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HF 4569

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/23/2022 10:40am

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

Bill Text Versions

Engrossments
Introduction Posted on 03/23/2022

Current Version - as introduced

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A bill for an act
relating to human services; modifying provisions governing child care assistance;
making forecast adjustments; requiring reports; transferring money; making
technical and conforming changes; allocating funds for a specific purpose;
establishing certain grants; appropriating money; amending Minnesota Statutes
2020, sections 119B.011, subdivisions 2, 5, 13, 19b; 119B.02, subdivisions 1, 2;
119B.03, subdivisions 3, 9, 10; 119B.035, subdivisions 1, 2, 4, 5; 119B.08,
subdivision 3; 119B.11, subdivision 1; 119B.15; 119B.19, subdivision 7; 119B.24;
256.017, subdivision 9; Minnesota Statutes 2021 Supplement, section 119B.13,
subdivision 1; Laws 2021, First Special Session chapter 7, article 16, sections 2,
subdivisions 29, 31, 33; 28; article 17, sections 3; 6; 10; 11; 12; 17, subdivision
3; proposing coding for new law in Minnesota Statutes, chapter 119B; repealing
Minnesota Statutes 2020, section 119B.03, subdivisions 1, 2, 4, 5, 6a, 6b, 8;
Minnesota Statutes 2021 Supplement, section 119B.03, subdivisions 4a, 6.

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

ARTICLE 1

CHILD CARE

Section 1.

Minnesota Statutes 2020, section 119B.011, subdivision 2, is amended to read:


Subd. 2.

Applicant.

"Child care fund applicants" means all parentsdeleted text begin,deleted text endnew text begin;new text end stepparentsdeleted text begin,deleted text endnew text begin;new text end legal
guardiansdeleted text begin, ordeleted text endnew text begin;new text end eligible relative caregivers deleted text beginwho aredeleted text endnew text begin; relative custodians who accepted a transfer
of permanent legal and physical custody of a child under section 260C.515, subdivision 4,
or similar permanency disposition in Tribal code; successor custodians or guardians as
established by section 256N.22, subdivision 10; or foster parents providing care to a child
placed in a family foster home under section 260C.007, subdivision 16b. Applicants must
be
new text end members of the family and reside in the household that applies for child care assistance
under the child care fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 7, 2023.
new text end

Sec. 2.

Minnesota Statutes 2020, section 119B.011, subdivision 5, is amended to read:


Subd. 5.

Child care.

"Child care" means the care of a child by someone other than a
parentdeleted text begin,deleted text endnew text begin;new text end stepparentdeleted text begin,deleted text endnew text begin;new text end legal guardiandeleted text begin,deleted text endnew text begin;new text end eligible relative caregiverdeleted text begin,deleted text endnew text begin; relative custodian who
accepted a transfer of permanent legal and physical custody of a child under section
260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor
custodian or guardian as established according to section 256N.22, subdivision 10; foster
parent providing care to a child placed in a family foster home under section 260C.007,
subdivision 16b;
new text end or deleted text beginthe spousesdeleted text endnew text begin spousenew text end of any of the foregoing in or outside the child's own
home for gain or otherwise, on a regular basis, for any part of a 24-hour day.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 7, 2023.
new text end

Sec. 3.

Minnesota Statutes 2020, section 119B.011, subdivision 13, is amended to read:


Subd. 13.

Family.

"Family" means parentsdeleted text begin,deleted text endnew text begin;new text end stepparentsdeleted text begin,deleted text endnew text begin;new text end guardians and their spousesdeleted text begin,
or
deleted text endnew text begin;new text end other eligible relative caregivers and their spousesdeleted text begin,deleted text endnew text begin; relative custodians who accepted a
transfer of permanent legal and physical custody of a child under section 260C.515,
subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor
custodians or guardians as established according to section 256N.22, subdivision 10, and
their spouses; or foster parents providing care to a child placed in a family foster home
under section 260C.007, subdivision 16b, and their spouses;
new text end and deleted text begintheir blood relateddeleted text endnew text begin the
blood-related
new text end dependent children and adoptive siblings under the age of 18 years living in
the same home deleted text beginincludingdeleted text endnew text begin of the above. This definition includesnew text end children temporarily absent
from the household in settings such as schools, foster care, and residential treatment facilities
deleted text begin or parents, stepparents, guardians and their spouses, or other relative caregivers and their
spouses
deleted text endnew text begin and adultsnew text end temporarily absent from the household in settings such as schools, military
service, or rehabilitation programs. An adult family member who is not in an authorized
activity under this chapter may be temporarily absent for up to 60 days. When a minor
parent or parents and his, her, or their child or children are living with other relatives, and
the minor parent or parents apply for a child care subsidy, "family" means only the minor
parent or parents and their child or children. An adult age 18 or older who meets this
definition of family and is a full-time high school or postsecondary student may be considered
a dependent member of the family unit if 50 percent or more of the adult's support is provided
by the parentsdeleted text begin,deleted text endnew text begin;new text end stepparentsdeleted text begin,deleted text endnew text begin;new text end guardiansdeleted text begin,deleted text endnew text begin and their spouses; relative custodians who accepted
a transfer of permanent legal and physical custody of a child under section 260C.515,
subdivision 4, or similar permanency disposition in Tribal code, and their spouses; successor
custodians or guardians as established according to section 256N.22, subdivision 10, and
their spouses; foster parents providing care to a child placed in a family foster home under
section 260C.007, subdivision 16b,
new text end and their spousesnew text begin;new text end or eligible relative caregivers and
their spouses residing in the same household.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 7, 2023.
new text end

Sec. 4.

Minnesota Statutes 2020, 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 diploma or commissioner of education-selected high school
equivalency certification;new text begin and
new text end

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

deleted text begin (4)deleted text endnew text begin (3)new text end not an MFIP participant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 5.

Minnesota Statutes 2020, section 119B.02, subdivision 1, is amended to read:


Subdivision 1.

Child care services.

The commissioner shall develop standards for county
and human services boards to provide child care services to enable eligible families to
participate in employment, training, or education programs. deleted text beginWithin the limits of available
appropriations,
deleted text end The commissioner shall distribute money to counties to reduce the costs of
child care for eligible families. The commissioner shall adopt rules to govern the program
in accordance with this section. The rules must establish a sliding schedule of fees for parents
receiving child care services. The rules shall provide that funds received as a lump-sum
payment of child support arrearages shall not be counted as income to a family in the month
received but shall be prorated over the 12 months following receipt and added to the family
income during those months. The commissioner shall maximize the use of federal money
under title I and title IV of Public Law 104-193, the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, and other programs that provide federal or state
reimbursement for child care services for low-income families who are in education, training,
job search, or other activities allowed under those programs. Money appropriated under
this section must be coordinated with the programs that provide federal reimbursement for
child care services to accomplish this purpose. deleted text beginFederal reimbursement obtained must be
allocated to the county that spent money for child care that is federally reimbursable under
programs that provide federal reimbursement for child care services.
deleted text end The deleted text begincountiesdeleted text endnew text begin
commissioner
new text end shall use the federal money to expand child care services. The commissioner
may adopt rules under chapter 14 to implement and coordinate federal program requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 6.

Minnesota Statutes 2020, 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 deleted text beginunder sections 119B.03
and 119B.05
deleted text endnew text begin for families eligible under this chapternew text end. An agreement may allow the state to
make payments for child care assistance services provided under deleted text beginsection 119B.05deleted text endnew text begin this
chapter
new text end. 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. deleted text beginFunding 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.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 7.

Minnesota Statutes 2020, section 119B.03, subdivision 3, is amended to read:


Subd. 3.

Eligible participants.

Families that meet the eligibility requirements under
sections 119B.09 and 119B.10deleted text begin, except MFIP participants, diversionary work program, and
transition year families
deleted text end are eligible for child care assistance under the deleted text beginbasic sliding feedeleted text endnew text begin child
care assistance
new text end program. deleted text beginFamilies enrolled in the basic sliding fee program shall be continued
until they are no longer eligible.
deleted text end Child care assistance provided through the child care fund
is considered assistance to the parent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 8.

Minnesota Statutes 2020, section 119B.03, subdivision 9, is amended to read:


Subd. 9.

deleted text beginPortability pooldeleted text endnew text begin Family move; continued participationnew text end.

