HF 1458

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/13/2017 06:03pm

A bill for an act
relating to human services; modifying certain child care provisions; amending
Minnesota Statutes 2016, sections 119B.011, subdivisions 6, 20, 20a, by adding
a subdivision; 119B.02, subdivision 1; 119B.025, subdivision 1, by adding
subdivisions; 119B.03, subdivisions 3, 9; 119B.05, subdivision 1; 119B.09,
subdivisions 1, 4; 119B.10, subdivision 1, by adding a subdivision; 119B.11,
subdivision 2a; 119B.12, subdivision 2; 119B.13, subdivisions 1, 6; 256P.05,
subdivision 1; 256P.07, subdivisions 3, 6; proposing coding for new law in
Minnesota Statutes, chapter 119B; repealing Minnesota Statutes 2016, section
119B.07.

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

Section 1.

Minnesota Statutes 2016, section 119B.011, subdivision 6, is amended to read:

Subd. 6.

Child care fund.

"Child care fund" means a program under this chapter
providing:

(1) financial assistance for child care to new text begin support:
new text end

new text begin (i) new text end parents engaged in employment, job search, or education and training leading to
employment, or an at-home infant child care subsidy new text begin ; and
new text end

new text begin (ii) the development and school readiness of children new text end ; and

(2) grants to develop, expand, and improve the access and availability of child care
services statewide.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 119B.011, is amended by adding a subdivision
to read:

new text begin Subd. 13b. new text end

new text begin Homeless. new text end

new text begin "Homeless" means a self-declared housing status as defined in
the McKinney-Vento Homeless Assistance Act and United States Code, title 42, section
11302, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 119B.011, subdivision 20, is amended to read:

Subd. 20.

Transition year families.

"Transition year families" means families who have
received MFIP assistance, or who were eligible to receive MFIP assistance after choosing
to discontinue receipt of the cash portion of MFIP assistance under section 256J.31,
subdivision 12, or families who have received DWP assistance under section 256J.95 for
at least deleted text begin three deleted text end new text begin one new text end of the last six months before losing eligibility for MFIP or DWP.
new text begin Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, subpart 2,
new text end transition year child care may be used to support employment new text begin , approved education or training
programs, new text end or job search new text begin that meets the requirements of section 119B.10 new text end . Transition year
child care is not available to families who have been disqualified from MFIP or DWP due
to fraud.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 119B.011, subdivision 20a, is amended to read:

Subd. 20a.

Transition year extension families.

"Transition year extension families"
means families who have completed their transition year of child care assistance under this
subdivision and who are eligible for, but on a waiting list for, services under section 119B.03.
For purposes of sections 119B.03, subdivision 3, and 119B.05, subdivision 1, clause (2),
families participating in extended transition year shall not be considered transition year
families. new text begin Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090,
subpart 2, new text end transition year extension child care may be used to support employment new text begin , approved
education or training programs, new text end or a job search that meets the requirements of section
119B.10 for the length of time necessary for families to be moved from the basic sliding
fee waiting list into the basic sliding fee program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 119B.02, subdivision 1, is amended to read:

Subdivision 1.

Child care services.

The commissioner shall develop standards for county
and human services boards to provide child care services to enable eligible families to
participate in employment, training, or education programs. Within the limits of available
appropriations, the commissioner shall distribute money to counties to reduce the costs of
child care for eligible families. The commissioner shall adopt rules to govern the program
in accordance with this section. The rules must establish a sliding schedule of fees for parents
receiving child care services. The rules shall provide that funds received as a lump-sum
payment of child support arrearages shall not be counted as income to a family in the month
received but shall be prorated over the 12 months following receipt and added to the family
income during those months. new text begin The commissioner may establish limits on how frequently
expedited application processing timelines are used for an applicant who declares that the
applicant is homeless. new text end The commissioner shall maximize the use of federal money under
title I and title IV of Public Law 104-193, the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, and other programs that provide federal or state reimbursement
for child care services for low-income families who are in education, training, job search,
or other activities allowed under those programs. Money appropriated under this section
must be coordinated with the programs that provide federal reimbursement for child care
services to accomplish this purpose. Federal reimbursement obtained must be allocated to
the county that spent money for child care that is federally reimbursable under programs
that provide federal reimbursement for child care services. The counties shall use the federal
money to expand child care services. The commissioner may adopt rules under chapter 14
to implement and coordinate federal program requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 119B.025, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Factors which must be verified deleted text end new text begin Applications new text end .

(a) The county shall
verify the following at all initial child care applications using the universal application:

(1) identity of adults;

(2) presence of the minor child in the home, if questionable;

(3) relationship of minor child to the parent, stepparent, legal guardian, eligible relative
caretaker, or the spouses of any of the foregoing;

(4) age;

(5) immigration status, if related to eligibility;

(6) Social Security number, if given;

(7) new text begin counted new text end income;

(8) spousal support and child support payments made to persons outside the household;

(9) residence; and

(10) inconsistent information, if related to eligibility.

