SF 788

as introduced - 88th Legislature (2013 - 2014) Posted on 02/26/2013 09:06am

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 2012, 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.13,
subdivision 1; 119B.231, subdivision 5; 256.017, subdivision 9; repealing
Minnesota Statutes 2012, 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 begin SHORT 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 2012, 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. 3.

Minnesota Statutes 2012, 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 new 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 2012, 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 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 basic sliding fee program.

Sec. 5.

Minnesota Statutes 2012, 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. 6.

Minnesota Statutes 2012, 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 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. 7.

Minnesota Statutes 2012, 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 begin 67 deleted text end new text begin 76 new 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 begin or
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 begin 67 deleted text end new text begin 76 new text end percent
of the state median income, adjusted for family size, at program exit new 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, 2013.
new text end

Sec. 8.

Minnesota Statutes 2012, 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. 9.

Minnesota Statutes 2012, 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. 10.

Minnesota Statutes 2012, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) Beginning deleted text begin October 31, 2011 deleted text end new text begin July 1, 2013 new text end ,
the maximum rate paid for child care assistance deleted text begin in any county or multicounty region deleted text end under
the child care fund deleted text begin shall be the rate for like-care arrangements in the county effective July
1, 2006, decreased by 2.5 percent deleted text end new 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) Biennially, beginning in 2012, 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 begin DIRECTION 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 2013 forecast.
new text end

Sec. 12. new text begin APPROPRIATIONS.
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 $....... is appropriated
in fiscal year 2014 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. This appropriation is not onetime and is added to the base
for fiscal year 2015.
new text end

new text begin Subd. 2. new text end

new text begin Child care services grants. new text end

new text begin $....... is appropriated in fiscal year 2014
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. This
appropriation is not onetime and is added to the base for fiscal year 2015.
new text end

new text begin Subd. 3. new text end

new text begin Migrant child care. new text end

new text begin $....... is appropriated in fiscal year 2014 from the
general fund to the commissioner of human services for the purposes of migrant child
care. This appropriation is not onetime and is added to the base for fiscal year 2015.
new text end

new text begin Subd. 4. new text end

new text begin Child care improvement grants. new text end

new text begin $....... is appropriated in fiscal year 2014
from the general fund to the commissioner of human services for the purposes of child
care improvement grants under Minnesota Statutes, section 119B.25. This appropriation is
not onetime and is added to the base for fiscal year 2015.
new text end

new text begin Subd. 5. new text end

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

new text begin $....... is appropriated in fiscal year 2014 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 2012, 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 2012, 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 begin 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. 2.

Minnesota Statutes 2012, 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 2 deleted text begin ; and deleted text end new 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 2012, 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 begin Funds 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 2012, 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 begin using 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 2012, section 119B.011, subdivision 20a, new text end new text begin is repealed.
new text end