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HF 430

as introduced - 88th Legislature (2013 - 2014) Posted on 03/06/2013 05:52pm

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

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1.1A bill for an act
1.2relating to state government; creating the family economic security act;
1.3increasing minimum wage rates; modifying child care assistance; providing a
1.4new child care tax credit; expanding the working family tax credit; appropriating
1.5money;amending Minnesota Statutes 2012, sections 119B.02, subdivision
1.61; 119B.03, subdivision 9; 119B.035, subdivision 1; 119B.08, subdivision 3;
1.7119B.09, subdivisions 1, 4a; 177.23, subdivision 7; 177.24, subdivision 1;
1.8177.27, subdivisions 7, 8; 256.017, subdivision 9; 290.0671, subdivision 1;
1.9proposing coding for new law in Minnesota Statutes, chapter 290; repealing
1.10Minnesota Statutes 2012, sections 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, 8;
1.11119B.09, subdivision 3; 177.23, subdivision 11.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13    Section 1. CITATION.
1.14Sections 2 to 12 may be cited as the "Family Economic Security Act."

1.15    Sec. 2. Minnesota Statutes 2012, section 119B.02, subdivision 1, is amended to read:
1.16    Subdivision 1. Child care services. The commissioner shall develop standards
1.17for county and human services boards to provide child care services to enable eligible
1.18families to participate in employment, training, or education programs. Within the limits
1.19of available appropriations, The commissioner shall distribute money to counties to
1.20reduce the costs of child care for eligible families. The commissioner shall adopt rules to
1.21govern the program in accordance with this section. The rules must establish a sliding
1.22schedule of fees for parents receiving child care services. The rules shall provide that
1.23funds received as a lump-sum payment of child support arrearages shall not be counted
1.24as income to a family in the month received but shall be prorated over the 12 months
1.25following receipt and added to the family income during those months. The commissioner
1.26shall maximize the use of federal money under title I and title IV of Public Law 104-193,
2.1the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and
2.2other programs that provide federal or state reimbursement for child care services for
2.3low-income families who are in education, training, job search, or other activities allowed
2.4under those programs. Money appropriated under this section must be coordinated with
2.5the programs that provide federal reimbursement for child care services to accomplish
2.6this purpose. Federal reimbursement obtained must be allocated to the county that spent
2.7money for child care that is federally reimbursable under programs that provide federal
2.8reimbursement for child care services. The counties shall use the federal money to expand
2.9child care services. The commissioner may adopt rules under chapter 14 to implement and
2.10coordinate federal program requirements.

2.11    Sec. 3. Minnesota Statutes 2012, section 119B.03, subdivision 9, is amended to read:
2.12    Subd. 9. Portability pool Family move; continued participation. (a) The
2.13commissioner shall establish a pool of up to five percent of the annual appropriation for
2.14the basic sliding fee program to provide continuous child care assistance for eligible
2.15families who move between Minnesota counties. At the end of each allocation period, any
2.16unspent funds in the portability pool must be used for assistance under the basic sliding fee
2.17program. If expenditures from the portability pool exceed the amount of money available,
2.18the reallocation pool must be reduced to cover these shortages.
2.19(b) To be eligible for portable basic sliding fee assistance, a family that has moved
2.20from a county in which it A family receiving child care assistance under the child care
2.21fund that has moved from a county in which the family was receiving basic sliding fee
2.22 child care assistance to a county with a waiting list for the basic sliding fee program must
2.23 be admitted into the receiving county's child care assistance program if the family:
2.24(1) meet meets the income and eligibility guidelines for the basic sliding fee child
2.25care assistance program; and
2.26(2) notify notifies the new county of residence within 60 days of moving and submit
2.27 submits information to the new county of residence to verify eligibility for the basic
2.28sliding fee child care assistance program.
2.29(c) (b) The receiving county must:
2.30(1) accept administrative responsibility for applicants for portable basic sliding fee
2.31assistance at the end of the two months of assistance under the Unitary Residency Act;.
2.32(2) continue basic sliding fee assistance for the lesser of six months or until the
2.33family is able to receive assistance under the county's regular basic sliding program; and
2.34(3) notify the commissioner through the quarterly reporting process of any family
2.35that meets the criteria of the portable basic sliding fee assistance pool.

