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SF 1509

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:21am

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

Current Version - 3rd Engrossment

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A bill for an act
relating to human services; amending child care programs, program integrity,
adult supports including general assistance medical care and group residential
housing; providing for a pilot project to study and evaluate state expenditures
for children; requiring a report; amending Minnesota Statutes 2008, sections
119B.011, subdivision 3; 119B.08, subdivision 2; 119B.09, subdivision 1;
119B.12, subdivision 1; 119B.13, subdivision 6; 119B.15; 119B.231, subdivision
3; 256.014, subdivision 1; 256.0471, subdivision 1, by adding a subdivision;
256D.01, subdivision 1b; 256D.44, subdivision 3; 256I.04, subdivisions 2a, 3;
256I.05, subdivision 1k; proposing coding for new law in Minnesota Statutes,
chapter 16A.

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

ARTICLE 1

CHILD CARE

Section 1.

new text begin [16A.89] STUDY AND EVALUATION OF MONEY USED TO
SUPPORT CHILDREN.
new text end

new text begin Subdivision 1. new text end

new text begin Pilot project. new text end

new text begin (a) After soliciting public input as required by
paragraph (b), the commissioner shall use existing resources available to the department to
design and oversee a pilot project to study and evaluate all state expenditures, regardless
of source, that serve the primary function of supporting the care, health, safety, stability,
growth, development, and education of children in this state. For purposes of this section,
"children" includes individuals under 21 years of age.
new text end

new text begin (b) The commissioner shall solicit public input regarding the study and evaluation
required by this section by providing public notice of the project and subsequent revisions
on the Department of Finance Web site. The commissioner shall provide an opportunity
for members of the public to provide suggestions for the design and development of
the project. In particular, the commissioner shall seek suggestions and comments from
individuals who have conducted relevant research at higher education institutions and
from individuals with relevant experience at nonprofit institutions and foundations.
new text end

new text begin (c) The study and evaluation must include, but is not limited to:
new text end

new text begin (1) an inventory of all federal and state funding sources that support children in this
state, including prenatal services for pregnant women and child care programs, grouped in
a manner that would assist the legislature in determining whether there are overlapping
programs that lead to duplication within the state, gaps in service delivery, and any
administrative inefficiencies generally; and
new text end

new text begin (2) a description of the manner in which the money is being used within the agencies
or organizations, the performance measures in place to assess the use of the money, and the
intended outcomes of the programs and services, to the extent this information is available.
new text end

new text begin Subd. 2. new text end

new text begin Updates. new text end

new text begin As part of the report required under subdivision 4, the
commissioner shall provide a description of the experience gained from the pilot project,
including any necessary draft legislation regarding possible updates and enhancements to
the evaluation of the money used to support children in the state.
new text end

new text begin Subd. 3. new text end

new text begin Agency assistance. new text end

new text begin Upon request, each state department or agency shall
provide assistance to the commissioner for the purposes of this section.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By January 15, 2010, the commissioner shall report to the
legislative committees and budget divisions with jurisdiction over children, family
security, education, health, human services, housing, public safety, corrections, and the
judiciary by providing an electronic version of the executive summary included in the
report required by this subdivision. The report must be available online.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 119B.011, subdivision 3, is amended to read:


Subd. 3.

Application.

"Application" means the submission to a county agency, by
or on behalf of a family, of a completed, signed, and datednew text begin:new text end

new text begin (1) new text endchild care assistance universal application form deleted text beginthat indicates the family's desire
to receive assistance.
deleted text endnew text begin; or
new text end

new text begin (2) child care addendum form in combination with a combined application form
for MFIP, DWP, or food support.
new text end

Sec. 3.

