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SF 3170

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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; changing MFIP child care assistance provisions;
creating a Child Care Advisory Task Force; making technical changes;
amending Minnesota Statutes 2006, sections 119B.011, subdivision 17; 119B.03,
subdivisions 1, 6; 119B.09, subdivisions 1, 9; 119B.125, by adding a subdivision;
119B.21, subdivision 10; 256E.30, subdivision 1; 256E.35, subdivision 7;
Minnesota Statutes 2007 Supplement, sections 119B.12; 119B.125, subdivision
2; 119B.13, subdivisions 1, 7; 119B.21, subdivision 5; 119B.231, subdivision
5; 245A.1435; 245C.08, subdivision 2; 256E.35, subdivision 2; repealing
Minnesota Statutes 2006, section 256K.25.

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

ARTICLE 1

CHILD CARE

Section 1.

Minnesota Statutes 2006, section 119B.03, subdivision 6, is amended to read:


Subd. 6.

Allocation formula.

The basic sliding fee state and federal funds shall be
allocated on a calendar year basis. Funds shall be allocated first in amounts equal to each
county's guaranteed floor according to subdivision 8, with any remaining available funds
allocated according to the following formula:

(a) One-fourth of the funds shall be allocated in proportion to each county's total
expenditures for the basic sliding fee child care program reported during the most recent
fiscal year completed at the time of the notice of allocation.

(b) new text begin Up to new text end one-fourth of the funds shall be allocated deleted text begin based ondeleted text end new text begin in proportion to new text end the
number of families participating in the transition year child care program as reported
during new text begin and averaged over new text end the most recent deleted text begin quarterdeleted text end new text begin six monthsnew text end completed at the time of the
notice of allocation.new text begin Funds in excess of the amount necessary to serve all families in this
category shall be allocated according to paragraph (f).
new text end

(c) new text begin Up to new text end one-fourth of the funds shall be allocated in proportion tonew text begin the average ofnew text end
each county's most deleted text begin recentlydeleted text end new text begin recent six months ofnew text end reported first, second, and third priority
waiting list as defined in subdivision 2 and the reinstatement list of those families whose
assistance was terminated with the approval of the commissioner under Minnesota Rules,
part 3400.0183, subpart 1.new text begin Funds in excess of the amount necessary to serve all families in
this category shall be allocated according to paragraph (f).
new text end

(d) new text begin Up to new text end one-fourth of the funds deleted text begin mustdeleted text end new text begin shallnew text end be allocated in proportion to new text begin the average
of
new text end each county's most deleted text begin recentlydeleted text end new text begin recent six months of new text end reported waiting list as defined in
subdivision 2 and the reinstatement list of those families whose assistance was terminated
with the approval of the commissioner under Minnesota Rules, part 3400.0183, subpart
1.new text begin Funds in excess of the amount necessary to serve all families in this category shall
be allocated according to paragraph (f).
new text end

new text begin (e) The amount necessary to serve all families in paragraphs (b), (c), and (d) shall be
calculated based on the basic sliding fee average cost of care per family in the county with
the highest cost in the most recently completed calendar year.
new text end

new text begin (f) Funds in excess of the amount necessary to serve all families in paragraphs (b),
(c), and (d) shall be allocated in proportion to each county's total expenditures for the basic
sliding fee child care program reported during the most recent fiscal year completed at the
time of the notice of allocation.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119B.09, subdivision 9, is amended to read:


Subd. 9.

Licensed and legal nonlicensed family child care providers; assistance.

Licensed and legal nonlicensed family child care providersnew text begin and their employeesnew text end are not
eligible to receive child care assistance subsidies under this chapter for their own children
or children in their family during the hours they are providing child care or being paid to
provide child care. Child care providersnew text begin and their employeesnew text end are eligible to receive child
care assistance subsidies for their children when they are engaged in other activities that
meet the requirements of this chapter and for which child care assistance can be paid. The
hours for which the providernew text begin or their employeenew text end receives a child care subsidy for their own
children must not overlap with the hours the provider provides child care services.