(b) deleted text begin If a family did not use the universal application or child care addendum to apply for
child care assistance, the family must complete the universal application or child care
addendum at its next eligibility redetermination and the county must verify the factors listed
in paragraph (a) as part of that redetermination. Once a family has completed a universal
application or child care addendum, the county shall use the redetermination form described
in paragraph (c) for that family's subsequent redeterminations. Eligibility must be
redetermined at least every six months. A family is considered to have met the eligibility
redetermination requirement if a complete redetermination form and all required verifications
are received within 30 days after the date the form was due. When the 30th day after the
date the form was due falls on a Saturday, Sunday, or legal holiday, the 30-day time period
is extended to include the next succeeding day that is not a Saturday, Sunday, or legal
holiday. Assistance shall be payable retroactively from the redetermination due date. For a
family where at least one parent is under the age of 21, does not have a high school or
general equivalency diploma, and is a student in a school district or another similar program
that provides or arranges for child care, as well as parenting, social services, career and
employment supports, and academic support to achieve high school graduation, the
redetermination of eligibility shall be deferred beyond six months, but not to exceed 12
months, to the end of the student's school year. If a family reports a change in an eligibility
factor before the family's next regularly scheduled redetermination, the county must
recalculate eligibility without requiring verification of any eligibility factor that did not
change. Changes must be reported as required by section 256P.07. A change in income
occurs on the day the participant received the first payment reflecting the change in income. deleted text end new text begin
The county must mail a notice of approval or denial of assistance to the applicant within
30 calendar days after receiving the application. The county may extend the response time
by 15 calendar days if the applicant is informed of the extension.
new text end

(c) deleted text begin The commissioner shall develop a redetermination form to redetermine eligibility
and a change report form to report changes that minimize paperwork for the county and the
participant. deleted text end new text begin The county must send a notice of approval or denial of assistance to an applicant
who declares that the applicant is homeless and who meets the definition of homeless under
section 119B.011, subdivision 13b, within five working days after receiving the application.
The county is not required to verify the factors under paragraph (a) before issuing the notice
of approval or denial. An applicant must submit proof of eligibility within three months of
the date the application was received by the county. If the applicant does not submit proof
of eligibility within three months, the applicant's eligibility ends. The county must send a
15-day adverse action notice to end an applicant's eligibility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective the day following final
enactment. Paragraph (c) is effective December 18, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 119B.025, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Redeterminations. new text end

new text begin (a) Notwithstanding Minnesota Rules, part 3400.0180, item
A, the county shall conduct a redetermination according to paragraphs (b) and (c).
new text end

new text begin (b) The county shall use the redetermination form developed by the commissioner. The
county must verify the factors listed in subdivision 1, paragraph (a), as part of the
redetermination.
new text end

new text begin (c) An applicant's eligibility must be redetermined no more frequently than every 12
months. The following criteria apply:
new text end

new text begin (1) a family meets the eligibility redetermination requirements if a complete
redetermination form and all required verifications are received within 30 days after the
date the form was due;
new text end

new text begin (2) if the 30th day after the date the form was due falls on a Saturday, Sunday, or holiday,
the 30-day time period is extended to include the next day that is not a Saturday, Sunday,
or holiday. Assistance shall be payable retroactively from the redetermination due date;
new text end

new text begin (3) for a family where at least one parent is younger than 21 years of age, does not have
a high school degree or general equivalency diploma, and is a student in a school district
or another similar program that provides or arranges for child care, parenting, social services,
career and employment supports, and academic support to achieve high school graduation,
the redetermination of eligibility may be deferred beyond 12 months, to the end of the
student's school year; and
new text end

new text begin (4) a family and the family's providers must be notified that the family's redetermination
is due at least 45 days before the end of the family's 12-month eligibility period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 119B.025, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Changes in eligibility. new text end

new text begin (a) The county shall process a change in eligibility
factors according to paragraphs (b) to (g).
new text end

new text begin (b) A family is subject to the reporting requirements in section 256P.07.
new text end

new text begin (c) If a family reports a change or a change is known to the agency before the family's
regularly scheduled redetermination, the county must act on the change. The commissioner
shall establish standards for verifying a change.
new text end

new text begin (d) A change in income occurs on the day the participant received the first payment
reflecting the change in income.
new text end

new text begin (e) During a family's 12-month eligibility period, if the family's income increases and
remains at or below 85 percent of the state median income, adjusted for family size, there
is no change to the family's eligibility. The county shall not request verification of the
change. The co-payment fee shall not increase during the remaining portion of the family's
12-month eligibility period.
new text end

new text begin (f) During a family's 12-month eligibility period, if the family's income increases and
exceeds 85 percent of the state median income, adjusted for family size, the family is not
eligible for child care assistance. The family must be given 15 calendar days to provide
verification of the change. If the required verification is not returned or confirms ineligibility,
the family's eligibility ends following a subsequent 15-day adverse action notice.
new text end

new text begin (g) Notwithstanding Minnesota Rules, parts 3400.0040, subpart 3, and 3400.0170,
subpart 1, if an applicant or participant reports that employment ended, the agency may
accept a signed statement from the applicant or participant as verification that employment
ended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective the day following final
enactment. Paragraphs (c) to (g) are effective October 23, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 119B.03, subdivision 3, is amended to read:

Subd. 3.