Minnesota Statutes 2008, section 119B.08, subdivision 2, is amended to read:


Subd. 2.

deleted text beginQuarterlydeleted text endnew text begin Monthlynew text end payments.

deleted text beginThe commissioner may make payments
to each county in quarterly installments. The commissioner may certify an advance
up to 25 percent of the allocation. Subsequent
deleted text endnew text begin The commissioner shall make monthlynew text end
payments deleted text beginshall be madedeleted text end on a reimbursement basis for deleted text beginreporteddeleted text end expenditures deleted text beginand may be
adjusted for anticipated spending patterns
deleted text endnew text begin reported outside of the electronic system used to
administer child care assistance
new text end. Payments may be withheld if deleted text beginquarterlydeleted text end new text beginmonthly new text endreports
are incomplete or untimely.

Sec. 4.

Minnesota Statutes 2008, 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 deleted text beginor equal todeleted text end 67 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; or

(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 67 percent of the state
median income, adjusted for family size, at program exit.

(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.

Sec. 5.

Minnesota Statutes 2008, section 119B.12, subdivision 1, is amended to read:


Subdivision 1.

Fee schedule.

deleted text begin In setting the sliding fee schedule, the commissioner
shall exclude from the amount of income used to determine eligibility an amount for
federal and state income and Social Security taxes attributable to that income level
according to federal and state standardized tax tables. The commissioner shall base the
parent fee on the ability of the family to pay for child care. The fee schedule must be
designed to use any available tax credits.
deleted text end new text begin All changes to parent fees must be implemented
on the first Monday of the service period following the effective date of the change.
new text end

PARENT FEE SCHEDULE. The parent fee schedule is as follows, except as noted
in subdivision 2:

Income Range (as a percent of the state
median income, except at the start of the
first tier)
Co-payment (as a percentage of adjusted
gross income)
0-74.99% of federal poverty guidelines
$0/month
75.00-99.99% of federal poverty guidelines
$5/month
100.00% of federal poverty
guidelines-27.72%
2.61%
27.73-29.04%
2.61%
29.05-30.36%
2.61%
30.37-31.68%
2.61%
31.69-33.00%
2.91%
33.01-34.32%
2.91%
34.33-35.65%
2.91%
35.66-36.96%
2.91%
36.97-38.29%
3.21%
38.30-39.61%
3.21%
39.62-40.93%
3.21%
40.94-42.25%
3.84%
42.26-43.57%
3.84%
43.58-44.89%
4.46%
44.90-46.21%
4.76%
46.22-47.53%
5.05%
47.54-48.85%
5.65%
48.86-50.17%
5.95%
50.18-51.49%
6.24%
51.50-52.81%
6.84%
52.82-54.13%
7.58%
54.14-55.45%
8.33%
55.46-56.77%
9.20%
56.78-58.09%
10.07%
58.10-59.41%
10.94%
59.42-60.73%
11.55%
60.74-62.06%
12.16%
62.07-63.38%
12.77%
63.39-64.70%
13.38%
64.71-66.99%
14.00%
67.00%
ineligible

A family's monthly co-payment fee is the fixed percentage established for the
income range multiplied by the highest possible income within that income range.

Sec. 6.

Minnesota Statutes 2008, section 119B.13, subdivision 6, is amended to read:


Subd. 6.

Provider payments.

deleted text begin (a) Counties or the state shall make vendor payments
to the child care provider or pay the parent directly for eligible child care expenses.
deleted text end

deleted text begin (b) If payments for child care assistance are made to providers,deleted text endnew text begin (a)new text end The provider
shall bill deleted text beginthe countydeleted text end for services provided within ten days of the end of the service period.
If bills are submitted within ten days of the end of the service period, deleted text begina county or the state
shall issue payment to the provider of child care
deleted text endnew text begin paymentsnew text end under the child care fundnew text begin shall
be made
new text end within 30 days of receiving a bill from the provider. Counties or the state may
establish policies that make payments on a more frequent basis.