(a) deleted text beginThe commissioner
shall establish a pool of up to five percent of the annual appropriation for the basic sliding
fee program to provide continuous child care assistance for eligible families who move
between Minnesota counties. At the end of each allocation period, any unspent funds in the
portability pool must be used for assistance under the basic sliding fee program. If
expenditures from the portability pool exceed the amount of money available, the reallocation
pool must be reduced to cover these shortages.
deleted text end

deleted text begin (b) A family that has moved from a county in which itdeleted text endnew text begin A family receiving child care
assistance under the child care fund that has moved from a county where the family
new text end was
receiving deleted text beginbasic sliding feedeleted text endnew text begin child carenew text end assistance to deleted text beginadeleted text endnew text begin another Minnesotanew text end county deleted text beginwith a waiting
list for the basic sliding fee program
deleted text end mustnew text begin be admitted into the new county's child care
assistance program if the family
new text end:

(1) deleted text beginmeetdeleted text endnew text begin meetsnew text end the income and eligibility guidelines for the deleted text beginbasic sliding feedeleted text endnew text begin child care
assistance
new text end program; and

(2) deleted text beginnotifydeleted text endnew text begin notifiesnew text end the family's previous county of residence of the family's move to a
new county of residence.

deleted text begin (c)deleted text endnew text begin (b)new text end The receiving county mustdeleted text begin:
deleted text end

deleted text begin (1)deleted text end accept administrative responsibility for deleted text beginapplicants for portable basic sliding fee
assistance
deleted text endnew text begin a child care program-eligible family that has moved into the countynew text end at the end
of the two months of assistance under the Unitary Residency Actdeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) continue portability pool basic sliding fee assistance until the family is able to receive
assistance under the county's regular basic sliding program; and
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 9.

Minnesota Statutes 2020, section 119B.03, subdivision 10, is amended to read:


Subd. 10.

Application; entry points.

Two or more methods of applying for the deleted text beginbasic
sliding fee
deleted text endnew text begin child care assistancenew text end programnew text begin under this chapternew text end must be available to applicants
in each county. To meet the requirements of this subdivision, a county may provide
alternative methods of applying for assistance, including, but not limited to, a mail
application, or application sites that are located outside of government offices.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 10.

Minnesota Statutes 2020, 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 deleted text beginbasic sliding feedeleted text end new text beginchild care assistance new text endprogram. 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 deleted text beginbasic sliding feedeleted text end new text beginchild care
assistance
new text endprogram.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 11.

Minnesota Statutes 2020, section 119B.035, subdivision 2, is amended to read:


Subd. 2.

Eligible families.

A family with an infant under the age of one year is eligible
for assistance if:

(1) the family is not receiving MFIP, other cash assistance, or other child care assistance;

(2) the family has not previously received a lifelong total of 12 months of assistance
under this section; and

(3) the family is participating in the deleted text beginbasic sliding feedeleted text endnew text begin child care assistancenew text end program or
provides verification of participating in an authorized activity at the time of application and
meets the program requirements.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 12.

Minnesota Statutes 2020, 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
sections 256P.06 and 256P.07, and the county's plan under section 119B.08, subdivision 3.

deleted text begin (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.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end Assistance under this section does not establish an employer-employee relationship
between any member of the assisted family and the county or state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 13.

Minnesota Statutes 2020, section 119B.035, subdivision 5, is amended to read:


Subd. 5.

Implementation.

The commissioner shall implement the at-home infant child
care program under this section through counties that administer the deleted text beginbasic sliding feedeleted text endnew text begin child
care assistance
new text end program under deleted text beginsection 119B.03deleted text endnew text begin this chapternew text end. The commissioner must develop
and distribute consumer information on the at-home infant child care program to assist
parents of infants or expectant parents in making informed child care decisions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 14.

Minnesota Statutes 2020, section 119B.08, subdivision 3, is amended to read:


Subd. 3.

Child care fund plan.

The county and designated administering agency shall
submit a biennial child care fund plan to the commissioner. The commissioner shall establish
the dates by which the county must submit the plans. The plan shall include:

(1) a description of strategies to coordinate and maximize public and private community
resources, including school districts, health care facilities, government agencies,
neighborhood organizations, and other resources knowledgeable in early childhood
development, in particular to coordinate child care assistance with existing community-based
programs and service providers including child care resource and referral programs, early
childhood family education, school readiness, Head Start, local interagency early intervention
committees, special education services, early childhood screening, and other early childhood
care and education services and programs to the extent possible, to foster collaboration
among agencies and other community-based programs that provide flexible, family-focused
services to families with young children and to facilitate transition into kindergarten. The
county must describe a method by which to share information, responsibility, and
accountability among service and program providers;

(2) a description of procedures and methods to be used to make copies of the proposed
state plan reasonably available to the public, including members of the public particularly
interested in child care policies such as parents, child care providers, culturally specific
service organizations, child care resource and referral programs, interagency early
intervention committees, potential collaborative partners and agencies involved in the
provision of care and education to young children, and allowing sufficient time for public
review and comment; and

(3) information as requested by the department to ensure compliance with the child care
fund statutes and rules promulgated by the commissioner.

The commissioner shall notify counties within 90 days of the date the plan is submitted
whether the plan is approved or the corrections or information needed to approve the plan.
The commissioner shall withhold deleted text begina county's allocation until it has an approved plan. Plans
not approved by the end of the second quarter after the plan is due may result in a 25 percent
reduction in allocation. Plans not approved by the end of the third quarter after the plan is
due may result in a 100 percent reduction in the allocation to the county
deleted text endnew text begin payments to a
county until it has an approved plan
new text end. Counties are to maintain services despite any deleted text beginreduction
in their allocation
deleted text endnew text begin withholding of paymentsnew text end due to plans not being approved.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 15.

Minnesota Statutes 2020, section 119B.11, subdivision 1, is amended to read:


Subdivision 1.

County contributions required.

(a) In addition to payments from deleted text beginbasic
sliding fee
deleted text end child carenew text begin assistancenew text end program participants, each county shall contribute from
county tax or other sources a fixed local match equal to its calendar year 1996 required
county contribution reduced by the administrative funding loss that would have occurred
in state fiscal year 1996 under section 119B.15. The commissioner shall recover funds from
the county as necessary to bring county expenditures into compliance with this subdivision.
The commissioner may accept county contributions, including contributions above the fixed
local match, in order to make state payments.

(b) The commissioner may accept payments from counties to:

(1) fulfill the county contribution as required under subdivision 1;

(2) pay for services authorized under this chapter beyond those paid for with federal or
state funds or with the required county contributions; or

(3) pay for child care services in addition to those authorized under this chapter, as
authorized under other federal, state, or local statutes or regulations.

(c) The county payments must be deposited in an account in the special revenue fund.
Money in this account is appropriated to the commissioner for child care assistance under
this chapter and other applicable statutes and regulations and is in addition to other state
and federal appropriations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 16.

Minnesota Statutes 2021 Supplement, section 119B.13, subdivision 1, is amended
to read:


Subdivision 1.

Subsidy restrictions.

(a) Beginning deleted text beginNovember 15, 2021deleted text endnew text begin October 3, 2022new text end,
the maximum rate paid for child care assistance in any county or county price cluster under
the child care fund shall bedeleted text begin:
deleted text end

deleted text begin (1) for all infants and toddlers,deleted text end the greater of the deleted text begin40thdeleted text endnew text begin 75thnew text end percentile of the 2021 child
care provider rate survey deleted text beginordeleted text endnew text begin andnew text end the rates in effect at the time of the updatedeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) for all preschool and school-age children, the greater of the 30th percentile of the
2021 child care provider rate survey or the rates in effect at the time of the update.
deleted text end

(b) Beginning the first full service period on or after January 1, 2025, new text beginand every three
years thereafter,
new text endthe maximum rate paid for child care assistance in a county or county price
cluster under the child care fund shall bedeleted text begin:
deleted text end

deleted text begin (1) for all infants and toddlers,deleted text end the greater of the deleted text begin40thdeleted text endnew text begin 75thnew text end percentile of the deleted text begin2024deleted text endnew text begin most
recent
new text end child care provider rate survey deleted text beginordeleted text endnew text begin andnew text end the rates in effect at the time of the updatedeleted text begin;
and
deleted text endnew text begin.
new text end

deleted text begin (2) for all preschool and school-age children, the greater of the 30th percentile of the
2024 child care provider rate survey or the rates in effect at the time of the update.
deleted text end

The rates under paragraph (a) continue until the rates under this paragraph go into effect.

(c) For a child care provider located within the boundaries of a city located in two or
more of the counties of Benton, Sherburne, and Stearns, the maximum rate paid for child
care assistance shall be equal to the maximum rate paid in the county with the highest
maximum reimbursement rates or the provider's charge, whichever is less. 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.

(d) A rate which includes a special needs rate paid under subdivision 3 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) If a child uses one provider, the maximum payment for one day of care must not
exceed the daily rate. The maximum payment for one week of care must not exceed the
weekly rate.

