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HF 2219

as introduced - 87th Legislature (2011 - 2012) Posted on 02/13/2012 11:54am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/13/2012

Current Version - as introduced

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A bill for an act
relating to human services; establishing the Child Care Affordability Act;
modifying child care assistance programs; appropriating money; amending
Minnesota Statutes 2010, sections 119B.02, subdivisions 1, 2; 119B.03,
subdivision 9; 119B.035, subdivision 1; 119B.05, subdivisions 1, 5; 119B.08,
subdivision 3; 119B.09, subdivisions 1, 4a; 119B.11, subdivision 1; 119B.231,
subdivision 5; 256.017, subdivision 9; Minnesota Statutes 2011 Supplement,
section 119B.13, subdivision 1; repealing Minnesota Statutes 2010, sections
119B.011, subdivision 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, 8;
119B.09, subdivision 3.

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

ARTICLE 1

CHILD CARE ASSISTANCE PROGRAMS

Section 1. new text beginSHORT TITLE.
new text end

new text begin Sections 2 to 13 may be cited as the "Child Care Affordability Act."
new text end

Sec. 2.

Minnesota Statutes 2010, 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. deleted text beginWithin the limits
of available appropriations,
deleted text end 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. 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. deleted text beginFederal 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.
deleted text end The deleted text begincountiesdeleted text endnew text begin commissionernew text end 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.

Sec. 3.

Minnesota Statutes 2010, section 119B.03, subdivision 9, is amended to read:


Subd. 9.

deleted text beginPortability pooldeleted text endnew text begin Family move; continued participationnew text end.

(a) deleted text beginThe
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.
deleted text end

deleted text begin (b) To be eligible for portable basic sliding fee assistance, a family that has moved
from a county in which it
deleted text endnew text begin A family receiving child care assistance under the child care fund
that has moved from a county in which the family
new text end was receiving deleted text beginbasic sliding feedeleted text end new text beginchild
care
new text endassistance to deleted text beginadeleted text end new text beginanother new text endcounty deleted text beginwith a waiting list for the basic sliding fee programdeleted text end
mustnew text begin be admitted into the receiving county's child care assistance program if the familynew text end:

(1) deleted text beginmeetdeleted text endnew text begin meetsnew text end the income and eligibility guidelines for the deleted text beginbasic sliding feedeleted text end new text beginchild
care assistance
new text endprogram; and

(2) deleted text beginnotifydeleted text end new text beginnotifies new text endthe new county of residence within 60 days of moving and deleted text beginsubmitdeleted text end
new text begin submits new text endinformation to the new county of residence to verify eligibility for the deleted text beginbasic
sliding fee
deleted text endnew text begin child care assistancenew text end program.

deleted text begin (c)deleted text endnew text begin (b)new text end The receiving county mustdeleted text begin:
deleted text end

deleted text begin (1)deleted text end accept administrative responsibility deleted text beginfor applicants for portable basic sliding fee
assistance
deleted text end at the end of the two months of assistance under the Unitary Residency Actdeleted text begin;deleted text endnew text begin.
new text end

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

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

Sec. 4.

Minnesota Statutes 2010, section 119B.035, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A family in which a parent provides care for the
family's infant child may receive a subsidy in lieu of assistance if the family is eligible for
or is receiving assistance under the basic sliding fee program. An eligible family must
meet the eligibility factors under section 119B.09, except as provided in subdivision 4,
and the requirements of this section. Subject to federal match and maintenance of effort
requirements for the child care and development fund, deleted text beginand up to available appropriations,deleted text end
the commissioner shall provide assistance under the at-home infant child care program
and for administrative costs associated with the program. At the end of a fiscal year, the
commissioner may carry forward any unspent funds under this section to the next fiscal
year within the same biennium for assistance under the basic sliding fee program.

Sec. 5.

Minnesota Statutes 2010, section 119B.05, subdivision 5, is amended to read:


Subd. 5.

Federal reimbursement.

Counties new text beginand the state new text endshall maximize their
federal reimbursement under federal reimbursement programs for money spent for persons
eligible under this chapter. The commissioner shall allocate any federal earnings to the
county to be used to expand child care services under this chapter.