Eligible participants.

Families that meet the eligibility requirements under
sections deleted text begin 119B.07, deleted text end 119B.09 deleted text begin , deleted text end and 119B.10, except MFIP participants, diversionary work
program, and transition year families are eligible for child care assistance under the basic
sliding fee program. Families enrolled in the basic sliding fee program shall be continued
until they are no longer eligible. Child care assistance provided through the child care fund
is considered assistance to the parent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

Portability pool.

(a) The commissioner shall establish a pool of up to five
percent of the annual appropriation for the basic sliding fee program to provide continuous
child care assistance for eligible families who move between Minnesota counties. At the
end of each allocation period, any unspent funds in the portability pool must be used for
assistance under the basic sliding fee program. If expenditures from the portability pool
exceed the amount of money available, the reallocation pool must be reduced to cover these
shortages.

(b) To be eligible for portable basic sliding fee assistance, a family that has moved from
a county in which it was receiving basic sliding fee assistance to a county with a waiting
list for the basic sliding fee program must:

(1) meet the income and eligibility guidelines for the basic sliding fee program; and

(2) notify the new county of residence within 60 days of moving and submit information
to the new county of residence to verify eligibility for the basic sliding fee program.

(c) The receiving county must:

(1) accept administrative responsibility for applicants for portable basic sliding fee
assistance at the end of the two months of assistance under the Unitary Residency Act;

(2) continue new text begin portability pool new text end basic sliding fee assistance deleted text begin for the lesser of six months or deleted text end
until the family is able to receive assistance under the county's regular basic sliding program;
and

(3) notify the commissioner through the quarterly reporting process of any family that
meets the criteria of the portable basic sliding fee assistance pool.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 119B.05, subdivision 1, is amended to read:

Subdivision 1.

Eligible participants.

Families eligible for child care assistance under
the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements of
section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or other
employment or training activities that are included in an approved employability development
plan under section 256J.95;

(4) MFIP families who are participating in work job search, job support, employment,
or training activities as required in their employment plan, or in appeals, hearings,
assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter 256J
as required in their employment plan approved according to chapter 256J;

(6) families who are participating in services or activities that are included in an approved
family stabilization plan under section 256J.575;

(7) families who are participating in programs as required in tribal contracts under section
119B.02, subdivision 2, or 256.01, subdivision 2;

(8) families who are participating in the transition year extension under section 119B.011,
subdivision 20a; deleted text begin and
deleted text end

(9) student parents as defined under section 119B.011, subdivision 19b deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) student parents who turn 21 years of age and who continue to meet the other
requirements under section 119B.011, subdivision 19b. A student parent continues to be
eligible until the student parent is approved for basic sliding fee child care assistance or
until the student parent's redetermination, whichever comes first. At the student parent's
redetermination, if the student parent was not approved for basic sliding fee child care
assistance, a student parent's eligibility ends following a 15-day adverse action notice.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 12.

Minnesota Statutes 2016, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

General eligibility requirements deleted text begin for all applicants for child care
assistance deleted text end .

(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 67 percent of the state median income,
adjusted for family size, new text begin at application and redetermination, new text end and meet the requirements of
section 119B.05; receive MFIP assistance; and are participating in employment and training
services under chapter 256J; or

(2) have household income less than or equal to 47 percent of the state median income,
adjusted for family size, at deleted text begin program entry deleted text end new text begin application new text end and less than or equal to 67 percent
of the state median income, adjusted for family size, at deleted text begin program exit deleted text end new text begin redetermination 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 new text begin at application and
redetermination new text end 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 (d) All applicants for child care assistance and families currently receiving child care
assistance must pay the co-payment fee under section 119B.12, subdivision 2, as a condition
of eligibility. The co-payment fee may include additional recoupment fees due to a child
care assistance program overpayment.
new text end

new text begin (e) At application and redetermination, a family must self-certify that the value of the
family's assets is less than or equal to $1,000,000 as a condition of eligibility. The
commissioner shall establish procedures to determine the value of countable assets when a
family self-certifies that the value of the family's assets is greater than $1,000,000. The
value of countable assets must be less than or equal to $1,000,000 as a condition of eligibility
at application and redetermination.
new text end

new text begin (f) If a family has one child with a child care authorization and the child turns 13 years
of age or the child has a disability and turns 15 years of age, the family remains eligible
until the redetermination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (c) are effective October 23, 2017. Paragraph
(d) is effective the day following final enactment. Paragraph (e) is effective February 26,
2018. Paragraph (f) is effective December 18, 2017.
new text end

Sec. 13.

Minnesota Statutes 2016, section 119B.09, subdivision 4, is amended to read:

Subd. 4.