(g) If a child uses two providers under section 119B.097, the maximum payment must
not exceed:

(1) the daily rate for one day of care;

(2) the weekly rate for one week of care by the child's primary provider; and

(3) two daily rates during two weeks of care by a child's secondary provider.

(h) 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.

(i) If 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.

(j) new text beginBeginning October 3, 2022, new text endthe maximum registration fee paid for child care assistance
in any county or county price cluster under the child care fund shall be deleted text beginset as follows: (1)
beginning November 15, 2021,
deleted text end the greater of the deleted text begin40thdeleted text endnew text begin 75thnew text end percentile of the deleted text begin2021deleted text endnew text begin most
recent
new text end child care provider rate survey deleted text beginordeleted text endnew text begin andnew text end the registration fee in effect at the time of the
updatedeleted text begin; and (2) beginning the first full service period on or after January 1, 2025, the
maximum registration fee shall be the greater of the 40th percentile of the 2024 child care
provider rate survey or the registration fee in effect at the time of the update. The registration
fees under clause (1) continue until the registration fees under clause (2) go into effect
deleted text end.

(k) Maximum registration fees must be set for licensed family child care and for child
care centers. For a child care provider located in the boundaries of a city located in two or
more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid
for child care assistance shall be equal to the maximum registration fee paid in the county
with the highest maximum registration fee or the provider's charge, whichever is less.

Sec. 17.

Minnesota Statutes 2020, 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
deleted text begin basic sliding fee program and 1/21 of the state and federal funds available for the MFIPdeleted text end
child carenew text begin assistancenew text end program for payments to counties for administrative expenses. 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 begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 18.

Minnesota Statutes 2020, section 119B.19, subdivision 7, is amended to read:


Subd. 7.

Child care resource and referral programs.

Within each region, a child care
resource and referral program must:

(1) maintain one database of all existing child care resources and services and one
database of family referrals;

(2) provide a child care referral service for families;

(3) develop resources to meet the child care service needs of families;

(4) increase the capacity to provide culturally responsive child care services;

(5) coordinate professional development opportunities for child care and school-age
care providers;

(6) administer and award child care services grants;

(7) cooperate with the Minnesota Child Care Resource and Referral Network and its
member programs to develop effective child care services and child care resources; deleted text beginand
deleted text end

(8) assist in fostering coordination, collaboration, and planning among child care programs
and community programs such as school readiness, Head Start, early childhood family
education, local interagency early intervention committees, early childhood screening,
special education services, and other early childhood care and education services and
programs that provide flexible, family-focused services to families with young children to
the extent possibledeleted text begin.deleted text endnew text begin;
new text end

new text begin (9) administer the child care one-stop regional assistance network to assist child care
providers and individuals interested in becoming child care providers with establishing and
sustaining a licensed family child care or group family child care program or a child care
center; and
new text end

new text begin (10) provide supports that enable economically challenged individuals to obtain the job
skills training, career counseling, and job placement assistance necessary to begin a career
path in child care.
new text end

Sec. 19.

Minnesota Statutes 2020, section 119B.24, is amended to read:


119B.24 DUTIES OF COMMISSIONER.

In addition to the powers and duties already conferred by law, the commissioner of
human services shall:

(1) administer the child care funddeleted text begin, including the basic sliding fee programdeleted text end authorized
under sections 119B.011 to 119B.16;

(2) monitor the child care resource and referral programs established under section
119B.19; and

(3) encourage child care providers to participate in a nationally recognized accreditation
system for early childhood and school-age care programs. Subject to approval by the
commissioner, family child care providers and early childhood and school-age care programs
shall be reimbursed for one-half of the direct cost of accreditation fees, upon successful
completion of accreditation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

Sec. 20.

new text begin [119B.27] SHARED SERVICES GRANTS.
new text end

new text begin The commissioner of human services shall establish a grant program to enable family
child care providers to implement shared services alliances.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 21.

new text begin [119B.28] CHILD CARE PROVIDER ACCESS TO TECHNOLOGY
GRANTS.
new text end

new text begin The commissioner of human services shall distribute money provided by this section
through grants to one or more organizations to offer grants or other supports to child care
providers to improve their access to computers, the Internet, subscriptions to online child
care management applications, and other technologies intended to improve their business
practices. Up to ten percent of the grant funds may be used for administration of this program.
new text end

Sec. 22.

Minnesota Statutes 2020, 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. deleted text beginExcept for penalties
withheld under the child care assistance program,
deleted text end All penalties must be deposited in the
county incentive fund provided in section 256.018. deleted text beginPenalties withheld under the child care
assistance program shall be reallocated to counties using the allocation formula under section
119B.03, subdivision 5.
deleted text end All penalties must be imposed according to this provision until a
decision is made regarding the status of a written exception. Penalties must be returned to
county agencies when a review of a written exception results in a decision in their favor.

Sec. 23. new text beginDIRECTION TO COMMISSIONER; ALLOCATING BASIC SLIDING
FEE FUNDS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the
commissioner of human services must allocate additional basic sliding fee child care money
for calendar year 2024 to counties and Tribes to account for the change in the definition of
family in sections 1 to 3. In allocating the additional money, the commissioner shall consider:
new text end

new text begin (1) the number of children in the county or Tribe who receive care from a relative
custodian who accepted a transfer of permanent legal and physical custody of a child under
section 260C.515, subdivision 4, or similar permanency disposition in Tribal code; successor
custodian or guardian as established according to section 256N.22, subdivision 10; or foster
parents in a family foster home under section 260C.007, subdivision 16b; and
new text end

new text begin (2) the average basic sliding fee cost of care in the county or Tribe.
new text end

Sec. 24. new text beginDIRECTION TO COMMISSIONER OF MANAGEMENT AND BUDGET.
new text end

new text begin The state obligation for the child care assistance program under Minnesota Statutes,
chapter 119B, must be included in the Department of Management and Budget February
and November forecast of state revenues and expenditures under Minnesota Statutes, section
16A.103, beginning with the February 2023 forecast.
new text end

Sec. 25. new text beginINCREASE FOR MAXIMUM RATES.
new text end

new text begin Notwithstanding Minnesota Statutes, section 119B.03, subdivisions 6, 6a, and 6b, the
commissioner of human services shall allocate the additional basic sliding fee child care
funds for calendar year 2023 to counties for updated maximum rates based on relative need
to cover maximum rate increases. In distributing the additional funds, the commissioner
shall consider the following factors by county:
new text end

new text begin (1) number of children covered by the county;
new text end

new text begin (2) provider types that care for covered children;
new text end

new text begin (3) age of covered children; and
new text end

new text begin (4) amount of the increase in maximum rates.
new text end

Sec. 26. new text beginDIRECTION TO THE COMMISSIONER OF HUMAN SERVICES; CHILD
CARE AND DEVELOPMENT FUND ALLOCATION.
new text end

new text begin The commissioner of human services shall allocate $75,364,000 in fiscal year 2023 from
the child care and development fund for rate and registration fee increases under Minnesota
Statutes, section 119B.13, subdivision 1, paragraphs (a) and (j). This is a onetime allocation.
new text end

Sec. 27. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, section 119B.03, subdivisions 1, 2, 4, 5, 6a, 6b, and 8, new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2021 Supplement, section 119B.03, subdivisions 4a and 6, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 10, 2023.
new text end

ARTICLE 2

FORECAST ADJUSTMENTS

Section 1. new text beginHUMAN SERVICES APPROPRIATION.
new text end

new text begin The dollar amounts shown in the columns marked "Appropriations" are added to or, if
shown in parentheses, are subtracted from the appropriations in Laws 2021, First Special
Session chapter 7, article 16, from the general fund or any fund named to the Department
of Human Services for the purposes specified in this article, to be available for the fiscal
year indicated for each purpose. The figures "2022" and "2023" used in this article mean
that the appropriations listed under them are available for the fiscal years ending June 30,
2022, or June 30, 2023, respectively. "The first year" is fiscal year 2022. "The second year"
is fiscal year 2023. "The biennium" is fiscal years 2022 and 2023.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2022
new text end
new text begin 2023
new text end

