HF 1466

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/11/2022 11:27am

A bill for an act
relating to human services; modifying child care assistance and child care provider
provisions; amending Minnesota Statutes 2020, sections 119B.11, subdivision 2a;
119B.125, subdivision 1; 119B.13, subdivisions 6, 7; repealing Minnesota Statutes
2020, sections 119B.04; 119B.125, subdivision 5.

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

Section 1.

Minnesota Statutes 2020, 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 new text begin or provider new text end in excess of the payment due is recoverable by the county agency new text begin or
commissioner new text end 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) An overpayment must be recouped or recovered from the family if the overpayment
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 child care assistance program requirements.
If the family remains eligible for child care assistance, 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. If the family no
longer remains eligible for child care assistance, the county new text begin or commissioner new text end may choose
to initiate efforts to recover overpayments from the family for deleted text begin overpayment deleted text end new text begin overpayments new text end
less than $50 new text begin that were not the result of fraud under section 256.98, theft under section
609.52, or a federal crime relating to theft of state funds or fraudulent receipt of benefits
for a program administered by the county or commissioner new text end . If the overpayment is greater
than or equal to $50, new text begin or it resulted from fraud under section 256.98, theft under section
609.52, or a federal crime relating to theft of state funds or fraudulent receipt of benefits
for a program administered by the county or commissioner, new text end the county new text begin or commissioner
new text end shall seek voluntary repayment of the overpayment from the family. If the county new text begin or
commissioner new text end is unable to recoup the overpayment through voluntary repayment, the county
new text begin or commissioner new text end shall initiate civil court proceedings to recover the overpayment unless
the county's new text begin or commissioner's new text end costs to recover the overpayment will exceed the amount of
the overpayment. A family with an outstanding debt under this subdivision is not eligible
for child care assistance until: (1) the debt is paid in full; deleted text begin or deleted text end (2) satisfactory arrangements
are made with the county new text begin or commissioner new text end 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 new text begin ; or (3) the commissioner determines that it is in the best interests of the
state to compromise debts owed to the state pursuant to section 16D.15 new text end . new text begin The commissioner's
authority to recoup and recover overpayments from families in this paragraph is limited to
investigations conducted under chapter 245E.
new text end

(c) The county new text begin or commissioner new text end 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 deleted text begin reductions in child care assistance payments
for services as described in an agreement with the county deleted text end new text begin recoupment as identified in
Minnesota Rules, part 3400.0187 new text end . 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 new text begin or commissioner new text end may choose to initiate
efforts to recover overpayments of less than $50 new text begin that were not the result of fraud under
section 256.98, theft under section 609.52, or a federal crime relating to theft of state funds
or fraudulent billing for a program administered by the county or commissioner new text end from the
provider. If the overpayment is greater than or equal to $50, new text begin or it resulted from fraud under
section 256.98, theft under section 609.52, or a federal crime relating to theft of state funds
or fraudulent billing for a program administered by the county or commissioner, new text end the county
new text begin or commissioner new text end shall seek voluntary repayment of the overpayment from the provider. If
the county new text begin or commissioner new text end is unable to recoup the overpayment through voluntary
repayment, the county new text begin or commissioner new text end shall initiate civil court proceedings to recover the
overpayment unless the county's new text begin or commissioner's new text end 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; deleted text begin or
deleted text end

(2) satisfactory arrangements are made with the county new text begin or commissioner new text end 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 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) the commissioner determines that it is in the best interests of the state to compromise
debts owed to the state pursuant to section 16D.15.
new text end

(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 new text begin or commissioner new text end 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 EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 119B.125, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

deleted text begin Except as provided in subdivision 5, deleted text end A county or the
commissioner must authorize the provider chosen by an applicant or a participant before
the county can authorize payment for care provided by that provider. The commissioner
must establish the requirements necessary for authorization of providers. A provider must
be reauthorized every two years. A legal, nonlicensed family child care provider also must
be reauthorized when another person over the age of 13 joins the household, a current
household member turns 13, or there is reason to believe that a household member has a
factor that prevents authorization. The provider is required to report all family changes that
would require reauthorization. When a provider has been authorized for payment for
providing care for families in more than one county, the county responsible for
reauthorization of that provider is the county of the family with a current authorization for
that provider and who has used the provider for the longest length of time.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 119B.13, subdivision 6, is amended to read:

Subd. 6.

Provider payments.

(a) A provider shall bill only for services documented
according to section 119B.125, subdivision 6. The provider shall bill for services provided
within ten days of the end of the service period. Payments under the child care fund shall
be made within 21 days of receiving a complete 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
new text begin certified, new text end licensed new text begin , new text end or legal nonlicensed provider, revoke an existing child care authorization
to a new text begin certified, new text end licensed new text begin , new text end or legal nonlicensed provider, stop payment issued to a new text begin certified,
new text end licensed new text begin , new text end or legal nonlicensed provider, or refuse to pay a bill submitted by a new text begin certified,
new text end licensed new text begin , new text end 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 new text begin issued by the commissioner new text end ; or

(iii) deleted text begin a final order of conditional license issued by the commissioner for as long as the
conditional license is in effect deleted text end new text begin an order of decertification issued to the provider new text end ;

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

(6) the provider gives false child care price information; or

(7) the provider fails to report decreases in a child's attendance as required under section
119B.125, subdivision 9.