Eligibility; annual income; calculation.

new text begin (a) new text end Annual income of the applicant
family is the current monthly income of the family multiplied by 12 or the income for the
12-month period immediately preceding the date of application, or income calculated by
the method which provides the most accurate assessment of income available to the family.

new text begin (b) new text end Self-employment income must be calculated based on deleted text begin gross receipts less operating
expenses. Income must be recalculated when the family's income changes, but no less often
than every six months. For a family where at least one parent is under the age of 21, does
not have a high school or general equivalency diploma, and is a student in a school district
or another similar program that provides or arranges for child care, as well as parenting,
social services, career and employment supports, and academic support to achieve high
school graduation, income must be recalculated when the family's income changes, but
otherwise shall be deferred beyond six months, but not to exceed 12 months, to the end of
the student's school year deleted text end new text begin section 256P.05 new text end .

new text begin (c) Income changes are processed under section 119B.025, subdivision 4. new text end Included lump
sums counted as income under section 256P.06, subdivision 3, must be annualized over 12
months. Income must be verified with documentary evidence. If the applicant does not have
sufficient evidence of income, verification must be obtained from the source of the income.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective July 30, 2018. Paragraph (c) is effective October 23, 2017.
new text end

Sec. 14.

new text begin [119B.095] CHILD CARE AUTHORIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin General authorization requirements. new text end

new text begin (a) When authorizing the amount
of child care, the county agency must consider the amount of time the parent reports on the
application or redetermination form that the child attends preschool, a Head Start program,
or school while the parent is participating in an authorized activity.
new text end

new text begin (b) Care must be authorized and scheduled with a provider based on the applicant's or
participant's verified activity schedule if:
new text end

new text begin (1) the family requests care from more than one provider per child;
new text end

new text begin (2) the family requests care from a legal nonlicensed provider; or
new text end

new text begin (3) an applicant or participant is employed by any business that is licensed by the
Department of Human Services or enrolled in medical assistance as verified through the
department's Web site.
new text end

new text begin (c) If the conditions in paragraph (b) do not apply, the county does not need to verify
the applicant's or participant's activity schedule and the amount of child care assistance
authorized may be used at times determined by the family.
new text end

new text begin (d) If the family remains eligible at redetermination, a new authorization with fewer
hours, the same hours, or increased hours may be determined.
new text end

new text begin Subd. 2. new text end

new text begin Maintain steady child care authorizations. new text end

new text begin (a) Notwithstanding Minnesota
Rules, chapter 3400, the amount of child care authorized under section 119B.10 for
employment, education, or an MFIP or DWP employment plan shall continue at the same
number of hours or more hours until redetermination, including:
new text end

new text begin (1) if the other parent moves in and is employed or has an education plan under section
119B.10, subdivision 3, or has an MFIP or DWP employment plan; or
new text end

new text begin (2) if a participant's work hours are reduced or a participant temporarily stops working
or attending an approved education program. Temporary changes include but are not limited
to a medical leave, seasonal employment fluctuations, or a school break between semesters.
new text end

new text begin (b) The county may increase the amount of child care authorized at any time if the
participant verifies the need for increased hours for authorized activities.
new text end

new text begin (c) The county may reduce the amount of child care authorized if a parent requests a
reduction or because of a change in:
new text end

new text begin (1) the child's school schedule;
new text end

new text begin (2) the custody schedule; or
new text end

new text begin (3) the provider's availability.
new text end

new text begin (d) If a child reaches 13 years of age or a child with a disability reaches 15 years of age,
the amount of child care authorized shall continue at the same number of hours or more
hours until redetermination.
new text end

new text begin (e) The amount of child care authorized for a family subject to subdivision 1, paragraph
(b), must change when the participant's activity schedule changes. Paragraph (a) does not
apply to a family subject to subdivision 1, paragraph (b).
new text end

new text begin Subd. 3. new text end

new text begin Assistance for persons who are homeless. new text end

new text begin An applicant who is homeless and
is eligible for child care assistance under this chapter is eligible for 60 hours of child care
assistance per service period for three months from the date the county receives the
application. Additional hours may be authorized as needed based on the applicant's
participation in an employment, education, or MFIP or DWP employment plan. To continue
receiving child care assistance after the initial three months, the applicant must verify that
the applicant meets eligibility and activity requirements for child care assistance under this
chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 15.

Minnesota Statutes 2016, section 119B.10, subdivision 1, is amended to read:

Subdivision 1.

Assistance for persons seeking and retaining employment.

(a) deleted text begin Persons
who are seeking employment deleted text end new text begin An applicant who is job searching and who is eligible for
child care assistance under this chapter is eligible for 60 hours of child care assistance per
service period for three months from the date of eligibility. Job searching at initial application
is allowed one time per 12-month period. The applicant must meet employment requirements
under paragraph (c) or education requirements under subdivision 3, or have an MFIP or
DWP employment plan, to continue receiving child care assistance after the initial three
months.
new text end

new text begin (b) A participant who meets the employment requirements of paragraph (c) or who is
attending an approved education or training program under subdivision 3 new text end and who deleted text begin are
eligible for deleted text end new text begin is receiving child care new text end assistance under this deleted text begin section are deleted text end new text begin chapter is new text end eligible to
receive deleted text begin up to 240 deleted text end new text begin an additional ten new text end hours of child care assistance per deleted text begin calendar year deleted text end new text begin service
period for job search new text end .