Sec. 2. new text beginCOMMISSIONER OF HUMAN
SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin (585,901,000)
new text end
new text begin $
new text end
new text begin 182,791,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin (406,629,000)
new text end
new text begin 185,395,000
new text end
new text begin Health Care Access
Fund
new text end
new text begin (86,146,000)
new text end
new text begin (11,799,000)
new text end
new text begin Federal TANF
new text end
new text begin (93,126,000)
new text end
new text begin 9,195,000
new text end

new text begin Subd. 2. new text end

new text begin Forecasted Programs
new text end

new text begin (a) MFIP/DWP
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin 72,106,000
new text end
new text begin (14,397,000)
new text end
new text begin Federal TANF
new text end
new text begin (93,126,000)
new text end
new text begin 9,195,000
new text end
new text begin (b) MFIP Child Care Assistance
new text end
new text begin (103,347,000)
new text end
new text begin (73,738,000)
new text end
new text begin (c) General Assistance
new text end
new text begin (4,175,000)
new text end
new text begin (1,488,000)
new text end
new text begin (d) Minnesota Supplemental Aid
new text end
new text begin 318,000
new text end
new text begin 1,613,000
new text end
new text begin (e) Housing Support
new text end
new text begin (1,994,000)
new text end
new text begin 9,257,000
new text end
new text begin (f) Northstar Care for Children
new text end
new text begin (9,613,000)
new text end
new text begin (4,865,000)
new text end
new text begin (g) MinnesotaCare
new text end
new text begin (86,146,000)
new text end
new text begin (11,799,000)
new text end

new text begin These appropriations are from the health care
access fund.
new text end

new text begin (h) Medical Assistance
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin (348,364,000)
new text end
new text begin 292,880,000
new text end
new text begin Health Care Access
Fund
new text end
new text begin -0-
new text end
new text begin -0-
new text end
new text begin (i) Alternative Care Program
new text end
new text begin -0-
new text end
new text begin -0-
new text end
new text begin (j) Behavioral Health Fund
new text end
new text begin (11,560,000)
new text end
new text begin (23,867,000)
new text end

new text begin Subd. 3. new text end

new text begin Technical Activities
new text end

new text begin -0-
new text end
new text begin -0-
new text end

new text begin These appropriations are from the federal
TANF fund.
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 3

APPROPRIATIONS

Section 1. new text beginHEALTH AND HUMAN SERVICES APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown in
parentheses, subtracted from the appropriations in Laws 2021, First Special Session chapter
7, article 16, to the agencies and for the purposes specified in this article. The appropriations
are from the general fund or other named fund and are available for the fiscal years indicated
for each purpose. The figures "2022" and "2023" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2022, or June 30, 2023, respectively. Base adjustments mean the addition
to or subtraction from the base level adjustment set in Laws 2021, First Special Session
chapter 7, article 16. Supplemental appropriations and reductions to appropriations for the
fiscal year ending June 30, 2022, are effective the day following final enactment unless a
different effective date is explicit.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2022
new text end
new text begin 2023
new text end

Sec. 2. new text beginCOMMISSIONER OF HUMAN
SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 22,339,000
new text end
new text begin $
new text end
new text begin 481,929,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2022
new text end
new text begin 2023
new text end
new text begin General
new text end
new text begin 20,403,000
new text end
new text begin 419,583,000
new text end
new text begin Health Care Access
new text end
new text begin 1,963,000
new text end
new text begin 61,788,000
new text end
new text begin Federal TANF
new text end
new text begin -0-
new text end
new text begin 7,000
new text end
new text begin Opiate Epidemic
Response
new text end
new text begin -0-
new text end
new text begin 551,000
new text end

new text begin Subd. 2. new text end

new text begin Central Office; Operations
new text end

new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 403,000
new text end
new text begin 95,527,000
new text end
new text begin Health Care Access
new text end
new text begin -0-
new text end
new text begin 27,816,000
new text end

new text begin (a) Background Studies. (1) $1,779,000 in
fiscal year 2023 is to provide a credit to
providers who paid for emergency background
studies in NETStudy 2.0. This is a onetime
appropriation.
new text end

new text begin (2) $1,851,000 in fiscal year 2023 is to fund
the costs of reprocessing emergency studies
conducted under interagency agreements. This
is a onetime appropriation.
new text end

new text begin (b) Supporting Drug Pricing Litigation
Costs.
$228,000 in fiscal year 2022 is for costs
to comply with litigation requirements related
to pharmaceutical drug price litigation. This
is a onetime appropriation.
new text end

new text begin (c) Base Level Adjustment. The general fund
base is increased $12,829,000 in fiscal year
2024 and $10,227,000 in fiscal year 2025. The
health care access fund base is increased
$17,810,000 in fiscal year 2024 and
$17,810,000 in fiscal year 2025.
new text end

new text begin Subd. 3. new text end

new text begin Central Office; Children and Families
new text end

new text begin -0-
new text end
new text begin 5,621,000
new text end

new text begin Base Level Adjustment. The general fund
base is increased $6,965,000 in fiscal year
2024 and $6,680,000 in fiscal year 2025.
new text end

new text begin Subd. 4. new text end

new text begin Central Office; Health Care
new text end

new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin -0-
new text end
new text begin 2,436,000
new text end
new text begin Health Care Access
new text end
new text begin -0-
new text end
new text begin 4,298,000
new text end

new text begin (a) Interactive Voice Response and
Improving Access for Applications and
Forms.
$1,350,000 in fiscal year 2023 is for
the improvement of accessibility to Minnesota
health care programs applications, forms, and
other consumer support resources and services
to enrollees with limited English proficiency.
This is a onetime appropriation.
new text end

new text begin (b) Community-Driven Improvements.
$680,000 in fiscal year 2023 is for Minnesota
health care program enrollee engagement
activities.
new text end

new text begin (c) Responding to COVID-19 in Minnesota
Health Care Programs.
$1,000,000 in fiscal
year 2023 is for contract assistance relating to
the resumption of eligibility and
redetermination processes in Minnesota health
care programs after the expiration of the
federal public health emergency. Contracts
entered into under this section are for
emergency acquisition and are not subject to
solicitation requirements under Minnesota
Statutes, section 16C.10, subdivision 2. This
is a onetime appropriation. Money is available
until spent.
new text end

new text begin (d) Base Level Adjustment. The general fund
base is increased $1,666,000 in fiscal year
2024 and $1,651,000 in fiscal year 2025. The
health care access fund base is increased
$4,087,000 in fiscal year 2024 and $6,300,000
in fiscal year 2025.
new text end

new text begin Subd. 5. new text end

new text begin Central Office; Community Supports
new text end

new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin -0-
new text end
new text begin 7,119,000
new text end
new text begin Opioid Epidemic
Response
new text end
new text begin -0-
new text end
new text begin 551,000
new text end

new text begin SEIU Healthcare Arbitration Award.
$5,444 in fiscal year 2023 is for arbitration
awards resulting from a SEIU grievance. This
is a onetime appropriation.
new text end

new text begin new text begin Base Level Adjustment.new text end The general fund
base is increased $9,460,000 in fiscal year
2024 and $10,602,000 in fiscal year 2025.
new text end

new text begin Subd. 6. new text end

new text begin Forecasted Programs; MFIP/DWP
new text end

new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin -0-
new text end
new text begin 5,000
new text end
new text begin Federal TANF
new text end
new text begin -0-
new text end
new text begin 7,000
new text end

new text begin Subd. 7. new text end

new text begin Forecasted Programs; MFIP Child Care
Assistance
new text end

new text begin -0-
new text end
new text begin 1,000
new text end

new text begin Subd. 8. new text end

new text begin Forecasted Programs; Minnesota
Supplemental Aid
new text end

new text begin -0-
new text end
new text begin 1,000
new text end

new text begin Subd. 9. new text end

new text begin Forecasted Programs; Housing
Supports
new text end

new text begin -0-
new text end
new text begin 1,000
new text end

new text begin Subd. 10. new text end

new text begin Forecasted Programs; MinnesotaCare
new text end

new text begin -0-
new text end
new text begin 15,257,000
new text end

new text begin This appropriation is from the health care
access fund.
new text end

new text begin Subd. 11. new text end

new text begin Forecasted Programs; Medical
Assistance
new text end

new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin -0-
new text end
new text begin 7,571,000
new text end
new text begin Health Care Access
new text end
new text begin -0-
new text end
new text begin 14,353,000
new text end

new text begin Subd. 12. new text end

new text begin Forecasted Programs; Alternative
Care
new text end

new text begin -0-
new text end
new text begin 161,000
new text end

new text begin Subd. 13. new text end

new text begin Grant Programs; BSF Child Care
Grants
new text end

new text begin -0-
new text end
new text begin (683,000)
new text end

new text begin Base Level Adjustment. The general fund
base is increased $240,477,000 in fiscal year
2024 and $546,025,000 in fiscal year 2025.
new text end

new text begin Subd. 14. new text end

new text begin Grant Programs; Child Care
Development Grants
new text end

new text begin -0-
new text end
new text begin 31,703,000
new text end

new text begin (a) Child Care Provider Access to
Technology Grants.
$300,000 in fiscal year
2023 is for child care provider access to
technology grants pursuant to Minnesota
Statutes, section 119B.28.
new text end

new text begin (b) One-Stop Regional Assistance Network.
Beginning in fiscal year 2025, the base shall
include $1,200,000 from the general fund for
a grant to the statewide child care resource
and referral network to administer the child
care one-stop shop regional assistance network
in accordance with Minnesota Statutes, section
119B.19, subdivision 7, clause (9).
new text end

new text begin (c) Child Care Workforce Development
Grants.
Beginning in fiscal year 2025, the
base shall include $1,300,000 for a grant to
the statewide child care resource and referral
network to administer the child care workforce
development grants in accordance with
Minnesota Statutes, section 119B.19,
subdivision 7, clause (10).
new text end

new text begin (d) Shared Services Innovation Grants. The
base shall include $500,000 in fiscal year 2024
and $500,000 in fiscal year 2025 for shared
services innovation grants pursuant to
Minnesota Statutes, section 119B.27.
new text end

new text begin (e) Stabilization Grants for Child Care
Providers Experiencing Financial Hardship.

