HF 152

as introduced - 89th Legislature (2015 - 2016) Posted on 01/14/2015 02:23pm

A bill for an act
relating to education finance; increasing funding for the early learning
scholarship program; extending neighborhood achievement zone services; fully
funding the basic sliding fee child care assistance program; modifying provider
reimbursement rates; expanding the home visiting program; appropriating
money; amending Minnesota Statutes 2014, sections 119B.011, subdivision 19b;
119B.02, subdivisions 1, 2; 119B.03, subdivision 9; 119B.035, subdivisions 1,
4; 119B.05, subdivisions 1, 5; 119B.08, subdivision 3; 119B.09, subdivision
4a; 124D.165; 256.017, subdivision 9; repealing Minnesota Statutes 2014,
sections 119B.011, subdivision 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a,
6b, 8; 119B.09, subdivision 3; Minnesota Rules, parts 3400.0020, subpart 8;
3400.0030; 3400.0060, subparts 2, 4, 6, 6a, 7.

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

Section 1.

Minnesota Statutes 2014, section 119B.011, subdivision 19b, is amended to
read:

Subd. 19b.

Student parent.

"Student parent" means a person who is:

(1) under 21 years of age and has a child;

(2) pursuing a high school or general equivalency diploma; new text begin and
new text end

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

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

Sec. 2.

Minnesota Statutes 2014, section 119B.02, subdivision 1, is amended to read:

Subdivision 1.

Child care services.

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

Sec. 3.

Minnesota Statutes 2014, section 119B.02, subdivision 2, is amended to read:

Subd. 2.

Contractual agreements with tribes.

The commissioner may enter into
contractual agreements with a federally recognized Indian tribe with a reservation in
Minnesota to carry out the responsibilities of county human service agencies to the extent
necessary for the tribe to operate child care assistance programs under sections 119B.03
and 119B.05. An agreement may allow the state to make payments for child care assistance
services provided under deleted text begin section deleted text end new text begin sections 119B.03 and new text end 119B.05. The commissioner shall
consult with the affected county or counties in the contractual agreement negotiations, if
the county or counties wish to be included, in order to avoid the duplication of county
and tribal child care services. deleted text begin Funding to support services under section 119B.03 may be
transferred to the federally recognized Indian tribe with a reservation in Minnesota from
allocations available to counties in which reservation boundaries lie. When funding is
transferred under section 119B.03, the amount shall be commensurate to estimates of the
proportion of reservation residents with characteristics identified in section 119B.03,
subdivision 6, to the total population of county residents with those same characteristics.
deleted text end

Sec. 4.

Minnesota Statutes 2014, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

deleted text begin Portability pool deleted text end new text begin Families moving to another county new text end .

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

deleted text begin (b) To be eligible for portable basic sliding fee assistance, a family that has moved
from a county in which it deleted text end new text begin (a) A family receiving child care assistance under the child care
fund that has moved from a county in which the family new text end was receiving deleted text begin basic sliding fee deleted text end new text begin
child care new text end assistance to deleted text begin a deleted text end new text begin another new text end county deleted text begin with a waiting list for the basic sliding fee program deleted text end
must new text begin be admitted into the receiving county's child care assistance program if the family new text end :

(1) deleted text begin meet deleted text end new text begin meets new text end the income and eligibility guidelines for the basic sliding fee
program; and

(2) deleted text begin notify deleted text end new text begin notifies new text end the new county of residence within 60 days of moving and deleted text begin submit deleted text end new text begin
submits new text end information to the new county of residence to verify eligibility for the basic
sliding fee program.

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

deleted text begin (1) deleted text end accept administrative responsibility deleted text begin for applicants for portable basic sliding fee
assistance deleted text end at the end of the two months of assistance under the Unitary Residency Act deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) continue basic sliding fee assistance for the lesser of six months or until the
family is able to receive assistance under the county's regular basic sliding program; and
deleted text end

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

Sec. 5.

Minnesota Statutes 2014, section 119B.035, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

A family in which a parent provides care for the
family's infant child may receive a subsidy in lieu of assistance if the family is eligible for
or is receiving assistance under the basic sliding fee program. An eligible family must
meet the eligibility factors under section 119B.09, except as provided in subdivision 4,
and the requirements of this section. Subject to federal match and maintenance of effort
requirements for the child care and development fund, deleted text begin and up to available appropriations, deleted text end
the commissioner shall provide assistance under the at-home infant child care program
and for administrative costs associated with the program. At the end of a fiscal year, the
commissioner may carry forward any unspent funds under this section to the next fiscal
year within the same biennium for assistance under the basic sliding fee program.

Sec. 6.

Minnesota Statutes 2014, section 119B.035, subdivision 4, is amended to read:

Subd. 4.

Assistance.

(a) A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent
of the rate established under section 119B.13 for care of infants in licensed family child
care in the applicant's county of residence.

(b) A participating family must report income and other family changes as specified
in the county's plan under section 119B.08, subdivision 3.

