SF 1858

as introduced - 88th Legislature (2013 - 2014) Posted on 02/26/2014 09:30am

A bill for an act
relating to human services; forecasting the basic sliding fee child care assistance
program; modifying child care assistance provider reimbursement rates;
amending Minnesota Statutes 2012, sections 119B.02, subdivisions 1, 2;
119B.03, subdivision 9; 119B.035, subdivisions 1, 4; 119B.05, subdivision
5; 119B.08, subdivision 3; 119B.09, subdivision 4a; 119B.231, subdivision
5; 256.017, subdivision 9; Minnesota Statutes 2013 Supplement, sections
119B.011, subdivision 19b; 119B.05, subdivision 1; 119B.13, subdivision
1; repealing Minnesota Statutes 2012, sections 119B.011, subdivision 20a;
119B.03, subdivisions 1, 2, 5, 6, 6a, 6b, 8; 119B.09, subdivision 3; Minnesota
Statutes 2013 Supplement, section 119B.03, subdivision 4; Minnesota Rules,
parts 3400.0020, subpart 8; 3400.0030; 3400.0060, subparts 2, 4, 6, 6a, 7.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 119B.011, subdivision 19b,
is amended to read:

Subd. 19b.

Student parent.

"Student parent" means a person who is:

(1) under 21 years of age and has a child;

(2) pursuing a high school or general equivalency diploma; and

(3) residing within a county that has a basic sliding fee waiting list under section
119B.03, subdivision 4; and

(4) (3) not an MFIP participant.

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. Within the limits
of available appropriations, 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. 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. The counties commissioner 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.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 sections 119B.03 and 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. 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.

Sec. 4.

Minnesota Statutes 2012, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

Portability pool.

(a) 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.

(b) To be eligible for portable basic sliding fee assistance, a family that has moved
from a county in which it (a) A family receiving child care assistance under the child care
fund that has moved from a county in which the family was receiving basic sliding fee
child care assistance to a another county with a waiting list for the basic sliding fee program
must be admitted into the receiving county's child care assistance program if the family:

(1) meet meets the income and eligibility guidelines for the basic sliding fee
program; and

(2) notify notifies the new county of residence within 60 days of moving and submit
submits information to the new county of residence to verify eligibility for the basic
sliding fee program.

(c) (b) The receiving county must:

(1) accept administrative responsibility for applicants for portable basic sliding fee
assistance at the end of the two months of assistance under the Unitary Residency Act;.

(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

(3) notify the commissioner through the quarterly reporting process of any family
that meets the criteria of the portable basic sliding fee assistance pool.

Sec. 5.

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, and up to available appropriations,
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. 6.

Minnesota Statutes 2012, section 119B.035, subdivision 4, is amended to read:

Subd. 4.

Assistance.

(a) A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent
of the rate established under section 119B.13 for care of infants in licensed family child
care in the applicant's county of residence.

(b) A participating family must report income and other family changes as specified
in the county's plan under section 119B.08, subdivision 3.

(c) Persons who are admitted to the at-home infant child care program retain their
position in any basic sliding fee program. Persons leaving the at-home infant child care
program reenter the basic sliding fee program at the position they would have occupied.

(d) Assistance under this section does not establish an employer-employee
relationship between any member of the assisted family and the county or state.

Sec. 7.

Minnesota Statutes 2013 Supplement, 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;

(7) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2; and

(8) families who are participating in the transition year extension under section
119B.011, subdivision 20a; and

(9) (8) student parents as defined under section 119B.011, subdivision 19b.

Sec. 8.

Minnesota Statutes 2012, section 119B.05, subdivision 5, is amended to read:

Subd. 5.

Federal reimbursement.

Counties and the state 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. 9.

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 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
payments to a county until it has an approved plan. Counties are to maintain services despite
any reduction in their allocation withholding of payments due to plans not being approved.

Sec. 10.

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. 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.

Sec. 11.

Minnesota Statutes 2013 Supplement, section 119B.13, subdivision 1, is
amended to read:

Subdivision 1.

Subsidy restrictions.

(a) Beginning February 3 July 1, 2014, 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 50th percentile of the 2011 most recent
biennial child care provider rate survey under section 119B.02, subdivision 7, or the
maximum rate effective November 28, 2011. 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 or under a
school readiness service agreement paid under section 119B.231, 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. 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.

(d) 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.

(e) 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.

(f) All maximum provider rates changes shall be implemented on the Monday
following the effective date of the maximum provider rate.

(g) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum
registration fees in effect on January 1, 2013, shall remain in effect.

Sec. 12.

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) 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.
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. 13.

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 using the
allocation formula under section 119B.03, subdivision 5. 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. 14. DIRECTION TO COMMISSIONER OF MANAGEMENT AND
BUDGET.

The state obligation for the basic sliding fee child care assistance program under
Minnesota Statutes, section 119B.03, must be included in the Minnesota Management
and Budget February and November forecast of state revenues and expenditures under
Minnesota Statutes, section 16A.103, beginning with the November 2014 forecast.

Sec. 15. REPEALER.

Minnesota Statutes 2012, sections 119B.011, subdivision 20a; 119B.03, subdivisions
1, 2, 5, 6, 6a, 6b, and 8; and 119B.09, subdivision 3, are repealed.

(b) Minnesota Statutes 2013 Supplement, section 119B.03, subdivision 4, is repealed.

(c) Minnesota Rules, parts 3400.0020, subpart 8; 3400.0030; and 3400.0060,
subparts 2, 4, 6, 6a, and 7, are repealed.