1.1                          A bill for an act 
  1.2             relating to children; making technical and conforming 
  1.3             changes to child care assistance administration 
  1.4             statutes; amending Minnesota Statutes 1998, sections 
  1.5             119B.01, subdivisions 2, 10, 12a, 13, and 16; 119B.02, 
  1.6             subdivision 1; 119B.03, subdivisions 1, 2, 3, 4, 6, 
  1.7             and 9; 119B.04, subdivision 1; 119B.05, subdivision 1; 
  1.8             119B.06, subdivision 1; 119B.07; 119B.08, subdivision 
  1.9             3; 119B.09, subdivisions 1, 3, and 7; 119B.10, 
  1.10            subdivision 1; 119B.11, subdivision 2a; 119B.13, 
  1.11            subdivisions 1, 3, and 5; 119B.14; and 119B.15; 
  1.12            repealing Minnesota Statutes 1998, sections 119B.01, 
  1.13            subdivision 15; 119B.03, subdivision 7; and 119B.05, 
  1.14            subdivisions 6 and 7. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 1998, section 119B.01, 
  1.17  subdivision 2, is amended to read: 
  1.18     Subd. 2.  [APPLICANT.] "Child care fund applicants" means 
  1.19  all parents, stepparents, legal guardians, or eligible 
  1.20  relative ~~caretakers~~ caregivers who reside ~~in~~ with the 
  1.21  ~~household~~ family that applies for child care assistance under 
  1.22  the child care fund. 
  1.23     Sec. 2.  Minnesota Statutes 1998, section 119B.01, 
  1.24  subdivision 10, is amended to read: 
  1.25     Subd. 10.  [FAMILY.] "Family" means parents, stepparents, 
  1.26  guardians and their spouses, or other eligible 
  1.27  relative ~~caretakers~~ caregivers and their spouses, and their 
  1.28  blood related dependent children and adoptive siblings under the 
  1.29  age of 18 years living in the same home including children 
  1.30  temporarily absent from the household in settings such as 
  2.1   schools, foster care, and residential treatment facilities.  
  2.2   When a minor parent or parents and his, her, or their child or 
  2.3   children are living with other relatives, and the minor parent 
  2.4   or parents apply for a child care subsidy, "family" means only 
  2.5   the minor parent or parents and the child or children.  An adult 
  2.6   may be considered a dependent member of the family unit if 50 
  2.7   percent of the adult's support is being provided by the parents, 
  2.8   stepparents, guardians and their spouses, or eligible relative 
  2.9   ~~caretakers~~ caregivers and their spouses, residing in the same 
  2.10  household.  An adult age 18 who is a full-time high school 
  2.11  student and can reasonably be expected to graduate before age 19 
  2.12  may be considered a dependent member of the family unit. 
  2.13     Sec. 3.  Minnesota Statutes 1998, section 119B.01, 
  2.14  subdivision 12a, is amended to read: 
  2.15     Subd. 12a.  [~~MFIP-S~~ MFIP.] ~~"MFIP-S"~~ "MFIP" means the 
  2.16  Minnesota family investment ~~program-statewide~~ program, the 
  2.17  state's TANF program under Public Law Number 104-193, Title I, 
  2.18  and includes the MFIP program under chapter 256J and the work 
  2.19  first program under chapter 256K. 
  2.20     Sec. 4.  Minnesota Statutes 1998, section 119B.01, 
  2.21  subdivision 13, is amended to read: 
  2.22     Subd. 13.  [PROVIDER.] "Provider" means a child care 
  2.23  license holder who operates a family day care home, a group 
  2.24  family day care home, a day care center, a nursery school, a day 
  2.25  nursery, or an extended day school age child care program; a 
  2.26  legal nonlicensed extended day school age child care 
  2.27  program ~~which operates~~ operating under the auspices of a local 
  2.28  school board that has adopted school age child care standards 
  2.29  which meet or exceed standards recommended by the ~~state~~ 
  2.30  department ~~of children, families, and learning~~, or a legal 
  2.31  nonlicensed ~~caregiver~~ provider who is at least 18 years of age, 
  2.32  and who is not a member of the ~~AFDC~~ MFIP assistance unit, or a 
  2.33  member of the family receiving child care assistance under this 
  2.34  chapter. 