(c) deleted text begin Persons who are admitted to the at-home infant child care program retain their
position in any basic sliding fee program. Persons leaving the at-home infant child care
program reenter the basic sliding fee program at the position they would have occupied.
deleted text end

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

Sec. 7.

Minnesota Statutes 2014, section 119B.05, subdivision 1, is amended to read:

Subdivision 1.

Eligible participants.

Families eligible for child care assistance
under the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements
of section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or
other employment or training activities that are included in an approved employability
development plan under section 256J.95;

(4) MFIP families who are participating in work job search, job support,
employment, or training activities as required in their employment plan, or in appeals,
hearings, assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter
256J as required in their employment plan approved according to chapter 256J;

(6) families who are participating in services or activities that are included in an
approved family stabilization plan under section 256J.575;

(7) families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2; new text begin and
new text end

deleted text begin (8) families who are participating in the transition year extension under section
119B.011, subdivision 20a; and
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end student parents as defined under section 119B.011, subdivision 19b.

Sec. 8.

Minnesota Statutes 2014, section 119B.05, subdivision 5, is amended to read:

Subd. 5.

Federal reimbursement.

Counties new text begin and the state new text end shall maximize their
federal reimbursement under federal reimbursement programs for money spent for persons
eligible under this chapter. The commissioner shall allocate any federal earnings to the
county to be used to expand child care services under this chapter.

Sec. 9.

Minnesota Statutes 2014, section 119B.08, subdivision 3, is amended to read:

Subd. 3.

Child care fund plan.

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

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

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

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

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

Sec. 10.

Minnesota Statutes 2014, section 119B.09, subdivision 4a, is amended to read:

Subd. 4a.

Temporary ineligibility of military personnel.

Counties must reserve a
family's position under the child care assistance fund if a family has been receiving child
care assistance but is temporarily ineligible for assistance due to increased income from
active military service. Activated military personnel may be temporarily ineligible until
deactivation. deleted text begin A county must reserve a military family's position on the basic sliding fee
waiting list under the child care assistance fund if a family is approved to receive child care
assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.
deleted text end

Sec. 11.

Minnesota Statutes 2014, section 124D.165, is amended to read:

124D.165 EARLY LEARNING SCHOLARSHIPS.

Subdivision 1.

Establishment; purpose.

There is established an early learning
scholarships program in order to increase access to high-quality early childhood programs
for children ages three to five.

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision apply to this section.
new text end

new text begin (b) "Director" means the director of the Office of Early Learning.
new text end

new text begin (c) "Eligible program" means a Head Start program under section 119A.50, school
readiness program under section 124D.15, or other school district child-based program
designed to provide early education services to children not yet in kindergarten, licensed
center-based child care program under chapter 245A, or licensed family child care
program under chapter 245A, or other program providing early learning opportunities.
new text end

new text begin (d) "Income" has the meaning given in section 119B.011, subdivision 15.
new text end

new text begin (e) "Parent" means the parent or legal guardian of a child.
new text end

Subd. 2.

Family eligibility.

(a) For a family to receive an early learning scholarship,
deleted text begin parents or guardians deleted text end new text begin a parent new text end must meet the following eligibility requirements:

(1) have a child deleted text begin three or four deleted text end new text begin under five new text end years of age on September 1 of the current
school year, who has not yet started kindergarten; and

(2) have income equal to or less than 185 percent of federal poverty level income
in the current calendar year deleted text begin , or be able to document their child's current participation in deleted text end new text begin .
A parent may document family income as required by the director. However, a parent
whose child or family participates in another public eligibility program including new text end the
free and reduced-price lunch program or child and adult care food program, National
School Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food
Distribution Program on Indian Reservations, Food and Nutrition Act, United States
Code, title 7, sections 2011-2036; Head Start under the federal Improving Head Start for
School Readiness Act of 2007; Minnesota family investment program under chapter 256J;
child care assistance programs under chapter 119B; the supplemental nutrition assistance
program; or placement in foster care under section 260C.212 new text begin , is automatically qualified
and no further information to verify income is necessary new text end .

(b) Notwithstanding the other provisions of this section, a parent under age 21 who
is pursuing a high school or general education equivalency diploma is eligible for an early
learning scholarship if the parent has a child age zero to five years old and meets the
income eligibility guidelines in this subdivision.

(c) Any siblings between the ages zero to five years old of a child who has been
awarded a scholarship under this section must be awarded a scholarship upon request,
provided the sibling attends the same program as long as funds are available.

(d) A child who has received a scholarship under this section must continue to
receive a scholarship each year until that child is eligible for kindergarten under section
120A.20 and as long as funds are available.