3.1    Sec. 4. Minnesota Statutes 2012, section 119B.035, subdivision 1, is amended to read:
3.2    Subdivision 1. Establishment. A family in which a parent provides care for the
3.3family's infant child may receive a subsidy in lieu of assistance if the family is eligible for
3.4or is receiving assistance under the basic sliding fee program. An eligible family must
3.5meet the eligibility factors under section 119B.09, except as provided in subdivision 4,
3.6and the requirements of this section. Subject to federal match and maintenance of effort
3.7requirements for the child care and development fund, and up to available appropriations,
3.8 the commissioner shall provide assistance under the at-home infant child care program
3.9and for administrative costs associated with the program. At the end of a fiscal year, the
3.10commissioner may carry forward any unspent funds under this section to the next fiscal
3.11year within the same biennium for assistance under the basic sliding fee program.

3.12    Sec. 5. Minnesota Statutes 2012, section 119B.08, subdivision 3, is amended to read:
3.13    Subd. 3. Child care fund plan. The county and designated administering agency
3.14shall submit a biennial child care fund plan to the commissioner. The commissioner shall
3.15establish the dates by which the county must submit the plans. The plan shall include:
3.16(1) a description of strategies to coordinate and maximize public and private
3.17community resources, including school districts, health care facilities, government
3.18agencies, neighborhood organizations, and other resources knowledgeable in early
3.19childhood development, in particular to coordinate child care assistance with existing
3.20community-based programs and service providers including child care resource and
3.21referral programs, early childhood family education, school readiness, Head Start, local
3.22interagency early intervention committees, special education services, early childhood
3.23screening, and other early childhood care and education services and programs to the extent
3.24possible, to foster collaboration among agencies and other community-based programs that
3.25provide flexible, family-focused services to families with young children and to facilitate
3.26transition into kindergarten. The county must describe a method by which to share
3.27information, responsibility, and accountability among service and program providers;
3.28(2) a description of procedures and methods to be used to make copies of the
3.29proposed state plan reasonably available to the public, including members of the public
3.30particularly interested in child care policies such as parents, child care providers, culturally
3.31specific service organizations, child care resource and referral programs, interagency
3.32early intervention committees, potential collaborative partners and agencies involved in
3.33the provision of care and education to young children, and allowing sufficient time for
3.34public review and comment; and
4.1(3) information as requested by the department to ensure compliance with the child
4.2care fund statutes and rules promulgated by the commissioner.
4.3The commissioner shall notify counties within 90 days of the date the plan is
4.4submitted whether the plan is approved or the corrections or information needed to approve
4.5the plan. The commissioner shall withhold a county's allocation until it has an approved
4.6plan. Plans not approved by the end of the second quarter after the plan is due may result
4.7in a 25 percent reduction in allocation. Plans not approved by the end of the third quarter
4.8after the plan is due may result in a 100 percent reduction in the allocation to the county
4.9 payments to a county until it has an approved plan. Counties are to maintain services despite
4.10any reduction in their allocation withholding of payments due to plans not being approved.

4.11    Sec. 6. Minnesota Statutes 2012, section 119B.09, subdivision 1, is amended to read:
4.12    Subdivision 1. General eligibility requirements for all applicants for child
4.13care assistance. (a) Child care services must be available to families who need child
4.14care to find or keep employment or to obtain the training or education necessary to find
4.15employment and who:
4.16    (1) have household income less than or equal to 67 76 percent of the state median
4.17income, adjusted for family size, and meet the requirements of section 119B.05; receive
4.18MFIP assistance; and are participating in employment and training services under chapter
4.19256J; or
4.20    (2) have household income less than or equal to 47 percent of the state median
4.21income, adjusted for family size, at program entry and less than or equal to 67 76 percent
4.22of the state median income, adjusted for family size, at program exit.
4.23    (b) Child care services must be made available as in-kind services.
4.24    (c) All applicants for child care assistance and families currently receiving child care
4.25assistance must be assisted and required to cooperate in establishment of paternity and
4.26enforcement of child support obligations for all children in the family as a condition
4.27of program eligibility. For purposes of this section, a family is considered to meet the
4.28requirement for cooperation when the family complies with the requirements of section
4.29256.741 .