(e) For purposes of paragraph (d), clauses (3), (5), (6), and (7), 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 (g) If the commissioner or responsible county agency suspends or refuses payment to a
provider under paragraph (d), clause (1) or (2), or chapter 245E and the provider has:
new text end

new text begin (1) a disqualification for wrongfully obtaining assistance under section 256.98,
subdivision 8, paragraph (c);
new text end

new text begin (2) an administrative disqualification under section 256.046, subdivision 3; or
new text end

new text begin (3) a termination under section 245E.02, subdivision 4, paragraph (c), clause (4), or
245E.06;
new text end

new text begin then the provider forfeits the payment to the commissioner or the responsible county agency,
regardless of the amount assessed in an overpayment, charged in a criminal complaint, or
ordered as criminal restitution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, section 119B.13, subdivision 7, is amended to read:

Subd. 7.

Absent days.

(a) Licensed child care providers and license-exempt centers
must not be reimbursed for more than 25 full-day absent days per child, excluding holidays,
in a calendar year, or for more than ten consecutive full-day absent days. "Absent day"
means any day that the child is authorized and scheduled to be in care with a licensed
provider or license-exempt center, and the child is absent from the care for the entire day.
Legal nonlicensed family child care providers must not be reimbursed for absent days. If a
child attends for part of the time authorized to be in care in a day, but is absent for part of
the time authorized to be in care in that same day, the absent time must be reimbursed but
the time must not count toward the absent days limit. Child care providers must only be
reimbursed for absent days if the provider has a written policy for child absences and charges
all other families in care for similar absences.

(b) Notwithstanding paragraph (a), children with documented medical conditions that
cause more frequent absences may exceed the 25 absent days limit, or ten consecutive
full-day absent days limit. Absences due to a documented medical condition of a parent or
sibling who lives in the same residence as the child receiving child care assistance do not
count against the absent days limit in a calendar year. Documentation of medical conditions
must be on the forms and submitted according to the timelines established by the
commissioner. A public health nurse or school nurse may verify the illness in lieu of a
medical practitioner. If a provider sends a child home early due to a medical reason,
including, but not limited to, fever or contagious illness, the child care center director or
lead teacher may verify the illness in lieu of a medical practitioner.

(c) Notwithstanding paragraph (a), children in families may exceed the absent days limit
if at least one parent: (1) is under the age of 21; (2) does not have a high school diploma or
commissioner of education-selected high school equivalency certification; and (3) is a
student in a school district or another similar program that provides or arranges for child
care, parenting support, social services, career and employment supports, and academic
support to achieve high school graduation, upon request of the program and approval of the
county. If a child attends part of an authorized day, payment to the provider must be for the
full amount of care authorized for that day.

(d) Child care providers must be reimbursed for up to ten federal or state holidays or
designated holidays per year when the provider charges all families for these days and the
holiday or designated holiday falls on a day when the child is authorized to be in attendance.
Parents may substitute other cultural or religious holidays for the ten recognized state and
federal holidays. Holidays do not count toward the absent days limit.

(e) A family deleted text begin or child care provider deleted text end must not be assessed an overpayment for an absent
day payment unless (1) there was an error in the amount of care authorized for the family,
new text begin or new text end (2) all of the allowed full-day absent payments for the child have been paid deleted text begin , or (3) the
family or provider did not timely report a change as required under law deleted text end .

(f) The provider and family shall receive notification of the number of absent days used
upon initial provider authorization for a family and ongoing notification of the number of
absent days used as of the date of the notification.

(g) For purposes of this subdivision, "absent days limit" means 25 full-day absent days
per child, excluding holidays, in a calendar year; and ten consecutive full-day absent days.

(h) For purposes of this subdivision, "holidays limit" means ten full-day holidays per
child, excluding absent days, in a calendar year.

(i) If a day meets the criteria of an absent day or a holiday under this subdivision, the
provider must bill that day as an absent day or holiday. A provider's failure to properly bill
an absent day or a holiday results in an overpayment, regardless of whether the child reached,
or is exempt from, the absent days limit or holidays limit for the calendar year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, sections 119B.04; and 119B.125, subdivision 5, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2021.
new text end

APPENDIX

Repealed Minnesota Statutes: H1466-1

119B.04 FEDERAL CHILD CARE AND DEVELOPMENT FUND.

Subdivision 1.

Commissioner to administer program.

The commissioner is authorized and directed to receive, administer, and expend funds available under the child care and development fund under Public Law 104-193, Title VI.

Subd. 2.

Rulemaking authority.

The commissioner may adopt rules under chapter 14 to administer the child care and development fund.

119B.125 PROVIDER REQUIREMENTS.

No active language found for: 119B.125.5