1.1                          A bill for an act 
  1.2             relating to human services; establishing an asthma 
  1.3             surveillance system; modifying provisions governing 
  1.4             medical assistance and MinnesotaCare; requiring 
  1.5             standards for children's preventive care; modifying 
  1.6             child care assistance; creating the teacher education 
  1.7             and compensation helps program; increasing payment 
  1.8             rates for adoption assistance and relative custody 
  1.9             assistance; providing assistance to minor children 
  1.10            after the MFIP 60-month time limit is reached; 
  1.11            increasing the minimum wage; establishing a children's 
  1.12            account in the general fund; authorizing rulemaking; 
  1.13            modifying taxes on tobacco products; allowing an 
  1.14            individual tax credit for children; appropriating 
  1.15            money; amending Minnesota Statutes 2000, sections 
  1.16            119B.061, subdivision 1; 177.24, subdivision 1; 
  1.17            256B.056, subdivision 7; 256B.69, by adding a 
  1.18            subdivision; 256L.15, by adding a subdivision; 257.85, 
  1.19            subdivision 7; 259.67, subdivision 2; 297F.05, 
  1.20            subdivisions 1, 3; 297F.08, subdivision 7; 297F.10; 
  1.21            Minnesota Statutes 2001 Supplement, sections 13.3806, 
  1.22            by adding a subdivision; 119B.061, subdivision 4; 
  1.23            256B.056, subdivision 4; 257.85, subdivision 3; Laws 
  1.24            2001, First Special Session chapter 3, article 1, 
  1.25            section 17, subdivision 8; proposing coding for new 
  1.26            law in Minnesota Statutes, chapters 119B; 144; 256J; 
  1.27            290. 
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29                             ARTICLE 1 
  1.30                LEAVE NO CHILD BEHIND; HEALTHY START 
  1.31     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.32  13.3806, is amended by adding a subdivision to read: 
  1.33     Subd. 9a.  [ASTHMA SURVEILLANCE SYSTEM.] Data collected by 
  1.34  the asthma surveillance system are classified under section 
  1.35  144.4105, subdivision 2. 
  1.36     Sec. 2.  [144.4105] [ASTHMA SURVEILLANCE SYSTEM.] 
  2.1      Subdivision 1.  [ESTABLISHMENT.] The commissioner of health 
  2.2   shall develop a comprehensive asthma surveillance system to: 
  2.3      (1) measure the prevalence of childhood asthma; 
  2.4      (2) identify factors, including indoor and outdoor 
  2.5   environmental factors, which may cause or exacerbate asthma; 
  2.6      (3) identify appropriate and effective methods of 
  2.7   intervention to prevent or minimize the severity of asthma; and 
  2.8      (4) provide data for utilization by other asthma 
  2.9   researchers. 
  2.10     Subd. 2.  [DATA COLLECTION; DATA CLASSIFICATION.] The 
  2.11  commissioner shall specify the types of data that must be 
  2.12  reported to the commissioner and standards for reporting 
  2.13  specific types of data.  Data collected and maintained by the 
  2.14  commissioner for the asthma surveillance system under this 
  2.15  section are private data on individuals.  Notwithstanding this 
  2.16  classification, the commissioner may release data collected and 
  2.17  maintained in the system according to subdivision 1, clause (4). 
  2.18     Subd. 3.  [RULEMAKING.] The commissioner may adopt rules to 
  2.19  implement this section. 
  2.20     Subd. 4.  [BIENNIAL REPORT TO LEGISLATURE.] By January 15, 
  2.21  2003, 2005, and 2007, the commissioner shall report to the 
  2.22  legislature on the prevalence of asthma in the state and shall 
  2.23  provide recommendations on action steps the legislature may take 
  2.24  to decrease the prevalence of asthma and the morbidity 
  2.25  associated with having asthma. 
  2.26     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  2.27  256B.056, subdivision 4, is amended to read: 
  2.28     Subd. 4.  [INCOME.] (a) To be eligible for medical 
  2.29  assistance, a person eligible under section 256B.055, 
  2.30  subdivisions 7, 7a, and 12, may have income up to 100 percent of 
  2.31  the federal poverty guidelines.  Effective January 1, 2000, and 
  2.32  each successive January, recipients of supplemental security 
  2.33  income may have an income up to the supplemental security income 
  2.34  standard in effect on that date.  
  2.35     (b) To be eligible for medical assistance, families and 
  2.36  children may have an income up to 133-1/3 percent of the AFDC 
  3.1   income standard in effect under the July 16, 1996, AFDC state 
  3.2   plan.  Effective July 1, 2000, the base AFDC standard in effect 
  3.3   on July 16, 1996, shall be increased by three percent.  
  3.4      (c) Effective July 1, 2002, to be eligible for medical 
  3.5   assistance, families and children may have an income up to ~~100~~ 
  3.6   120 percent of the federal poverty guidelines for the family 
  3.7   size.  
  3.8      (d) In computing income to determine eligibility of persons 
  3.9   under paragraphs (a) to (c) who are not residents of long-term 
  3.10  care facilities, the commissioner shall disregard increases in 
  3.11  income as required by Public Law Numbers 94-566, section 503; 
  3.12  99-272; and 99-509.  Veterans aid and attendance benefits and 
  3.13  Veterans Administration unusual medical expense payments are 
  3.14  considered income to the recipient. 
