SF 2

as introduced - 91st Legislature (2019 - 2020) Posted on 03/15/2019 09:25am

A bill for an act
relating to human services; modifying day care initial licensure requirement;
directing commissioner of human services to implement a child care provider
communication process, develop a plain-language handbook, and develop a uniform
family day care provider application; modifying child care tax credits; requiring
a report; appropriating money; amending Minnesota Statutes 2018, sections
245A.04, by adding subdivisions; 290.067, subdivision 1; repealing Minnesota
Rules, part 9502.0335, subpart 5.

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

Section 1.

Minnesota Statutes 2018, section 245A.04, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Initial license. new text end

new text begin Even if all laws and rules cannot be met immediately, an
applicant for initial licensure to operate a family or group family day care residence must
be granted a license by the department for up to two years if the deviations from Minnesota
Rules, chapter 9502, do not threaten the health, rights, or safety of the children, and the
deviations will be corrected within the time specified by the commissioner but not to exceed
two years. Failure to correct deviations within the stated time shall be cause for revocation,
suspension, or nonrenewal.
new text end

Sec. 2.

Minnesota Statutes 2018, section 245A.04, is amended by adding a subdivision to
read:

new text begin Subd. 18. new text end

new text begin Plain-language handbook. new text end

new text begin The commissioner of human services shall develop
a plain-language handbook that describes the process and requirements to become a licensed
family day care provider. The commissioner shall electronically publish the handbook on
the department's website, available at no charge to the public. Each county human services
office and the Department of Human Services shall maintain physical copies of the handbook
for public use.
new text end

Sec. 3.

Minnesota Statutes 2018, section 290.067, subdivision 1, is amended to read:

Subdivision 1.

Amount of credit.

(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code except that in determining whether the child qualified as
a dependent, income received as a Minnesota family investment program grant or allowance
to or on behalf of the child must not be taken into account in determining whether the child
received more than half of the child's support from the taxpayer.

(b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.

(c) If a married couple:

(1) has a child who has not attained the age of one year at the close of the taxable year;

(2) files a joint tax return for the taxable year; and

(3) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
the combined earned income of the couple or (ii) the amount of the maximum limit for one
qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
to be the employment related expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
deemed amounts apply regardless of whether any employment-related expenses have been
paid.

(d) If the taxpayer is not required and does not file a federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:

(1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or

(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.

In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.

(e) In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue
Code must be allocated based on the ratio by which the earned income of the claimant and
the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
and the claimant's spouse.

(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11 and 12, are not considered "earned income not subject to tax under this
chapter."

(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."

(h) For taxpayers with federal adjusted gross income in excess of deleted text begin $50,000 deleted text end new text begin $75,000 new text end , the
credit is equal to the lesser of the credit otherwise calculated under this subdivision, or the
amount equal to $600 minus deleted text begin five deleted text end new text begin 2.4 new text end percent of federal adjusted gross income in excess of
deleted text begin $50,000 deleted text end new text begin $75,000 new text end for taxpayers with one qualified individual, or $1,200 minus deleted text begin five deleted text end new text begin 3.2 new text end
percent of federal adjusted gross income in excess of deleted text begin $50,000 deleted text end new text begin $75,000 new text end for taxpayers with
two or more qualified individuals, but in no case is the credit less than zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end

Sec. 4. new text begin DIRECTION TO COMMISSIONER; UNIFORM FAMILY DAY CARE
PROVIDER APPLICATION.
new text end

new text begin The commissioner of human services shall develop a single, uniform application for an
individual seeking to become a family day care provider in the state. Once developed, the
uniform application must be used in each county of the state. The commissioner shall prepare
any legislation necessary to fully implement the uniform application for the 2020 legislative
session.
new text end

Sec. 5. new text begin DIRECTION TO COMMISSIONER; CHILD CARE PROVIDER
COMMUNICATION PROCESS.
new text end

new text begin (a) The commissioner of human services shall establish a confidential, anonymous
communication process for child care providers to ask licensing and background study
related questions and receive prompt, clear answers from the Department of Human Services.
new text end

new text begin (b) By February 1, 2020, the commissioner must submit a progress report on the child
care provider communication process under this section to the chairs and ranking minority
members of the legislative committees with jurisdiction over child care.
new text end

Sec. 6. new text begin APPROPRIATION; CHILD CARE PROVIDER GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $....... in fiscal year 2020 is appropriated from the general
fund to the commissioner of employment and economic development for grants to local
communities to increase the supply of quality child care providers in order to support
economic development. This appropriation does not cancel but is available in the second
year.
new text end

new text begin Subd. 2. new text end

new text begin Use of funds. new text end

new text begin Grant funds available under this section must be used to implement
solutions to reduce the child care shortage in the state including but not limited to funding
for child care business start-ups or expansions, training, facility modifications or
improvements required for licensing, and assistance with licensing and other regulatory
requirements.
new text end

new text begin Subd. 3. new text end

new text begin Grant requirements. new text end

new text begin At least 60 percent of grant funds must go to communities
located outside of the seven-county metropolitan area, as defined under Minnesota Statutes,
section 473.121, subdivision 2. Grant recipients must obtain a 50 percent nonstate match
to grant funds in either cash or in-kind contributions. In awarding grants, the commissioner
must give priority to communities that have documented a shortage of child care providers
in the area.
new text end

Sec. 7. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes, in consultation with the House Research Department, Office of
Senate Counsel, Research and Fiscal Analysis, and Department of Human Services, shall
prepare legislation for the 2020 legislative session to: (1) recodify Minnesota Statutes,
chapter 245A; and (2) repeal and enact as statutes the rules governing day care facility
licensing in Minnesota Rules, chapter 9502.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 9502.0335, subpart 5, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Rule: 19-1626

9502.0335 LICENSING PROCESS.

Subp. 5.

Initial license.

An applicant for initial licensure may be granted a license by the department for up to two years if all laws and rules cannot be met immediately, the deviations from parts 9502.0315 to 9502.0445 do not threaten the health, rights, or safety of the children, and which will be corrected within the time specified by the commissioner but not to exceed two years. Failure to correct deviations within the stated time shall be cause for revocation, suspension, or nonrenewal.