$31,406,000 in fiscal year 2023 is for child
care stabilization grants for child care
programs in extreme financial hardship. This
is a onetime appropriation. Money not
distributed in fiscal year 2023 or 2024 shall
be available until June 30, 2025. Use of grant
money must be made in accordance with
eligibility and compliance requirements
established by the commissioner.
new text end

new text begin (f) Base Level Adjustment. The general fund
base is increased $66,824,000 in fiscal year
2024 and $3,300,000 in fiscal year 2025.
new text end

new text begin Subd. 15. new text end

new text begin Grant Programs; Children's Services
Grants
new text end

new text begin -0-
new text end
new text begin 3,882,000
new text end

new text begin (a) American Indian Child Welfare
Initiative; Mille Lacs Band of Ojibwe
Planning.
$1,263,000 in fiscal year 2023 is
to support activities necessary for the Mille
Lacs Band of Ojibwe to join the American
Indian child welfare initiative.
new text end

new text begin (b) Expand Parent Support Outreach
Program.
The base shall include $7,000,000
in fiscal year 2024 and $7,000,000 in fiscal
year 2025 to expand the parent support
outreach program to community-based
agencies, public health agencies, and schools
to prevent reporting of and entry into the child
welfare system.
new text end

new text begin (c) Thriving Families Safer Children. The
base shall include $30,000 in fiscal year 2024
to plan for an education attendance support
diversionary program to prevent entry into the
child welfare system. The commissioner shall
report back to the legislative committees that
oversee child welfare by January 1, 2025, on
the plan for this program. This is a onetime
appropriation.
new text end

new text begin (d) Family Group Decision Making. The
base shall include $5,000,000 in fiscal year
2024 and $5,000,000 in fiscal year 2025 to
expand the use of family group decision
making to provide opportunity for family
voices concerning critical decisions in child
safety and prevent entry into the child welfare
system.
new text end

new text begin (e) Child Welfare Promising Practices. The
base shall include $5,000,000 in fiscal year
2024 and $5,000,000 in fiscal year 2025 to
develop promising practices for prevention of
out-of-home placement of children and youth.
new text end

new text begin (f) Family Assessment Response. The base
shall include $23,550,000 in fiscal year 2024
and $23,550,000 in fiscal year 2025 to support
counties and Tribes that are members of the
American Indian child welfare initiative in
providing case management services and
support for families being served under family
assessment response, and prevent entry into
the child welfare system.
new text end

new text begin (g) Extend Support for Youth Leaving
Foster Care.
$600,000 in fiscal year 2023 is
to extend financial supports for young adults
aging out of foster care to age 22.
new text end

new text begin (h) Grants to Counties for Child Protection
Staff.
$1,000,000 in fiscal year 2023 is to
provide grants to counties and American
Indian child welfare initiative Tribes to be
used to reduce extended foster care caseload
sizes to ten cases per worker.
new text end

new text begin (i) Statewide Pool of Qualified Individuals.
$1,177,400 in fiscal year 2023 is for grants to
one or more grantees to establish and manage
a pool of state-funded qualified individuals to
assess potential out-of-home placement of a
child in a qualified residential treatment
program. Up to $200,000 of the grants each
fiscal year is available for grantee contracts to
manage the state-funded pool of qualified
individuals. This amount shall also pay for
qualified individual training, certification, and
background studies. Remaining grant money
shall be used until expended to provide
qualified individual services to counties and
Tribes that have joined the American Indian
child welfare initiative pursuant to Minnesota
Statutes, section 256.01, subdivision 14b, to
provide qualified residential treatment
program assessments at no cost to the county
or Tribal agency.
new text end

new text begin (j) Base Level Adjustment. The general fund
base is increased $47,440,000 in fiscal year
2024 and $44,769,000 in fiscal year 2025.
new text end

new text begin Subd. 16. new text end

new text begin Grant Program; Refugee Services
Grants
new text end

new text begin -0-
new text end
new text begin 5,111,000
new text end

new text begin (a) Refugee and Immigrant Services.
$5,111,000 in fiscal year 2023 is to extend the
refugee and immigrant COVID-19 care line
and expand eligibility for self-sufficiency and
community integration services provided by
community-based nonprofit resettlement
agencies to immigrants in Minnesota.
new text end

new text begin (b) Base Level Adjustment. The general fund
base is $5,111,000 in fiscal year 2024 and $0
in fiscal year 2025.
new text end

new text begin Subd. 17. new text end

new text begin Grant Programs; Children and
Community Service Grants
new text end

new text begin -0-
new text end
new text begin -0-
new text end

new text begin Base Level Adjustment. The Opiate
Epidemic Response Base is increased
$100,000 in fiscal year 2025.
new text end

new text begin Subd. 18. new text end

new text begin Grant Programs; Children and
Economic Support Grants
new text end

new text begin -0-
new text end
new text begin 89,099,000
new text end

new text begin (a) Family and Community Resource Hubs.
$2,550,000 in fiscal year 2023 is to implement
a sustainable family and community resource
hub model through the community action
agencies under Minnesota Statutes, section
256E.31, and federally recognized Tribes. The
community resource hubs must offer
navigation to several supports and services,
including but not limited to basic needs and
economic assistance, disability services,
healthy development and screening,
developmental and behavioral concerns,
family well-being and mental health, early
learning and child care, dental care, legal
services, and culturally specific services for
American Indian families.
new text end

new text begin (b) Tribal Food Sovereignty Infrastructure
Grants.
$4,000,000 in fiscal year 2023 is for
capital and infrastructure development to
support food system changes and provide
equitable access to existing and new methods
of food support for American Indian
communities, including federally recognized
Tribes and American Indian nonprofit
organizations. This is a onetime appropriation
and is available until June 30, 2025.
new text end

new text begin (c) Tribal Food Security. $2,836,000 in fiscal
year 2023 is to promote food security for
American Indian communities, including
federally recognized Tribes and American
Indian nonprofit organizations. This includes
hiring staff, providing culturally relevant
training for building food access, purchasing
technical assistance materials and supplies,
and planning for sustainable food systems.
new text end

new text begin (d) Capital for Emergency Food
Distribution Facilities.
$14,931,000 in fiscal
year 2023 is for improving and expanding the
infrastructure of food shelf facilities across
the state, including adding freezer or cooler
space and dry storage space, improving the
safety and sanitation of existing food shelves,
and addressing deferred maintenance or other
facility needs of existing food shelves. Grant
money shall be made available to nonprofit
organizations, federally recognized Tribes,
and local units of government. This is a
onetime appropriation and is available until
June 30, 2025.
new text end

new text begin (e) Food Support Grants. $5,000,000 in
fiscal year 2023 is to provide additional
resources to a diverse food support network
that includes food shelves, food banks, and
meal and food outreach programs. Grant
money shall be made available to nonprofit
organizations, federally recognized Tribes,
and local units of government.
new text end

new text begin (f) Emergency Services Grants. $54,782,000
in fiscal year 2023 is for emergency services
grants under Minnesota Statutes, section
256E.36. This is a onetime appropriation and
is available until June 30, 2024. Beginning in
fiscal year 2024, the base for emergency
services grants under Minnesota Statutes,
section 256E.36, shall be increased by
$29,751,000.
new text end

new text begin (g) Base Level Adjustment. The general fund
base is increased $60,429,000 in fiscal year
2024 and $64,079,000 in fiscal year 2025.
new text end

new text begin Appropriations by Fund
new text end
new text begin 2022
new text end
new text begin 2023
new text end
new text begin General Fund
new text end
new text begin -0-
new text end
new text begin 4,500,000
new text end
new text begin Health Care Access
new text end
new text begin 1,936,000
new text end
new text begin 64,000
new text end

