HF 2352

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to employment; enabling low-income workers to meet basic needs;
providing child care assistance to low-income workers; increasing working
family credit; increasing minimum wage; amending Minnesota Statutes 2008,
sections 119B.02, subdivisions 1, 2; 119B.03, subdivisions 3, 9, 10; 119B.035,
subdivisions 1, 2, 4, 5; 119B.05, subdivision 5; 119B.08; 119B.09, subdivisions
4a, 7; 119B.10; 119B.11, subdivision 1; 119B.12, subdivision 2; 119B.15;
119B.24; 290.0671, subdivisions 1, 7; repealing Minnesota Statutes 2008,
sections 119B.011, subdivisions 20, 20a; 119B.03, subdivisions 1, 2, 4, 5, 6,
6a, 6b, 8; 119B.05, subdivision 1; 119B.07; 119B.09, subdivision 3; 119B.11,
subdivision 4.

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

ARTICLE 1

CHILD CARE ASSISTANCE CONSOLIDATION

Section 1.

Minnesota Statutes 2008, 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 begin Within 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 begin 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. deleted text end The deleted text begin counties deleted text end new text begin commissioner new 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. 2.

Minnesota Statutes 2008, 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 new text begin for families eligible
new text end under sections deleted text begin 119B.03 deleted text end new text begin 119B.09 new text end and deleted text begin 119B.05 deleted text end new text begin 119B.10 new text end . An agreement may allow for the
tribe to be reimbursed for child care assistance services provided under deleted text begin section 119B.05 deleted text end new text begin
this chapter new text end . 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. deleted text begin 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. When 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. 3.

Minnesota Statutes 2008, 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 deleted text begin , except MFIP participants, diversionary
work program, and transition year families deleted text end are eligible for child care assistance under the
deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end program. Families enrolled in the deleted text begin basic sliding fee deleted text end
new text begin child care assistance new text end 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.

Sec. 4.

Minnesota Statutes 2008, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

deleted text begin Portability pool deleted text end new text begin Family move; continued participation new text end .

(a) deleted text begin 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.
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 end new 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 begin basic sliding fee deleted text end new text begin child
care new text end assistance to deleted text begin a deleted text end new text begin another new text end county deleted text begin with a waiting list for the basic sliding fee program deleted text end
must new text begin be admitted into the receiving county's child care assistance program if the family new text end :

(1) deleted text begin meet deleted text end new text begin meets new text end the income and eligibility guidelines for the deleted text begin basic sliding fee deleted text end new text begin child
care assistance new text end program; and

(2) deleted text begin notify deleted text end new text begin notifies new text end the new county of residence within 60 days of moving and deleted text begin submit deleted text end new text begin
submits new text end information to the new county of residence to verify eligibility for the deleted text begin basic
sliding fee deleted text end new text begin child care assistance new text end program.

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

deleted text begin (1) deleted text end accept administrative responsibility deleted text begin for applicants for portable basic sliding fee
assistance deleted text end at the end of the two months of assistance under the Unitary Residency Act deleted text begin ;
deleted 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. 5.

Minnesota Statutes 2008, section 119B.03, subdivision 10, is amended to read:

Subd. 10.

Application; entry points.

Two or more methods of applying for the
deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end program new text begin under this chapter new text end must be available to
applicants in each county. To meet the requirements of this subdivision, a county may
provide alternative methods of applying for assistance, including, but not limited to, a mail
application, or application sites that are located outside of government offices.

Sec. 6.

Minnesota Statutes 2008, 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 deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end 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 begin and 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 deleted text begin basic
sliding fee deleted text end new text begin child care assistance new text end program.

Sec. 7.

Minnesota Statutes 2008, section 119B.035, subdivision 2, is amended to read:

Subd. 2.

Eligible families.

A family with an infant under the age of one year is
eligible for assistance if:

(1) the family is not receiving MFIP, other cash assistance, or other child care
assistance;

(2) the family has not previously received a lifelong total of 12 months of assistance
under this section; and

(3) the family is participating in the deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end program
or provides verification of participating in an authorized activity at the time of application
and meets the program requirements.

Sec. 8.

Minnesota Statutes 2008, section 119B.035, subdivision 4, is amended to read:

Subd. 4.

Assistance.

(a) A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. The maximum rate of assistance is equal to 90 percent
of the rate established under section 119B.13 for care of infants in licensed family child
care in the applicant's county of residence.

(b) A participating family must report income and other family changes as specified
in the county's plan under section 119B.08, subdivision 3.

(c) Persons who are admitted to the at-home infant child care program retain their
position in any deleted text begin basic sliding fee deleted text end new text begin child care assistance new text end program. Persons leaving the
at-home infant child care program reenter the deleted text begin basic sliding fee deleted text end new text begin child care assistance
new text end program at the position they would have occupied.