deleted text begin (c)deleted text endnew text begin (b)new text end All bills must be submitted within 60 days of the last date of service on the
bill. deleted text beginA county may paydeleted text end A bill submitted more than 60 days after the last date of service
new text begin must be paid new text endif the new text begincounty determines that the new text endprovider deleted text beginshowsdeleted text endnew text begin has shownnew text end good cause why
the bill was not submitted within 60 days. Good cause must be defined in the county's
child care fund plan under section 119B.08, subdivision 3, and the definition of good cause
must include county error. deleted text beginA county may not paydeleted text end Any bill submitted more than a year
after the last date of service on the billnew text begin must not be paidnew text end.

deleted text begin (d)deleted text endnew text begin (c)new text end A county may stop payment issued to a provider or may refuse to pay a
bill submitted by a provider if:

(1) the provider admits to intentionally giving the county materially false information
on the provider's billing forms; or

(2) a county finds by a preponderance of the evidence that the provider intentionally
gave the county materially false information on the provider's billing forms.

deleted text begin (e)deleted text endnew text begin (d)new text end A county's payment policies must be included in the county's child care plan
under section 119B.08, subdivision 3. If payments are made by the state, in addition to
being in compliance with this subdivision, the payments must be made in compliance
with section 16A.124.

Sec. 7.

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 basic sliding fee program and 1/21 of the state and federal funds available for the
MFIP child care program for payments to counties for administrative expenses.new text begin The
commissioner shall make monthly payments to each county based on direct service
expenditures. Payments may be withheld if monthly reports are incomplete or untimely.
new text end

Sec. 8.

Minnesota Statutes 2008, section 119B.231, subdivision 3, is amended to read:


Subd. 3.

Family and child eligibility.

(a) A family eligible to choose an SRSA
provider for their children shall:

(1) be eligible to receive child care assistance under any provision in chapter 119B
except section 119B.035;

(2) be in an authorized activity for an average of at least 35 hours per week when
initial eligibility is determined; and

(3) include a child who has not yet entered kindergarten.

(b) A family who is determined to be eligible to choose an SRSA provider remains
eligible to be paid at a higher rate through the SRSA provider when the following
conditions exist:

(1) the child attends child care with the SRSA provider a minimum of 25 hours per
week, on average;

(2) the family has a child who has not yet entered kindergarten; and

(3) the family maintains eligibility under chapter 119B except section 119B.035.

(c) deleted text beginFor the 12 monthsdeleted text end After initial eligibility has been determined, a decrease in
the family's authorized activities to an average of less than 35 hours per week does not
result in ineligibility for the SRSA rate.

(d) A family that moves between counties but continues to use the same SRSA
provider shall continue to receive SRSA funding for the increased payments.

ARTICLE 2

PROGRAM INTEGRITY

Section 1.

Minnesota Statutes 2008, section 256.014, subdivision 1, is amended to read:


Subdivision 1.

Establishment of systems.

new text begin(a) new text endThe commissioner of human services
shall establish and enhance computer systems necessary for the efficient operation of the
programs the commissioner supervises, including:

(1) management and administration of the food stamp, food support, and income
maintenance programs, including the electronic distribution of benefits;

(2) management and administration of the child support enforcement program; and

(3) administration of medical assistance and general assistance medical care.

new text begin (b) The commissioner's development costs incurred by computer systems for
statewide programs administered by that computer system and mandated by state or
federal law must not be assessed against county agencies. The commissioner may
charge a county for development and operating costs incurred by computer systems for
functions requested by the county and not mandated by state or federal law for programs
administered by the computer system incurring the cost.
new text end

new text begin (c) new text endThe commissioner shall distribute the nonfederal share of the costs of operating
and maintaining the systems to the commissioner and to the counties participating in the
system in a manner that reflects actual system usage, except that the nonfederal share of
the costs of the MAXIS computer system and child support enforcement systems new text beginfor
statewide programs administered by those systems and mandated by state or federal law
new text endshall be borne entirely by the commissioner. deleted text beginDevelopment costs must not be assessed
against county agencies.
deleted text end

The commissioner may enter into contractual agreements with federally recognized
Indian tribes with a reservation in Minnesota to participate in state-operated computer
systems related to the management and administration of the food stamp, food support,
income maintenance, child support enforcement, and medical assistance and general
assistance medical care programs to the extent necessary for the tribe to operate a federally
approved family assistance program or any other program under the supervision of the
commissioner.