new text begin Subd. 19. new text end

new text begin Grant Programs; Health Care Grants
new text end

new text begin (a) Grant Funding to Support Urban
American Indians in Minnesota Health
Care Programs.
$2,500,000 in fiscal year
2023 is for funding to the Indian Health Board
of Minneapolis to support continued access to
health care coverage through Minnesota health
care programs, improve access to quality care,
and increase vaccination rates among urban
American Indians.
new text end

new text begin (b) Grants for Navigator Organizations. (1)
$1,936,000 in fiscal year 2023 is from the
health care access fund for grants to
organizations with a MNsure grant services
navigator assister contract in good standing
as of June 30, 2022. The grants to each
organization must be in proportion to the
number of medical assistance and
MinnesotaCare enrollees each organization
assisted that resulted in a successful
enrollment in the second quarter of fiscal year
2020, as determined by MNsure's navigator
payment process. This is a onetime
appropriation. Money from this appropriation
is available until spent. (2) $2,000,000 in fiscal
year 2023 is from the health care access fund
for incentive payments as defined in
Minnesota Statutes, section 256.962,
subdivision 5. The general fund base for this
appropriation is $1,000,000 in fiscal year 2024
and $0 in fiscal year 2025. Money from this
appropriation is available until spent.
new text end

new text begin (c) Base level adjustment. The general fund
base is increased $3,750,000 in fiscal year
2024 and $1,250,000 in fiscal year 2025. The
health care access fund base is increased
$1,000,000 in fiscal year 2024, and $0 in fiscal
year 2025.
new text end

new text begin (d) Health and Human Services Vaccination
Rates.
$1,000,000 in fiscal year 2023 is for
community outreach grants to increase
vaccination rates among enrollees in
Minnesota health care programs. This is a
onetime appropriation.
new text end

new text begin Subd. 20. new text end

new text begin Grant Programs; Other Long-Term
Care Grants
new text end

new text begin -0-
new text end
new text begin 118,000,000
new text end

new text begin Workforce Incentive Fund Grant Program.
$118,000,000 in fiscal year 2023 is to assist
disability, housing, substance use, and older
adult service providers of public programs to
pay for incentive benefits to current and new
workers. This is a onetime appropriation and
is available until June 30, 2025. Three percent
of the total amount of the appropriation may
be used to administer the program, which
could include contracting with a third-party
administrator.
new text end

new text begin Subd. 21. new text end

new text begin Grant Programs; Disabilities Grants
new text end

new text begin -0-
new text end
new text begin 8,200,000
new text end

new text begin (a) Electronic Visit Verification (EVV)
Stipends.
$6,440,000 in fiscal year 2023 is
for onetime stipends of $200 to bargaining
members to offset the potential costs related
to people using individual devices to access
EVV. $5,600,000 of the appropriation is for
stipends and the remaining 15 percent is for
administration of these stipends. This is a
onetime appropriation.
new text end

new text begin (b) Self-Directed Collective Bargaining
Agreement; Temporary Rate Increase
Memorandum of Understanding.
$1,610,000
in fiscal year 2023 is for onetime stipends for
individual providers covered by the SEIU
collective bargaining agreement based on the
memorandum of understanding related to the
temporary rate increase in effect between
December 1, 2020, and February 7, 2021.
$1,400,000 of the appropriation is for stipends
and the remaining 15 percent is for
administration of the stipends. This is a
onetime appropriation.
new text end

new text begin (c) Base Level Adjustment. The general fund
base is increased $805,000 in fiscal year 2024
and $2,420,000 in fiscal year 2025.
new text end

new text begin Subd. 22. new text end

new text begin Grant Programs; Housing Support
Grants
new text end

new text begin -0-
new text end
new text begin 1,100,000
new text end

new text begin (a) AmeriCorps Heading Home Corps.
$1,100,000 in fiscal year 2023 is for the
AmeriCorps Heading Home Corps program
to fund housing resource navigators supporting
individuals experiencing homelessness.
new text end

new text begin (b) Base Level Adjustment. The general fund
base is increased $1,100,000 in fiscal year
2024 and $12,100,000 in fiscal year 2025.
new text end

new text begin Subd. 23. new text end

new text begin Grant Programs; Adult Mental Health
Grants
new text end

new text begin 20,000,000
new text end
new text begin 18,927,000
new text end

new text begin (a) Inpatient Psychiatric and Psychiatric
Residential Treatment Facilities.

$10,000,000 in fiscal year 2023 is for
competitive grants to hospitals or mental
health providers to retain, build, or expand
children's inpatient psychiatric beds for
children in need of acute high-level psychiatric
care or psychiatric residential treatment facility
beds as described in Minnesota Statutes,
section 256B.0941. In order to be eligible for
a grant, a hospital or mental health provider
must serve individuals covered by medical
assistance under Minnesota Statutes, section
256B.0625.
new text end

new text begin (b) Expanding Support for Psychiatric
Residential Treatment Facilities.
$800,000
in fiscal year 2023 is for start-up grants to
psychiatric residential treatment facilities as
described in Minnesota Statutes, section
256B.0941. Grantees can use grant money for
emergency workforce shortage uses.
Allowable grant uses related to emergency
workforce shortages may include but are not
limited to hiring and retention bonuses,
recruitment of a culturally responsive
workforce, and allowing providers to increase
the hourly rate in order to be competitive in
the market.
new text end

new text begin (c) Workforce Incentive Fund Grant
Program.
$20,000,000 in fiscal year 2022
from the general fund is to provide mental
health public program providers the ability to
pay for incentive benefits to current and new
workers. This is a onetime appropriation and
is available until June 30, 2025. Three percent
of the total amount of the appropriation may
be used to administer the program, which
could include contracting with a third-party
administrator.
new text end

new text begin (d) Cultural and Ethnic Infrastructure
Grant Funding.
$5,000,000 in fiscal year
2023 is for increasing cultural and ethnic
infrastructure grant funding under Minnesota
Statutes, section 245.4661, subdivision 6. This
grant funding will be used to alleviate the
workforce shortage and will be used to recruit
more providers who are Black, Indigenous,
and people of color for both mental health and
substance use disorder organizations.
new text end

new text begin (e) Mental Health Provider Grants to Rural
and Underserved Communities.
$5,000,000
in fiscal year 2023 is for a grant program to
recruit mental health providers in rural areas
and underserved communities. This money
can be used for reimbursement of supervision
costs of interns and clinical trainees,
reimbursing staff for master's degree tuition
costs in mental health fields, and licensing and
exam fees.
new text end

new text begin (f) Culturally Specific Grants. $2,000,000
in fiscal year 2023 and $2,000,000 in fiscal
year 2024 are for grants for small to midsize
nonprofit organizations who represent and
support American Indian, Indigenous, and
other communities disproportionately affected
by the opiate crisis. These grants utilize
traditional healing practices and other
culturally congruent and relevant supports to
prevent and curb opiate use disorders through
housing, treatment, education, aftercare, and
other activities as determined by the
commissioner. This is a onetime appropriation.
new text end

new text begin (g) Base Level Adjustment. The general fund
base is increased $23,791,000 in fiscal year
2024 and $30,916,000 in fiscal year 2025. The
opiate epidemic response base is increased
$2,000,000 in fiscal year 2025.
new text end

new text begin Subd. 24. new text end

new text begin Grant Programs; Child Mental Health
Grants
new text end

new text begin -0-
new text end
new text begin 10,800,000
new text end

new text begin new text begin Base Level Adjustment.new text end The general fund
base is increased $15,800,000 in fiscal year
2024 and $800,000 in fiscal year 2025.
new text end

new text begin Subd. 25. new text end

new text begin Grant Programs; Chemical
Dependency Treatment Support Grants
new text end

new text begin -0-
new text end
new text begin 4,000,000
new text end

new text begin (a) Emerging Mood Disorder Grant
Program.
$1,000,000 in fiscal year 2023 is
for emerging mood disorder grants under
Minnesota Statutes, section 245.4904.
Grantees must use grant money as required in
Minnesota Statutes, section 245.4904,
subdivision 2.
new text end

new text begin (b) Substance Use Disorder Treatment and
Prevention Grants.
The base shall include
$4,000,000 in fiscal year 2024 and $4,000,000
in fiscal year 2025 for substance use disorder
treatment and prevention grants recommended
by the substance use disorder advisory council.
new text end

new text begin (c) Traditional Healing Grants. The base
shall include $2,000,000 in fiscal year 2025
to extend the traditional healing grant funding
appropriated in Laws 2019, chapter 63, article
3, section 1, paragraph (h), from the opiate
epidemic response account to the
commissioner of human services. This funding
is awarded to all Tribal nations and to five
urban Indian communities for traditional
healing practices to American Indians and to
increase the capacity of culturally specific
providers in the behavioral health workforce.
new text end

new text begin (d) Base Level Adjustment. The general fund
base is increased $4,000,000 in fiscal year
2024 and $2,000,000 in fiscal year 2025.
new text end

new text begin Subd. 26. new text end

new text begin Direct Care and Treatment -
Operations
new text end

new text begin -0-
new text end
new text begin 6,501,000
new text end

new text begin Base Level Adjustment. The general fund
base is increased $5,267,000 in fiscal year
2024 and $0 in fiscal year 2025.
new text end

new text begin Subd. 27. new text end

new text begin Technical Activities
new text end

new text begin -0-
new text end
new text begin -0-
new text end

new text begin (a) Transfers; Child Care and Development
Fund.
For fiscal years 2024 and 2025, the base
shall include a transfer of $23,500,000 in fiscal
year 2024 and $23,500,000 in fiscal year 2025
from the TANF fund to the child care and
development fund. These are onetime
transfers.
new text end

new text begin (b) Base Level Adjustment. The TANF base
is increased $23,500,000 in fiscal year 2024,
$23,500,000 in fiscal year 2025, and $0 in
fiscal year 2026.
new text end