deleted text begin (b) deleted text end new text begin (c) At application and redetermination, new text end employed persons who work at least an
average of 20 hours and full-time students who work at least an average of ten hours a week
and receive at least a minimum wage for all hours worked are eligible for deleted text begin continued deleted text end child
care assistance for employment. For purposes of this section, work-study programs must
be counted as employment. new text begin An employed person with an MFIP or DWP employment plan
shall receive child care assistance as specified in the person's employment plan. new text end Child care
assistance during employment must be authorized as provided in paragraphs deleted text begin (c) and deleted text end (d) new text begin and
(e) new text end .

deleted text begin (c) deleted text end new text begin (d) new text end When the person works for an hourly wage and the hourly wage is equal to or
greater than the applicable minimum wage, child care assistance shall be provided for the
deleted text begin actual deleted text end hours of employment, break, and mealtime during the employment and travel time
up to two hours per day.

deleted text begin (d) deleted text end new text begin (e) new text end When the person does not work for an hourly wage, child care assistance must
be provided for the lesser of:

(1) the amount of child care determined by dividing gross earned income new text begin or, for a
self-employed person, the self-employment income determined under section 256P.05,
subdivision 2, new text end by the applicable minimum wage, up to one hour every eight hours for meals
and break time, plus up to two hours per day for travel time; or

(2) the amount of child care equal to the actual amount of child care used during
employment, including break and mealtime during employment, and travel time up to two
hours per day.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) to (d) are effective December 18, 2017. Paragraph
(e) is effective July 30, 2018.
new text end

Sec. 16.

Minnesota Statutes 2016, section 119B.10, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Assistance for persons attending an approved education or training
program. new text end

new text begin (a) Money for an eligible person according to sections 119B.03, subdivision 3,
and 119B.05, subdivision 1, shall be used to reduce child care costs for a student. The county
shall not limit the duration of child care subsidies for a person in an employment or
educational program unless the person is ineligible for child care funds. Any other limitation
must be based on county policies included in the approved child care fund plan.
new text end

new text begin (b) To be eligible, the student must be in good standing and be making satisfactory
progress toward the degree. The maximum length of time a student is eligible for child care
assistance under the child care fund for education and training is no more than the time
necessary to complete the credit requirements for an associate's or baccalaureate degree as
determined by the educational institution. Time limitations for child care assistance do not
apply to basic or remedial educational programs needed for postsecondary education or
employment. Basic or remedial educational programs include high school, general
equivalency diploma, and English as a second language programs. A program exempt from
this time limit must not run concurrently with a postsecondary program.
new text end

new text begin (c) If a student meets the conditions of paragraphs (a) and (b), child care assistance must
be authorized for all hours of class time and credit hours, including independent study and
internships, and up to two hours of travel time per day. A postsecondary student shall receive
four hours of child care assistance per credit hour for study time and academic appointments
per service period.
new text end

new text begin (d) For an MFIP or DWP participant, child care assistance must be authorized according
to the person's approved employment plan. If an MFIP or DWP participant receiving MFIP
or DWP child care assistance under this chapter moves to another county, continues to
participate in an authorized educational or training program, and remains eligible for MFIP
or DWP child care assistance, the participant must receive continued child care assistance
from the county responsible for the person's current employment plan under section 256G.07.
new text end

new text begin (e) If a person with an approved education program under section 119B.03, subdivision
3, or 119B.05, subdivision 1, begins receiving MFIP or DWP assistance, the person continues
to receive child care assistance for the approved education program until the person's
education is included in an approved MFIP or DWP employment plan or until
redetermination, whichever occurs first.
new text end

new text begin (f) If a person's MFIP or DWP assistance ends and the approved MFIP or DWP
employment plan included education, the person continues to be eligible for child care
assistance for education under transition year child care assistance until the person's education
is included in an approved education plan or until redetermination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 17.

new text begin [119B.105] EXTENDED ELIGIBILITY AND AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Three-month extended eligibility period. new text end

new text begin (a) A family in a situation
under paragraph (b) continues to be eligible for up to three months or until the family's
redetermination, whichever occurs first, rather than losing eligibility or having the family's
eligibility suspended. During extended eligibility, the amount of child care authorized shall
continue at the same number or more hours. The family must continue to meet all other
eligibility requirements under this chapter.
new text end

new text begin (b) The family's three-month extended eligibility period applies if:
new text end

new text begin (1) a participant's employment or education program ends permanently;
new text end

new text begin (2) the other parent moves in and does not participate in an authorized activity;
new text end

new text begin (3) a participant's MFIP assistance ends and the participant is not participating in an
authorized activity or the participant's participation in an authorized activity is unknown;
new text end

new text begin (4) a student parent under section 119B.011, subdivision 19b, stops attending school;
or
new text end

new text begin (5) a participant receiving basic sliding fee child care assistance or transition year child
care assistance applied for MFIP assistance and is not participating in an authorized activity
or the participant's participation in an authorized activity is unknown.
new text end