Sec. 2.

Minnesota Statutes 2008, section 256.0471, subdivision 1, is amended to read:


Subdivision 1.

Qualifying overpayment.

Any overpayment for assistance granted
under chapter 119B, the MFIP program formerly codified under sections 256.031 to
256.0361, and the AFDC program formerly codified under sections 256.72 to 256.871;
chapters 256Bnew text begin for state-funded medical assistancenew text end, 256D, 256I, 256J, deleted text beginanddeleted text end 256Knew text begin, and 256L
for state-funded MinnesotaCare
new text end; and the food stamp or food support program, except
agency error claims, become a judgment by operation of law 90 days after the notice of
overpayment is personally served upon the recipient in a manner that is sufficient under
rule 4.03(a) of the Rules of Civil Procedure for district courts, or by certified mail, return
receipt requested. This judgment shall be entitled to full faith and credit in this and any
other state.

Sec. 3.

Minnesota Statutes 2008, section 256.0471, is amended by adding a subdivision
to read:


new text begin Subd. 6a. new text end

new text begin Administrative renewal of overpayment judgments. new text end

new text begin Overpayment
judgments may be renewed by service of notice upon the debtor. Service must be by first
class mail at the last known address of the debtor, with service deemed complete upon
mailing in that manner designated, or in the manner provided for the service of civil
process. Upon filing of the notice and proof of service, the court administrator shall
administratively renew the judgment for the overpayment without any additional filing
fee in the same court file as the original overpayment judgment. The judgment must be
renewed in an amount equal to the unpaid principle plus the accrued unpaid interest.
Overpayment judgments may be renewed multiple times until satisfied.
new text end

ARTICLE 3

ADULT SUPPORTS

Section 1.

Minnesota Statutes 2008, section 256D.01, subdivision 1b, is amended to
read:


Subd. 1b.

Rules.

The commissioner shall adopt rules to set standards of assistance
and methods of calculating payment to conform with subdivision 1a. deleted text beginThe minimum
standards of assistance shall authorize the payment of rates negotiated by county agencies
for recipients living in a room and board arrangement according to sections 256I.01 to
256I.06.
deleted text end When a recipient is a resident of a deleted text beginregional treatment center, or a residence
with a negotiated rate,
deleted text endnew text begin licensed residential facility, except shelters for the homeless or
shelters under section 611A.31,
new text end the recipient is not eligible for a full general assistance
standard. The state standard of assistance for those recipients new text beginwho have personal needs not
otherwise provided for
new text endis the personal needs allowance authorized for medical assistance
recipients under section 256B.35.

Sec. 2.

Minnesota Statutes 2008, section 256D.44, subdivision 3, is amended to read:


Subd. 3.

Standard of assistance for basic needs.

Except as provided in subdivision
4, the monthly state standard of assistance for basic needs is as follows:

(a) If an applicant or recipient does not reside with another person or persons, the
state standard of assistance is $519.

(b) If an applicant married couple or recipient married couple who live together,
does not reside with others, the state standard of assistance is $778.

(c) If an applicant or recipient resides with another person or persons, the state
standard of assistance is $395.

(d) If an applicant married couple or recipient married couple who live together,
resides with others, the state standard of assistance is $519.

(e) Married couples, living together who do not reside with others and were
receiving MSA prior to January 1, 1994, and whose eligibility has not been terminated a
full calendar month, the state standard of assistance is $793.

(f) Married couples living together who reside with others and were receiving MSA
prior to January 1, 1994, and whose eligibility has not been terminated a full calendar
month, the state standard of assistance is $782.