Sec. 3.

Minnesota Statutes 2007 Supplement, 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.

new text begin (g) Effective upon date of enactment, 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.
new text end

Sec. 4.

Minnesota Statutes 2007 Supplement, section 245A.1435, is amended to read:


245A.1435 REDUCTION OF RISK OF SUDDEN INFANT DEATH
SYNDROME IN LICENSED PROGRAMS.

When a license holder is placing an infant to sleep, the license holder must place
the infant on the infant's back, unless the new text begin parent provides thenew text end license holder deleted text begin hasdeleted text end new text begin withnew text end
documentation from the infant's deleted text begin parentdeleted text end new text begin doctor new text end directing an alternative sleeping position
for the infant, and must place the infant in a crib with a firm mattress. The license holder
must not place pillows, quilts, comforters, sheepskin, pillow-like stuffed toys, or other
soft products in the crib with the infant. Licensed child care providers must meet the
crib requirements under section 245A.146.

Sec. 5. new text begin CHILD CARE ADVISORY TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of human services shall establish
a Child Care Advisory Task Force of stakeholders to review and make recommendations
to the legislature to remove barriers facing families applying for and receiving child care
assistance under Minnesota Statutes, chapter 119B.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commissioner of human services shall appoint Child
Care Advisory Task Force members. The Child Care Advisory Task Force shall include,
but is not limited to, representatives from:
new text end

new text begin (1) the Department of Human Services;
new text end

new text begin (2) counties and nonprofit organizations administering the child care assistance
programs;
new text end

new text begin (3) a parent receiving child care assistance;
new text end

new text begin (4) the child care advocacy community; and
new text end

new text begin (5) the antipoverty advocacy community.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The Child Care Advisory Task Force shall review child care
assistance laws, rules, and policies and make recommendations to remove barriers facing
families applying for child care assistance or completing reauthorization for child care
assistance to the legislative committees with jurisdiction over the child care assistance
programs under Minnesota Statutes, chapter 119B. Barriers to review include, but are
not limited to:
new text end

new text begin (1) length of application forms;
new text end

new text begin (2) consistency of application and reauthorization forms statewide;
new text end

new text begin (3) documentation requirements, including frequency of producing documentation;
new text end

new text begin (4) barriers facing parents with limited English; and
new text end

new text begin (5) length of reauthorization periods.
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 Department of Human Services shall
report to the legislative committees with jurisdiction over the child care assistance
programs with the Child Care Advisory Task Force recommendations to remove the
barriers facing families in applying for and receiving child care assistance.
new text end

new text begin Subd. 5. new text end

new text begin Task force expenses. new text end

new text begin Notwithstanding Minnesota Statutes, section 15.059,
task force members must not be paid a per diem or reimbursed for any expenses associated
with their membership on the task force.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The Child Care Advisory Task Force expires June 30, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

CHILD CARE TECHNICAL

Section 1.

Minnesota Statutes 2006, section 119B.011, subdivision 17, is amended to
read:


Subd. 17.

MFIP.

"MFIP" means the Minnesota family investment program, the
state's TANF program under Public Law 104-193, Title I, and includes the MFIP program
under chapter 256Jdeleted text begin , the work first program under chapter 256K,deleted text end and tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2.

Sec. 2.

Minnesota Statutes 2006, section 119B.03, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Allocation period;deleted text end Notice of allocation.

deleted text begin When the commissioner
notifies county and human service boards of the forms and instructions they are to
follow in the development of their child care fund plans required under section 119B.08,
subdivision 3
, the commissioner shall also notify county and human services boards of
their estimated child care fund program allocation for the two years covered by the plan.
deleted text end
By October 1 of each year, the commissioner shall notify all counties of their final child
care fund program allocation.

