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HF 1861

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2015 02:57pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/16/2015

Current Version - as introduced

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A bill for an act
relating to human services; increasing funding for early education programs;
creating transferability for early learning scholarships; enhancing participation in
the Parent Aware program; modifying child care assistance program maximum
reimbursement rates; appropriating money; amending Minnesota Statutes 2014,
sections 119B.13, subdivisions 1, 3b; 124D.16, subdivision 2; 124D.165,
subdivision 3, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 119B.13, subdivision 1, is amended to read:


Subdivision 1.

Subsidy restrictions.

(a) Beginning deleted text begin February 3, 2014deleted text end new text begin July 1, 2015new 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 deleted text begin 25thdeleted text end new text begin 30thnew text end percentile of the deleted text begin 2011deleted text end new text begin most recent
biennial
new text end child care provider rate survey or the maximum rate effective November 28, 2011.
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.

Sec. 2.

Minnesota Statutes 2014, section 119B.13, subdivision 3b, is amended to read:


Subd. 3b.

Provider rate differential for Parent Aware.

A family child care
provider or child care center shall be paid a new text begin five percent differential if they hold a one-star
Parent Aware rating, a ten percent differential if they hold a two-star Parent Aware rating,
a
new text end 15 percent differential if they hold a three-star Parent Aware ratingnew text begin ,new text end or a 20 percent
differential if they hold a four-star Parent Aware rating. A new text begin five percent, ten percent, new text end 15
percentnew text begin ,new text end or 20 percent rate differential must be paid above the maximum rate established
in subdivision 1, up to the actual provider rate.

Sec. 3.

Minnesota Statutes 2014, section 124D.16, subdivision 2, is amended to read:


Subd. 2.

Amount of aid.

(a) A district is eligible to receive school readiness aid
for eligible prekindergarten pupils enrolled in a school readiness program under section
124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
approved by the commissioner.

(b) A district must receive school readiness aid equal to:

(1) the number of four-year-old children in the district on October 1 for the previous
school year times the ratio of 50 percent of the total school readiness aid for that year to
the total number of four-year-old children reported to the commissioner for the previous
school year; plus

(2) the number of pupils enrolled in the school district from families eligible for the
free or reduced school lunch program for the previous school year times the ratio of
50 percent of the total school readiness aid for that year to the total number of pupils
in the state from families eligible for the free or reduced school lunch program for the
previous school year.

(c) deleted text begin For fiscal year 2015 and later,deleted text end The total school readiness aid entitlement equals
$12,170,000new text begin for fiscal year 2015, $47,170,000 for fiscal year 2016, and $52,170,000 for
fiscal year 2017 and later
new text end .

Sec. 4.

Minnesota Statutes 2014, section 124D.165, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Transferability of scholarships. new text end

new text begin If accepted into a program operated by
another qualifying provider, a child who receives a scholarship under this section may
transfer from one program to another program, and the prorated remaining portion of
the scholarship for that year is transferred to the new serving program. For purposes of
this section, the commissioner shall prorate scholarship payments based on the portion
of the state fiscal year, as measured by hours of service, that the child attends each of
the qualifying programs.
new text end

Sec. 5.

Minnesota Statutes 2014, section 124D.165, subdivision 3, is amended to read:


Subd. 3.

Administration.

(a) The commissioner shall establish application
timelines and determine the schedule for awarding scholarships that meets operational
needs of eligible families and programs. The commissioner may prioritize applications on
factors including family income, geographic location, and whether the child's family is on a
waiting list for a publicly funded program providing early education or child care services.

(b) deleted text begin For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000 per year
for each eligible child.
deleted text end For fiscal year 2016 and later, the commissioner shall new text begin not new text end establish
a deleted text begin target for the averagedeleted text end new text begin cap for thenew text end scholarship amount per child deleted text begin based on the results of the
rate survey conducted under section 119B.02
deleted text end new text begin , but rather, determine scholarship amounts
based on actual program costs
new text end .

