HF 13

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/18/2023 01:06pm

A bill for an act
relating to child care assistance; modifying child care assistance rates; amending
Minnesota Statutes 2022, section 119B.13, subdivision 1.

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

Section 1.

Minnesota Statutes 2022, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) Beginning November deleted text begin 15 deleted text end new text begin 13 new text end , deleted text begin 2021 deleted text end new text begin 2023 new text end , the
maximum rate paid for child care assistance in any county or county price cluster under the
child care fund shall be deleted text begin : deleted text end new text begin the greater of the 75th percentile of the most recent child care
provider rate survey or the rates in effect at the time of the update. Thereafter, each rate
change is effective the first full service period on or after January 1 of the year following
the provider rate survey.
new text end

deleted text begin (1) for all infants and toddlers, the greater of the 40th percentile of the 2021 child care
provider rate survey or the rates in effect at the time of the update; and
deleted text end

deleted text begin (2) for all preschool and school-age children, the greater of the 30th percentile of the
2021 child care provider rate survey or the rates in effect at the time of the update.
deleted text end

deleted text begin (b) Beginning the first full service period on or after January 1, 2025, the maximum rate
paid for child care assistance in a county or county price cluster under the child care fund
shall be:
deleted text end

deleted text begin (1) for all infants and toddlers, the greater of the 40th percentile of the 2024 child care
provider rate survey or the rates in effect at the time of the update; and
deleted text end

deleted text begin (2) for all preschool and school-age children, the greater of the 30th percentile of the
2024 child care provider rate survey or the rates in effect at the time of the update.
deleted text end

deleted text begin The rates under paragraph (a) continue until the rates under this paragraph go into effect.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end For a child care provider located within the boundaries of a city located in two
or more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child
care assistance shall be equal to the maximum rate paid in the county with the highest
maximum reimbursement rates or the provider's charge, whichever is less. The commissioner
may: (1) assign a county with no reported provider prices to a similar price cluster; and (2)
consider county level access when determining final price clusters.

deleted text begin (d) deleted text end new text begin (c) new text end A rate which includes a special needs rate paid under subdivision 3 may be in
excess of the maximum rate allowed under this subdivision.

deleted text begin (e) deleted text end new text begin (d) new text end The department shall monitor the effect of this paragraph on provider rates. The
county shall pay the provider's full charges for every child in care up to the maximum
established. The commissioner shall determine the maximum rate for each type of care on
an hourly, full-day, and weekly basis, including special needs and disability care.

deleted text begin (f) deleted text end new text begin (e) new text end If a child uses one provider, the maximum payment for one day of care must not
exceed the daily rate. The maximum payment for one week of care must not exceed the
weekly rate.

deleted text begin (g) deleted text end new text begin (f) new text end If a child uses two providers under section 119B.097, the maximum payment
must not exceed:

(1) the daily rate for one day of care;

(2) the weekly rate for one week of care by the child's primary provider; and

(3) two daily rates during two weeks of care by a child's secondary provider.

deleted text begin (h) deleted text end new text begin (g) new text end Child care providers receiving reimbursement under this chapter must not be
paid activity fees or an additional amount above the maximum rates for care provided during
nonstandard hours for families receiving assistance.

deleted text begin (i) deleted text end new text begin (h) new text end If the provider charge is greater than the maximum provider rate allowed, the
parent is responsible for payment of the difference in the rates in addition to any family
co-payment fee.

deleted text begin (j) deleted text end new text begin (i) new text end The maximum registration fee paid for child care assistance in any county or
county price cluster under the child care fund shall be deleted text begin set as follows: (1) beginning November
15, 2021, the greater of the 40th percentile of the 2021 child care provider rate survey or
the registration fee in effect at the time of the update; and (2) beginning the first full service
period on or after January 1, 2025, the maximum registration fee shall be the greater of the
40th percentile of the 2024 child care provider rate survey or the registration fee in effect
at the time of the update. The registration fees under clause (1) continue until the registration
fees under clause (2) go into effect deleted text end new text begin the greater of the 75th percentile of the most recent child
care provider rate survey or the registration fee in effect at the time of the update. Each
maximum registration fee update must be implemented on the same schedule as maximum
child care assistance rate increases under paragraph (a) new text end .

deleted text begin (k) deleted text end new text begin (j) new text end Maximum registration fees must be set for licensed family child care and for child
care centers. For a child care provider located in the boundaries of a city located in two or
more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid
for child care assistance shall be equal to the maximum registration fee paid in the county
with the highest maximum registration fee or the provider's charge, whichever is less.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end