4.30    Sec. 7. Minnesota Statutes 2012, section 119B.09, subdivision 4a, is amended to read:
4.31    Subd. 4a. Temporary ineligibility of military personnel. Counties must reserve a
4.32family's position under the child care assistance fund if a family has been receiving child
4.33care assistance but is temporarily ineligible for assistance due to increased income from
4.34active military service. Activated military personnel may be temporarily ineligible until
5.1deactivation. A county must reserve a military family's position on the basic sliding fee
5.2waiting list under the child care assistance fund if a family is approved to receive child care
5.3assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.

5.4    Sec. 8. Minnesota Statutes 2012, section 177.23, subdivision 7, is amended to read:
5.5    Subd. 7. Employee. "Employee" means any individual employed by an employer
5.6but does not include:
5.7(1) two or fewer specified individuals employed at any given time in agriculture on a
5.8farming unit or operation who are paid a salary;
5.9(2) any individual employed in agriculture on a farming unit or operation who is
5.10paid a salary greater than the individual would be paid if the individual worked 48 hours at
5.11the state minimum wage plus 17 hours at 1-1/2 times the state minimum wage per week;
5.12(3) an individual under 18 who is employed in agriculture on a farm to perform
5.13services other than corn detasseling or hand field work when one or both of that minor
5.14hand field worker's parents or physical custodians are also hand field workers;
5.15(4) for purposes of section 177.24, an individual under 18 who is employed as a
5.16corn detasseler;
5.17(5) any staff member employed on a seasonal basis by an organization for work in an
5.18organized resident or day camp operating under a permit issued under section 144.72;
5.19(6) any individual employed in a bona fide executive, administrative, or professional
5.20capacity, or a salesperson who conducts no more than 20 percent of sales on the premises
5.21of the employer;
5.22(7) any individual who renders service gratuitously for a nonprofit organization;
5.23(8) any individual who serves as an elected official for a political subdivision or who
5.24serves on any governmental board, commission, committee or other similar body, or who
5.25renders service gratuitously for a political subdivision;
5.26(9) any individual employed by a political subdivision to provide police or fire
5.27protection services or employed by an entity whose principal purpose is to provide police
5.28or fire protection services to a political subdivision;
5.29(10) any individual employed by a political subdivision who is ineligible for
5.30membership in the Public Employees Retirement Association under section 353.01,
5.31subdivision 2b
, clause (1), (2), (4), or (9);
5.32(11) any driver employed by an employer engaged in the business of operating
5.33taxicabs;
5.34(12) (11) any individual engaged in babysitting as a sole practitioner;
6.1(13) (12) for the purpose of section 177.25, any individual employed on a seasonal
6.2basis in a carnival, circus, fair, or ski facility;
6.3(14) (13) any individual under 18 working less than 20 hours per workweek for a
6.4municipality as part of a recreational program;
6.5(15) (14) any individual employed by the state as a natural resource manager 1, 2, or
6.63 (conservation officer);
6.7(16) (15) any individual in a position for which the United States Department of
6.8Transportation has power to establish qualifications and maximum hours of service under
6.9United States Code, title 49, section 31502;
6.10(17) (16) any individual employed as a seafarer. The term "seafarer" means a
6.11master of a vessel or any person subject to the authority, direction, and control of the
6.12master who is exempt from federal overtime standards under United States Code, title 29,
6.13section 213(b)(6), including but not limited to pilots, sailors, engineers, radio operators,
6.14firefighters, security guards, pursers, surgeons, cooks, and stewards;
6.15(18) (17) any individual employed by a county in a single-family residence owned
6.16by a county home school as authorized under section 260B.060 if the residence is
6.17an extension facility of that county home school, and if the individual as part of the
6.18employment duties resides at the residence for the purpose of supervising children as
6.19defined by section 260C.007, subdivision 4; or
6.20(19) (18) nuns, monks, priests, lay brothers, lay sisters, ministers, deacons, and other
6.21members of religious orders who serve pursuant to their religious obligations in schools,
6.22hospitals, and other nonprofit institutions operated by the church or religious order.