Sec. 3.

Minnesota Statutes 2006, 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 250deleted text end new text begin 67new text end percent of deleted text begin the federal povertydeleted text end
new text begin state median incomenew text end deleted text begin guidelinesdeleted text end , 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 256Kdeleted text end ; or

(2) have household income less than or equal to deleted text begin 175deleted text end new text begin 47new text end percent of deleted text begin the federal
poverty
deleted text end new text begin state median incomenew text end deleted text begin guidelinesdeleted text end , adjusted for family size, at program entry and
less than deleted text begin 250deleted text end new text begin 67new text end percent of deleted text begin the federal poverty guidelinesdeleted text end new text begin state median incomenew text end , 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. 4.

Minnesota Statutes 2007 Supplement, section 119B.12, is amended to read:


119B.12 SLIDING FEE SCALE.

Subdivision 1.

Fee schedule.

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.

PARENT FEE SCHEDULE. The parent fee schedule is as followsnew text begin , except as noted
in subdivision 2
new text end :

Income Range (as a percent of the deleted text begin federal
poverty guidelines
deleted text end new text begin state median income,
except at the start of the first tier
new text end )
Co-payment (as a percentage of adjusted
gross income)
0-74.99%new text begin of federal poverty guidelines
new text end
$0/month
75.00-99.99%new text begin of federal poverty guidelines
new text end
$5/month
deleted text begin 100.00-104.99% deleted text end new text begin 100.00% of federal
poverty guidelines-27.72%
new text end
2.61%
deleted text begin 105.00-109.99% deleted text end new text begin 27.73-29.04%
new text end
2.61%
deleted text begin 110.00-114.99% deleted text end new text begin 29.05-30.36%
new text end
2.61%
deleted text begin 115.00-119.99% deleted text end new text begin 30.37-31.68%
new text end
2.61%
deleted text begin 120.00-124.99% deleted text end new text begin 31.69-33.00%
new text end
2.91%
deleted text begin 125.00-129.99% deleted text end new text begin 33.01-34.32%
new text end
2.91%
deleted text begin 130.00-134.99% deleted text end new text begin 34.33-35.65%
new text end
2.91%
deleted text begin 135.00-139.99% deleted text end new text begin 35.66-36.96%
new text end
2.91%
deleted text begin 140.00-144.99% deleted text end new text begin 36.97-38.29%
new text end
3.21%
deleted text begin 145.00-149.99% deleted text end new text begin 38.30-39.61%
new text end
3.21%
deleted text begin 150.00-154.99% deleted text end new text begin 39.62-40.93%
new text end
3.21%
deleted text begin 155.00-159.99% deleted text end new text begin 40.94-42.25%
new text end
3.84%
deleted text begin 160.00-164.99% deleted text end new text begin 42.26-43.57%
new text end
3.84%
deleted text begin 165.00-169.99% deleted text end new text begin 43.58-44.89%
new text end
4.46%
deleted text begin 170.00-174.99% deleted text end new text begin 44.90-46.21%
new text end
4.76%
deleted text begin 175.00-179.99% deleted text end new text begin 46.22-47.53%
new text end
5.05%
deleted text begin 180.00-184.99% deleted text end new text begin 47.54-48.85%
new text end
5.65%
deleted text begin 185.00-189.99% deleted text end new text begin 48.86-50.17%
new text end
5.95%
deleted text begin 190.00-194.99% deleted text end new text begin 50.18-51.49%
new text end
6.24%
deleted text begin 195.00-199.99% deleted text end new text begin 51.50-52.81%
new text end
6.84%
deleted text begin 200.00-204.99% deleted text end new text begin 52.82-54.13%
new text end
7.58%
deleted text begin 205.00-209.99% deleted text end new text begin 54.14-55.45%
new text end
8.33%
deleted text begin 210.00-214.99% deleted text end new text begin 55.46-56.77%
new text end
9.20%
deleted text begin 215.00-219.99% deleted text end new text begin 56.78-58.09%
new text end
10.07%
deleted text begin 220.00-224.99% deleted text end new text begin 58.10-59.41%
new text end
10.94%
deleted text begin 225.00-229.99% deleted text end new text begin 59.42-60.73%
new text end
11.55%
deleted text begin 230.00-234.99% deleted text end new text begin 60.74-62.06%
new text end
12.16%
deleted text begin 235.00-239.99% deleted text end new text begin 62.07-63.38%
new text end
12.77%
deleted text begin 240.00-244.99% deleted text end new text begin 63.39-64.70%
new text end
13.38%
deleted text begin 245.00-249.99% deleted text end new text begin 64.71-66.99%
new text end
14.00%
deleted text begin 250% deleted text end new text begin 67.00%
new text end
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.

