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CHAPTER 175--H.F.No. 1728

An act

relating to human services; amending child care programs, program integrity, and adult supports including general assistance medical care and group residential housing;

amending Minnesota Statutes 2008, sections 119B.011, subdivision 3; 119B.08, subdivision 2; 119B.09, subdivision 1; 119B.12, subdivision 1; 119B.13, subdivision 6; 119B.15; 119B.231, subdivision 3; 256.014, subdivision 1; 256.0471, subdivision 1, by adding a subdivision; 256D.01, subdivision 1b; 256D.44, subdivision 3; 256I.04, subdivisions 2a, 3; 256I.05, subdivision 1k.

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

ARTICLE 1

CHILD CARE

Section 1.

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

Subd. 3.

Application.

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

new text begin (1) new text end child care assistance universal application form deleted text begin that indicates the family's desire to receive assistance.deleted text end new text begin ; ornew text end

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

Sec. 2.

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

Subd. 2.

deleted text begin Quarterlydeleted text end new text begin Monthlynew text end payments.

deleted text begin The commissioner may make payments to each county in quarterly installments. The commissioner may certify an advance up to 25 percent of the allocation. Subsequentdeleted text end new text begin The commissioner shall make monthlynew text end payments deleted text begin shall be madedeleted text end on a reimbursement basis for deleted text begin reporteddeleted text end expenditures deleted text begin and may be adjusted for anticipated spending patternsdeleted text end new text begin reported outside of the electronic system used to administer child care assistancenew text end . Payments may be withheld if deleted text begin quarterlydeleted text end new text begin monthly new text end reports are incomplete or untimely.

Sec. 3.

Minnesota Statutes 2008, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

General eligibility requirements for all applicants for child care assistance.

(a) Child care services must be available to families who need child care to find or keep employment or to obtain the training or education necessary to find employment and who:

(1) have household income less than or equal to 67 percent of the state median income, adjusted for family size, and meet the requirements of section 119B.05; receive MFIP assistance; and are participating in employment and training services under chapter 256J; or

(2) have household income less than or equal to 47 percent of the state median income, adjusted for family size, at program entry and less than new text begin or equal to new text end 67 percent of the state median income, adjusted for family size, at program exit.

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care assistance must be assisted and required to cooperate in establishment of paternity and enforcement of child support obligations for all children in the family as a condition of program eligibility. For purposes of this section, a family is considered to meet the requirement for cooperation when the family complies with the requirements of section 256.741.

Sec. 4.

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

Subdivision 1.

Fee schedule.

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

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

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

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

Sec. 5.

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

Subd. 6.

Provider payments.

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

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

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

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

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

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

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

Sec. 6.

Minnesota Statutes 2008, section 119B.15, is amended to read:

119B.15 ADMINISTRATIVE EXPENSES.

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

Sec. 7.

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

Subd. 3.

Family and child eligibility.

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

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

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

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

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

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

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

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

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

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

ARTICLE 2

PROGRAM INTEGRITY

Section 1.

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

Subdivision 1.

Establishment of systems.

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

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

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

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

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

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

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

Sec. 2.

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

Subdivision 1.

Qualifying overpayment.

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

Sec. 3.

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

new text begin Subd. 6a. new text end

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

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

Sec. 4.

new text begin INVENTORY OF EARLY CHILDHOOD SERVICES. new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin (a) The State Advisory Council on Early Childhood Education and Care under Minnesota Statutes, section 124D.141, shall create an inventory of early childhood services. new text end

new text begin (b) The inventory shall to the degree resources are available: new text end

new text begin (1) identify programs and initiatives funded by state, federal, or private dollars; new text end

new text begin (2) provide brief descriptions and any existing evaluations of programs under which services are received; new text end

new text begin (3) provide budget allocations toward the outcome areas; and new text end

new text begin (4) include subsections describing specific: new text end

new text begin (i) geographic regions served by the program; new text end

new text begin (ii) number of children eligible; new text end

new text begin (iii) number of children enrolled; and new text end

new text begin (iv) age, ethnicity and race, and family income demographics of children enrolled. new text end

new text begin Subd. 2. new text end

new text begin Funding. new text end

new text begin The council is encouraged to seek and use federal and private funds for the inventory. new text end

ARTICLE 3

ADULT SUPPORTS

Section 1.

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

Subd. 1b.

Rules.

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

Sec. 2.

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

Subd. 3.

Standard of assistance for basic needs.

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

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

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

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

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

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

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

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

Sec. 3.

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

Subd. 2a.

License required.

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

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

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

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

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

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

Sec. 4.

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

Subd. 3.

Moratorium on the development of group residential housing beds.

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 5.

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

Subd. 1k.

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

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

Presented to the governor May 21, 2009

Signed by the governor May 22, 2009, 7:57 a.m.

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Revisor of Statutes