  3.15     Sec. 4.  Minnesota Statutes 2000, section 256B.056, 
  3.16  subdivision 7, is amended to read: 
  3.17     Subd. 7.  [PERIOD OF ELIGIBILITY.] Eligibility is available 
  3.18  for the month of application and for three months prior to 
  3.19  application if the person was eligible in those prior months.  A 
  3.20  redetermination of eligibility must occur every 12 months.  A 
  3.21  child under 19 years of age who is determined to be eligible for 
  3.22  medical assistance shall remain eligible until the earlier of: 
  3.23     (1) the end of a 12-month period beginning the month after 
  3.24  the application is approved; 
  3.25     (2) when eligibility is reapproved; or 
  3.26     (3) when the child exceeds 19 years of age. 
  3.27     Sec. 5.  Minnesota Statutes 2000, section 256B.69, is 
  3.28  amended by adding a subdivision to read: 
  3.29     Subd. 5f.  [FINANCIAL INCENTIVE FOR CHILDREN'S PREVENTIVE 
  3.30  CARE.] The commissioner, in consultation with prepaid health 
  3.31  plans, shall develop:  
  3.32     (1) quality standards for the provision of child and teen 
  3.33  checkups and other preventive services for children by prepaid 
  3.34  health plans; and 
  3.35     (2) a financial withholding system that reimburses prepaid 
  3.36  health plans under a settleup process based on the extent to 
  4.1   which the plans meet these quality standards.  
  4.2   The amount withheld from capitation rates must equal 25 percent 
  4.3   of that portion of the rate attributable to the estimated cost 
  4.4   of providing child and teen checkups and other preventive 
  4.5   services for children.  The commissioner shall implement the 
  4.6   withholding and settleup process effective for contract periods 
  4.7   beginning on or after January 1, 2003. 
  4.8      Sec. 6.  Minnesota Statutes 2000, section 256L.15, is 
  4.9   amended by adding a subdivision to read: 
  4.10     Subd. 4.  [MODIFIED PREMIUM CALCULATION FOR 
  4.11  CHILDREN.] Beginning January 1, 2003, the commissioner shall use 
  4.12  a modified sliding scale to calculate premiums for enrollees who 
  4.13  are children with household incomes greater than 170 percent of 
  4.14  the federal poverty guidelines, calculated using the medical 
  4.15  assistance income methodology for families and children.  The 
  4.16  modified sliding scale must reduce aggregate premiums for this 
  4.17  group of children by one-third from the premium rates in effect 
  4.18  on December 31, 2002, and must provide a gradual transition to 
  4.19  premium payments for children entering MinnesotaCare from the 
  4.20  medical assistance program. 
  4.21     Sec. 7.  [APPROPRIATION.] 
  4.22     $....... is appropriated for the 2003 fiscal year from the 
  4.23  children's account in the general fund to the commissioner of 
  4.24  health to establish an asthma surveillance system and provide 
  4.25  reports to the legislature according to section 2. 
  4.26                             ARTICLE 2 
  4.27                             HEAD START 
  4.28     Section 1.  Minnesota Statutes 2000, section 119B.061, 
  4.29  subdivision 1, is amended to read: 
  4.30     Subdivision 1.  [ESTABLISHMENT.] A family in which a parent 
  4.31  provides care for the family's infant child may receive a 
  4.32  subsidy in lieu of assistance if the family is eligible for, or 
  4.33  is receiving assistance under the basic sliding fee program.  An 
  4.34  eligible family must meet the eligibility factors under section 
  4.35  119B.09, except as provided in subdivision 4, the income 
  4.36  criteria under section 119B.12, and the requirements of this 
  5.1   section.  Subject to federal match and maintenance of effort 
  5.2   requirements for the child care and development fund, the 
  5.3   commissioner shall establish a pool of up to seven percent of 
  5.4   the annual appropriation for the basic sliding fee program to 
  5.5   provide assistance under the at-home infant child care program.  
  5.6   At the end of a fiscal year, the commissioner may carry forward 
  5.7   any unspent funds under this section to the next fiscal year 
  5.8   within the same biennium for assistance under the basic sliding 
  5.9   fee program. 
  5.10     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  5.11  119B.061, subdivision 4, is amended to read: 
  5.12     Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
  5.13  lifetime total of 12 months of assistance under subdivision 2.  
  5.14  The maximum rate of assistance is equal to 90 percent of the 
  5.15  rate established under section 119B.13 for care of infants in 
  5.16  licensed family child care in the applicant's county of 
  5.17  residence.  ~~Assistance must be calculated to reflect the parent~~ 
  5.18  ~~fee requirement under section 119B.12 for the family's actual~~ 
  5.19  ~~income level and family size while the family is participating~~ 
  5.20  ~~in the at-home infant child care program under this~~ 
  5.21  ~~section.~~  For purposes of this section, the annual income of the 
  5.22  applicant family must be based on an annualization of the income 
  5.23  received only during the period in which the family is 
  5.24  participating in the at-home infant care program. 
  5.25     (b) A participating family must report income and other 
  5.26  family changes as specified in the county's plan under section 
  5.27  119B.08, subdivision 3.  
  5.28     (c) Persons who are admitted to the at-home infant care 
  5.29  program retain their position in any basic sliding fee program 
  5.30  or on any waiting list attained at the time of admittance.  If 
  5.31  they are on the waiting list, they must advance as if they had 
  5.32  not been admitted to the program.  Persons leaving the at-home 
  5.33  infant care program re-enter the basic sliding fee program at 
  5.34  the position they would have occupied or the waiting list at the 
  5.35  position to which they would have advanced.  Persons who would 
  5.36  have attained eligibility for the basic sliding fee program must 
  6.1   be given assistance or advance to the top of the waiting list 
  6.2   when they leave the at-home infant care program.  Persons 
  6.3   admitted to the at-home infant care program who are not on a 
  6.4   basic sliding fee waiting list may apply to the basic sliding 
  6.5   fee program, and if eligible, be placed on the waiting list. 