(c) A four-star rated program that has children eligible for a scholarship enrolled
in or on a waiting list for a program beginning in July, August, or September may notify
the commissioner, in the form and manner prescribed by the commissioner, each year
of the program's desire to enhance program services or to serve more children than
current funding provides. The commissioner may designate a predetermined number of
scholarship slots for that program and notify the program of that number. Beginning
July 1, 2016, a school district or Head Start program qualifying under this paragraph
may use its established registration process to enroll scholarship recipients and may
verify a scholarship recipient's family income in the same manner as for other program
participants.new text begin If a child with a scholarship withdraws from a predetermined slot approved
under this paragraph and transfers to another qualifying program, the program shall enroll
the next child on the waiting list to fill this vacant slot.
new text end

(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
not been accepted and subsequently enrolled in a rated program within ten months of the
awarding of the scholarship, the scholarship cancels and the recipient must reapply in
order to be eligible for another scholarship. A child may not be awarded more than one
scholarship in a 12-month periodnew text begin , however a child may transfer the remaining portion of a
scholarship to a qualifying provider under subdivision 2a
new text end .

(e) A child who receives a scholarship who has not completed development
screening under sections 121A.16 to 121A.19 must complete that screening within 90
days of first attending an eligible program.

(f) For fiscal year 2017 and later, a school district or Head Start program enrolling
scholarship recipients under paragraph (c) may apply to the commissioner, in the form
and manner prescribed by the commissioner, for direct payment of state aid. Upon receipt
of the application, the commissioner must pay each program directly for each approved
scholarship recipient enrolled under paragraph (c) according to the metered payment
system or another schedule established by the commissioner.

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin As designated. new text end

new text begin The sums indicated in this section are appropriated
from the general fund to the commissioner of education, unless otherwise specified, for
the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin School readiness aid. new text end

new text begin For school readiness aid, under Minnesota Statutes,
section 124D.16:
new text end

new text begin $
new text end
new text begin 43,630,000
new text end
new text begin .....
new text end
new text begin 2016
new text end
new text begin $
new text end
new text begin 51,670,000
new text end
new text begin .....
new text end
new text begin 2017
new text end

new text begin The 2016 appropriation includes $1,217,000 for fiscal year 2015 and $42,453,000
for fiscal year 2016.
new text end

new text begin The 2017 appropriation includes $4,717,000 for fiscal year 2016 and $46,953,000
for fiscal year 2017.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 3. new text end

new text begin Early learning scholarships. new text end

new text begin For transfer to the Office of Early Learning
for early learning scholarships, under Minnesota Statutes, section 124D.165:
new text end

new text begin $
new text end
new text begin 62,884,000
new text end
new text begin .....
new text end
new text begin 2016
new text end
new text begin $
new text end
new text begin 67,884,000
new text end
new text begin .....
new text end
new text begin 2017
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 4. new text end

new text begin Child care assistance. new text end

new text begin (a) To the commissioner of human services for
child care assistance programs, for the purposes of the reimbursement rate increase under
Minnesota Statutes, section 119B.13, subdivision 1, and to serve families on the basic
sliding fee waiting list under Minnesota Statutes, section 119B.03, subdivision 2:
new text end

new text begin $
new text end
new text begin 30,000,000
new text end
new text begin .....
new text end
new text begin 2016
new text end
new text begin $
new text end
new text begin 45,000,000
new text end
new text begin .....
new text end
new text begin 2017
new text end

new text begin (b) The appropriations in paragraph (a) are in addition to the base budget amounts
and any other money approved for this program.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 5. new text end

new text begin Parent Aware. new text end

new text begin (a) To the commissioner of human services for the
purposes of expanding the Parent Aware Quality Rating and Improvement System under
Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports
for provider participation in Parent Aware:
new text end

new text begin $
new text end
new text begin 9,000,000
new text end
new text begin .....
new text end
new text begin 2016
new text end
new text begin $
new text end
new text begin 9,000,000
new text end
new text begin .....
new text end
new text begin 2017
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 6. new text end

new text begin Parent Aware differential increases. new text end

new text begin To the commissioner of human
services for provider rate differentials for providers with a one-star or two-star Parent
Aware rating under Minnesota Statutes, section 119B.13, subdivision 3b:
new text end

new text begin $
new text end
new text begin 6,250,000
new text end
new text begin .....
new text end
new text begin 2016
new text end
new text begin $
new text end
new text begin 6,250,000
new text end
new text begin .....
new text end
new text begin 2017
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 7. new text end

new text begin Quality rating training grants. new text end

new text begin To the commissioner of human services
for grants to expand training for family child care providers and child care centers to
increase the number of providers and centers receiving quality ratings in the quality rating
and improvement system under Minnesota Statutes, section 124D.142:
new text end

new text begin $
new text end
new text begin 6,250,000
new text end
new text begin .....
new text end
new text begin 2016
new text end
new text begin $
new text end
new text begin 6,250,000
new text end
new text begin .....
new text end
new text begin 2017
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end