  2.35     Sec. 5.  Minnesota Statutes 1998, section 119B.01, 
  2.36  subdivision 16, is amended to read: 
  3.1      Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
  3.2   families" means families who have received ~~AFDC~~ MFIP assistance, 
  3.3   or who were eligible to receive ~~AFDC~~ MFIP assistance after 
  3.4   choosing to discontinue receipt of the cash portion of ~~MFIP-S~~ 
  3.5   MFIP assistance under section 256J.31, subdivision 12, for at 
  3.6   least three of the last six months before losing eligibility for 
  3.7   ~~AFDC~~ MFIP due to ~~increased hours of employment, or~~ increased 
  3.8   income from employment or child or spousal support, or families 
  3.9   participating in work first under chapter 256K who meet the 
  3.10  requirements under section 256K.07.  Transition year child care 
  3.11  assistance may be used to support employment or job search. 
  3.12     Sec. 6.  Minnesota Statutes 1998, section 119B.02, 
  3.13  subdivision 1, is amended to read: 
  3.14     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
  3.15  shall develop standards for county and human services boards to 
  3.16  provide child care services to enable eligible families to 
  3.17  participate in employment, training, or education programs.  
  3.18  Within the limits of available appropriations, the commissioner 
  3.19  shall distribute money to counties to reduce the costs of child 
  3.20  care for eligible families.  The commissioner shall adopt rules 
  3.21  to govern the program in accordance with this section.  The 
  3.22  rules must establish a sliding schedule of fees for parents 
  3.23  receiving child care services.  The rules shall provide that 
  3.24  funds received as a lump sum payment of child support arrearages 
  3.25  shall not be counted as income to a family in the month received 
  3.26  but shall be prorated over the 12 months following receipt and 
  3.27  added to the family income during those months.  In the rules 
  3.28  adopted under this section, county and human services boards 
  3.29  shall be authorized to establish policies for payment of child 
  3.30  care spaces for absent children, when the payment is required by 
  3.31  the child's regular provider.  The rules shall not set a maximum 
  3.32  number of days for which absence payments can be made, but 
  3.33  instead shall direct the county agency to set limits and pay for 
  3.34  absences according to the prevailing market practice in the 
  3.35  county.  County policies for payment of absences shall be 
  3.36  subject to the approval of the commissioner.  The commissioner 
  4.1   shall maximize the use of federal money ~~in section 256.736~~ under 
  4.2   Public Law Number 104-193, Titles I and VI, and other programs 
  4.3   that provide federal or state reimbursement for child care 
  4.4   services for low-income families who are in education, training, 
  4.5   job search, or other activities allowed under those programs.  
  4.6   Money appropriated under this section must be coordinated with 
  4.7   the programs that provide federal reimbursement for child care 
  4.8   services to accomplish this purpose.  Federal 
  4.9   reimbursement ~~obtained~~ must be allocated to ~~the county~~ counties 
  4.10  that spent money for federally reimbursable child care ~~that is~~ 
  4.11  ~~federally reimbursable under programs that provide federal~~ 
  4.12  ~~reimbursement for child care services~~.  The counties shall use 
  4.13  the federal money to expand child care services.  The 
  4.14  commissioner may adopt rules under chapter 14 to implement and 
  4.15  coordinate federal program requirements. 
  4.16     Sec. 7.  Minnesota Statutes 1998, section 119B.03, 
  4.17  subdivision 1, is amended to read: 
  4.18     Subdivision 1.  [ALLOCATION PERIOD; NOTICE OF ALLOCATION.] 
  4.19  When the commissioner notifies county and human service boards 
  4.20  of the forms and instructions they are to follow in the 
  4.21  development of their ~~biennial community social services~~ child 
  4.22  care fund plans required under section ~~256E.08~~ 119B.08, 
  4.23  subdivision 3, the commissioner shall also notify county and 
  4.24  human services boards of their estimated child care fund program 
  4.25  allocation for the two years covered by the plan.  By October 1 
  4.26  of each year, the commissioner shall notify all counties of 
  4.27  their final child care fund program allocation. 