Subd. 2.

Parent fee.

A family must be assessed a parent fee for each service period.
A family's parent fee must be a fixed percentage of its annual gross income. Parent fees
must apply to families eligible for child care assistance under sections 119B.03 and
119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed
percent is based on the relationship of the family's annual gross income to 100 percent
of the annual deleted text begin federal poverty guidelinesdeleted text end new text begin state median incomenew text end . Parent fees must begin
at 75 percent of the poverty level. The minimum parent fees for families between 75
percent and 100 percent of poverty level must be $5 per month. Parent fees must provide
for graduated movement to full payment. Payment of part or all of a family's parent
fee directly to the family's child care provider on behalf of the family by a source other
than the family shall not affect the family's eligibility for child care assistance, and the
amount paid shall be excluded from the family's income. Child care providers who accept
third-party payments must maintain family specific documentation of payment source,
amount, and time period covered by the payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 119B.125, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Background study required. new text end

new text begin This subdivision only applies to legal,
nonlicensed family child care providers. Prior to authorization, and as part of each
reauthorization required in subdivision 1, the county shall perform a background study on
every member of the provider's household who is age 13 and older. The background study
shall be conducted according to the procedures under subdivision 2.
new text end

Sec. 6.

Minnesota Statutes 2007 Supplement, section 119B.125, subdivision 2, is
amended to read:


Subd. 2.

Persons who cannot be authorized.

(a) deleted text begin A person whodeleted text end new text begin When any
member of the legal, nonlicensed family child care provider's household
new text end meets any of the
conditions under paragraphs (b) to (n)new text begin , the providernew text end must not be authorized as a legal
nonlicensed family child care provider. To determine whether any of the listed conditions
exist, the county must request information about the provider new text begin and other household
members for whom a background study is required under subdivision 1a
new text end from the Bureau
of Criminal Apprehension, the juvenile courts, and social service agencies. When one
of the listed entities does not maintain information on a statewide basis, the county must
contact the entity in the county where the provider resides and any other county in which
the provider new text begin or any household member new text end previously resided in the past year. For purposes of
this subdivision, a finding that a delinquency petition is proven in juvenile court must be
considered a conviction in state district court. If a county has determined that a provider
is able to be authorized in that county, and a family in another county later selects that
provider, the provider is able to be authorized in the second county without undergoing a
new background investigation unless one of the following conditions exists:

(1) two years have passed since the first authorization;

(2) another person age 13 or older has joined the provider's household since the
last authorization;

(3) a current household member has turned 13 since the last authorization; or

(4) there is reason to believe that a household member has a factor that prevents
authorization.