  6.6      (d) The time that a family receives assistance under this 
  6.7   section must be deducted from the one-year exemption from work 
  6.8   requirements under the MFIP program. 
  6.9      (e) Assistance under this section does not establish an 
  6.10  employer-employee relationship between any member of the 
  6.11  assisted family and the county or state. 
  6.12     Sec. 3.  [119B.221] [TEACHER EDUCATION AND COMPENSATION 
  6.13  HELPS; MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.] 
  6.14     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
  6.15  establish a teacher education and compensation helps program 
  6.16  (TEACH) to provide tuition scholarships and education incentives 
  6.17  and an early childhood teacher retention program to provide 
  6.18  retention incentives to early care and education providers.  The 
  6.19  commissioner shall transfer funds provided under this section 
  6.20  through a grant to a nonprofit organization licensed to 
  6.21  administer the TEACH early childhood program.  The commissioner 
  6.22  shall approve application procedures, eligibility criteria, 
  6.23  terms, and other conditions necessary to administer the program. 
  6.24     Subd. 2.  [PROGRAM COMPONENTS.] (a) The nonprofit 
  6.25  organization shall distribute funds for: 
  6.26     (1) tuition scholarships up to $2,000 per year for courses 
  6.27  leading to the nationally recognized child development associate 
  6.28  credential or college-level courses leading to the University of 
  6.29  Minnesota competency-based training assessment credential, or 
  6.30  similar credentials recognized by the department or a 
  6.31  certificate, associate degree, or bachelor's degree in early 
  6.32  childhood development and school-age care; and 
  6.33     (2) education incentives of a minimum of $100 to 
  6.34  participants in the tuition scholarship program if they complete 
  6.35  a year of working in the early care and education field. 
  6.36     (b) Applicants for the scholarship must be either employed 
  7.1   by a licensed early childhood or child care program and working 
  7.2   directly with children, a licensed family child care provider, 
  7.3   or an employee in a school-age or early childhood and family 
  7.4   education program operated under the auspices of a 
  7.5   license-exempt public program.  Priority must be given to lower 
  7.6   wage earners.  Scholarship recipients must contribute five 
  7.7   percent of the total scholarship and must be sponsored by their 
  7.8   employer, who must also contribute five percent of the total 
  7.9   scholarship.  Scholarship recipients who are self-employed must 
  7.10  contribute five percent of the total scholarship only.  
  7.11     (c) The organization shall also distribute funds for 
  7.12  teacher retention incentives of $600 to $3,500 annually to be 
  7.13  paid biannually.  Applicants for the retention incentives must 
  7.14  be either employed by a licensed early childhood or child care 
  7.15  program and working directly with children, a licensed family 
  7.16  child care provider, or an employee in a school-age or early 
  7.17  childhood and family education program operated under the 
  7.18  auspices of a license-exempt public program.  Priority must be 
  7.19  given to lower wage earners.  The amount of the retention 
  7.20  incentive must be based on the applicant's level of education 
  7.21  when the applicant applies for the incentive.  A provider is 
  7.22  eligible for the retention incentive if the provider: 
  7.23     (1) has worked in the field for at least one year and has 
  7.24  been working at the same location for at least one year at the 
  7.25  time of application; and 
  7.26     (2) is earning an hourly wage that is less than the hourly 
  7.27  wage equivalent of elementary school teachers in the local 
  7.28  school district. 
  7.29     The commissioner shall annually adjust the scholarship and 
  7.30  retention incentive amounts by the rate of inflation as measured 
  7.31  by the national Consumer Price Index. 
  7.32     Subd. 3.  [ADVISORY COMMITTEE.] The TEACH early childhood 
  7.33  and Minnesota early childhood teacher retention programs must 
  7.34  have an advisory board composed of five members from early 
  7.35  childhood and school-age care professional associations; three 
  7.36  members from professional associations that represent the 
  8.1   cultural diversity of communities; one member from the child 
  8.2   care resource and referral program; one member of the business 
  8.3   community working in the human resources field; two parents 
  8.4   using child care; one representative each from a Head Start 
  8.5   program and an early childhood and family education program; one 
  8.6   licensed child care center teacher; one licensed child care 
  8.7   center director; one licensed family child care provider; one 
  8.8   kindergarten through third grade teacher; two representatives 
  8.9   from Minnesota's higher education system; and two at-large 
  8.10  representatives. 
  8.11     Sec. 4.  Laws 2001, First Special Session chapter 3, 
  8.12  article 1, section 17, subdivision 8, is amended to read: 
  8.13     Subd. 8.  [BASIC SLIDING FEE.] For child care assistance 
  8.14  according to Minnesota Statutes, section 119B.03: 
  8.15       $51,999,000    .....     2002 
  8.16       ~~$51,999,000~~ $..,...,...   .....     2003
  8.17     Any balance in the first year does not cancel but is 
  8.18  available in the second year.  The appropriation for the second 
  8.19  year is from the children's account in the general fund. 
  8.20     Sec. 5.  [APPROPRIATIONS.] 
  8.21     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
  8.22  LEARNING.] The sums indicated in this section are appropriated 
  8.23  from the children's account in the general fund to the 
  8.24  department of children, families, and learning. 
  8.25     Subd. 2.  [TEACHER EDUCATION AND COMPENSATION HELPS; 
  8.26  MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.] For the 
  8.27  teacher education and compensation helps and the Minnesota early 
  8.28  childhood teacher retention programs in section 3, $2,000,000 is 
  8.29  appropriated in fiscal year 2003 and shall become part of the 
  8.30  base level funding for fiscal year 2004. 