(g) For an individual who new text begin(1) receives Social Security insurance under federal
living arrangement D or (2)
new text endis a resident of a deleted text beginnursing home, a regional treatment center
or a group
deleted text end new text beginlicensed new text endresidential deleted text beginhousingdeleted text end facilitynew text begin and has unmet personal needsnew text end, the state
standard of assistance is the personal needs allowance for medical assistance recipients
under section 256B.35.

Sec. 3.

Minnesota Statutes 2008, section 256I.04, subdivision 2a, is amended to read:


Subd. 2a.

License required.

A county agency may not enter into an agreement with
an establishment to provide group residential housing unless:

(1) the establishment is licensed by the Department of Health as a hotel and
restaurant; a board and lodging establishment; a residential care home; a boarding care
home before March 1, 1985; or a supervised living facility, and the service provider
for residents of the facility is licensed under chapter 245A. However, an establishment
licensed by the Department of Health to provide lodging need not also be licensed to
provide board if meals are being supplied to residents under a contract with a food vendor
who is licensed by the Department of Health;

(2) the residence isnew text begin: (i)new text end licensed by the commissioner of human services under
Minnesota Rules, parts 9555.5050 to 9555.6265deleted text begin, ordeleted text endnew text begin; (ii)new text end certified by a county human
services agency prior to July 1, 1992, using the standards under Minnesota Rules,
parts 9555.5050 to 9555.6265;new text begin or (iii) a residence licensed by the commissioner under
Minnesota Rules, parts 2960.0010 to 2960.0120, with a variance under section 245A.04,
subdivision 9;
new text end

(3) the establishment is registered under chapter 144D and provides three meals a
day, or is an establishment voluntarily registered under section 144D.025 as a supportive
housing establishment; or

(4) an establishment voluntarily registered under section 144D.025, other than
a supportive housing establishment under clause (3), is not eligible to provide group
residential housing.

The requirements under clauses (1)deleted text begin, (2), (3), anddeleted text endnew text begin tonew text end (4) do not apply to establishments
exempt from state licensure because they are located on Indian reservations and subject
to tribal health and safety requirements.

Sec. 4.

Minnesota Statutes 2008, section 256I.04, subdivision 3, is amended to read:


Subd. 3.

Moratorium on the development of group residential housing beds.

(a)
County agencies shall not enter into agreements for new group residential housing beds
with total rates in excess of the MSA equivalent rate except:

(1) for group residential housing establishments licensed under Minnesota Rules,
parts 9525.0215 to 9525.0355, provided the facility is needed to meet the census reduction
targets for persons with developmental disabilities at regional treatment centers;

(2) to ensure compliance with the federal Omnibus Budget Reconciliation Act
alternative disposition plan requirements for inappropriately placed persons with
developmental disabilities or mental illness;

(3) up to 80 beds in a single, specialized facility located in Hennepin County that will
provide housing for chronic inebriates who are repetitive users of detoxification centers
and are refused placement in emergency shelters because of their state of intoxication,
and planning for the specialized facility must have been initiated before July 1, 1991,
in anticipation of receiving a grant from the Housing Finance Agency under section
462A.05, subdivision 20a, paragraph (b);

(4) notwithstanding the provisions of subdivision 2a, for up to 190 supportive
housing units in Anoka, Dakota, Hennepin, or Ramsey County for homeless adults with a
mental illness, a history of substance abuse, or human immunodeficiency virus or acquired
immunodeficiency syndrome. For purposes of this section, "homeless adult" means a
person who is living on the street or in a shelter or discharged from a regional treatment
center, community hospital, or residential treatment program and has no appropriate
housing available and lacks the resources and support necessary to access appropriate
housing. At least 70 percent of the supportive housing units must serve homeless adults
with mental illness, substance abuse problems, or human immunodeficiency virus or
acquired immunodeficiency syndrome who are about to be or, within the previous six
months, has been discharged from a regional treatment center, or a state-contracted
psychiatric bed in a community hospital, or a residential mental health or chemical
dependency treatment program. If a person meets the requirements of subdivision 1,
paragraph (a), and receives a federal or state housing subsidy, the group residential housing
rate for that person is limited to the supplementary rate under section 256I.05, subdivision
1a
, and is determined by subtracting the amount of the person's countable income that
exceeds the MSA equivalent rate from the group residential housing supplementary rate.
A resident in a demonstration project site who no longer participates in the demonstration
program shall retain eligibility for a group residential housing payment in an amount
determined under section 256I.06, subdivision 8, using the MSA equivalent rate. Service
funding under section 256I.05, subdivision 1a, will end June 30, 1997, if federal matching
funds are available and the services can be provided through a managed care entity. If
federal matching funds are not available, then service funding will continue under section
256I.05, subdivision 1a;

