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HF 1292

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/22/2007

Current Version - as introduced

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A bill for an act
relating to human services; amending provisions related to child care finance;
appropriating money; amending Minnesota Statutes 2006, sections 119B.09,
subdivisions 1, 7, by adding a subdivision; 119B.13, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HUMAN SERVICES APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS.
new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

new text begin 2008
new text end
new text begin 2009
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 79,412,000
new text end
new text begin $
new text end
new text begin 86,612,000
new text end
new text begin $
new text end
new text begin 166,024,000
new text end
new text begin Federal TANF
new text end
new text begin 40,378,000
new text end
new text begin 33,918,000
new text end
new text begin 74,296,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 119,790,000
new text end
new text begin $
new text end
new text begin 120,530,000
new text end
new text begin $
new text end
new text begin 240,320,000
new text end

Sec. 2. new text begin HUMAN SERVICES APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
year ending June 30, 2007, are effective the day following final enactment.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2008
new text end
new text begin 2009
new text end

Sec. 3.new text begin HUMAN SERVICES
new text end

new text begin $
new text end
new text begin 119,790,000
new text end
new text begin $
new text end
new text begin 120,530,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 79,412,000
new text end
new text begin 86,612,000
new text end
new text begin Federal TANF
new text end
new text begin 40,378,000
new text end
new text begin 33,918,000
new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

new text begin (a) new text begin MFIP Child Care Assistance Grants
new text end
new text end
new text begin General
new text end
new text begin 36,232,000
new text end
new text begin 42,002,000
new text end

new text begin new text begin TANF Transfer to Federal Child Care
and Development Fund.
new text end
The following
TANF fund amounts are appropriated to
the commissioner for the purposes of MFIP
transition year child care under MFIP,
Minnesota Statutes, section 119B.05:
new text end

new text begin (1) fiscal year 2008, $40,378,000;
new text end

new text begin (2) fiscal year 2009, $33,918,000;
new text end

new text begin (3) fiscal year 2010, $11,726,000; and
new text end

new text begin (4) fiscal year 2011, $11,740,000.
new text end

new text begin The commissioner shall authorize transfer
of sufficient TANF funds to the federal
Child Care and Development Fund to meet
this appropriation and shall ensure that all
transferred funds are expended according the
federal Child Care and Development Fund
regulations.
new text end

new text begin (b) new text begin Basic Sliding Fee Child Care Assistance
Grants
new text end
new text end
new text begin General
new text end
new text begin 41,665,000
new text end
new text begin 43,095,000
new text end

new text begin new text begin Base Adjustment.new text end The general fund base is
increased by $21,000 in fiscal year 2010 and
$34,000 in fiscal year 2011 for basic sliding
fee child care assistance grants.
new text end

new text begin (c) new text begin Child Care Development Grants
new text end
new text end
new text begin General
new text end
new text begin 1,515,000
new text end
new text begin 1,515,000
new text end

ARTICLE 2

CHILD CARE

Section 1.

Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Generaldeleted text end Eligibility requirements for deleted text begin all applicants fordeleted text end child
care assistance.

(a) Child care services must be available to families who need child
care to find or keep employment or to obtain the training or education necessary to find
employment and who:

(1) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and meet the requirements of section 119B.05;
deleted text begin receive MFIP assistance; and are participating in employment and training services under
chapter 256J or 256K; or
deleted text end

(2) have household income less than or equal to 175 percent of the federal poverty
guidelines, adjusted for family size, at program entry and less than 250 percent of the
federal poverty guidelines, adjusted for family size, at program exitdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and were a family whose child care assistance was
terminated due to insufficient funds under Minnesota Rules, part 3400.0183.
new text end

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family as a condition
of program eligibility. For purposes of this section, a family is considered to meet the
requirement for cooperation when the family complies with the requirements of section
256.741.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119B.09, subdivision 7, is amended to read:


Subd. 7.

Date of eligibility for assistance.

(a) The date of eligibility for child
care assistance under this chapter is the later of the date the application was signed; the
beginning date of employment, education, or training; the date the infant is born for
applicants to the at-home infant care program; or the date a determination has been made
that the applicant is a participant in employment and training services under Minnesota
Rules, part 3400.0080, deleted text begin subpart 2a,deleted text end or chapter 256J.

