, 
17.13 	working capital, and inventory expenses of a legitimate business pursuant to a business 
17.14 	plan approved by the fiduciary organization; and
17.15 	(4) acquisition costs of a principal residence within the meaning of section 1034 of 
17.16 	the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area 
17.17 	purchase price applicable to the residence determined according to section 143(e)(2) and 
17.18 	(3) of the Internal Revenue Code of 1986.
17.19 	(f) "Household" means all individuals who share use of a dwelling unit as primary 
17.20 	quarters for living and eating separate from other individuals.
17.21 	(g) "Eligible educational institution" means the following:
17.22 	(1) an institution of higher education described in section 101 or 102 of the Higher 
17.23 	Education Act of 1965; or
17.24 	(2) an area vocational education school, as defined in subparagraph (C) or (D) of 
17.25 	United States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational 
17.26 	and Applied Technology Education Act), which is located within any state, as defined in 
17.27 	United States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only 
17.28 	to the extent section 2302 is in effect on the effective date of this section.

17.29 	Sec. 3.  REPEALER.
 17.30 	Minnesota Statutes 2006, section 256K.25, is repealed.