  8.31                             ARTICLE 3 
  8.32                             FAIR START 
  8.33     Section 1.  Minnesota Statutes 2000, section 177.24, 
  8.34  subdivision 1, is amended to read: 
  8.35     Subdivision 1.  [AMOUNT.] (a) For purposes of this 
  8.36  subdivision, the terms defined in this paragraph have the 
  9.1   meanings given them.  
  9.2      (1) "Large employer" means an enterprise whose annual gross 
  9.3   volume of sales made or business done is not less than $500,000 
  9.4   (exclusive of excise taxes at the retail level that are 
  9.5   separately stated) and covered by the Minnesota Fair Labor 
  9.6   Standards Act, sections 177.21 to 177.35. 
  9.7      (2) "Small employer" means an enterprise whose annual gross 
  9.8   volume of sales made or business done is less than $500,000 
  9.9   (exclusive of excise taxes at the retail level that are 
  9.10  separately stated) and covered by the Minnesota Fair Labor 
  9.11  Standards Act, sections 177.21 to 177.35.  
  9.12     (b) Except as otherwise provided in sections 177.21 to 
  9.13  177.35, every large employer must pay each employee wages at a 
  9.14  rate of at least ~~$5.15 an hour beginning September 1, 1997~~ $7 an 
  9.15  hour.  Every small employer must pay each employee at a rate of 
  9.16  at least ~~$4.90 an hour beginning January 1, 1998~~ $6.75 an hour. 
  9.17     (c) Notwithstanding paragraph (b), during the first 90 
  9.18  consecutive days of employment, an employer may pay an employee 
  9.19  under the age of 20 years a wage of ~~$4.25~~ $6.10 an hour.  No 
  9.20  employer may take any action to displace any employee, including 
  9.21  a partial displacement through a reduction in hours, wages, or 
  9.22  employment benefits, in order to hire an employee at the wage 
  9.23  authorized in this paragraph. 
  9.24     Sec. 2.  [290.0676] [CHILD TAX CREDIT.] 
  9.25     Subdivision 1.  [CREDIT ALLOWED.] (a) An individual is 
  9.26  allowed a credit against the tax imposed by this chapter equal 
  9.27  to $60 for each qualifying child of the taxpayer, as defined in 
  9.28  section 24(c) of the Internal Revenue Code.  
  9.29     (b) The amount of the credit is reduced by $5 for each 
  9.30  $1,000 or portion thereof of income over a threshold.  For 
  9.31  purposes of this section, "income" means modified adjusted gross 
  9.32  income as defined in section 24(b) of the Internal Revenue Code, 
  9.33  and "threshold" means the income threshold as defined in section 
  9.34  24(b)(2) of the Internal Revenue Code. 
  9.35     (c) For a nonresident or part-year resident, the credit 
  9.36  determined under this section must be allocated based on the 
 10.1   percentage calculated under section 290.06, subdivision 2c, 
 10.2   paragraph (e). 
 10.3      (d) The dollar amount of the credit in paragraph (a) is 
 10.4   increased to $70 for taxable years beginning after December 31, 
 10.5   2004, and before January 1, 2009; to $80 for taxable years 
 10.6   beginning after December 31, 2008, and before January 1, 2010; 
 10.7   and to $100 for taxable years beginning after December 31, 2009. 
 10.8      Subd. 2.  [CREDIT REFUNDABLE.] If the amount of credit 
 10.9   which the claimant is eligible to receive under this section 
 10.10  exceeds the claimant's tax liability under this chapter, the 
 10.11  commissioner shall refund the excess to the claimant. 
 10.12     <b>[EFFECTIVE DATE.]</b> This section is effective for taxable 
 10.13  years beginning after December 31, 2001. 
 10.14                             ARTICLE 4 
 10.15                             SAFE START 
 10.16     Section 1.  [256J.4251] [BENEFITS TO MINOR CHILD AFTER 
 10.17  60-MONTH TIME LIMIT.] 
 10.18     Subdivision 1.  [BENEFITS TO MINOR CHILD.] If an assistance 
 10.19  unit is no longer eligible for MFIP because a participant in the 
 10.20  assistance unit has reached the time limit under section 
 10.21  256J.42, subdivision 1, and the assistance unit does not qualify 
 10.22  for assistance under a hardship extension under section 
 10.23  256J.425, a minor child in the assistance unit is eligible to 
 10.24  receive assistance. 
 10.25     Subd. 2.  [MFIP GRANT AMOUNT FOR MINOR CHILD.] (a) When 
 10.26  calculating the MFIP grant for a minor child, a county agency 
 10.27  must include only the number of minor children in the assistance 
 10.28  unit and the income of the ineligible members of the assistance 
 10.29  unit must be deemed according to section 256J.37, subdivision 1. 
 10.30     (b) The assistance unit's shelter costs must be vendor paid 
 10.31  up to the amount of the cash portion of the MFIP grant for which 
 10.32  the assistance unit is eligible.  At a county's option, the 
 10.33  assistance unit's utilities may also be vendor paid up to the 
 10.34  amount of the cash portion of the MFIP grant remaining after 
 10.35  vendor payment of the assistance unit's shelter costs.  The 
 10.36  residual amount of the grant after vendor payment, if any, must 
 11.1   be paid to the assistance unit for the minor child. 
 11.2      (c) The MFIP grant for a minor child must not be allocated 
 11.3   to meet the need of an ineligible person, including the child's 
 11.4   parent. 
 11.5      Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 11.6   257.85, subdivision 3, is amended to read: 
 11.7      Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
 11.8   terms defined in this subdivision have the meanings given them. 