(b) Payment ceases for a family under the at-home infant child care program when a
family has used a total of 12 months of assistance as specified under section 119B.035.
Payment of child care assistance for employed persons on MFIP is effective the date of
employment or the date of MFIP eligibility, whichever is later. Payment of child care
assistance for MFIP or DWP participants in employment and training services is effective
the date of commencement of the services or the date of MFIP or DWP eligibility,
whichever is later. Payment of child care assistance for transition year child care must be
made retroactive to the date of eligibility for transition year child care.

new text begin (c) Notwithstanding paragraph (b), payment of child care assistance for participants
eligible under section 119B.05, may only be made retroactively for a maximum of six
months from the date of application for child care assistance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 119B.09, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Payment of other child care expenses. new text end

new text begin Payment by a source other
than the family, of part or all of a family's child care expenses not payable under this
chapter, does not affect the family's eligibility for child care assistance, and the amount
paid is excluded from the family's income, if the funds are paid directly to the family's
child care provider on behalf of the family. Child care providers who accept third-party
payments must maintain family-specific documentation of payment source, amount, type
of expenses, and time period covered by the payment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 119B.13, subdivision 6, is amended to read:


Subd. 6.

Provider payments.

(a) Counties or the state shall make vendor payments
to the child care provider or pay the parent directly for eligible child care expenses.

(b) If payments for child care assistance are made to providers, the provider shall
bill the county for services provided within ten days of the end of the service period. If
bills are submitted within ten days of the end of the service period, a county or the state
shall issue payment to the provider of child care under the child care fund within 30 days
of receiving a bill from the provider. Counties or the state may establish policies that
make payments on a more frequent basis.

(c) deleted text begin All billsdeleted text end new text begin If a provider has received an authorization of care and has been issued a
billing form for an eligible family, the bill
new text end must be submitted within 60 days of the last
date of service on the bill. A county may pay a bill submitted more than 60 days after
the last date of service if the provider shows good cause why the bill was not submitted
within 60 days. Good cause must be defined in the county's child care fund plan under
section 119B.08, subdivision 3, and the definition of good cause must include county
error. A county may not pay any bill submitted more than a year after the last date of
service on the bill.

new text begin (d) If a provider provided care for a time period without receiving an authorization
of care and a billing form for an eligible family, payment of child care assistance may only
be made retroactively for a maximum of six months from the date the provider is issued
an authorization of care and billing form.
new text end

deleted text begin (d)deleted text end new text begin (e) new text end A county may stop payment issued to a provider or may refuse to pay a
bill submitted by a provider if:

(1) the provider admits to intentionally giving the county materially false information
on the provider's billing forms; or

(2) a county finds by a preponderance of the evidence that the provider intentionally
gave the county materially false information on the provider's billing forms.

deleted text begin (e)deleted text end new text begin (f) new text end A county's payment policies must be included in the county's child care plan
under section 119B.08, subdivision 3. If payments are made by the state, in addition to
being in compliance with this subdivision, the payments must be made in compliance
with section 16A.124.

Sec. 5. new text begin SCHOOL READINESS SERVICE AGREEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Overview. new text end

new text begin (a) Effective July 1, 2007, funds must be made available
to allow the commissioner to enter into school readiness service agreements (SRSA's)
with up to 50 child care providers for the dual purposes of supporting:
new text end

new text begin (1) improved school readiness for children; and
new text end

new text begin (2) economic stability for parents.
new text end

new text begin (b) A provider may be paid a rate above that currently allowed under Minnesota
Statutes, section 119B.13, if:
new text end

new text begin (1) the provider has entered into an SRSA with the commissioner;
new text end

new text begin (2) a family using that provider receives child care assistance under any provision in
Minnesota Statutes, chapter 119B, except Minnesota Statutes, section 119B.035;
new text end

new text begin (3) the family using that provider meets the criteria in this section; and
new text end

new text begin (4) funding is available under this section.
new text end

new text begin Subd. 2. new text end

new text begin Provider eligibility. new text end

new text begin (a) To be considered for an SRSA, a provider shall
apply to the commissioner. To be eligible to apply for an SRSA, a provider shall:
new text end

new text begin (1) be eligible for child care assistance payments under Minnesota Statutes, chapter
119B;
new text end

new text begin (2) have at least 25 percent of the children enrolled with the provider subsidized
through the child care assistance program;
new text end

new text begin (3) provide full-time, full-year child care services; and
new text end

new text begin (4) serve at least one child who is subsidized through the child care assistance
program and who is expected to enter kindergarten within the following 30 months.
new text end

new text begin (b) The commissioner may waive the 25 percent requirement in paragraph (a), clause
(2), if necessary to achieve geographic distribution of SRSA providers and diversity of
types of care provided by SRSA providers.
new text end

new text begin (c) An eligible provider who would like to enter into an SRSA with the commissioner
shall submit an SRSA application. To determine whether to enter into an SRSA with a
provider, the commissioner shall evaluate the following factors:
new text end