Sec. 6.

Minnesota Statutes 2010, section 119B.08, subdivision 3, is amended to read:


Subd. 3.

Child care fund plan.

The county and designated administering agency
shall submit a biennial child care fund plan to the commissioner. The commissioner shall
establish the dates by which the county must submit the plans. The plan shall include:

(1) a description of strategies to coordinate and maximize public and private
community resources, including school districts, health care facilities, government
agencies, neighborhood organizations, and other resources knowledgeable in early
childhood development, in particular to coordinate child care assistance with existing
community-based programs and service providers including child care resource and
referral programs, early childhood family education, school readiness, Head Start, local
interagency early intervention committees, special education services, early childhood
screening, and other early childhood care and education services and programs to the
extent possible, to foster collaboration among agencies and other community-based
programs that provide flexible, family-focused services to families with young children
and to facilitate transition into kindergarten. The county must describe a method by which
to share information, responsibility, and accountability among service and program
providers;

(2) a description of procedures and methods to be used to make copies of the
proposed state plan reasonably available to the public, including members of the public
particularly interested in child care policies such as parents, child care providers, culturally
specific service organizations, child care resource and referral programs, interagency
early intervention committees, potential collaborative partners and agencies involved in
the provision of care and education to young children, and allowing sufficient time for
public review and comment; and

(3) information as requested by the department to ensure compliance with the child
care fund statutes and rules promulgated by the commissioner.

The commissioner shall notify counties within 90 days of the date the plan is
submitted whether the plan is approved or the corrections or information needed to
approve the plan. The commissioner shall withhold deleted text begina county's allocation until it has an
approved plan. Plans not approved by the end of the second quarter after the plan is due
may result in a 25 percent reduction in allocation. Plans not approved by the end of the
third quarter after the plan is due may result in a 100 percent reduction in the allocation to
the county
deleted text endnew text begin payments to a county until it has an approved plannew text end. Counties are to maintain
services despite any deleted text beginreduction in their allocationdeleted text end new text beginwithholding of payments new text enddue to plans
not being approved.

Sec. 7.

Minnesota Statutes 2010, section 119B.09, subdivision 1, is amended to read:


Subdivision 1.

General eligibility requirements for all applicants for child
care assistance.

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

(1) have household income less than or equal to deleted text begin67deleted text endnew text begin 76new text end percent of the state median
income, adjusted for family size, and meet the requirements of section 119B.05; receive
MFIP assistance; and are participating in employment and training services under chapter
256J; deleted text beginor
deleted text end

(2) have household income less than or equal to 47 percent of the state median
income, adjusted for family size, at program entry and less than or equal to deleted text begin67deleted text endnew text begin 76new text end percent
of the state median income, adjusted for family size, at program exitnew text begin; or
new text end

new text begin (3) have household income less than or equal to 76 percent of state median income,
adjusted for family size, and were a family whose child care assistance was terminated
due to insufficient funds under Minnesota Rules, part 3400.0183
new text end.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 8.

Minnesota Statutes 2010, section 119B.09, subdivision 4a, is amended to read:


Subd. 4a.

Temporary ineligibility of military personnel.

Counties must reserve a
family's position under the child care assistance fund if a family has been receiving child
care assistance but is temporarily ineligible for assistance due to increased income from
active military service. Activated military personnel may be temporarily ineligible until
deactivation. deleted text beginA county must reserve a military family's position on the basic sliding fee
waiting list under the child care assistance fund if a family is approved to receive child care
assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.
deleted text end

Sec. 9.

Minnesota Statutes 2010, section 119B.11, subdivision 1, is amended to read:


Subdivision 1.

County contributions required.

(a) In addition to payments from
deleted text begin basic sliding feedeleted text end child care new text beginassistance new text endprogram participants, each county shall contribute
from county tax or other sources a fixed local match equal to its calendar year 1996
required county contribution reduced by the administrative funding loss that would have
occurred in state fiscal year 1996 under section 119B.15. The commissioner shall recover
funds from the county as necessary to bring county expenditures into compliance with this
subdivision. The commissioner may accept county contributions, including contributions
above the fixed local match, in order to make state payments.