 11.9      (a) "MFIP standard" means the transitional standard used to 
 11.10  calculate assistance under the MFIP-S program, or, if permanent 
 11.11  legal and physical custody of the child is given to a relative 
 11.12  custodian residing outside of Minnesota, the analogous 
 11.13  transitional standard or standard of need used to calculate 
 11.14  assistance under the TANF program of the state where the 
 11.15  relative custodian lives. 
 11.16     (b) "Local agency" means the local social services agency 
 11.17  with legal custody of a child prior to the transfer of permanent 
 11.18  legal and physical custody. 
 11.19     (c) "Permanent legal and physical custody" means permanent 
 11.20  legal and physical custody ordered by a Minnesota juvenile court 
 11.21  under section 260C.201, subdivision 27. 
 11.22     (d) "Relative" has the meaning given in section 260C.007, 
 11.23  subdivision 27. 
 11.24     (e) "Relative custodian" means a person who has permanent 
 11.25  legal and physical custody of a child.  When siblings, including 
 11.26  half-siblings and stepsiblings, are placed together in permanent 
 11.27  legal and physical custody, the person receiving permanent legal 
 11.28  and physical custody of the siblings is considered a relative 
 11.29  custodian of all of the siblings for purposes of this section. 
 11.30     (f) "Relative custody assistance agreement" means an 
 11.31  agreement entered into between a local agency and a person who 
 11.32  has been or will be awarded permanent legal and physical custody 
 11.33  of a child. 
 11.34     (g) "Relative custody assistance payment" means a monthly 
 11.35  cash grant made to a relative custodian pursuant to a relative 
 11.36  custody assistance agreement and in an amount calculated under 
 12.1   subdivision 7. 
 12.2      (h) "Remains in the physical custody of the relative 
 12.3   custodian" means that the relative custodian is providing 
 12.4   day-to-day care for the child and that the child lives with the 
 12.5   relative custodian; absence from the relative custodian's home 
 12.6   for a period of more than 120 days raises a presumption that the 
 12.7   child no longer remains in the physical custody of the relative 
 12.8   custodian. 
 12.9      (i) "Foster care rate" means the ongoing monthly amount 
 12.10  that would be paid in support of a child if the child were in 
 12.11  family foster care.  The rate is composed, at a minimum, of a 
 12.12  monthly maintenance standard.  The rate must also include a 
 12.13  difficulty of care payment if appropriate for the child. 
 12.14     Sec. 3.  Minnesota Statutes 2000, section 257.85, 
 12.15  subdivision 7, is amended to read: 
 12.16     Subd. 7.  [AMOUNT OF RELATIVE CUSTODY ASSISTANCE PAYMENTS.] 
 12.17  (a) The amount of a monthly relative custody assistance payment 
 12.18  shall be determined according to the provisions of this 
 12.19  paragraph. 
 12.20     ~~(1) The total maximum assistance rate is equal to the base~~ 
 12.21  ~~assistance rate plus, if applicable, the supplemental assistance~~ 
 12.22  ~~rate.~~ 
 12.23     ~~(i) The base assistance rate is equal to the maximum amount~~ 
 12.24  ~~that could be received as basic maintenance for a child of the~~ 
 12.25  ~~same age under the adoption assistance program.~~ 
 12.26     ~~(ii) The local agency shall determine whether the child has~~ 
 12.27  ~~physical, mental, emotional, or behavioral disabilities that~~ 
 12.28  ~~require care, supervision, or structure beyond that ordinarily~~ 
 12.29  ~~provided in a family setting to children of the same age such~~ 
 12.30  ~~that the child would be eligible for supplemental maintenance~~ 
 12.31  ~~payments under the adoption assistance program if an adoption~~ 
 12.32  ~~assistance agreement were entered on the child's behalf.  If the~~ 
 12.33  ~~local agency determines that the child has such a disability,~~ 
 12.34  ~~the supplemental assistance rate shall be the maximum amount of~~ 
 12.35  ~~monthly supplemental maintenance payment that could be received~~ 
 12.36  ~~on behalf of a child of the same age, disabilities, and~~ 
 13.1   ~~circumstances under the adoption assistance program.~~ 
 13.2      ~~(2) The net maximum assistance rate is equal to the total~~ 
 13.3   ~~maximum assistance rate from clause (1) less the following~~ 
 13.4   ~~offsets:~~ 
 13.5      ~~(i) if the child is or will be part of an assistance unit~~ 
 13.6   ~~receiving an MFIP-S grant or a grant from a similar program of~~ 
 13.7   ~~another state, the portion of the MFIP standard relating to the~~ 
 13.8   ~~child as calculated under paragraph (b), clause (2);~~ 
 13.9      ~~(ii) Supplemental Security Income payments received by or~~ 
 13.10  ~~on behalf of the child;~~ 
 13.11     ~~(iii) veteran's benefits received by or on behalf of the~~ 
 13.12  ~~child; and~~ 
 13.13     ~~(iv) any other income of the child, including child support~~ 
 13.14  ~~payments made on behalf of the child.~~ 
 13.15     ~~(3) The relative custody assistance payment to be made to~~ 
 13.16  ~~the relative custodian shall be a percentage of the net maximum~~ 
 13.17  ~~assistance rate calculated in clause (2) based upon the gross~~ 
 13.18  ~~income of the relative custodian's family, including the child~~ 
 13.19  ~~for whom the relative custodian has permanent legal and physical~~ 
 13.20  ~~custody.  In no case shall the amount of the relative custody~~ 
 13.21  ~~assistance payment exceed that which the child could qualify for~~ 
 13.22  ~~under the adoption assistance program if an adoption assistance~~ 