new text begin (1) the qualifications of the provider and the provider's staff;
new text end

new text begin (2) the provider's staff-child ratios;
new text end

new text begin (3) the provider's curriculum;
new text end

new text begin (4) the provider's current or planned parent education activities;
new text end

new text begin (5) the provider's current or planned social service and employment linkages;
new text end

new text begin (6) the provider's child development assessment plan;
new text end

new text begin (7) the geographic distribution needed for SRSA providers;
new text end

new text begin (8) the inclusion of a variety of child care delivery models; and
new text end

new text begin (9) other related factors determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Family and child eligibility. new text end

new text begin (a) A family eligible to choose an SRSA
provider for their children shall:
new text end

new text begin (1) be eligible to receive child care assistance under any provision in Minnesota
Statutes, chapter 119B, except Minnesota Statutes, section 119B.035;
new text end

new text begin (2) be in an authorized activity for an average of at least 35 hours per week when
initial eligibility is determined; and
new text end

new text begin (3) include a child who has not yet entered kindergarten.
new text end

new text begin (b) A family who is determined to be eligible to choose an SRSA provider remains
eligible to be paid at a higher rate through the SRSA provider when the following
conditions exist:
new text end

new text begin (1) the child attends child care with the SRSA provider a minimum of 25 hours per
week, on average;
new text end

new text begin (2) the family has a child who has not yet entered kindergarten; and
new text end

new text begin (3) the family maintains eligibility under Minnesota Statutes, chapter 119B, except
Minnesota Statutes, section 119B.035.
new text end

new text begin (c) For the 12 months after initial eligibility has been determined, a decrease in
the family's authorized activities to an average of less than 35 hours per week does not
result in ineligibility for the SRSA rate.
new text end

new text begin (d) A family that moves between counties but continues to use the same SRSA
provider shall continue to receive SRSA funding for the increased payments.
new text end

new text begin Subd. 4. new text end

new text begin Requirements of providers. new text end

new text begin All SRSA's must include assessment,
evaluation, and reporting requirements that promote the goals of improved school
readiness and movement toward appropriate child development milestones. A provider
who enters into an SRSA shall comply with the assessment, evaluation, and reporting
requirements in the SRSA.
new text end

new text begin Subd. 5. new text end

new text begin Relationship to current law. new text end

new text begin (a) The following provisions in Minnesota
Statutes, chapter 119B, must be waived or modified for families receiving services under
this section.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 119B.13, subdivisions 1 and 1a,
maximum weekly rates under this section are 125 percent of the existing maximum
weekly rate for like-care. Providers eligible for a differential rate under Minnesota
Statutes, section 119B.13, subdivision 3a, remain eligible for the differential above the
rate identified in this section. Only care for children who have not yet entered kindergarten
may be paid at the maximum rate under this section. The provider's charge for service
provided through an SRSA may not exceed the rate that the provider charges a private-pay
family for like-care arrangements.
new text end

new text begin (c) A family or child care provider may not be assessed an overpayment for care
provided through an SRSA unless:
new text end

new text begin (1) there was an error in the amount of care authorized for the family; or
new text end

new text begin (2) the family or provider did not timely report a change as required under the law.
new text end

new text begin (d) Care provided through an SRSA is authorized on a weekly basis.
new text end

new text begin (e) Funds appropriated under this section to serve families eligible under Minnesota
Statutes, section 119B.03, are not allocated through the basic sliding fee formula under
Minnesota Statutes, section 119B.03. Funds appropriated under this section are used to
offset increased costs when payments are made under SRSA's.
new text end

new text begin (f) Notwithstanding Minnesota Statutes, section 119B.09, subdivision 6, the
maximum amount of child care assistance that may be authorized for a child receiving
care through an SRSA in a two-week period is 160 hours per child.
new text end

new text begin Subd. 6. new text end

new text begin Establishment of service agreements. new text end

new text begin (a) The commissioner shall
approve SRSA's for up to 50 providers that represent diverse parts of the state and a
variety of child care delivery models. Entering into a service agreement does not guarantee
that a provider will receive payment at a higher rate for families receiving child care
assistance. A family eligible under this section shall choose a provider participating in an
SRSA in order for a higher rate to be paid. Payments through SRSA's are also limited by
the availability of SRSA funds.
new text end

new text begin (b) Nothing in this section shall be construed to limit parent choice as defined in
Minnesota Statutes, section 119B.09, subdivision 5.
new text end

new text begin (c) The commissioner may allow for startup time for some providers if failing to
do so would limit geographic diversity of SRSA providers or a variety of child care
delivery models.
new text end