  4.28     Sec. 8.  Minnesota Statutes 1998, section 119B.03, 
  4.29  subdivision 2, is amended to read: 
  4.30     Subd. 2.  [WAITING LIST.] Each county that receives funds 
  4.31  under this section must keep a written record and report to the 
  4.32  commissioner the number of eligible families who have applied 
  4.33  for a child care subsidy or have requested child care 
  4.34  assistance.  Counties shall perform a cursory determination of 
  4.35  eligibility when a family requests information about child care 
  4.36  assistance.  A family that appears to be eligible must be put on 
  5.1   a waiting list if funds are not immediately available.  The 
  5.2   waiting list must identify students in need of child care.  ~~When~~ 
  5.3   ~~money is available counties shall expedite the processing of~~ 
  5.4   ~~student applications during key enrollment periods.~~ 
  5.5      Sec. 9.  Minnesota Statutes 1998, section 119B.03, 
  5.6   subdivision 3, is amended to read: 
  5.7      Subd. 3.  [ELIGIBLE RECIPIENTS.] Families that meet the 
  5.8   eligibility requirements under sections 119B.07, 119B.09, and 
  5.9   119B.10, except ~~AFDC recipients,~~ MFIP ~~recipients,~~ and work first 
  5.10  participants and transition year families, ~~and 119B.10~~ are 
  5.11  eligible for child care assistance under the basic sliding fee 
  5.12  program.  Families enrolled in the basic sliding fee program 
  5.13  shall be continued until they are no longer eligible.  Child 
  5.14  care assistance provided through the child care fund is 
  5.15  considered assistance to the parent. 
  5.16     Sec. 10.  Minnesota Statutes 1998, section 119B.03, 
  5.17  subdivision 4, is amended to read: 
  5.18     Subd. 4.  [FUNDING PRIORITY.] (a) First priority for child 
  5.19  care assistance under the basic sliding fee program must be 
  5.20  given to eligible ~~non-AFDC~~ non-MFIP families who do not have a 
  5.21  high school or general equivalency diploma or who need remedial 
  5.22  and basic skill courses in order to pursue employment or to 
  5.23  pursue education leading to employment.  Within this priority, 
  5.24  the following subpriorities must be used: 
  5.25     (1) child care needs of minor parents; 
  5.26     (2) child care needs of parents under 21 years of age; and 
  5.27     (3) child care needs of other parents within the priority 
  5.28  group described in this paragraph. 
  5.29     (b) Second priority must be given to parents who have 
  5.30  completed their ~~AFDC~~ MFIP or work first program transition year. 
  5.31     (c) Third priority must be given to families who are 
  5.32  eligible for portable basic sliding fee assistance through the 
  5.33  portability pool under subdivision 9. 
  5.34     Sec. 11.  Minnesota Statutes 1998, section 119B.03, 
  5.35  subdivision 6, is amended to read: 
  5.36     Subd. 6.  [ALLOCATION FORMULA.] ~~Beginning January 1, 1996,~~ 
  6.1   ~~except as provided in subdivision 7,~~ The basic sliding fee state 
  6.2   and federal funds shall be allocated on a calendar year basis.  
  6.3   Funds shall be allocated first in amounts equal to each county's 
  6.4   guaranteed floor according to subdivision 8, with any remaining 
  6.5   available funds allocated according to the following formula:  
  6.6      (a) One-third of the funds shall be allocated in proportion 
  6.7   to each county's total expenditures for the basic sliding fee 
  6.8   child care program reported during the most recent calendar year 
  6.9   completed at the time of the notice of allocation.  
  6.10     (b) One-third of the funds shall be allocated based on the 
  6.11  number of children under age 13 in each county who are enrolled 
  6.12  in general assistance medical care, medical assistance, and 
  6.13  MinnesotaCare on December 31 of the most recent calendar year 
  6.14  completed at the time of the notice of allocation. 
  6.15     (c) One-third of the funds shall be allocated based on the 
  6.16  number of children under age 13 who reside in each county, from 
  6.17  the most recent estimates of the state demographer. 
  6.18     (d) When funding increases are implemented within a 
  6.19  calendar year, every county must receive an allocation at least 
  6.20  equal and proportionate to its original allocation for the same 
  6.21  time period.  The remainder of the allocation must be 
  6.22  recalculated to reflect the funding increase and according to 
  6.23  the formulas identified in this subdivision. 