(5) for group residential housing beds in settings meeting the requirements of
subdivision 2a, clauses (1) and (3), which are used exclusively for recipients receiving
home and community-based waiver services under sections 256B.0915, 256B.092,
subdivision 5
, 256B.093, and 256B.49, and who resided in a nursing facility for the six
months immediately prior to the month of entry into the group residential housing setting.
The group residential housing rate for these beds must be set so that the monthly group
residential housing payment for an individual occupying the bed when combined with the
nonfederal share of services delivered under the waiver for that person does not exceed
the nonfederal share of the monthly medical assistance payment made for the person to
the nursing facility in which the person resided prior to entry into the group residential
housing establishment. The rate may not exceed the MSA equivalent rate plus $426.37
for any case;

(6) for an additional two beds, resulting in a total of 32 beds, for a facility located in
Hennepin County providing services for recovering and chemically dependent men that
has had a group residential housing contract with the county and has been licensed as a
board and lodge facility with special services since 1980;

(7) for a group residential housing provider located in deleted text beginStearns Countydeleted text end new text beginthe city
of St. Cloud, or a county contiguous to the city of St. Cloud,
new text endthat operates a 40-bed
facility, that received financing through the Minnesota Housing Finance Agency Ending
Long-Term Homelessness Initiative and serves chemically dependent clientele, providing
24-hour-a-day supervision;

(8) for a new 65-bed facility in Crow Wing County that will serve chemically
dependent persons, operated by a group residential housing provider that currently
operates a 304-bed facility in Minneapolis, and a 44-bed facility in Duluth;

(9) for a group residential housing provider that operates two ten-bed facilities, one
located in Hennepin County and one located in Ramsey County, that provide community
support and 24-hour-a-day supervision to serve the mental health needs of individuals
who have chronically lived unsheltered; and

(10) for a group residential facility in Hennepin County with a capacity of up to 48
beds that has been licensed since 1978 as a board and lodging facility and that until August
1, 2007, operated as a licensed chemical dependency treatment program.

(b) A county agency may enter into a group residential housing agreement for beds
with rates in excess of the MSA equivalent rate in addition to those currently covered
under a group residential housing agreement if the additional beds are only a replacement
of beds with rates in excess of the MSA equivalent rate which have been made available
due to closure of a setting, a change of licensure or certification which removes the beds
from group residential housing payment, or as a result of the downsizing of a group
residential housing setting. The transfer of available beds from one county to another can
only occur by the agreement of both counties.

Sec. 5.

Minnesota Statutes 2008, section 256I.05, subdivision 1k, is amended to read:


Subd. 1k.

Supplementary rate for certain facilities; Stearnsnew text begin, Sherburne, or
Benton
new text end County.

Notwithstanding the provisions of this section, beginning July 1,
deleted text begin 2007deleted text endnew text begin 2009new text end, a county agency shall negotiate a supplementary service rate in addition
to the rate specified in subdivision 1, not to exceed $700 per month, including any
legislatively authorized inflationary adjustments, for a group residential housing
provider located in Stearnsnew text begin, Sherburne, or Bentonnew text end County that operates a 40-bed
facility, that received financing through the Minnesota Housing Finance Agency Ending
Long-Term Homelessness Initiative and serves chemically dependent clientele, providing
24-hour-a-day supervision.