(b) The commissioner may accept payments from counties to:

(1) fulfill the county contribution as required under subdivision 1;

(2) pay for services authorized under this chapter beyond those paid for with federal
or state funds or with the required county contributions; or

(3) pay for child care services in addition to those authorized under this chapter, as
authorized under other federal, state, or local statutes or regulations.

(c) The county payments must be deposited in an account in the special revenue
fund. Money in this account is appropriated to the commissioner for child care assistance
under this chapter and other applicable statutes and regulations and is in addition to other
state and federal appropriations.

Sec. 10.

Minnesota Statutes 2011 Supplement, section 119B.13, subdivision 1, is
amended to read:


Subdivision 1.

Subsidy restrictions.

(a) Beginning deleted text beginOctober 31, 2011deleted text endnew text begin July 1, 2012new text end,
the maximum rate paid for child care assistance deleted text beginin any county or multicounty regiondeleted text end under
the child care fund deleted text beginshall be the rate for like-care arrangements in the county effective July
1, 2006, decreased by 2.5 percent
deleted text endnew text begin is the 75th percentile rate for like-care arrangements as
surveyed by the commissioner in the most current market rate survey
new text end.

(b) Every year, the commissioner shall survey rates charged by child care
providers in Minnesota to determine the 75th percentile for like-care arrangements in
counties. When the commissioner determines that, using the commissioner's established
protocol, the number of providers responding to the survey is too small to determine
the 75th percentile rate for like-care arrangements in a county or multicounty region,
the commissioner may establish the 75th percentile maximum rate based on like-care
arrangements in a county, region, or category that the commissioner deems to be similar.

(c) A rate which includes a special needs rate paid under subdivision 3 or under a
school readiness service agreement paid under section 119B.231, may be in excess of the
maximum rate allowed under this subdivision.

(d) 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.

(e) 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.

(f) 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.

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

Sec. 11. new text beginDIRECTION TO COMMISSIONER OF MANAGEMENT AND
BUDGET.
new text end

new text begin The state obligation for the basic sliding fee child care assistance program under
Minnesota Statutes, section 119B.03, must be included in the Department of Management
and Budget February and November forecasts of state revenues and expenditures under
Minnesota Statutes, section 16A.103, beginning with the November 2012 forecast.
new text end

Sec. 12. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Child care resource and referral programs. new text end

new text begin $1,500,000 is
appropriated in fiscal year 2013 from the general fund to the commissioner of human
services for the purposes of grants for child care resource and referral programs under
Minnesota Statutes, section 119B.19. The appropriation under this subdivision is the
total appropriation for this purpose for fiscal year 2013 and replaces any general fund
appropriation for this purpose in Laws 2011, First Special Session chapter 9. This
appropriation is not onetime and is added to the base for fiscal year 2014.
new text end

new text begin Subd. 2. new text end

new text begin Child care services grants. new text end

new text begin $2,500,000 is appropriated in fiscal year
2013 from the general fund to the commissioner of human services for the purposes of
child care services grants under Minnesota Statutes, section 119B.21, subdivision 5. The
appropriation under this subdivision is the total appropriation for this purpose for fiscal
year 2013 and replaces any general fund appropriation for this purpose in Laws 2011,
First Special Session chapter 9. This appropriation is not onetime and is added to the
base for fiscal year 2014.
new text end

new text begin Subd. 3. new text end

new text begin Migrant child care. new text end

new text begin $300,000 is appropriated in fiscal year 2013 from
the general fund to the commissioner of human services for the purposes of migrant child
care. The appropriation under this subdivision is the total appropriation for this purpose
for fiscal year 2013 and replaces any general fund appropriation for this purpose in Laws
2011, First Special Session chapter 9. This appropriation is not onetime and is added
to the base for fiscal year 2014.
new text end

new text begin Subd. 4. new text end

new text begin Child care improvement grants. new text end

new text begin $500,000 is appropriated in fiscal year
2013 from the general fund to the commissioner of human services for the purposes
of child care improvement grants under Minnesota Statutes, section 119B.25. The
appropriation under this subdivision is the total appropriation for this purpose for fiscal
year 2013 and replaces any general fund appropriation for this purpose in Laws 2011,
First Special Session chapter 9. This appropriation is not onetime and is added to the
base for fiscal year 2014.
new text end