(d) Assistance under this section does not establish an employer-employee
relationship between any member of the assisted family and the county or state.

Sec. 9.

Minnesota Statutes 2008, section 119B.035, subdivision 5, is amended to read:

Subd. 5.

Implementation.

The commissioner shall implement the at-home infant
child care program under this section through counties that administer the deleted text begin basic sliding fee deleted text end
new text begin child care assistance new text end program under deleted text begin section 119B.03 deleted text end new text begin this chapter new text end . The commissioner must
develop and distribute consumer information on the at-home infant child care program to
assist parents of infants or expectant parents in making informed child care decisions.

Sec. 10.

Minnesota Statutes 2008, section 119B.05, subdivision 5, is amended to read:

Subd. 5.

Federal reimbursement.

Counties new text begin and the state new text end shall 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. 11.

Minnesota Statutes 2008, section 119B.08, is amended to read:

119B.08 REPORTING AND PAYMENTS.

Subdivision 1.

Reports.

The commissioner shall specify requirements for reports
under the authority provided in section 256.01, subdivision 2, paragraph (17).

Subd. 2.

Quarterly payments.

The commissioner may make payments to each
county in quarterly installments. deleted text begin The commissioner may certify an advance up to 25
percent of the allocation. deleted text end Subsequent payments shall be made on a reimbursement basis
for reported expenditures and may be adjusted for anticipated spending patterns. Payments
may be withheld if quarterly reports are incomplete or untimely.

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 begin a 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 end new text begin payments to a county until it has an approved plan new text end . Counties are to maintain
services despite any deleted text begin reduction in their allocation deleted text end new text begin withholding of payments new text end due to plans
not being approved.

Sec. 12.

Minnesota Statutes 2008, 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 begin A 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. 13.

Minnesota Statutes 2008, section 119B.09, subdivision 7, is amended to read:

Subd. 7.

Date of eligibility for assistance.

(a) The date of eligibility for child
care assistance under this chapter is the later of the date the application was signed; the
beginning date of employment, education, or training; new text begin or new text end the date the infant is born for
applicants to the at-home infant care program deleted text begin ; or the date a determination has been made
that the applicant is a participant in employment and training services under Minnesota
Rules, part 3400.0080, or chapter 256J deleted text end .

(b) Payment ceases for a family under the at-home infant child care program when a
family has used a total of 12 months of assistance as specified under section 119B.035.
deleted text begin Payment of child care assistance for employed persons on MFIP is effective the date of
employment or the date of MFIP eligibility, whichever is later. deleted text end Payment of child care
assistance for MFIP or DWP participants in employment and training services is effective
the date of commencement of the services or the date of MFIP or DWP eligibility,
whichever is later. deleted text begin Payment of child care assistance for transition year child care must be
made retroactive to the date of eligibility for transition year child care. deleted text end

Sec. 14.

Minnesota Statutes 2008, section 119B.10, is amended to read:

119B.10 EMPLOYMENT OR TRAINING ELIGIBILITY.

Subdivision 1.

Assistance for persons seeking and retaining employment.

(a)
Persons who are seeking employment and who are eligible for assistance under this deleted text begin section deleted text end new text begin
chapter new text end are eligible to receive up to 240 hours of child care assistance per calendar year.

(b) 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 continued child care assistance for employment.
For purposes of this section, work-study programs must be counted as employment.
Child care assistance during employment must be authorized as provided in paragraphs
(c) and (d).

(c) 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
actual hours of employment, break, and mealtime during the employment and travel time
up to two hours per day.

(d) 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 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 Subd. 1a. new text end

new text begin Assistance for persons participating in employment plan. new text end

new text begin The
following persons are also eligible for child care assistance:
new text end

new text begin (1) persons 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 chapter 256K;
new text end

new text begin (2) persons who are participating in work, job search, job support, employment, or
training activities as required in their job search support or employment plan or in appeals,
hearings, assessments, or orientations according to chapter 256J;
new text end

new text begin (3) persons who are participating in social services activities under chapter 256J
or 256K as required in their employment plan approved according to chapter 256J or
256K; and
new text end

new text begin (4) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2.
new text end

Subd. 2.

Financial eligibility required.