 13.23  ~~agreement were entered on the child's behalf.  The relative~~ 
 13.24  ~~custody assistance payment shall be calculated as follows:~~ 
 13.25     ~~(i) if the relative custodian's gross family income is less~~ 
 13.26  ~~than or equal to 200 percent of federal poverty guidelines, the~~ 
 13.27  ~~relative custody assistance payment shall be the full amount of~~ 
 13.28  ~~the net maximum assistance rate;~~ 
 13.29     ~~(ii) if the relative custodian's gross family income is~~ 
 13.30  ~~greater than 200 percent and less than or equal to 225 percent~~ 
 13.31  ~~of federal poverty guidelines, the relative custody assistance~~ 
 13.32  ~~payment shall be 80 percent of the net maximum assistance rate;~~ 
 13.33     ~~(iii) if the relative custodian's gross family income is~~ 
 13.34  ~~greater than 225 percent and less than or equal to 250 percent~~ 
 13.35  ~~of federal poverty guidelines, the relative custody assistance~~ 
 13.36  ~~payment shall be 60 percent of the net maximum assistance rate;~~ 
 14.1      ~~(iv) if the relative custodian's gross family income is~~ 
 14.2   ~~greater than 250 percent and less than or equal to 275 percent~~ 
 14.3   ~~of federal poverty guidelines, the relative custody assistance~~ 
 14.4   ~~payment shall be 40 percent of the net maximum assistance rate;~~ 
 14.5      ~~(v) if the relative custodian's gross family income is~~ 
 14.6   ~~greater than 275 percent and less than or equal to 300 percent~~ 
 14.7   ~~of federal poverty guidelines, the relative custody assistance~~ 
 14.8   ~~payment shall be 20 percent of the net maximum assistance rate;~~ 
 14.9   ~~or~~ 
 14.10     ~~(vi) if the relative custodian's gross family income is~~ 
 14.11  ~~greater than 300 percent of federal poverty guidelines, no~~ 
 14.12  ~~relative custody assistance payment shall be made.~~ 
 14.13     For relative custody assistance agreements entered into on 
 14.14  or after July 1, 2002, the monthly relative custody assistance 
 14.15  payment rate is equal to the foster care rate for the child.  
 14.16  For relative custody assistance agreements already in effect on 
 14.17  July 1, 2002, the total monthly relative custody assistance 
 14.18  payment rate must be increased to the foster care rate for the 
 14.19  child effective July 1, 2002.  If the child was in foster care 
 14.20  immediately prior to the transfer of permanent legal and 
 14.21  physical custody to the relative custodian, the initial total 
 14.22  relative custody assistance rate must equal the rate for the 
 14.23  child when the child was in foster care.  All relative custody 
 14.24  assistance agreements must be indexed to the foster care rates 
 14.25  established under section 256.82, subdivision 3. 
 14.26     (b) The following provisions cover the relationship between 
 14.27  relative custody assistance and assistance programs: 
 14.28     (1) The relative custodian of a child for whom the relative 
 14.29  custodian is receiving relative custody assistance is expected 
 14.30  to seek whatever assistance is available for the child through 
 14.31  MFIP-S or, if the relative custodian resides in a state other 
 14.32  than Minnesota, similar programs of that state.  If a relative 
 14.33  custodian fails to apply for assistance through MFIP-S or other 
 14.34  program for which the child is eligible, the child's portion of 
 14.35  the MFIP standard will be calculated as if application had been 
 14.36  made and assistance received. 
 15.1      (2) The portion of the MFIP standard relating to each child 
 15.2   for whom relative custody assistance is being received shall be 
 15.3   calculated as follows: 
 15.4      (i) determine the total MFIP standard for the assistance 
 15.5   unit; 
 15.6      (ii) determine the amount that the MFIP standard would have 
 15.7   been if the assistance unit had not included the children for 
 15.8   whom relative custody assistance is being received; 
 15.9      (iii) subtract the amount determined in item (ii) from the 
 15.10  amount determined in item (i); and 
 15.11     (iv) divide the result in item (iii) by the number of 
 15.12  children for whom relative custody assistance is being received 
 15.13  that are part of the assistance unit. 
 15.14     (3) If a child for whom relative custody assistance is 
 15.15  being received is not eligible for assistance through MFIP-S or 
 15.16  similar programs of another state, the portion of MFIP standard 
 15.17  relating to that child shall be equal to zero. 
 15.18     Sec. 4.  Minnesota Statutes 2000, section 259.67, 
 15.19  subdivision 2, is amended to read: 
 15.20     Subd. 2.  [ADOPTION ASSISTANCE AGREEMENT.] (a) The placing 
 15.21  agency shall certify a child as eligible for adoption assistance 
 15.22  according to rules promulgated by the commissioner.  Not later 
 15.23  than 30 days after a parent or parents are found and approved 
 15.24  for adoptive placement of a child certified as eligible for 
 15.25  adoption assistance, and before the final decree of adoption is 
 15.26  issued, a written agreement must be entered into by the 
 15.27  commissioner, the adoptive parent or parents, and the placing 
 15.28  agency.  The written agreement must be in the form prescribed by 
 15.29  the commissioner and must set forth the responsibilities of all 
 15.30  parties, the anticipated duration of the adoption assistance 
 15.31  payments, and the payment terms.  The adoption assistance 
 15.32  agreement shall be subject to the commissioner's approval, which 
 15.33  must be granted or denied not later than 15 days after the 
 15.34  agreement is entered. 