(b) The person has been convicted of one of the following offenses or has admitted to
committing or a preponderance of the evidence indicates that the person has committed an
act that meets the definition of one of the following offenses: sections 609.185 to 609.195,
murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn
child in the first, second, or third degree; 609.322, solicitation, inducement, promotion
of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual
conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to
engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a
child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial
representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense
of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime
against children; or an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(c) Less than 15 years have passed since the discharge of the sentence imposed for
the offense and the person has received a felony conviction for one of the following
offenses, or the person has admitted to committing or a preponderance of the evidence
indicates that the person has committed an act that meets the definition of a felony
conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter in
the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding suicide
or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, third, or
fourth degree; 609.224, repeat offenses of fifth degree assault; 609.228, great bodily
harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable adult;
609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to injure or
facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene materials
and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, false
imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or
second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third
degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27,
coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor
engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth
degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of
shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582,
burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63,
forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature
by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67,
unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71,
riot; 609.713, terrorist threats; 609.749, harassment, stalking; 260C.301, termination of
parental rights; 152.021 to 152.022 and 152.0262, controlled substance crime in the first
or second degree; 152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2,
clause (4), controlled substance crime in third degree; 152.024, subdivision 1, clause
(2), (3), or (4), controlled substance crime in fourth degree; 617.23, repeat offenses of
indecent exposure; an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(d) Less than ten years have passed since the discharge of the sentence imposed for
the offense and the person has received a gross misdemeanor conviction for one of the
following offenses or the person has admitted to committing or a preponderance of the
evidence indicates that the person has committed an act that meets the definition of a gross
misdemeanor conviction for one of the following offenses: sections 609.224, fifth degree
assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of
an order for protection; 609.3451, fifth degree criminal sexual conduct; 609.746, repeat
offenses of interference with privacy; 617.23, repeat offenses of indecent exposure;
617.241, obscene materials and performances; 617.243, indecent literature, distribution;
617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66,
dangerous weapons; 609.749, harassment, stalking; 609.224, subdivision 2, paragraph
(c), fifth degree assault against a vulnerable adult by a caregiver; 609.23, mistreatment
of persons confined; 609.231, mistreatment of residents or patients; 609.2325, criminal
abuse of a vulnerable adult; 609.2335, financial exploitation of a vulnerable adult;
609.233, criminal neglect of a vulnerable adult; 609.234, failure to report maltreatment of
a vulnerable adult; 609.72, subdivision 3, disorderly conduct against a vulnerable adult;
609.265, abduction; 609.378, neglect or endangerment of a child; 609.377, malicious
punishment of a child; 609.324, subdivision 1a, other prohibited acts, minor engaged
in prostitution; 609.33, disorderly house; 609.52, theft; 609.582, burglary in the first,
second, third, or fourth degree; 609.631, check forgery, offering a forged check; 609.275,
attempt to coerce; an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(e) Less than seven years have passed since the discharge of the sentence imposed
for the offense and the person has received a misdemeanor conviction for one of the
following offenses or the person has admitted to committing or a preponderance of
the evidence indicates that the person has committed an act that meets the definition
of a misdemeanor conviction for one of the following offenses: sections 609.224, fifth
degree assault; 609.2242, domestic assault; 518B.01, violation of an order for protection;
609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79,
obscene or harassing telephone calls; 609.795, letter, telegram, or package opening,
harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree;
617.293, dissemination and display of harmful materials to minors; 609.66, dangerous
weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses
as defined in Minnesota Statutes; or an offense in any other state or country where the
elements are substantially similar to any of the offenses listed in this paragraph.

(f) The person has been identified by the child protection agency in the county where
the provider resides or a county where the provider has resided or by the statewide child
protection database as a person found by a preponderance of evidence under section
626.556 to be responsible for physical or sexual abuse of a child within the last seven years.

(g) The person has been identified by the adult protection agency in the county
where the provider resides or a county where the provider has resided or by the statewide
adult protection database as the person responsible for abuse or neglect of a vulnerable
adult within the last seven years.

(h) The person has refused to give written consent for disclosure of criminal history
records.

(i) The person has been denied a family child care license or has received a fine or a
sanction as a licensed child care provider that has not been reversed on appeal.

(j) The person has a family child care licensing disqualification that has not been
set aside.

