HF 41

1st Engrossment - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/16/2020 12:23pm

A bill for an act
relating to human services; modifying the child care assistance provider
reimbursement rates; amending Minnesota Statutes 2018, section 119B.13,
subdivision 1.

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

Section 1.

Minnesota Statutes 2018, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) deleted text begin Beginning February 3, 2014, deleted 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 25th deleted text end new text begin 30th new text end percentile of the deleted text begin 2011 deleted text end new text begin most recent new text end child care
provider rate survey new text begin under section 119B.02, subdivision 7, new text end or the deleted text begin maximum rate effective
November 28, 2011 deleted text end new text begin rates in effect at the time of the update new text end . new text begin The first maximum rate update
must be based on the 2018 child care provider rate survey and must be implemented on
September 21, 2020. Thereafter, maximum rate updates are effective the first biweekly
period following January 1 after the most recent rate survey. new text end For a child care provider located
within the boundaries of a city located in two or more of the counties of Benton, Sherburne,
and Stearns, the maximum rate paid for child care assistance shall be equal to the maximum
rate paid in the county with the highest maximum reimbursement rates or the provider's
charge, whichever is less. 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.

(d) If a child uses one provider, the maximum payment for one day of care must not
exceed the daily rate. The maximum payment for one week of care must not exceed the
weekly rate.

(e) If a child uses two providers under section 119B.097, the maximum payment must
not exceed:

(1) the daily rate for one day of care;

(2) the weekly rate for one week of care by the child's primary provider; and

(3) two daily rates during two weeks of care by a child's secondary provider.

(f) 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.

(g) If 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.

(h) new text begin Unless otherwise specified in this subdivision, new text end all maximum provider rates changes
shall be implemented on the Monday following the effective date of the maximum provider
rate.

(i) deleted text begin Notwithstanding Minnesota Rules, part , subpart 7, maximum registration
fees in effect on January 1, 2013, shall remain in effect. deleted text end new text begin The maximum registration fee paid
for child care assistance in any county or county price cluster under the child care fund shall
be the greater of the 30th percentile of the most recent child care provider rate survey under
section 119B.02, subdivision 7, or the registration fee in effect at the time of the update.
The first maximum registration fee update must be based on the 2018 rate survey and is
effective September 21, 2020. Thereafter, maximum registration fee updates are effective
the first biweekly period following January 1 after the most recent rate survey. Maximum
registration fees must be set for licensed family child care and for child care centers. For a
child care provider located in the boundaries of a city located in two or more of the counties
of Benton, Sherburne, and Stearns, the maximum registration fee paid for child care assistance
shall be equal to the maximum registration fee paid in the county with the highest maximum
registration fee or the provider's charge, whichever is less.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 2. new text begin DIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING FEE
FUNDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the
commissioner of human services must allocate the additional basic sliding fee child care
funds for calendar year 2021 to counties for updated maximum rates based on relative need
to cover maximum rate increases. In distributing the additional funds, the commissioner
shall consider the following factors by county:
new text end

new text begin (1) number of children;
new text end

new text begin (2) provider type;
new text end

new text begin (3) age of children; and
new text end

new text begin (4) amount of the increase in maximum rates.
new text end