Sec. 3. new text beginBOARD OF DIRECTORS OF MNSURE
new text end

new text begin Appropriations by Fund
new text end
new text begin 2022
new text end
new text begin 2023
new text end
new text begin General
new text end
new text begin -0-
new text end
new text begin 7,775,000
new text end
new text begin Health Care Access
new text end
new text begin -0-
new text end
new text begin 3,500,000
new text end

new text begin These appropriations may be transferred to
the MNSure account established by Minnesota
Statutes, section 62V.07. The health care
access fund appropriation is onetime.
new text end

new text begin Base Adjustment. The general fund base for
this appropriation is $7,476,000 in fiscal year
2024, $3,521,000 in fiscal year 2025, and $0
in fiscal year 2026.
new text end

Sec. 4.

Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 29,
is amended to read:


Subd. 29.

Grant Programs; Disabilities Grants

31,398,000
31,010,000

(a) Training Stipends for Direct Support
Services Providers.
$1,000,000 in fiscal year
2022 is from the general fund for stipends for
individual providers of direct support services
as defined in Minnesota Statutes, section
256B.0711, subdivision 1. These stipends are
available to individual providers who have
completed designated voluntary trainings
made available through the State-Provider
Cooperation Committee formed by the State
of Minnesota and the Service Employees
International Union Healthcare Minnesota.
Any unspent appropriation in fiscal year 2022
is available in fiscal year 2023. This is a
onetime appropriation. This appropriation is
available only if the labor agreement between
the state of Minnesota and the Service
Employees International Union Healthcare
Minnesota under Minnesota Statutes, section
179A.54, is approved under Minnesota
Statutes, section 3.855.

(b) Parent-to-Parent Peer Support. $125,000
in fiscal year 2022 and $125,000 in fiscal year
2023 are from the general fund for a grant to
an alliance member of Parent to Parent USA
to support the alliance member's
parent-to-parent peer support program for
families of children with a disability or special
health care need.

(c) Self-Advocacy Grants. (1) $143,000 in
fiscal year 2022 and $143,000 in fiscal year
2023 are from the general fund for a grant
under Minnesota Statutes, section 256.477,
subdivision 1
.

(2) $105,000 in fiscal year 2022 and $105,000
in fiscal year 2023 are from the general fund
for subgrants under Minnesota Statutes,
section 256.477, subdivision 2.

(d) Minnesota Inclusion Initiative Grants.
$150,000 in fiscal year 2022 and $150,000 in
fiscal year 2023 are from the general fund for
grants under Minnesota Statutes, section
256.4772.

(e) Grants to Expand Access to Child Care
for Children with Disabilities.
$250,000 in
fiscal year 2022 and $250,000 in fiscal year
2023 are from the general fund for grants to
expand access to child care for children with
disabilities.new text begin Any unspent amount in fiscal year
2022 is available through June 30, 2023.
new text end This
is a onetime appropriation.

(f) Parenting with a Disability Pilot Project.
The general fund base includes $1,000,000 in
fiscal year 2024 and $0 in fiscal year 2025 to
implement the parenting with a disability pilot
project.

(g) Base Level Adjustment. The general fund
base is $29,260,000 in fiscal year 2024 and
$22,260,000 in fiscal year 2025.

Sec. 5.

Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 31,
is amended to read:


Subd. 31.

Grant Programs; Adult Mental Health
Grants

Appropriations by Fund
General
98,772,000
98,703,000
Opiate Epidemic
Response
2,000,000
2,000,000

(a) Culturally and Linguistically
Appropriate Services Implementation
Grants.
$2,275,000 in fiscal year 2022 and
$2,206,000 in fiscal year 2023 are from the
general fund for grants to disability services,
mental health, and substance use disorder
treatment providers to implement culturally
and linguistically appropriate services
standards, according to the implementation
and transition plan developed by the
commissioner.new text begin Any unspent amount in fiscal
year 2022 is available through June 30, 2023.
new text end
The general fund base for this appropriation
is $1,655,000 in fiscal year 2024 and $0 in
fiscal year 2025.

(b) Base Level Adjustment. The general fund
base is $93,295,000 in fiscal year 2024 and
$83,324,000 in fiscal year 2025. The opiate
epidemic response fund base is $2,000,000 in
fiscal year 2024 and $0 in fiscal year 2025.

Sec. 6.

Laws 2021, First Special Session chapter 7, article 16, section 2, subdivision 33,
is amended to read:


Subd. 33.

Grant Programs; Chemical
Dependency Treatment Support Grants

Appropriations by Fund
General
4,273,000
4,274,000
Lottery Prize
1,733,000
1,733,000
Opiate Epidemic
Response
500,000
500,000

(a) Problem Gambling. $225,000 in fiscal
year 2022 and $225,000 in fiscal year 2023
are from the lottery prize fund for a grant to
the state affiliate recognized by the National
Council on Problem Gambling. The affiliate
must provide services to increase public
awareness of problem gambling, education,
training for individuals and organizations
providing effective treatment services to
problem gamblers and their families, and
research related to problem gambling.

(b) Recovery Community Organization
Grants.
$2,000,000 in fiscal year 2022 and
$2,000,000 in fiscal year 2023 are from the
general fund for grants to recovery community
organizations, as defined in Minnesota
Statutes, section 254B.01, subdivision 8, to
provide for costs and community-based peer
recovery support services that are not
otherwise eligible for reimbursement under
Minnesota Statutes, section 254B.05, as part
of the continuum of care for substance use
disorders.new text begin Any unspent amount in fiscal year
2022 is available through June 30, 2023.
new text end The
general fund base for this appropriation is
$2,000,000 in fiscal year 2024 and $0 in fiscal
year 2025

(c) Base Level Adjustment. The general fund
base is $4,636,000 in fiscal year 2024 and
$2,636,000 in fiscal year 2025. The opiate
epidemic response fund base is $500,000 in
fiscal year 2024 and $0 in fiscal year 2025.

Sec. 7.

Laws 2021, First Special Session chapter 7, article 16, section 28, is amended to
read:


Sec. 28. CONTINGENT APPROPRIATIONS.

Any appropriation in this act for a purpose included in Minnesota's initial state spending
plan as described in guidance issued by the Centers for Medicare and Medicaid Services
for implementation of section 9817 of the federal American Rescue Plan Act of 2021 is
contingent upon approval of that purpose by the Centers for Medicare and Medicaid Servicesnew text begin,
except for the rate increases specified in article 11, sections 12 and 19
new text end. This section expires
June 30, 2024.

Sec. 8.

Laws 2021, First Special Session chapter 7, article 17, section 3, is amended to
read:


Sec. 3. GRANTS FOR TECHNOLOGY FOR HCBS RECIPIENTS.

(a) This act includes $500,000 in fiscal year 2022 and $2,000,000 in fiscal year 2023
for the commissioner of human services to issue competitive grants to home and
community-based service providers. Grants must be used to provide technology assistance,
including but not limited to Internet services, to older adults and people with disabilities
who do not have access to technology resources necessary to use remote service delivery
and telehealth.new text begin Any unspent amount in fiscal year 2022 is available through June 30, 2023.new text end
The general fund base included in this act for this purpose is $1,500,000 in fiscal year 2024
and $0 in fiscal year 2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This section expires June 30, 2024.

Sec. 9.

Laws 2021, First Special Session chapter 7, article 17, section 6, is amended to
read:


Sec. 6. TRANSITION TO COMMUNITY INITIATIVE.

(a) This act includes $5,500,000 in fiscal year 2022 and $5,500,000 in fiscal year 2023
for additional funding for grants awarded under the transition to community initiative
described in Minnesota Statutes, section 256.478.new text begin Any unspent amount in fiscal year 2022
is available through June 30, 2023.
new text end The general fund base in this act for this purpose is
$4,125,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This section expires June 30, 2024.