  6.24     Sec. 12.  Minnesota Statutes 1998, section 119B.03, 
  6.25  subdivision 9, is amended to read: 
  6.26     Subd. 9.  [PORTABILITY POOL.] (a) The commissioner shall 
  6.27  establish a pool of up to five percent of the annual 
  6.28  appropriation for the basic sliding fee program to provide 
  6.29  continuous child care assistance for eligible families who move 
  6.30  between Minnesota counties.  At the end of each allocation 
  6.31  period, any unspent funds in the portability pool must be ~~added~~ 
  6.32  ~~to the funds available for reallocation~~ used for assistance 
  6.33  under the basic sliding fee program.  If expenditures from the 
  6.34  portability pool exceed the amount of money available, the 
  6.35  reallocation pool must be reduced to cover these shortages. 
  6.36     (b) To be eligible for portable basic sliding fee 
  7.1   assistance, a family that has moved from a county in which it 
  7.2   was receiving basic sliding fee assistance to a county with a 
  7.3   waiting list for the basic sliding fee program must: 
  7.4      (1) meet the income and eligibility guidelines for the 
  7.5   basic sliding fee program; and 
  7.6      (2) notify the new county of residence within 30 days of 
  7.7   moving and apply for basic sliding fee assistance in the new 
  7.8   county of residence. 
  7.9      (c) The receiving county must: 
  7.10     (1) accept administrative responsibility for applicants for 
  7.11  portable basic sliding fee assistance at the end of the two 
  7.12  months of assistance under the Unitary Residency act; 
  7.13     (2) continue basic sliding fee assistance for the lesser of 
  7.14  six months or until the family is able to receive assistance 
  7.15  under the county's regular basic sliding program; and 
  7.16     (3) notify the commissioner through the quarterly reporting 
  7.17  process of any family that meets the criteria of the portable 
  7.18  basic sliding fee assistance pool. 
  7.19     Sec. 13.  Minnesota Statutes 1998, section 119B.04, 
  7.20  subdivision 1, is amended to read: 
  7.21     Subdivision 1.  [COMMISSIONER TO ADMINISTER PROGRAM.] The 
  7.22  commissioner ~~of children, families, and learning~~ is authorized 
  7.23  and directed to receive, administer, and expend funds available 
  7.24  under the child care and development fund under Public Law 
  7.25  Number 104-193, Title ~~I~~ VI.  
  7.26     Sec. 14.  Minnesota Statutes 1998, section 119B.05, 
  7.27  subdivision 1, is amended to read: 
  7.28     Subdivision 1.  [ELIGIBLE RECIPIENTS.] Families eligible 
  7.29  for child care assistance under the ~~AFDC~~ MFIP child care program 
  7.30  are: 
  7.31     (1) ~~persons receiving services under sections 256.031 to~~ 
  7.32  ~~256.0361 and 256.047 to 256.048;~~ 
  7.33     ~~(2) AFDC recipients~~ MFIP participants who are employed or 
  7.34  in job search and meet the requirements of section 119B.10; 
  7.35     ~~(3)~~ (2) persons who are members of transition year families 
  7.36  under section 119B.01, subdivision 16; 
  8.1      ~~(4) members of the control group for the STRIDE evaluation~~ 
  8.2   ~~conducted by the Manpower Demonstration Research Corporation;~~ 
  8.3      ~~(5) AFDC caretakers who are participating in the STRIDE and~~ 
  8.4   ~~non-STRIDE AFDC child care program;~~ 
  8.5      ~~(6)~~ (3) families who are participating in employment 
  8.6   orientation or job search, or other employment or training 
  8.7   activities that are included in an approved employability 
  8.8   development plan under chapter 256K; and 
  8.9      ~~(7) MFIP-S~~ (4) MFIP families who are participating in work 
  8.10  activities as required in their job search support or employment 
  8.11  plan, or in appeals, hearings, assessments, or orientations 
  8.12  according to chapter 256J.  Child care assistance to support 
  8.13  work activities as described in section 256J.49 must be 
  8.14  available according to sections ~~119A.54,~~ 119B.01, subdivision 8, 
  8.15  124D.13, 256E.08, and 611A.32 and titles IVA, IVB, IVE, and XX 
  8.16  of the Social Security Act. 
  8.17     Sec. 15.  Minnesota Statutes 1998, section 119B.06, 
  8.18  subdivision 1, is amended to read: 
  8.19     Subdivision 1.  [COMMISSIONER TO ADMINISTER BLOCK GRANT.] 
  8.20  The commissioner ~~of children, families, and learning~~ is 
  8.21  authorized and directed to receive, administer, and expend child 
  8.22  care funds available under the child care and development block 
  8.23  grant authorized under Public Law Number 101-508 ~~(2)~~.  
