Minnesota Legislature
HF 4374
2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/14/2020 12:39pm
Current Version - 2nd Engrossment
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A bill for an act
relating to human services; amending the definition of provider; modifying the
child care assistance provider reimbursement rates; amending Minnesota Statutes
2018, section 119B.13, subdivision 1; Minnesota Statutes 2019 Supplement, section
119B.011, subdivision 19.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2019 Supplement, section 119B.011, subdivision 19, is
amended to read:
Subd. 19.
Provider.
"Provider" means:
(1) an individual or child care center or facility licensed to provide child care under
chapter 245A when operating within the terms of the license;
(2) a license-exempt center required to be certified under chapter 245H;
(3) an individual or child care center or facility that: (i) holds a valid child care license
issued by another state or a tribe; (ii) provides child care services in the licensing state or
in the area under the licensing tribe's jurisdiction; and (iii) is in compliance with federal
health and safety requirements as certified by the licensing state or tribe, or as determined
by receipt of child care development block grant funds in the licensing state; deleted text begin or
deleted text end
(4) a legal nonlicensed child care provider as defined under section 119B.011, subdivision
16, providing legal child care services. A legal nonlicensed child care provider must be at
least 18 years of age, and not a member of the MFIP assistance unit or a member of the
family receiving child care assistance to be authorized under this chapterdeleted text begin .deleted text end new text begin ; or
new text end
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(5) an individual or child care center or facility that is operated under the jurisdiction of
the federal government.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2020.
new text end
Sec. 2.
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 25th percentile of the deleted text begin 2011deleted text end new text begin most recentnew 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, 2011deleted text end new text begin rates in effect at the time of the updatenew text end . new text begin The first maximum rate update must be
based on the 2018 child care provider rate survey and take effect 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) 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 deleted text end deleted text begin , 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 25th 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. 3. 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;
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(2) provider type;
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(3) age of children; and
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(4) amount of the increase in maximum rates.
new text end