 15.35     (b) The amount of adoption assistance is subject to the 
 15.36  availability of state and federal funds and shall be determined 
 16.1   through agreement with the adoptive parents.  The agreement 
 16.2   shall take into consideration the circumstances of the adopting 
 16.3   parent or parents, the needs of the child being adopted and may 
 16.4   provide ongoing monthly assistance, supplemental maintenance 
 16.5   expenses related to the adopted person's special needs, 
 16.6   nonmedical expenses periodically necessary for purchase of 
 16.7   services, items, or equipment related to the special needs, and 
 16.8   medical expenses.  The placing agency or the adoptive parent or 
 16.9   parents shall provide written documentation to support the need 
 16.10  for adoption assistance payments.  Notwithstanding Minnesota 
 16.11  Rules, part 9560.0083, for adoption assistance agreements 
 16.12  entered into on or after July 1, 2002, the monthly adoption 
 16.13  assistance rate must be determined based on the rate that would 
 16.14  be paid on behalf of the child if the child were in family 
 16.15  foster care.  Notwithstanding Minnesota Rules, part 9560.0083, 
 16.16  for adoption assistance agreements already in effect on July 1, 
 16.17  2002, the adoption assistance rate must be determined based on 
 16.18  the rate that would be paid on behalf of the child if the child 
 16.19  were in family foster care, effective July 1, 2002.  All 
 16.20  adoption assistance agreements must be indexed to the foster 
 16.21  care rates established under section 256.82, subdivision 3.  The 
 16.22  adoption assistance rates under all adoption assistance 
 16.23  agreements may include a subsidy for special nonmedical needs 
 16.24  under Minnesota Rules, part 9560.0083, subpart 7, but must not 
 16.25  exceed the rate that would be paid on behalf of the child if the 
 16.26  child were in family foster care.  The commissioner may require 
 16.27  periodic reevaluation of adoption assistance payments.  ~~The~~ 
 16.28  ~~amount of ongoing monthly adoption assistance granted may in no~~ 
 16.29  ~~case exceed that which would be allowable for the child under~~ 
 16.30  ~~foster family care and is subject to the availability of state~~ 
 16.31  ~~and federal funds.~~ 
 16.32     Sec. 5.  [FAMILY HOMELESS PREVENTION APPROPRIATION.] 
 16.33     $2,250,000 in fiscal year 2003 is appropriated from the 
 16.34  general fund for transfer to the housing development fund for 
 16.35  the family homeless prevention and assistance program under 
 16.36  Minnesota Statutes, section 462A.04.  This appropriation is in 
 17.1   addition to any other appropriation for the 2002-2003 biennium 
 17.2   and shall be added to the budget base for the program otherwise 
 17.3   provided by law for the 2002-2003 biennium. 
 17.4      Sec. 6.  [APPROPRIATION.] 
 17.5      $....... in fiscal year 2003 is appropriated from the 
 17.6   children's account in the general fund to the commissioner of 
 17.7   human services for the purposes of sections 2 to 4. 
 17.8                              ARTICLE 5 
 17.9                          FUNDING MECHANISM 
 17.10     Section 1.  Minnesota Statutes 2000, section 297F.05, 
 17.11  subdivision 1, is amended to read: 
 17.12     Subdivision 1.  [RATES; CIGARETTES.] A tax is imposed upon 
 17.13  the sale of cigarettes in this state, upon having cigarettes in 
 17.14  possession in this state with intent to sell, upon any person 
 17.15  engaged in business as a distributor, and upon the use or 
 17.16  storage by consumers, at the following rates, subject to the 
 17.17  discount provided in this chapter: 
 17.18     (1) on cigarettes weighing not more than three pounds per 
 17.19  thousand, ~~24~~ .. mills on each such cigarette; and 
 17.20     (2) on cigarettes weighing more than three pounds per 
 17.21  thousand, ~~48~~ .. mills on each such cigarette. 
 17.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 17.23     Sec. 2.  Minnesota Statutes 2000, section 297F.05, 
 17.24  subdivision 3, is amended to read: 
 17.25     Subd. 3.  [RATES; TOBACCO PRODUCTS.] A tax is imposed upon 
 17.26  all tobacco products in this state and upon any person engaged 
 17.27  in business as a distributor, at the rate of ~~35~~ .. percent of 
 17.28  the wholesale sales price of the tobacco products.  The tax is 
 17.29  imposed at the time the distributor: 
 17.30     (1) brings, or causes to be brought, into this state from 
 17.31  outside the state tobacco products for sale; 
 17.32     (2) makes, manufactures, or fabricates tobacco products in 
 17.33  this state for sale in this state; or 
 17.34     (3) ships or transports tobacco products to retailers in 
 17.35  this state, to be sold by those retailers. 
 17.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 18.1      Sec. 3.  Minnesota Statutes 2000, section 297F.08, 
 18.2   subdivision 7, is amended to read: 
 18.3      Subd. 7.  [PRICE OF STAMPS.] The commissioner shall sell 
 18.4   stamps to any person licensed as a distributor at a discount of 
 18.5   1.0 percent from the face amount of the stamps for the first 
 18.6   $1,500,000 of such stamps purchased in any fiscal year; and at a 
 18.7   discount of ~~0.6~~ ... percent on the remainder of such stamps 
 18.8   purchased in any fiscal year.  The commissioner shall not sell 
 18.9   stamps to any other person.  The commissioner may prescribe the 
 18.10  method of shipment of the stamps to the distributor as well as 
 18.11  the quantities of stamps purchased. 
 18.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 18.13     Sec. 4.  Minnesota Statutes 2000, section 297F.10, is 
 18.14  amended to read: 
 18.15     297F.10 [DEPOSIT OF PROCEEDS; CHILDREN'S ACCOUNT.] 