(k) The person has admitted or a county has found that there is a preponderance of
evidence that fraudulent information was given to the county for child care assistance
application purposes or was used in submitting child care assistance bills for payment.

(l) The person has been convicted of the crime of theft by wrongfully obtaining
public assistance or has been found guilty of wrongfully obtaining public assistance by a
federal court, state court, or an administrative hearing determination or waiver, through a
disqualification consent agreement, as part of an approved diversion plan under section
401.065, or a court-ordered stay with probationary or other conditions.

(m) The person has a household member age 13 or older who has access to children
during the hours that care is provided and who meets one of the conditions listed in
paragraphs (b) to (l).

(n) The person has a household member ages ten to 12 who has access to children
during the hours that care is provided; information or circumstances exist which provide
the county with articulable suspicion that further pertinent information may exist showing
the household member meets one of the conditions listed in paragraphs (b) to (l); and the
household member actually meets one of the conditions listed in paragraphs (b) to (l).

Sec. 7.

Minnesota Statutes 2007 Supplement, section 119B.13, subdivision 1, is
amended to read:


Subdivision 1.

Subsidy restrictions.

(a) Beginning July 1, 2006, the maximum rate
paid for child care assistance in any county or multicounty region under the child care
fund shall be the rate for like-care arrangements in the county effective January 1, 2006,
increased by six percent.

(b) Rate changes shall be implemented for services provided in September 2006
unless a participant eligibility redetermination or a new provider agreement is completed
between July 1, 2006, and August 31, 2006.

As necessary, appropriate notice of adverse action must be made according to
Minnesota Rules, part 3400.0185, subparts 3 and 4.

New cases approved on or after July 1, 2006, shall have the maximum rates under
paragraph (a), implemented immediately.

(c) Every year, 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.

(d) 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.

(e) 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.

(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.

new text begin (g) All maximum provider rates changes shall be implemented on the Monday
following the effective date of the maximum provider rate.
new text end

Sec. 8.

Minnesota Statutes 2007 Supplement, section 119B.13, subdivision 7, is
amended to read:


Subd. 7.

Absent days.

(a) Child care providers may not be reimbursed for more
than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more
than ten consecutive full-day absent days, unless the child has a documented medical
condition that causes more frequent absences. Absences due to a documented medical
condition of a parent or sibling who lives in the same residence as the child receiving
child care assistance do not count against the 25-day absent day limit in a fiscal year.
Documentation of medical conditions must be on the forms and submitted according to
the timelines established by the commissioner. A public health nurse or school nurse
may verify the illness in lieu of a medical practitioner. If a provider sends a child home
early due to a medical reason, including, but not limited to, fever or contagious illness,
the child care center director or lead teacher may verify the illness in lieu of a medical
practitioner. If a child attends for part of the time authorized to be in care in a day, but is
absent for part of the time authorized to be in care in that same day, the absent time will be
reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent
day limits. Children in families where at least one parent is under the age of 21, does not
have a high school or general equivalency diploma, and is a student in a school district
or another similar program that provides or arranges for child care, as well as parenting,
social services, career and employment supports, and academic support to achieve high
school graduation, may be exempt from the absent day limits upon request of the program
and approval of the county. If a child attends part of an authorized day, payment to the
provider must be for the full amount of care authorized for that day. Child care providers
may only be reimbursed for absent days if the provider has a written policy for child
absences and charges all other families in care for similar absences.

(b) Child care providers must be reimbursed for up to ten federal or state holidays
or designated holidays per year when the provider charges all families for these days
and the holiday or designated holiday falls on a day when the child is authorized to be
in attendance. Parents may substitute other cultural or religious holidays for the ten
recognized state and federal holidays. Holidays do not count toward the ten consecutive or
25 cumulative absent day limits.