new text begin Subd. 2. new text end

new text begin Extended eligibility and redetermination. new text end

new text begin (a) If the family received three
months of extended eligibility and redetermination is not due, to continue receiving child
care assistance the participant must be employed or have an education plan that meets the
requirements of section 119B.10, subdivision 3, or have an MFIP or DWP employment
plan. If child care assistance continues, the amount of child care authorized shall continue
at the same number or more hours until redetermination, unless a condition in section
119B.095, subdivision 2, paragraph (c), applies. A family subject to section 119B.095,
subdivision 1, paragraph (b), shall have child care authorized based on a verified activity
schedule.
new text end

new text begin (b) If the family's redetermination occurs before the end of the three-month extended
eligibility period to continue receiving child care assistance, the participant must verify that
the participant meets eligibility and activity requirements for child care assistance under
this chapter. If child care assistance continues, the amount of child care authorized is based
on section 119B.10. A family subject to section 119B.095, subdivision 1, paragraph (b),
shall have child care authorized based on a verified activity schedule.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 18.

Minnesota Statutes 2016, section 119B.11, subdivision 2a, is amended to read:

Subd. 2a.

Recovery of overpayments.

(a) An amount of child care assistance paid to a
recipient in excess of the payment due is recoverable by the county agency under paragraphs
(b) and (c), even when the overpayment was caused by agency error or circumstances outside
the responsibility and control of the family or provider.

(b) new text begin (1) new text end An overpayment deleted text begin must be recouped or recovered from the family if the overpayment deleted text end
new text begin that new text end benefited the family by causing the family to pay less for child care expenses than the
family otherwise would have been required to pay under deleted text begin child care assistance program
requirements. deleted text end new text begin this chapter must be established and recovered according to this paragraph,
with the following exceptions:
new text end

new text begin (i) an overpayment estimated to be less than $500 must not be established or collected;
new text end

new text begin (ii) the portion of an overpayment that occurred more than one year before the date of
overpayment determination must not be established or collected; or
new text end

new text begin (iii) an overpayment designated solely as agency error must not be established or
collected.
new text end

new text begin (2) new text end If the family remains eligible for child care assistance new text begin and an overpayment is
established new text end , the overpayment must be recovered through recoupment as identified in
Minnesota Rules, part 3400.0187, except that the overpayments must be calculated and
collected on a service period basis. deleted text begin If the family no longer remains eligible for child care
assistance, the county may choose to initiate efforts to recover overpayments from the family
for overpayment less than $50. If the overpayment is greater than or equal to $50,
deleted text end

new text begin (3) If the family is no longer eligible for child care assistance and an overpayment is
established, new text end the county shall seek voluntary repayment of the overpayment from the family.

new text begin (4) new text end If the county is unable to recoup the overpayment through voluntary repayment, the
county shall initiate civil court proceedings to recover the overpayment unless the county's
costs to recover the overpayment will exceed the amount of the overpayment.

new text begin (5) new text end A family with an outstanding debt under this subdivision is not eligible for child care
assistance until:

deleted text begin (1) deleted text end new text begin (i) new text end the debt is paid in full; or

deleted text begin (2) deleted text end new text begin (ii) new text end satisfactory arrangements are made with the county to retire the debt consistent
with the requirements of this chapter and Minnesota Rules, chapter 3400, and the family is
in compliance with the arrangements.

(c) The county must recover an overpayment from a provider if the overpayment did
not benefit the family by causing it to receive more child care assistance or to pay less for
child care expenses than the family otherwise would have been eligible to receive or required
to pay under child care assistance program requirements, and benefited the provider by
causing the provider to receive more child care assistance than otherwise would have been
paid on the family's behalf under child care assistance program requirements. If the provider
continues to care for children receiving child care assistance, the overpayment must be
recovered through reductions in child care assistance payments for services as described in
an agreement with the county. The provider may not charge families using that provider
more to cover the cost of recouping the overpayment. If the provider no longer cares for
children receiving child care assistance, the county may choose to initiate efforts to recover
overpayments of less than $50 from the provider. If the overpayment is greater than or equal
to $50, the county shall seek voluntary repayment of the overpayment from the provider.
If the county is unable to recoup the overpayment through voluntary repayment, the county
shall initiate civil court proceedings to recover the overpayment unless the county's costs
to recover the overpayment will exceed the amount of the overpayment. A provider with
an outstanding debt under this subdivision is not eligible to care for children receiving child
care assistance until:

(1) the debt is paid in full; or

(2) satisfactory arrangements are made with the county to retire the debt consistent with
the requirements of this chapter and Minnesota Rules, chapter 3400, and the provider is in
compliance with the arrangements.