 18.16     Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
 18.17  received from cigarette taxes, as well as related penalties, 
 18.18  interest, license fees, and miscellaneous sources of revenue 
 18.19  shall be deposited by the commissioner in the state treasury and 
 18.20  credited as follows: 
 18.21     (a) first to the general obligation special tax bond debt 
 18.22  service account in each fiscal year the amount required to 
 18.23  increase the balance on hand in the account on each December 1 
 18.24  to an amount equal to the full amount of principal and interest 
 18.25  to come due on all outstanding bonds whose debt service is 
 18.26  payable primarily from the proceeds of the tax to and including 
 18.27  the second following July 1; and 
 18.28     (b) after the requirements of paragraph (a) have been met: 
 18.29     (1) the revenue produced by one mill of the tax on 
 18.30  cigarettes weighing not more than three pounds a thousand and 
 18.31  two mills of the tax on cigarettes weighing more than three 
 18.32  pounds a thousand must be credited to the Minnesota future 
 18.33  resources fund; and 
 18.34     (2) the balance of the revenues derived from taxes, 
 18.35  penalties, and interest (under this chapter) and from license 
 18.36  fees and miscellaneous sources of revenue shall be credited to 
 19.1   the general fund, except that the portion of tax revenue 
 19.2   resulting from the increase in the tax on cigarettes weighing 
 19.3   not more than three pounds per thousand from 24 to .. mills and 
 19.4   the increase in the tax on cigarettes weighing more than three 
 19.5   pounds per thousand from 48 to .. mills shall be deposited in 
 19.6   the children's account within the general fund, established in 
 19.7   subdivision 3. 
 19.8      Subd. 2.  [TAX AND USE TAX ON TOBACCO PRODUCTS.] Revenue 
 19.9   received from taxes on tobacco products, as well as related 
 19.10  penalties, interest, and license fees shall be deposited by the 
 19.11  commissioner in the state treasury and credited to the general 
 19.12  fund, except that the portion of tax revenue resulting from the 
 19.13  increase in the tax on the wholesale sales price of tobacco 
 19.14  products from 35 to .. percent shall be deposited in the 
 19.15  children's account within the general fund established in 
 19.16  subdivision 3. 
 19.17     Subd. 3.  [CHILDREN'S ACCOUNT.] A children's account is 
 19.18  created in the state treasury.  Money collected by the 
 19.19  commissioner under subdivisions 1 and 2 must be deposited in the 
 19.20  account.  Money in the children's account and any federal 
 19.21  matching money is appropriated as provided in this act. 
 19.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 19.23     Sec. 5.  [FLOOR STOCKS TAX.] 
 19.24     Subdivision 1.  [CIGARETTES.] (a) A floor stocks tax is 
 19.25  imposed on every person engaged in business in this state as a 
 19.26  distributor, retailer, subjobber, vendor, manufacturer, or 
 19.27  manufacturer's representative of cigarettes, on the stamped 
 19.28  cigarettes and unaffixed stamps in the person's possession or 
 19.29  under the person's control at 12:01 a.m. on July 1, 2002.  The 
 19.30  tax is imposed at the following rates, subject to the discounts 
 19.31  in Minnesota Statutes, section 297F.08, subdivision 7: 
 19.32     (1) on cigarettes weighing not more than three pounds per 
 19.33  thousand, .. mills on each cigarette; and 
 19.34     (2) on cigarettes weighing more than three pounds per 
 19.35  thousand, .. mills on each cigarette. 
 19.36     (b) Each distributor, by July 8, 2002, shall file a report 
 20.1   with the commissioner of revenue, in the form the commissioner 
 20.2   prescribes, showing the stamped cigarettes and unaffixed stamps 
 20.3   on hand at 12:01 a.m. on July 1, 2002, and the amount of tax due 
 20.4   on the cigarettes and unaffixed stamps.  The tax imposed by this 
 20.5   section is due and payable by August 1, 2002, and after that 
 20.6   date bears interest as provided in Minnesota Statutes, section 
 20.7   270.75.  Each retailer, subjobber, vendor, manufacturer, or 
 20.8   manufacturer's representative shall file a return with the 
 20.9   commissioner, in the form the commissioner prescribes, showing 
 20.10  the cigarettes on hand at 12:01 a.m. on July 1, 2002, and pay 
 20.11  the tax due on them by August 1, 2002.  Tax not paid by the due 
 20.12  date bears interest as provided in Minnesota Statutes, section 
 20.13  270.75. 
 20.14     Subd. 2.  [TOBACCO PRODUCTS.] A floor stocks tax is imposed 
 20.15  on every person engaged in business in this state as a 
 20.16  distributor of tobacco products, at the rate of .. percent of 
 20.17  the wholesale sales price of each tobacco product in the 
 20.18  person's possession or under the person's control at 12:01 a.m. 
 20.19  on July 1, 2002, and the amount of tax due on them.  The tax 
 20.20  imposed by this section, less the discount provided in Minnesota 
 20.21  Statutes, section 297F.09, subdivision 2, is due and payable by 
 20.22  August 1, 2002, and thereafter bears interest as provided in 
 20.23  Minnesota Statutes, section 270.75. 
 20.24     Subd. 3.  [AUDIT AND ENFORCEMENT.] The tax imposed by this 
 20.25  section is subject to the audit, assessment, and collection 
 20.26  provisions applicable to the taxes imposed under Minnesota 
 20.27  Statutes, chapter 297F.  The commissioner of revenue shall 
 20.28  deposit the revenue from the tax imposed under this section in 
 20.29  the general fund in the state treasury. 
 20.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.