6.23    Sec. 9. Minnesota Statutes 2012, section 177.24, subdivision 1, is amended to read:
6.24    Subdivision 1. Amount. (a) For purposes of this subdivision, the terms defined in
6.25this paragraph have the meanings given them.
6.26(1) "Large employer" means an enterprise whose annual gross volume of sales made
6.27or business done is not less than $625,000 $500,000 (exclusive of excise taxes at the
6.28retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
6.29Act, sections 177.21 to 177.35.
6.30(2) "Small employer" means an enterprise whose annual gross volume of sales
6.31made or business done is less than $625,000 $500,000 (exclusive of excise taxes at the
6.32retail level that are separately stated) and covered by the Minnesota Fair Labor Standards
6.33Act, sections 177.21 to 177.35.
6.34(b) Except as otherwise provided in sections 177.21 to 177.35, every large employer
6.35must pay each employee wages at a rate of at least $5.15 an hour beginning September
7.11, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
7.2employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
7.31998, and at a rate of at least $5.25 an hour beginning August 1, 2005:
7.4(1) every large employer must pay each employee wages at a rate of at least:
7.5(i) $8.25 per hour beginning September 1, 2013;
7.6(ii) $9.50 per hour beginning July 1, 2014;
7.7(iii) at the rate established under paragraph (d) beginning July 1, 2015; or
7.8(iv) the wage rate under United States Code, title 29, section 206(a)(1), whichever
7.9is greater; and
7.10(2) every small employer must pay each employee wages at a rate of at least:
7.11(i) $7.50 per hour beginning September 1, 2013;
7.12(ii) $8.25 per hour beginning July 1, 2014;
7.13(iii) at the rate established under paragraph (d) beginning July 1, 2015; or
7.14(iv) the wage rate under United States Code, title 29, section 206(a)(1), whichever
7.15is greater.
7.16(c) Notwithstanding paragraph (b), during the first 90 consecutive days of
7.17employment, an employer may pay an employee under the age of 20 years a wage of $4.90
7.18an hour. No employer may take any action to displace any employee, including a partial
7.19displacement through a reduction in hours, wages, or employment benefits, in order to
7.20hire an employee at the wage authorized in this paragraph:
7.21(1) $6.50 per hour beginning September 1, 2013;
7.22(2) $7.50 per hour beginning July 1, 2014;
7.23(3) at the rate established under paragraph (d) beginning July 1, 2015; or
7.24(4) the wage rate under United States Code, title 29, section 206(a)(1), whichever
7.25is greater.
7.26No employer may take any action to displace any employee, including a partial
7.27displacement through a reduction in hours, wages, or employment benefits, in order to
7.28hire an employee at the wage authorized in this paragraph.
7.29(d) No later than April 1 each year, beginning in 2015, the commissioner shall
7.30determine the percentage increase in the rate of inflation, as measured by the Consumer
7.31Price Index for all urban consumers, United States city average, as determined by the
7.32United States Department of Labor, during the most recent 12-month period for which
7.33data is available. The minimum wage rates in paragraphs (b) and (c) are increased by the
7.34percentage calculated by the commissioner, rounded up to the nearest five cents. The new
7.35minimum wage rates determined under this paragraph take effect on the next July 1.

8.1    Sec. 10. Minnesota Statutes 2012, section 177.27, subdivision 7, is amended to read:
8.2    Subd. 7. Employer liability. If an employer is found by the commissioner to have
8.3violated a section identified in subdivision 4, or any rule adopted under section 177.28, and
8.4the commissioner issues an order to comply, the commissioner shall order the employer to
8.5cease and desist from engaging in the violative practice and to take such affirmative steps
8.6that in the judgment of the commissioner will effectuate the purposes of the section or rule
8.7violated. The commissioner shall order the employer to pay to the aggrieved parties back
8.8pay, gratuities, and compensatory damages, less any amount actually paid to the employee
8.9by the employer, and for an additional equal amount equal to twice the compensation owed
8.10as liquidated damages. Any employer who is found by the commissioner to have repeatedly
8.11or willfully violated a section or sections identified in subdivision 4 shall be subject to a
8.12civil penalty of up to $1,000 for each violation for each employee. In determining the
8.13amount of a civil penalty under this subdivision, the appropriateness of such penalty to the
8.14size of the employer's business and the gravity of the violation shall be considered. In
8.15addition, the commissioner may order the employer to reimburse the department and the
8.16attorney general for all appropriate litigation and hearing costs expended in preparation for
8.17and in conducting the contested case proceeding, unless payment of costs would impose
8.18extreme financial hardship on the employer. If the employer is able to establish extreme
8.19financial hardship, then the commissioner may order the employer to pay a percentage
8.20of the total costs that will not cause extreme financial hardship. Costs include but are
8.21not limited to the costs of services rendered by the attorney general, private attorneys if
8.22engaged by the department, administrative law judges, court reporters, and expert witnesses
8.23as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid
8.24balance of a commissioner's order from the date the order is signed by the commissioner
8.25until it is paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c).
8.26The commissioner may establish escrow accounts for purposes of distributing damages.