  8.24     Sec. 16.  Minnesota Statutes 1998, section 119B.07, is 
  8.25  amended to read: 
  8.26     119B.07 [USE OF MONEY.] 
  8.27     Money for persons listed in sections 119B.03, subdivision 
  8.28  3, and 119B.05, subdivision 1, shall be used to reduce the costs 
  8.29  of child care for students, including the costs of child care 
  8.30  for students while employed if enrolled in an eligible education 
  8.31  program at the same time and making satisfactory progress 
  8.32  towards completion of the program.  Counties may not limit the 
  8.33  duration of child care subsidies for a person in an employment 
  8.34  or educational program, except when the person is found to be 
  8.35  ineligible under the child care fund eligibility standards.  Any 
  8.36  limitation must be based on a person's employability plan in the 
  9.1   case of an ~~AFDC~~ MFIP recipient, and county policies included in 
  9.2   the child care allocation plan.  The maximum length of time a 
  9.3   student is eligible for child care assistance under the child 
  9.4   care fund for education and training is no more than the time 
  9.5   necessary to complete the credit requirements for an associate 
  9.6   or baccalaureate degree as determined by the educational 
  9.7   institution, excluding basic or remedial education programs 
  9.8   needed to prepare for post-secondary education or employment.  
  9.9   To be eligible, the student must be in good standing and be 
  9.10  making satisfactory progress toward the degree.  Time 
  9.11  limitations for child care assistance do not apply to basic or 
  9.12  remedial educational programs needed to prepare for 
  9.13  post-secondary education or employment.  These programs 
  9.14  include:  high school, general equivalency diploma, and English 
  9.15  as a second language.  Programs exempt from this time limit must 
  9.16  not run concurrently with a post-secondary program.  ~~High school~~ 
  9.17  ~~students who are participating in a post-secondary options~~ 
  9.18  ~~program and who receive a high school diploma issued by the~~ 
  9.19  ~~school district are exempt from the time limitations while~~ 
  9.20  ~~pursuing a high school diploma.  Financially eligible students~~ 
  9.21  ~~who have received child care assistance for one academic year~~ 
  9.22  ~~shall be provided child care assistance in the following~~ 
  9.23  ~~academic year if funds allocated under sections 119B.03 and~~ 
  9.24  ~~119B.05 are available.~~  If an ~~AFDC recipient~~ MFIP caregiver who 
  9.25  is receiving ~~AFDC~~ MFIP child care assistance under this chapter 
  9.26  moves to another county, continues to participate in educational 
  9.27  or training programs authorized in their ~~employability~~ 
  9.28  ~~development plans~~ employment plan, and continues to be eligible 
  9.29  for ~~AFDC~~ MFIP child care assistance under this chapter, the ~~AFDC~~ 
  9.30  ~~caretaker~~ MFIP caregiver must receive continued child care 
  9.31  assistance from the county responsible for their 
  9.32  current ~~employability development~~ employment plan~~, without~~ 
  9.33  ~~interruption~~ under section 256G.07. 
  9.34     Sec. 17.  Minnesota Statutes 1998, section 119B.08, 
  9.35  subdivision 3, is amended to read: 
  9.36     Subd. 3.  [CHILD CARE FUND PLAN.] ~~Effective January 1,~~ 
 10.1   ~~1992, the county will~~ Counties shall include ~~the plan required~~ 
 10.2   ~~under this subdivision~~ a child care fund plan in its biennial 
 10.3   community social services plan required ~~in this section~~ under 
 10.4   section 256E.09, for the group described in section 256E.03, 
 10.5   subdivision 2, paragraph ~~(h)~~ (a), clause (8).  The commissioner 
 10.6   shall establish the dates by which the county must submit ~~these~~ 
 10.7   ~~plans~~ the child care fund plan.  The county and designated 
 10.8   administering agency shall submit to the commissioner an annual 
 10.9   child care fund allocation plan.  The plan shall include: 
 10.10     (1) a narrative of the total program for child care 
 10.11  services, including all policies and procedures that affect 
 10.12  eligible families and are used to administer the child care 
 10.13  funds; 
 10.14     (2) the methods used by the county to inform eligible 
 10.15  ~~groups~~ families of the availability of child care assistance and 
 10.16  related services; 
 10.17     (3) the provider rates paid for all children with special 
 10.18  needs, by provider type; 
 10.19     (4) the county prioritization policy for all eligible 
 10.20  ~~groups~~ families under the basic sliding fee program ~~and AFDC~~ 
 10.21  ~~child care program~~; and 
 10.22     (5) other information as requested by the department to 
 10.23  ensure compliance with the child care fund statutes and rules 
 10.24  promulgated by the commissioner. 