(d) When both the family and the provider acted together to intentionally cause the
overpayment, both the family and the provider are jointly liable for the overpayment
regardless of who benefited from the overpayment. The county must recover the overpayment
as provided in paragraphs (b) and (c). When the family or the provider is in compliance
with a repayment agreement, the party in compliance is eligible to receive child care
assistance or to care for children receiving child care assistance despite the other party's
noncompliance with repayment arrangements.

new text begin (e) A provider overpayment designated as an agency error because of the application of
an incorrect maximum rate must not be established or collected. Any other provider
overpayment designated as agency error must be established and collected.
new text end

new text begin (f) Notwithstanding any provision to the contrary in this subdivision, an overpayment
must be established and collected if the overpayment was caused in any part by wrongfully
obtaining assistance under section 256.98 or by benefits paid while an action is pending
appeal under section 119B.16, if on appeal the commissioner finds that the appellant was
ineligible for the amount of child care assistance paid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 19.

Minnesota Statutes 2016, section 119B.12, subdivision 2, is amended to read:

Subd. 2.

Parent fee.

A family must be assessed a parent fee for each service period. A
family's parent fee must be a fixed percentage of its annual gross income. Parent fees must
apply to families eligible for child care assistance under sections 119B.03 and 119B.05.
Income must be as defined in section 119B.011, subdivision 15. The fixed deleted text begin percent deleted text end new text begin percentage
new text end is based on the relationship of the family's annual gross income to 100 percent of the annual
state median income. Parent fees must begin at 75 percent of the poverty level. The minimum
parent fees for families between 75 percent and 100 percent of poverty level must be $2 per
biweekly period. Parent fees must provide for graduated movement to full payment. new text begin At
initial application, the parent fee is established for the family's 12-month eligibility period.
At redetermination, if the family remains eligible, the parent fee is recalculated and is
established for the next 12-month eligibility period. A parent fee shall not increase during
the 12-month eligibility period. new text end Payment of part or all of a family's parent fee directly to
the family's child care provider on behalf of the family by a source other than the family
shall not affect the family's eligibility for child care assistance, and the amount paid shall
be excluded from the family's income. Child care providers who accept third-party payments
must maintain family specific documentation of payment source, amount, and time period
covered by the payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 23, 2017.
new text end

Sec. 20.

Minnesota Statutes 2016, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) Beginning February deleted text begin 3, 2014 deleted text end new text begin 26, 2018 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 the greater of the 25th percentile of the deleted text begin 2011 deleted text end new text begin 2016 new text end child care provider
rate survey or the maximum rate effective deleted text begin November 28, 2011 deleted text end new text begin February 3, 2014 new text end . 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.

(b) A rate which includes a special needs rate paid under subdivision 3 may be in excess
of the maximum rate allowed under this subdivision.

(c) 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. The
maximum payment to a provider for one day of care must not exceed the daily rate. The
maximum payment to a provider for one week of care must not exceed the weekly rate.

(d) 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.

(e) When 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.

(f) All maximum provider rates changes shall be implemented on the Monday following
the effective date of the maximum provider rate.

(g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum registration
fees in effect on January 1, 2013, shall remain in effect.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective February 26, 2018.
new text end

Sec. 21.

Minnesota Statutes 2016, section 119B.13, subdivision 6, is amended to read:

Subd. 6.

Provider payments.

(a) new text begin A provider must bill only for services documented
according to section 119B.125, subdivision 6. new text end The provider shall bill for services provided
within ten days of the end of the service period. deleted text begin If bills are submitted within ten days of the
end of the service period, deleted text end Payments under the child care fund shall be made within deleted text begin 30 deleted text end new text begin 21
new text end days of receiving a new text begin complete new text end bill from the provider. Counties or the state may establish
policies that make payments on a more frequent basis.

(b) If a provider has received an authorization of care and been issued a billing form for
an eligible family, the bill must be submitted within 60 days of the last date of service on
the bill. A bill submitted more than 60 days after the last date of service must be paid if the
county determines that the provider has shown 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.
Any bill submitted more than a year after the last date of service on the bill must not be
paid.

(c) 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.

(d) A county or the commissioner may refuse to issue a child care authorization to a
licensed or legal nonlicensed provider, revoke an existing child care authorization to a
licensed or legal nonlicensed provider, stop payment issued to a licensed or legal nonlicensed
provider, or refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:

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

(2) a county or the commissioner finds by a preponderance of the evidence that the
provider intentionally gave the county materially false information on the provider's billing
forms, or provided false attendance records to a county or the commissioner;

(3) the provider is in violation of child care assistance program rules, until the agency
determines those violations have been corrected;

(4) the provider is operating after:

(i) an order of suspension of the provider's license issued by the commissioner;

(ii) an order of revocation of the provider's license; or

(iii) a final order of conditional license issued by the commissioner for as long as the
conditional license is in effect;

(5) the provider submits false attendance reports or refuses to provide documentation
of the child's attendance upon request; or

(6) the provider gives false child care price information.

(e) For purposes of paragraph (d), clauses (3), (5), and (6), the county or the commissioner
may withhold the provider's authorization or payment for a period of time not to exceed
three months beyond the time the condition has been corrected.

(f) 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.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective September 25, 2017.
new text end

Sec. 22.

Minnesota Statutes 2016, section 256P.05, subdivision 1, is amended to read:

Subdivision 1.