8.27    Sec. 11. Minnesota Statutes 2012, section 177.27, subdivision 8, is amended to read:
8.28    Subd. 8. Court actions; suits brought by private parties. An employee may
8.29bring a civil action seeking redress for a violation or violations of sections 177.21 to
8.30177.44 directly to district court. An employer who pays an employee less than the wages
8.31and overtime compensation to which the employee is entitled under sections 177.21 to
8.32177.44 is liable to the employee for the full amount of the wages, gratuities, and overtime
8.33compensation, less any amount the employer is able to establish was actually paid to the
8.34employee and for an additional equal amount equal to twice the compensation owed
8.35 as liquidated damages. In addition, in an action under this subdivision the employee
9.1may seek damages and other appropriate relief provided by subdivision 7 and otherwise
9.2provided by law. An agreement between the employee and the employer to work for less
9.3than the applicable wage is not a defense to the action.

9.4    Sec. 12. Minnesota Statutes 2012, section 256.017, subdivision 9, is amended to read:
9.5    Subd. 9. Timing and disposition of penalty and case disallowance funds. Quality
9.6control case penalty and administrative penalty amounts shall be disallowed or withheld
9.7from the next regular reimbursement made to the county agency for state and federal
9.8benefit reimbursements and federal administrative reimbursements for all programs
9.9covered in this section, according to procedures established in statute, but shall not be
9.10imposed sooner than 30 calendar days from the date of written notice of such penalties.
9.11Except for penalties withheld under the child care assistance program, all penalties
9.12must be deposited in the county incentive fund provided in section 256.018. Penalties
9.13withheld under the child care assistance program shall be reallocated to counties using the
9.14allocation formula under section 119B.03, subdivision 5. All penalties must be imposed
9.15according to this provision until a decision is made regarding the status of a written
9.16exception. Penalties must be returned to county agencies when a review of a written
9.17exception results in a decision in their favor.

9.18    Sec. 13. Minnesota Statutes 2012, section 290.0671, subdivision 1, is amended to read:
9.19    Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
9.20imposed by this chapter equal to a percentage of earned income. To receive a credit, a
9.21taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
9.22(b) For individuals with no qualifying children, the credit equals 1.9125 2.16 percent
9.23of the first $4,620 of earned income. The credit is reduced by 1.9125 2.16 percent of
9.24earned income or adjusted gross income, whichever is greater, in excess of $5,770, but in
9.25no case is the credit less than zero.
9.26(c) For individuals with one qualifying child, the credit equals 8.5 9.6 percent of the
9.27first $6,920 of earned income and 8.5 9.6 percent of earned income over $12,080 but less
9.28than $13,450. The credit is reduced by 5.73 6.47 percent of earned income or adjusted gross
9.29income, whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
9.30(d) For individuals with two or more qualifying children, the credit equals ten 11.3
9.31 percent of the first $9,720 of earned income and 20 22.6 percent of earned income over
9.32$14,860 but less than $16,800. The credit is reduced by 10.3 11.6 percent of earned
9.33income or adjusted gross income, whichever is greater, in excess of $17,890, but in no
9.34case is the credit less than zero.
10.1(e) For a nonresident or part-year resident, the credit must be allocated based on the
10.2percentage calculated under section 290.06, subdivision 2c, paragraph (e).
10.3(f) For a person who was a resident for the entire tax year and has earned income
10.4not subject to tax under this chapter, including income excluded under section 290.01,
10.5subdivision 19b
, clause (9), the credit must be allocated based on the ratio of federal
10.6adjusted gross income reduced by the earned income not subject to tax under this chapter
10.7over federal adjusted gross income. For purposes of this paragraph, the subtractions
10.8for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
10.9considered "earned income not subject to tax under this chapter."
10.10For the purposes of this paragraph, the exclusion of combat pay under section 112
10.11of the Internal Revenue Code is not considered "earned income not subject to tax under
10.12this chapter."
10.13(g) For tax years beginning after December 31, 2007, and before December 31,
10.142010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
10.15paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
10.16$3,000 for married taxpayers filing joint returns. For tax years beginning after December
10.1731, 2008, the commissioner shall annually adjust the $3,000 by the percentage determined
10.18pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
10.19section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009,
10.20the commissioner shall then determine the percent change from the 12 months ending on
10.21August 31, 2007, to the 12 months ending on August 31, 2008, and in each subsequent
10.22year, from the 12 months ending on August 31, 2007, to the 12 months ending on August
10.2331 of the year preceding the taxable year. The earned income thresholds as adjusted
10.24for inflation must be rounded to the nearest $10. If the amount ends in $5, the amount
10.25is rounded up to the nearest $10. The determination of the commissioner under this
10.26subdivision is not a rule under the Administrative Procedure Act.
10.27(h) For tax years beginning after December 31, 2010, and before January 1, 2012,
10.28the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
10.29(d), after being adjusted for inflation under subdivision 7, are each increased by $5,000 for
10.30married taxpayers filing joint returns. For tax years beginning after December 31, 2010,
10.31and before January 1, 2012, the commissioner shall annually adjust the $5,000 by the
10.32percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
10.33Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for the word
10.34"1992." For 2011, the commissioner shall then determine the percent change from the 12
10.35months ending on August 31, 2008, to the 12 months ending on August 31, 2010. The
10.36earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
11.1amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
11.2commissioner under this subdivision is not a rule under the Administrative Procedure Act.
11.3(i) The commissioner shall construct tables showing the amount of the credit at
11.4various income levels and make them available to taxpayers. The tables shall follow
11.5the schedule contained in this subdivision, except that the commissioner may graduate
11.6the transition between income brackets.
11.7EFFECTIVE DATE.This section is effective for taxable years beginning after
11.8December 31, 2012.