 10.25     The commissioner shall notify counties within 60 days of 
 10.26  the date the plan is submitted whether the plan is approved or 
 10.27  the corrections or information needed to approve the plan.  The 
 10.28  commissioner shall withhold a county's allocation until it has 
 10.29  an approved plan.  Plans not approved by the end of the second 
 10.30  quarter after the plan is due may result in a 25 percent 
 10.31  reduction in allocation.  Plans not approved by the end of the 
 10.32  third quarter after the plan is due may result in a 100 percent 
 10.33  reduction in the allocation to the county.  Counties are to 
 10.34  maintain services despite any reduction in their allocation due 
 10.35  to plans not being approved. 
 10.36     Sec. 18.  Minnesota Statutes 1998, section 119B.09, 
 11.1   subdivision 1, is amended to read: 
 11.2      Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
 11.3   APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
 11.4   must be available to families who need child care to find or 
 11.5   keep employment or to obtain the training or education necessary 
 11.6   to find employment and who: 
 11.7      (1) meet the requirements of section 119B.05~~; receive aid~~ 
 11.8   ~~to families with dependent children, MFIP-S~~, MFIP, or work 
 11.9   first, whichever is in effect; and are receiving employment and 
 11.10  training services under ~~section 256.736 or~~ chapter 256J or 256K; 
 11.11     (2) have household income below the eligibility levels for 
 11.12  ~~aid to families with dependent children~~ MFIP; or 
 11.13     (3) have household income within a range established by the 
 11.14  commissioner. 
 11.15     (b) Child care services for ~~the~~ families ~~receiving aid to~~ 
 11.16  ~~families with dependent children~~ must be made available as 
 11.17  in-kind services~~, to cover any difference between the actual~~ 
 11.18  ~~cost and the amount disregarded under the aid to families with~~ 
 11.19  ~~dependent children program.  Child care services to families~~ 
 11.20  ~~whose incomes are below the threshold of eligibility for aid to~~ 
 11.21  ~~families with dependent children, but are not AFDC caretakers,~~ 
 11.22  ~~must be made available with the same copayment required of AFDC~~ 
 11.23  ~~caretakers or MFIP-S caregivers~~. 
 11.24     (c) All applicants for child care assistance and families 
 11.25  currently receiving child care assistance must be assisted and 
 11.26  required to cooperate in establishment of paternity and 
 11.27  enforcement of child support obligations for all children in the 
 11.28  family as a condition of program eligibility.  For purposes of 
 11.29  this section, a family is considered to meet the requirement for 
 11.30  cooperation when the family complies with the requirements of 
 11.31  section 256.741~~, if enacted~~. 
 11.32     Sec. 19.  Minnesota Statutes 1998, section 119B.09, 
 11.33  subdivision 3, is amended to read: 
 11.34     Subd. 3.  [PRIORITIES; ALLOCATIONS.] If a county projects 
 11.35  that its child care allocation is insufficient to meet the needs 
 11.36  of all eligible groups, it may prioritize among the groups that 
 12.1   remain to be served after the county has complied with the 
 12.2   priority requirements of section 119B.03.  Counties that have 
 12.3   established a priority for ~~non-AFDC~~ non-MFIP families beyond 
 12.4   those established under section 119B.03 must submit the policy 
 12.5   in ~~the~~ their annual ~~allocation~~ child care fund plan. 