Sec. 10.

Laws 2021, First Special Session chapter 7, article 17, section 10, is amended to
read:


Sec. 10. PROVIDER CAPACITY GRANTS FOR RURAL AND UNDERSERVED
COMMUNITIES.

(a) This act includes $6,000,000 in fiscal year 2022 and $8,000,000 in fiscal year 2023
for the commissioner to establish a grant program for small provider organizations that
provide services to rural or underserved communities with limited home and
community-based services provider capacity. The grants are available to build organizational
capacity to provide home and community-based services in Minnesota and to build new or
expanded infrastructure to access medical assistance reimbursement.new text begin Any unspent amount
in fiscal year 2022 is available through June 30, 2023.
new text end The general fund base in this act for
this purpose is $8,000,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) The commissioner shall conduct community engagement, provide technical assistance,
and establish a collaborative learning community related to the grants available under this
section and work with the commissioner of management and budget and the commissioner
of the Department of Administration to mitigate barriers in accessing grant funds. Funding
awarded for the community engagement activities described in this paragraph is exempt
from state solicitation requirements under Minnesota Statutes, section 16B.97, for activities
that occur in fiscal year 2022.

(c) All grant activities must be completed by March 31, 2024.

(d) This section expires June 30, 2024.

Sec. 11.

Laws 2021, First Special Session chapter 7, article 17, section 11, is amended to
read:


Sec. 11. EXPAND MOBILE CRISIS.

(a) This act includes $8,000,000 in fiscal year 2022 and $8,000,000 in fiscal year 2023
for additional funding for grants for adult mobile crisis services under Minnesota Statutes,
section 245.4661, subdivision 9, paragraph (b), clause (15).new text begin Any unspent amount in fiscal
year 2022 is available through June 30, 2023.
new text end The general fund base in this act for this
purpose is $4,000,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) Beginning April 1, 2024, counties may fund and continue conducting activities
funded under this section.

(c) All grant activities must be completed by March 31, 2024.

(d) This section expires June 30, 2024.

Sec. 12.

Laws 2021, First Special Session chapter 7, article 17, section 12, is amended to
read:


Sec. 12. PSYCHIATRIC RESIDENTIAL TREATMENT FACILITY AND CHILD
AND ADOLESCENT MOBILE TRANSITION UNIT.

(a) This act includes $2,500,000 in fiscal year 2022 and $2,500,000 in fiscal year 2023
for the commissioner of human services to create children's mental health transition and
support teams to facilitate transition back to the community of children from psychiatric
residential treatment facilities, and child and adolescent behavioral health hospitals.new text begin Any
unspent amount in fiscal year 2022 is available through June 30, 2023.
new text end The general fund
base included in this act for this purpose is $1,875,000 in fiscal year 2024 and $0 in fiscal
year 2025.

(b) Beginning April 1, 2024, counties may fund and continue conducting activities
funded under this section.

(c) This section expires March 31, 2024.

Sec. 13.

Laws 2021, First Special Session chapter 7, article 17, section 17, subdivision 3,
is amended to read:


Subd. 3.

Respite services for older adults grants.

(a) This act includes $2,000,000 in
fiscal year 2022 and $2,000,000 in fiscal year 2023 for the commissioner of human services
to establish a grant program for respite services for older adults. The commissioner must
award grants on a competitive basis to respite service providers.new text begin Any unspent amount in
fiscal year 2022 is available through June 30, 2023.
new text end The general fund base included in this
act for this purpose is $2,000,000 in fiscal year 2024 and $0 in fiscal year 2025.

(b) All grant activities must be completed by March 31, 2024.

(c) This subdivision expires June 30, 2024.

APPENDIX

Repealed Minnesota Statutes: 22-07249

119B.03 BASIC SLIDING FEE PROGRAM.

Subdivision 1.

Notice of allocation.

By October 1 of each year, the commissioner shall notify all counties of their final child care fund program allocation.

Subd. 2.

Waiting list.

Each county that receives funds under this section must keep a written record and report to the commissioner the number of eligible families who have applied for a child care subsidy or have requested child care assistance. Counties shall perform a preliminary determination of eligibility when a family requests child care assistance. At a minimum, a county must make a preliminary determination of eligibility based on family size, income, and authorized activity. A family seeking child care assistance must provide the required information to the county. A family that appears to be eligible must be put on a waiting list if funds are not immediately available. The waiting list must identify students in need of child care. Counties must review and update their waiting list at least every six months.

Subd. 4.

Funding priority.

(a) First priority for child care assistance under the basic sliding fee program must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used:

(1) child care needs of minor parents;

(2) child care needs of parents under 21 years of age; and

(3) child care needs of other parents within the priority group described in this paragraph.

(b) Second priority must be given to parents who have completed their MFIP or DWP transition year, or parents who are no longer receiving or eligible for diversionary work program supports.

(c) Third priority must be given to families who are eligible for portable basic sliding fee assistance through the portability pool under subdivision 9.

(d) Fourth priority must be given to families in which at least one parent is a veteran as defined under section 197.447.

(e) Families under paragraph (b) must be added to the basic sliding fee waiting list on the date they begin the transition year under section 119B.011, subdivision 20, and must be moved into the basic sliding fee program as soon as possible after they complete their transition year.

Subd. 4a.

Temporary reprioritization.

(a) Notwithstanding subdivision 4, priority for child care assistance under the basic sliding fee assistance program shall be determined according to this subdivision beginning July 1, 2021, through May 31, 2024.

(b) First priority must be given to eligible non-MFIP families who do not have a high school diploma or commissioner of education-selected high school equivalency certification or who need remedial and basic skill courses in order to pursue employment or to pursue education leading to employment and who need child care assistance to participate in the education program. This includes student parents as defined under section 119B.011, subdivision 19b. Within this priority, the following subpriorities must be used:

(1) child care needs of minor parents;

(2) child care needs of parents under 21 years of age; and

(3) child care needs of other parents within the priority group described in this paragraph.

(c) Second priority must be given to families in which at least one parent is a veteran, as defined under section 197.447.

(d) Third priority must be given to eligible families who do not meet the specifications of paragraph (b), (c), (e), or (f).

(e) Fourth priority must be given to families who are eligible for portable basic sliding fee assistance through the portability pool under subdivision 9.

(f) Fifth priority must be given to eligible families receiving services under section 119B.011, subdivision 20a, if the parents have completed their MFIP or DWP transition year, or if the parents are no longer receiving or eligible for DWP supports.

(g) Families under paragraph (f) must be added to the basic sliding fee waiting list on the date they complete their transition year under section 119B.011, subdivision 20.

Subd. 5.

Review of use of funds; reallocation.

(a) After each quarter, the commissioner shall review the use of basic sliding fee program allocations by county. The commissioner may reallocate unexpended or unencumbered money among those counties who have expended their full allocation or may allow a county to expend up to ten percent of its allocation in the subsequent allocation period.

(b) Any unexpended state and federal appropriations from the first year of the biennium may be carried forward to the second year of the biennium.

Subd. 6.

Allocation formula.

The allocation component of 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) Up to one-fourth of the funds shall be allocated in proportion to the number of families participating in the transition year child care program as reported during and averaged over the most recent six months completed at the time of the notice of allocation. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (e).

(c) Up to one-half of the funds shall be allocated in proportion to the average of each county's most recent 12 months of 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. Funds in excess of the amount necessary to serve all families in this category shall be allocated according to paragraph (e).

(d) The amount necessary to serve all families in paragraphs (b) and (c) 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.

(e) Funds in excess of the amount necessary to serve all families in paragraphs (b) and (c) 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.

Subd. 6a.

Allocation due to increased funding.

When funding increases are implemented within a calendar year, every county must receive an allocation at least equal to its original allocation for the same time period. The remainder of the allocation must be recalculated to reflect the funding increase, according to formulas identified in subdivision 6.

Subd. 6b.

Allocation due to decreased funding.

When funding decreases are implemented within a calendar year, county allocations must be reduced in an amount proportionate to the reduction in the total allocation for the same time period. This applies when a funding decrease necessitates the revision of an existing calendar year allocation.

Subd. 8.

Guaranteed floor.

(a) Beginning January 1, 1996, each county's guaranteed floor shall equal 90 percent of the allocation received in the preceding calendar year. For the period January 1, 1999, to December 31, 1999, each county's guaranteed floor must be equal to its original calendar year 1998 allocation or its actual earnings for calendar year 1998, whichever is less.

(b) When the amount of funds available for allocation is less than the amount available in the previous year, each county's previous year allocation shall be reduced in proportion to the reduction in the statewide funding, for the purpose of establishing the guaranteed floor.