11.9    Sec. 14. [290.0682] CHILD CREDIT.
11.10    Subdivision 1. Credit allowed. (a) An individual may claim a credit against the
11.11tax due under this chapter in an amount equal to $100 for each qualifying child. For
11.12individuals with adjusted gross income in excess of 300 percent of the federal poverty
11.13guideline, adjusted for family size, the credit is reduced by the ratio of (1) adjusted gross
11.14income in excess of 300 percent of the federal poverty guideline, adjusted for family
11.15size, to (2) the difference between 400 percent of the federal poverty guideline, adjusted
11.16for family size, and 300 percent of the federal poverty guideline, adjusted for family
11.17size; but in no case is the credit less than zero. The credit is not allowed for individuals
11.18with adjusted gross income equal to or greater than 400 percent of the federal poverty
11.19guideline, adjusted for family size.
11.20(b) For a nonresident or part-year resident, the credit must be allocated based on the
11.21percentage calculated under section 290.06, subdivision 2c, paragraph (e).
11.22    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
11.23the meanings given.
11.24(b) "Adjusted gross income" means federal adjusted gross income as defined in
11.25section 62 of the Internal Revenue Code.
11.26(c) "Family size" is the sum total of the taxpayer, spouse, and each individual eligible
11.27to be claimed as dependent under sections 151 and 152 of the Internal Revenue Code.
11.28(d) "Federal poverty guideline" means the federal poverty guideline for the calendar
11.29year as published in the federal register by the United States Department of Health and
11.30Human Services.
11.31(e) "Qualifying child" has the meaning given in section 24 of the Internal Revenue
11.32Code.
11.33    Subd. 3. Credit refundable. If the amount of credit which the individual is eligible
11.34to receive under this section exceeds the individual's liability for tax under this chapter,
11.35the commissioner shall refund the excess to the claimant.
12.1    Subd. 4. Appropriation. An amount sufficient to pay the refunds required by this
12.2section is appropriated to the commissioner from the general fund.
12.3EFFECTIVE DATE.This section is effective for taxable years beginning after
12.4December 31, 2012.

12.5    Sec. 15. DIRECTION TO COMMISSIONER OF MANAGEMENT AND
12.6BUDGET.
12.7The state obligation for the basic sliding fee child care assistance program under
12.8Minnesota Statutes, section 119B.03, must be included in the Department of Management
12.9and Budget February and November forecast of state revenues and expenditures under
12.10Minnesota Statutes, section 16A.103, beginning with the November 2013 forecast.

12.11    Sec. 16. REPEALER.
12.12Minnesota Statutes 2012, sections 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8;
12.13119B.09, subdivision 3; and 177.23, subdivision 11, are repealed.

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