Persons participating in employment
programs, training programs, or education programs are eligible for continued assistance
from the child care fund, if they are financially eligible under the sliding fee scale set
by the commissioner in section 119B.12.

new text begin Subd. 3. new text end

new text begin Child care assistance during education. new text end

new text begin (a) The following persons are
eligible for child care assistance for education or training:
new text end

new text begin (1) persons who meet the requirements of section 119B.09 who are enrolled in
remedial or basic education or English as a second language, or persons up to the age of
19 who are enrolled in an educational program to attain a high school diploma or general
equivalency diploma;
new text end

new text begin (2) persons who meet the requirements of this section and section 119B.09 who
receive child care assistance to reduce the costs of child care for education when employed
an average of at least ten hours per week under subdivision 1, and are not receiving MFIP
benefits as defined in section 119B.011, subdivision 17; and
new text end

new text begin (3) persons who meet the requirements of this section and section 119B.09 who
receive child care assistance to reduce the costs of child care for education when enrolled
in a postsecondary educational institution as a full-time undergraduate student, and are not
receiving MFIP benefits as defined in section 119B.011, subdivision 17.
new text end

new text begin (b) Notwithstanding subdivisions 5 and 6, assistance for persons under paragraph
(a), clause (3), is limited to 48 months or the length of time necessary to complete the
degree, whichever is shorter.
new text end

new text begin Subd. 4. new text end

new text begin Satisfactory progress. new text end

new text begin Students enrolled in an education program
under section 119B.011, subdivision 11, must be making satisfactory progress toward
completion of the program as stipulated in the school's satisfactory progress policy.
new text end

new text begin Subd. 5. new text end

new text begin Limiting duration of training. new text end

new text begin 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.
new text end

new text begin Subd. 6. new text end

new text begin Maximum length of time for training. new text end

new text begin The maximum length of time a
participant is eligible for child care assistance under the child care fund for education and
training is no more than the maximum time allowed to complete the credit requirements
for an associate or baccalaureate degree as stipulated in the school's satisfactory progress
policy. This length of time excludes basic or remedial education programs, English as
a second language, high school, and general equivalency diploma programs needed to
prepare for postsecondary education or employment.
new text end

new text begin Subd. 7. new text end

new text begin MFIP student moves to another county. new text end

new text begin If an MFIP participant who is
receiving child care assistance under this chapter moves to another county, continues
to participate in educational or training programs authorized in the MFIP participant's
employment plans, and continues to be eligible for child care assistance under this chapter,
the MFIP participant must receive continued child care assistance from the county
responsible for the MFIP participant's current employment plan under section 256G.07.
new text end

Sec. 15.

Minnesota Statutes 2008, 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 fee deleted text end child care new text begin assistance new text end program 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. 16.

Minnesota Statutes 2008, 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 deleted text begin sections 119B.03 and
119B.05 deleted text end new text begin section 119B.09 new text end . Income must be as defined in section 119B.011, subdivision 15.
The fixed percent 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 $5 per month. Parent fees must provide for graduated movement
to full payment. 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.

Sec. 17.

Minnesota Statutes 2008, section 119B.15, is amended to read:

119B.15 ADMINISTRATIVE EXPENSES.

The commissioner shall use up to 1/21 of the state and federal funds available for the
deleted text begin basic sliding fee program and 1/21 of the state and federal funds available for the MFIP deleted text end
child care new text begin assistance new text end program for deleted text begin payments to counties for administrative expenses deleted text end new text begin the
administrative costs of the delivery of direct services new text end .

Sec. 18.

Minnesota Statutes 2008, section 119B.24, is amended to read:

119B.24 DUTIES OF COMMISSIONER.

In addition to the powers and duties already conferred by law, the commissioner
of human services shall:

(1) administer the child care fund deleted text begin , including the basic sliding fee program deleted text end authorized
under sections 119B.011 to 119B.16;

(2) monitor the child care resource and referral programs established under section
119B.19; and

(3) encourage child care providers to participate in a nationally recognized
accreditation system for early childhood and school-age care programs. Subject
to approval by the commissioner, family child care providers and early childhood
and school-age care programs shall be reimbursed for one-half of the direct cost of
accreditation fees, upon successful completion of accreditation.

Sec. 19. new text begin DIRECTION TO COMMISSIONER OF FINANCE.
new text end

new text begin The state obligation for the child care assistance program under Minnesota Statutes,
chapter 119B, must be included in the Department of Finance February and November
forecast of state revenues and expenditures under Minnesota Statutes, section 16A.103,
beginning with the November 2009 forecast.
new text end

Sec. 20. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In the next edition of Minnesota Statutes and Minnesota Rules, the revisor shall
renumber the statutory section in column A with the section in column B, and make
necessary cross-reference changes consistent with the renumbering:
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin 119B.035 new text end	new text begin 119B.105 new text end
	new text begin 119B.05, subd. 4 new text end	new text begin 119B.03, subd. 11 new text end
	new text begin 119B.05, subd. 5 new text end	new text begin 119B.03, subd. 12 new text end

Sec. 21. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall correct internal cross-references to sections resulting
from the repealer in section 22. The revisor may make changes necessary to correct the
punctuation, grammar, or structure of the remaining text and preserve its meaning.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 119B.011, subdivisions 20 and 20a; 119B.03,
subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8; 119B.05, subdivision 1; 119B.07; 119B.09,
subdivision 3; and 119B.11, subdivision 4, new text end new text begin are repealed.
new text end

ARTICLE 2

WORKING FAMILY TAX CREDIT

Section 1.

Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to
read:

Subdivision 1.

Credit allowed.

(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.

(b) For individuals with no qualifying children, the credit equals deleted text begin 1.9125 deleted text end new text begin 7.65 new text end percent
of the first deleted text begin $4,620 deleted text end new text begin $11,820 new text end of earned income. The credit is reduced by deleted text begin 1.9125 deleted text end new text begin 9.55 new text end percent
of earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $5,770 deleted text end new text begin
$13,000 new text end , but in no case is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 8.5 percent of the
first deleted text begin $6,920 deleted text end new text begin $17,700 new text end of earned income deleted text begin and 8.5 percent of earned income over $12,080
but less than $13,450 deleted text end . The credit is reduced by deleted text begin 5.73 deleted text end new text begin 9.55 new text end percent of earned income or
adjusted gross income, whichever is greater, in excess of deleted text begin $15,080 deleted text end new text begin $19,290 new text end , but in no
case is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals ten
percent of the first deleted text begin $9,720 deleted text end new text begin $24,880 new text end of earned income deleted text begin and 20 percent of earned income
over $14,860 but less than $16,800 deleted text end . The credit is reduced by deleted text begin 10.3 deleted text end new text begin 18 new text end percent of earned
income or adjusted gross income, whichever is greater, in excess of deleted text begin $17,890 deleted text end new text begin $26,000 new text end ,
but in no case is the credit less than zero.

(e) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).

(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax under
this chapter over federal adjusted gross income. For purposes of this paragraph, the
subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12),
are not considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

deleted text begin (g) For tax years beginning after December 31, 2001, and before December 31,
2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$1,000 for married taxpayers filing joint returns deleted text end .

deleted text begin (h) For tax years beginning after December 31, 2004, and before December 31,
2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$2,000 for married taxpayers filing joint returns deleted text end .

deleted text begin (i) deleted text end new text begin (g) new text end For tax years beginning after December 31, deleted text begin 2007, and before December
31, 2010 deleted text end new text begin 2008 new text end , the deleted text begin $5,770 deleted text end new text begin $13,000 new text end in paragraph (b), the deleted text begin $15,080 deleted text end new text begin $19,290 new text end in paragraph
(c), and the deleted text begin $17,890 deleted text end new text begin $26,000 new text end in paragraph (d), after being adjusted for inflation under
subdivision 7, are each increased by deleted text begin $3,000 deleted text end new text begin $3,160 new text end for married taxpayers filing joint
returns. For tax years beginning after December 31, deleted text begin 2008 deleted text end new text begin 2009 new text end , the deleted text begin $3,000 deleted text end new text begin $3,160 new text end is
adjusted annually for inflation under subdivision 7.

deleted text begin (j) deleted text end new text begin (h) new text end The commissioner shall construct tables showing the amount of the credit
at various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 2.

Minnesota Statutes 2008, section 290.0671, subdivision 7, is amended to read:

Subd. 7.

Inflation adjustment.

The earned income amounts used to calculate
the credit and the income thresholds at which the maximum credit begins to be reduced
in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the
percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word deleted text begin "1999" deleted text end new text begin "2008" new text end shall be substituted for
the word "1992." For deleted text begin 2001 deleted text end new text begin 2010 new text end , the commissioner shall then determine the percent
change from the 12 months ending on August 31, deleted text begin 1999 deleted text end new text begin 2008 new text end , to the 12 months ending
on August 31, deleted text begin 2000 deleted text end new text begin 2009 new text end , and in each subsequent year, from the 12 months ending on
August 31, deleted text begin 1999 deleted text end new text begin 2008 new text end , to the 12 months ending on August 31 of the year preceding the
taxable year. The earned income thresholds as adjusted for inflation must be rounded to
the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest
$10 amount. The determination of the commissioner under this subdivision is not a rule
under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

ARTICLE 3

MINIMUM WAGE

Section 1. new text begin MINIMUM WAGE.
new text end

new text begin The state of Minnesota urges the federal government to raise the minimum wage
in 2010 to $9.50 per hour. If the federal government does not raise the minimum wage,
Minnesota should act in the 2010 legislature to raise the minimum wage to $9.50 per hour.
new text end