 12.6      Sec. 20.  Minnesota Statutes 1998, section 119B.09, 
 12.7   subdivision 7, is amended to read: 
 12.8      Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] The date of 
 12.9   eligibility for child care assistance under this chapter is the 
 12.10  later of the date the application was signed; the beginning date 
 12.11  of employment, education, or training; or the date a 
 12.12  determination has been made that the applicant is a participant 
 12.13  in employment and training services under Minnesota Rules, part 
 12.14  3400.0080, subpart 2a, section 256.736, or chapter 256J or 
 12.15  256K.  The date of eligibility for the basic sliding fee at-home 
 12.16  infant child care program is the later of the date the infant is 
 12.17  born or, in a county with a basic sliding fee wait list, the 
 12.18  date the family applies for at-home infant child care.  Payment 
 12.19  ceases for a family under the at-home infant child care program 
 12.20  when a family has used a total of 12 months of assistance as 
 12.21  specified under section 119B.061.  Payment of child care 
 12.22  assistance for employed persons on ~~AFDC~~ MFIP is effective the 
 12.23  date of employment or the date of ~~AFDC~~ MFIP eligibility, 
 12.24  whichever is later.  Payment of child care assistance for ~~MFIP-S~~ 
 12.25  MFIP or work first participants in employment and training 
 12.26  services is effective the date of commencement of the services 
 12.27  or the date of ~~MFIP-S~~ MFIP or work first eligibility, whichever 
 12.28  is later.  Payment of child care assistance for transition year 
 12.29  child care must be made retroactive to the date of eligibility 
 12.30  for transition year child care. 
 12.31     Sec. 21.  Minnesota Statutes 1998, section 119B.10, 
 12.32  subdivision 1, is amended to read: 
 12.33     Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
 12.34  RETAINING EMPLOYMENT.] (a) Persons who are seeking employment 
 12.35  and who are eligible for assistance under this section are 
 12.36  eligible to receive up to 240 hours of child care assistance per 
 13.1   calendar year.  
 13.2      (b) Employed persons who work at least an average of 20 
 13.3   hours a week and receive at least a minimum wage for all hours 
 13.4   worked are eligible for continued child care assistance.  Child 
 13.5   care assistance during employment must be authorized as provided 
 13.6   in paragraphs (c) and (d). 
 13.7      (c) When the ~~caregiver~~ person works for an hourly wage and 
 13.8   the hourly wage is equal to or greater than the applicable 
 13.9   minimum wage, child care assistance shall be provided for the 
 13.10  actual hours of employment, break, and mealtime during the 
 13.11  employment and travel time up to two hours per day. 
 13.12     (d) When the ~~caregiver~~ person does not work for an hourly 
 13.13  wage, child care assistance must be provided for the lesser of: 
 13.14     (1) the amount of child care determined by dividing gross 
 13.15  earned income by the applicable minimum wage, up to one hour 
 13.16  every eight hours for meals and break time, plus up to two hours 
 13.17  per day for travel time; or 
 13.18     (2) the amount of child care equal to the actual amount of 
 13.19  child care used during employment, including break and mealtime 
 13.20  during employment, and travel time up to two hours per day. 
 13.21     Sec. 22.  Minnesota Statutes 1998, section 119B.11, 
 13.22  subdivision 2a, is amended to read: 
 13.23     Subd. 2a.  [RECOVERY OF OVERPAYMENTS.] An amount of child 
 13.24  care assistance paid to a recipient in excess of the payment due 
 13.25  is recoverable by the county agency.  The overpayment must be 
 13.26  recovered through recoupment as identified in Minnesota Rules, 
 13.27  part 9565.5110, subpart 11, items A and B, if the family remains 
 13.28  eligible for assistance.  If the family no longer remains 
 13.29  eligible for child care assistance, the county may choose to 
 13.30  initiate efforts to recover overpayments from the family for 
 13.31  overpayment less than $50.  If the overpayment is greater than 
 13.32  or equal to $50, the county shall seek voluntary repayment of 
 13.33  the overpayment from the family.  If the county is unable 
 13.34  to ~~recoup~~ recover the overpayment through voluntary repayment, 
 13.35  the county shall initiate civil court proceedings to recover the 
 13.36  overpayment unless the county's costs to recover the overpayment 
 14.1   will exceed the amount of the overpayment.  A family with an 
 14.2   outstanding debt under this subdivision is not eligible for 
 14.3   child care assistance until the debt is paid in full or 
 14.4   satisfactory arrangements are made with the county to retire the 
 14.5   debt. 