(c) A family or child care provider may not be assessed an overpayment for an
absent day payment unless (1) there was an error in the amount of care authorized for the
family, (2) all of the allowed full-day absent payments for the child have been paid, or (3)
the family or provider did not timely report a change as required under law.

(d) The provider and family must receive notification of the number of absent days
used upon initial provider authorization for a family and when the family has used 15
cumulative absent days. Upon statewide implementation of the Minnesota Electronic
Child Care System, the provider and family new text begin shall receive notification of the number of
absent days used upon initial provider
new text end authorization for a family and ongoing notification
of the number of absent days used as of the date of the notification.

(e) A county may pay for more absent days than the statewide absent day policy
established under this subdivision if current market practice in the county justifies payment
for those additional days. County policies for payment of absent days in excess of the
statewide absent day policy and justification for these county policies must be included in
the county's child care fund plan under section 119B.08, subdivision 3.

Sec. 9.

Minnesota Statutes 2007 Supplement, section 119B.21, subdivision 5, is
amended to read:


Subd. 5.

Child care services grants.

(a) A child care resource and referral program
designated under section 119B.19, subdivision 1a, may award child care services grants
for:

(1) creating new licensed child care facilities and expanding existing facilities,
including, but not limited to, supplies, equipment, facility renovation, and remodeling;

(2) improving licensed child care facility programs;

(3) staff training and development services including, but not limited to, in-service
training, curriculum development, accreditation, certification, consulting, resource
centers, program and resource materials, supporting effective teacher-child interactions,
child-focused teaching, and content-driven classroom instruction;

(4) interim financing;

(5) capacity building through the purchase of appropriate technology to create,
enhance, and maintain business management systems;

(6) emergency assistance for child care programs;

(7) new programs or projects for the creation, expansion, or improvement of
programs that serve ethnic immigrant and refugee communities; and

(8) targeted recruitment initiatives to expand and build the capacity of the child
care system and to improve the quality of care provided by legal nonlicensed child care
providers.

(b) A child care resource and referral program designated under section 119B.19,
subdivision 1a
, may award child care services grants to:

(1) licensed providers;

(2) providers in the process of being licensed;

(3) corporations or public agencies that develop or provide child care services;

(4) school-age care programs;

new text begin (5) legal nonlicensed or family, friend, and neighbor care providers;new text end or

deleted text begin (5)deleted text end new text begin (6) new text end any combination of clauses (1) to deleted text begin (4)deleted text end new text begin (5)new text end .

deleted text begin Unlicensed providers are only eligible for grants under paragraph (a), clause (7).
deleted text end

(c) A recipient of a child care services grant for facility improvements, interim
financing, or staff training and development must provide a 25 percent local match.

Sec. 10.

Minnesota Statutes 2006, section 119B.21, subdivision 10, is amended to read:


Subd. 10.

Family child care technical assistance grants.

(a) A child care resource
and referral organization designated under section 119B.19, subdivision 1a, may award
technical assistance grants of up to $1,000. These grants may be used for:

(1) facility improvements, including, but not limited to, improvements to meet
licensing requirements;

(2) improvements to expand a child care facility or program;

(3) toys and equipment;

(4) technology and software to create, enhance, and maintain business management
systems;

(5) start-up costs;

(6) staff training and development; and

(7) other uses approved by the commissioner.

(b) A child care resource and referral program may award family child care technical
assistance grants to:

(1) licensed family child care providers; deleted text begin or
deleted text end

(2) child care providers in the process of becoming licenseddeleted text begin .deleted text end new text begin ; or
new text end

new text begin (3) legal nonlicensed or family, friends, and neighbor care providers.
new text end

(c) A local match is not required for a family child care technical assistance grant.

Sec. 11.

Minnesota Statutes 2006, section 256E.30, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

The commissioner of deleted text begin educationdeleted text end new text begin human servicesnew text end may
provide financial assistance for community action agencies, Indian reservations, and
migrant and seasonal farmworker organizations to carry out community action programs
as described in section 256E.32 in accordance with the Omnibus Reconciliation Act of
1981, Public Law 97-35, as amended in 1984, Public Law 98-558, state law, and federal
law and regulation.

