1.1 	A bill for an act
1.2 	relating to human services; creating a child care
1.3 	assistance provider reimbursement rate grant program;
1.4 	appropriating money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. CHILD CARE ASSISTANCE PROVIDER REIMBURSEMENT
1.7 	RATE GRANT PROGRAM.
 1.8 		Subdivision 1.Purpose and establishment. The
1.9 	commissioner of human services shall establish a child care
1.10 	assistance provider reimbursement rate grant program for the
1.11 	purpose of allowing certain providers to be reimbursed at rates
1.12 	above the 75th percentile of the market rate as established by
1.13 	the most current market rate survey under Minnesota Statutes,
1.14 	section 119B.13, and published by the Department of Human
1.15 	Services.  These providers must be reimbursed at a rate more
1.16 	closely aligned with the actual cost of care in order to
1.17 	maintain child care capacity in nonmetropolitan areas of
1.18 	Minnesota.  For purposes of this section, "nonmetropolitan"
1.19 	means all Minnesota counties with the exceptions of Anoka,
1.20 	Carver, Dakota, Hennepin, Olmsted, Ramsey, St. Louis, Scott,
1.21 	Stearns, and Washington Counties.
1.22 		Subd. 2.Provider eligibility. (a) A child care center
1.23 	or facility providing legal child care services as defined under
1.24 	Minnesota Statutes, section 245A.03, is eligible for the grant
1.25 	program established under this section if the center or facility
2.1 	is limited to reimbursement at or less than $160 per week for
2.2 	any age category, as published by the Department of Human
2.3 	Services, for services provided to families receiving child care
2.4 	assistance under Minnesota Statutes, chapter 119B.
2.5 	(b) A licensed family child care home providing legal child
2.6 	care services as defined under Minnesota Statutes, section
2.7 	245A.03, is eligible for the grant program established under
2.8 	this section if the individual is limited to reimbursement at or
2.9 	less than $115 per week for any age category, as published by
2.10 	the Department of Human Services, for services provided to
2.11 	families receiving child care assistance under Minnesota
2.12 	Statutes, chapter 119B.
2.13 		Subd. 3.Application procedure. Child care providers may
2.14 	apply to the commissioner of human services, or the
2.15 	commissioner's designee, for the child care assistance provider
2.16 	reimbursement rate grant program on the forms and according to
2.17 	the timelines established by the commissioner.  The
2.18 	commissioner, or the commissioner's designee, has 30 calendar
2.19 	days from the date of receipt of an application to notify the
2.20 	applicant of the eligibility determination.
2.21 		Subd. 4.Provider reimbursement rates. Notwithstanding
2.22 	Minnesota Statutes, section 119B.13, subdivision 1, and Laws
2.23 	2003, First Special Session chapter 14, article 9, section 34,
2.24 	and to the extent funds are available, the commissioner of human
2.25 	services or the counties shall reimburse child care providers
2.26 	who the commissioner or the commissioner's designee has
2.27 	determined eligible under subdivision 2, for care provided to
2.28 	families receiving child care assistance under Minnesota
2.29 	Statutes, chapter 119B, at a rate that is the lesser of (1) the
2.30 	rate charged to private pay families, or (2) the 100th
2.31 	percentile of the most current market rate survey.
2.32 	Notwithstanding any law or rule to the contrary, providers under
2.33 	this section may be reimbursed on a half-day basis.  Grant
2.34 	program reimbursements to providers under this section may be
2.35 	made retroactive to the day following final enactment.
2.36 		Subd. 5.Appropriations. The sums indicated in this
3.1 	subdivision are appropriated from the general fund to the
3.2 	commissioner of human services for the fiscal years designated
3.3 	for the child care assistance provider reimbursement rate grant
3.4 	program:
3.5 	$............2005 
3.6 	$............2006 
3.7 	$............2007 
3.8 	Any balance the first year does not cancel but is available
3.9 	in the second year.
3.10 		Subd. 6.Sunset date. The grant program under this
3.11 	section sunsets on June 30, 2007.
3.12 	
EFFECTIVE DATE. This section is effective the day
3.13 	following final enactment.