 14.6      Sec. 23.  Minnesota Statutes 1998, section 119B.13, 
 14.7   subdivision 1, is amended to read: 
 14.8      Subdivision 1.  [SUBSIDY RESTRICTIONS.] ~~Effective July 1,~~ 
 14.9   ~~1991,~~ The maximum rate paid for child care assistance under the 
 14.10  child care fund is ~~the maximum rate eligible for federal~~ 
 14.11  ~~reimbursement.  The rate may not exceed~~ the 75th percentile rate 
 14.12  for like-care arrangements in the county as surveyed by the 
 14.13  commissioner.  A rate which includes a provider bonus paid under 
 14.14  subdivision 2 or a special needs rate paid under subdivision 3 
 14.15  may be in excess of the maximum rate allowed under this 
 14.16  subdivision.  The department of children, families, and learning 
 14.17  shall monitor the effect of this paragraph on provider rates.  
 14.18  The county shall pay the provider's full charges for every child 
 14.19  in care up to the maximum established.  The commissioner shall 
 14.20  determine the maximum rate for each type of care, including 
 14.21  special needs and handicapped care.  Not less than once every 
 14.22  two years, the ~~county~~ commissioner shall evaluate ~~rates~~ market 
 14.23  practices for payment of absent spaces and shall establish 
 14.24  policies for payment of absent days that reflect current market 
 14.25  practice.  
 14.26     When the provider charge is greater than the maximum 
 14.27  provider rate allowed, the parent is responsible for payment of 
 14.28  the difference in the rates in addition to any family copayment 
 14.29  fee. 
 14.30     Sec. 24.  Minnesota Statutes 1998, section 119B.13, 
 14.31  subdivision 3, is amended to read: 
 14.32     Subd. 3.  [PROVIDER RATE FOR CARE OF CHILDREN WITH 
 14.33  HANDICAPS OR SPECIAL NEEDS.] Counties shall reimburse providers 
 14.34  for the care of children with handicaps or special needs, at a 
 14.35  special rate to be ~~set~~ approved by the county for care of these 
 14.36  children, subject to the approval of the commissioner. 
 15.1      Sec. 25.  Minnesota Statutes 1998, section 119B.13, 
 15.2   subdivision 5, is amended to read: 
 15.3      Subd. 5.  [PROVIDER NOTICE.] The county shall inform both 
 15.4   the family receiving assistance under this chapter and the child 
 15.5   care provider of the payment amount and how and when payment 
 15.6   will be received.  If the county sends a family a notice that 
 15.7   child care assistance will be terminated, the county shall 
 15.8   inform the provider that unless the family requests to continue 
 15.9   to receive assistance pending an appeal, child care payments 
 15.10  will no longer be made.  The notice to the ~~vendor~~ provider must 
 15.11  not contain any private data on the family or information on why 
 15.12  payment will no longer be made. 
 15.13     Sec. 26.  Minnesota Statutes 1998, section 119B.14, is 
 15.14  amended to read: 
 15.15     119B.14 [EXTENSION OF EMPLOYMENT OPPORTUNITIES.] 
 15.16     The county board shall insure that child care services 
 15.17  available to eligible residents are well advertised and that 
 15.18  everyone who receives or applies for ~~aid to families with~~ 
 15.19  ~~dependent children~~ MFIP assistance is informed of training and 
 15.20  employment opportunities and programs, including child care 
 15.21  assistance and child care resource and referral services. 
 15.22     Sec. 27.  Minnesota Statutes 1998, section 119B.15, is 
 15.23  amended to read: 
 15.24     119B.15 [ADMINISTRATIVE EXPENSES.] 
 15.25     The commissioner shall use up to 1/21 of the state and 
 15.26  federal funds available for the basic sliding fee program and 
 15.27  1/21 of the state and federal funds available for the ~~AFDC~~ MFIP 
 15.28  child care program for payments to counties for administrative 
 15.29  expenses.  
 15.30     Sec. 28.  [INSTRUCTION TO REVISOR.] 
 15.31     The revisor of statutes shall change the headnote name of 
 15.32  Minnesota Statutes, section 119B.05 from "AFDC CHILD CARE 
 15.33  PROGRAM" to "CHILD CARE ASSISTANCE PROGRAM." 
 15.34     Sec. 29.  [REPEALER.] 
 15.35     Minnesota Statutes 1998, sections 119B.01, subdivision 15; 
 15.36  119B.03, subdivision 7; and 119B.05, subdivisions 6 and 7, are 
 16.1   repealed.