Exempted programs.

deleted text begin Participants deleted text end new text begin A participant new text end who deleted text begin qualify deleted text end new text begin qualifies new text end
for deleted text begin child care assistance programs under chapter 119B, deleted text end Minnesota supplemental aid under
chapter 256D deleted text begin , deleted text end and group residential housing under chapter 256I on the basis of eligibility
for Supplemental Security Income deleted text begin are deleted text end new text begin is new text end exempt from this section. new text begin A participant who qualifies
for a child care assistance program under chapter 119B is subject to subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 30, 2018.
new text end

Sec. 23.

Minnesota Statutes 2016, section 256P.07, subdivision 3, is amended to read:

Subd. 3.

Changes that must be reported.

An assistance unit must report the changes
or anticipated changes specified in clauses (1) to (12) within ten days of the date they occur,
at the time of recertification of eligibility under section 256P.04, subdivisions 8 and 9, or
within eight calendar days of a reporting period, whichever occurs first. An assistance unit
must report other changes at the time of recertification of eligibility under section 256P.04,
subdivisions 8 and 9, or at the end of a reporting period, as applicable. When an agency
could have reduced or terminated assistance for one or more payment months if a delay in
reporting a change specified under clauses (1) to (12) had not occurred, the agency must
determine whether a timely notice could have been issued on the day that the change
occurred. When a timely notice could have been issued, each month's overpayment
subsequent to that notice must be considered a client error overpayment under section
119B.11, subdivision 2a, or 256P.08. Changes in circumstances that must be reported within
ten days must also be reported for the reporting period in which those changes occurred.
Within ten days, an assistance unit must report:

(1) a change in earned income of $100 per month or greater new text begin with the exception of a
program under chapter 119B new text end ;

(2) a change in unearned income of $50 per month or greater new text begin with the exception of a
program under chapter 119B new text end ;

(3) a change in employment status and hours new text begin with the exception of a program under
chapter 119B new text end ;

(4) a change in address or residence;

(5) a change in household composition with the exception of programs under chapter
256I;

(6) a receipt of a lump-sum payment new text begin with the exception of a program under chapter
119B new text end ;

(7) an increase in assets if over $9,000 with the exception of programs under chapter
119B;

(8) a change in citizenship or immigration status;

(9) a change in family status with the exception of programs under chapter 256I;

(10) a change in disability status of a unit member, with the exception of programs under
chapter 119B;

(11) a new rent subsidy or a change in rent subsidy new text begin with the exception of a program
under chapter 119B new text end ; and

(12) a sale, purchase, or transfer of real property new text begin with the exception of a program under
chapter 119B new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 24.

Minnesota Statutes 2016, section 256P.07, subdivision 6, is amended to read:

Subd. 6.

Child care assistance programs-specific reporting.

new text begin (a) new text end In addition to
subdivision 3, an assistance unit under chapter 119B, within ten days of the change, must
report:

(1) a change in a parentally responsible individual's deleted text begin visitation schedule or deleted text end custody
deleted text begin arrangement deleted text end new text begin schedule new text end for any child receiving child care assistance program benefits; deleted text begin and
deleted text end

(2) a deleted text begin change in deleted text end new text begin permanent end in a parentally responsible individual's new text end authorized activity
deleted text begin status. deleted text end new text begin ; and
new text end

new text begin (3) if the unit's family's annual included income exceeds 85 percent of the state median
income, adjusted for family size.
new text end

new text begin (b) An assistance unit subject to section 119B.095, subdivision 1, paragraph (b), must
report a change in the unit's authorized activity status.
new text end

new text begin (c) An assistance unit must notify the county when the unit wants to reduce the number
of authorized hours for children in the unit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 18, 2017.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 119B.07, new text end new text begin is repealed effective December 18, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: H1458-1

119B.07 USE OF MONEY.

(a) Money for persons listed in sections 119B.03, subdivision 3, and 119B.05, subdivision 1, shall be used to reduce the costs of child care for students, including the costs of child care for students while employed if enrolled in an eligible education program at the same time and making satisfactory progress towards completion of the program. Counties may not limit the duration of child care subsidies for a person in an employment or educational program, except when the person is found to be ineligible under the child care fund eligibility standards. Any limitation must be based on a person's employment plan in the case of an MFIP participant, and county policies included in the child care fund plan. The maximum length of time a student is eligible for child care assistance under the child care fund for education and training is no more than the time necessary to complete the credit requirements for an associate or baccalaureate degree as determined by the educational institution, excluding basic or remedial education programs needed to prepare for postsecondary education or employment.

(b) To be eligible, the student must be in good standing and be making satisfactory progress toward the degree. Time limitations for child care assistance do not apply to basic or remedial educational programs needed to prepare for postsecondary education or employment. These programs include: high school, general equivalency diploma, and English as a second language. Programs exempt from this time limit must not run concurrently with a postsecondary program. If an MFIP participant who is receiving MFIP child care assistance under this chapter moves to another county, continues to participate in educational or training programs authorized in their employment plans, and continues to be eligible for MFIP child care assistance under this chapter, the MFIP participant must receive continued child care assistance from the county responsible for their current employment plan, under section 256G.07.