Sec. 12.

Minnesota Statutes 2006, section 256E.35, subdivision 7, is amended to read:


Subd. 7.

Program reporting.

The fiscal agent on behalf of each fiduciary
organization participating in a family assets for independence initiative must report
quarterly to the commissioner of human services deleted text begin and to the commissioner of educationdeleted text end
identifying the participants with accounts, the number of accounts, the amount of savings
and matches for each participant's account, the uses of the account, and the number of
businesses, homes, and educational services paid for with money from the account, as
well as other information that may be required for the commissioner to administer the
program and meet federal TANF reporting requirements.

Sec. 13. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall renumber Minnesota Statutes, section 119A.45,
as Minnesota Statutes, section 256E.37.
new text end

new text begin (b) The revisor of statutes shall make such cross-reference changes as are necessary
from the renumbering in this section whereever the reference appears in statute.
new text end

ARTICLE 3

MISCELLANEOUS TECHNICAL

Section 1.

Minnesota Statutes 2007 Supplement, section 245C.08, subdivision 2, is
amended to read:


Subd. 2.

Background studies conducted by a county agency.

(a) For a background
study conducted by a county agency for adult foster care, family adult day services, and
family child care services, the commissioner shall review:

(1) information from the county agency's record of substantiated maltreatment
of adults and the maltreatment of minors;

(2) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); and

(3) information from the Bureau of Criminal Apprehension.

(b) If the individual has resided in the county for less than five years, the study shall
include the records specified under paragraph (a) for the previous county or counties of
residence for the past five years.

(c) Notwithstanding expungement by a court, the county agency may consider
information obtained under paragraph (a), deleted text begin clausesdeleted text end new text begin clausenew text end (3) deleted text begin and (4)deleted text end , unless the
commissioner received notice of the petition for expungement and the court order for
expungement is directed specifically to the commissioner.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 256E.35, subdivision 2, is
amended to read:


Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Family asset account" means a savings account opened by a household
participating in the Minnesota family assets for independence initiative.

(c) "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section 256E.31;

(2) a federal community development credit union serving the seven-county
metropolitan area; or

(3) a women-oriented economic development agency serving the seven-county
metropolitan area.

(d) "Financial institution" means a bank, bank and trust, savings bank, savings
association, or credit union, the deposits of which are insured by the Federal Deposit
Insurance Corporation or the National Credit Union Administration.

(e) "Permissible use" means:

(1) postsecondary educational expenses at an deleted text begin accredited public postsecondarydeleted text end
new text begin eligible educational new text end institution new text begin as defined in paragraph (g), new text end including books, supplies, and
equipment required for courses of instruction;

(2) acquisition costs of acquiring, constructing, or reconstructing a residence,
including any usual or reasonable settlement, financing, or other closing costs;

(3) business capitalization expenses for expenditures on capital, plant, equipment,
working capital, and inventory expenses of a legitimate business pursuant to a business
plan approved by the fiduciary organization; and

(4) acquisition costs of a principal residence within the meaning of section 1034 of
the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area
purchase price applicable to the residence determined according to section 143(e)(2) and
(3) of the Internal Revenue Code of 1986.

(f) "Household" means all individuals who share use of a dwelling unit as primary
quarters for living and eating separate from other individuals.

new text begin (g) "Eligible educational institution" means the following:
new text end

new text begin (1) an institution of higher education described in section 101 or 102 of the Higher
Education Act of 1965; or
new text end

new text begin (2) an area vocational education school, as defined in subparagraph (C) or (D) of
United States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational
and Applied Technology Education Act), which is located within any state, as defined in
United States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only
to the extent section 2302 is in effect on the effective date of this section.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 256K.25, new text end new text begin is repealed.
new text end