new text begin Subd. 5. new text end

new text begin Child care integrity. new text end

new text begin $150,000 is appropriated in fiscal year 2013 from
the general fund to the commissioner of human services for the purposes of child care
integrity. The appropriation under this subdivision is the total appropriation for this
purpose for fiscal year 2013 and replaces any general fund appropriation for this purpose
in Laws 2011, First Special Session chapter 9. This appropriation is not onetime and
is added to the base for fiscal year 2014.
new text end

new text begin Subd. 6. new text end

new text begin Voluntary quality rating system training, coaching, consultation,
and supports.
new text end

new text begin $5,000,000 is appropriated in fiscal year 2013 from the general fund to
the commissioner of human services for the purposes of providing grants to provide
statewide child care provider training, coaching, consultation, and supports to prepare
for the voluntary Minnesota quality rating system rating tool. These grants must help
child care providers build quality child care programs including, but not limited to,
relationship-based professional development through mentoring and coaching, and
ensuring that such training is offered to providers in the provider's native language and
available to providers of all income levels. This is a onetime appropriation.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8;
and 119B.09, subdivision 3,
new text end new text begin are repealed.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2010, section 119B.02, subdivision 2, is amended to read:


Subd. 2.

Contractual agreements with tribes.

The commissioner may enter into
contractual agreements with a federally recognized Indian tribe with a reservation in
Minnesota to carry out the responsibilities of county human service agencies to the extent
necessary for the tribe to operate child care assistance programs under sections 119B.03
and 119B.05. An agreement may allow for the tribe to be reimbursed for child care
assistance services provided under section 119B.05. The commissioner shall consult with
the affected county or counties in the contractual agreement negotiations, if the county or
counties wish to be included, in order to avoid the duplication of county and tribal child
care services. Funding to support services under section 119B.03 may be transferred to
the federally recognized Indian tribe with a reservation in Minnesota from allocations
available to counties in which reservation boundaries lie. deleted text beginWhen funding is transferred
under section 119B.03, the amount shall be commensurate to estimates of the proportion
of reservation residents with characteristics identified in section 119B.03, subdivision 6, to
the total population of county residents with those same characteristics.
deleted text end

Sec. 2.

Minnesota Statutes 2010, 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;new text begin and
new text end

(7) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2deleted text begin; anddeleted text endnew text begin.
new text end

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

Sec. 3.

Minnesota Statutes 2010, section 119B.231, subdivision 5, is amended to read:


Subd. 5.

Relationship to current law.

(a) The following provisions in chapter 119B
must be waived or modified for families receiving services under this section.

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

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

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

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

(d) Care provided through an SRSA is authorized on a weekly basis.

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

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

(g) Effective May 23, 2008, absent day payment limits under section 119B.13,
subdivision 7
, do not apply to children for care paid through SRSA's provided the family
remains eligible under subdivision 3.

Sec. 4.

Minnesota Statutes 2010, section 256.017, subdivision 9, is amended to read:


Subd. 9.

Timing and disposition of penalty and case disallowance funds.

Quality
control case penalty and administrative penalty amounts shall be disallowed or withheld
from the next regular reimbursement made to the county agency for state and federal
benefit reimbursements and federal administrative reimbursements for all programs
covered in this section, according to procedures established in statute, but shall not be
imposed sooner than 30 calendar days from the date of written notice of such penalties.
Except for penalties withheld under the child care assistance program, all penalties
must be deposited in the county incentive fund provided in section 256.018. Penalties
withheld under the child care assistance program shall be reallocated to counties deleted text beginusing the
allocation formula under section 119B.03, subdivision 5
deleted text end. All penalties must be imposed
according to this provision until a decision is made regarding the status of a written
exception. Penalties must be returned to county agencies when a review of a written
exception results in a decision in their favor.

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

new text begin Minnesota Statutes 2010, section 119B.011, subdivision 20a, new text end new text begin is repealed.
new text end