(e) Early learning scholarships may not be counted as earned income for the purposes
of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota
family investment program under chapter 256J, child care assistance programs under
chapter 119B, or Head Start under the federal Improving Head Start for School Readiness
Act of 2007. new text begin Scholarships paid to providers on behalf of an eligible parent must not be
considered child care funds for purposes of child care assistance under chapter 119B.
new text end

new text begin Subd. 2a. new text end

new text begin Prioritization of scholarship awards. new text end

new text begin (a) The director shall prioritize
applications according to this subdivision and may establish a range of scholarship
amounts taking into account the child's level of need and geographic location.
new text end

new text begin (b) The director shall prioritize scholarship amounts to recipients based on the
following characteristics:
new text end

new text begin (1) whether the child's family lives in a neighborhood transformation zone;
new text end

new text begin (2) the severity of poverty facing the family;
new text end

new text begin (3) the level of poverty and concentration of poverty among racial and ethnic groups
for the census tract where the family lives;
new text end

new text begin (4) the level of teen pregnancies in the area where the family lives;
new text end

new text begin (5) the achievement gap facing families in the area where the family lives;
new text end

new text begin (6) the number of single family households in the census tract where the family lives;
new text end

new text begin (7) the number of inmates in Minnesota's prisons convicted of a level 1 offense, as
defined by the National Crime Information Center, with home addresses in the census tract
or other region as determined by the director;
new text end

new text begin (8) the number of teenage mothers living in the census tract or other region as
determined by the director; and
new text end

new text begin (9) other risk families as determined by the director.
new text end

new text begin Subd. 2b. new text end

new text begin Scholarship amount. new text end

new text begin The director annually shall determine the
maximum scholarship amounts based on the results of the rate survey conducted under
chapter 119B, and shall establish a range of scholarship amounts taking into account the
child's level of need taking into account the risk factors listed in subdivision 2a, whether
the child is in a home where the court has found the child in need of protection or services,
and geographic location. The director shall establish a scholarship amount schedule
according to the eligible program's rating. The scholarship amounts may be designed to
be layered around other assistance programs available to that child. The director shall
not consider local funds allocated to support an early learning program when layering
scholarships around other assistance programs. Eligible providers must be notified of the
scholarship allocations available in the provider's geographic location.
new text end

Subd. 3.

Administration.

(a) The deleted text begin commissioner deleted text end new text begin director new text end shall establish application
timelines and determine the schedule for awarding scholarships that meets operational
needs of eligible families and programs. The deleted text begin commissioner deleted text end new text begin director new text end may prioritize
applications on factors including family income, geographic location, and whether the
child's family is on a waiting list for a publicly funded program providing early education
or child care services.

(b) For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000 per year
for each eligible child. For fiscal year 2016 and later, the commissioner shall establish
a target for the average scholarship amount per child based on the results of the rate
survey conducted under section 119B.02.

new text begin (c) By March 15, eligible programs may notify the director of the number of
scholarship-eligible children who are eligible under subdivision 2, and who have applied
for enrollment in that program. To facilitate enrollment planning, by April 15, the director
shall notify eligible programs that have provided enrollment information under this
paragraph of the scholarship status of each applicant. To the extent practicable, and taking
into account family mobility, the scholarships must be awarded to eligible recipients
beginning April 15 of each year for a child's participation in a program starting in July,
August, or September of that year.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end A four-star rated program that has children eligible for a scholarship enrolled
in or on a waiting list for a program beginning in July, August, or September may notify
the deleted text begin commissioner deleted text end new text begin director new text end , in the form and manner prescribed by the deleted text begin commissioner deleted text end new text begin
director new text end , each year of the program's desire to enhance program services or to serve more
children than current funding provides. The deleted text begin commissioner deleted text end new text begin director new text end may designate a
predetermined number of scholarship slots for that program and notify the program of
that number. Beginning July 1, 2016, a school district or Head Start program qualifying
under this paragraph may use its established registration process to enroll scholarship
recipients and may verify a scholarship recipient's family income in the same manner as
for other program participants.

deleted text begin (d) deleted text end new text begin (e) new text end A scholarship is awarded for a 12-month period. If the scholarship recipient
has not been accepted and subsequently enrolled in a rated program within ten months of
the awarding of the scholarship, the scholarship cancels and the recipient must reapply in
order to be eligible for another scholarship. A child may not be awarded more than one
scholarship in a 12-month period.

deleted text begin (e) deleted text end new text begin (f) new text end A child who receives a scholarship who has not completed development
screening under sections 121A.16 to 121A.19 must complete that screening within 90
days of first attending an eligible program.

deleted text begin (f) deleted text end new text begin (g) new text end For fiscal year 2017 and later, a school district or Head Start program enrolling
scholarship recipients under paragraph deleted text begin (c) deleted text end new text begin (d) new text end may apply to the commissioner, in the form
and manner prescribed by the commissioner, for direct payment of state aid. Upon receipt
of the application, the commissioner must pay each program directly for each approved
scholarship recipient enrolled under paragraph deleted text begin (c) deleted text end new text begin (d) new text end according to the metered payment
system or another schedule established by the commissioner.

Subd. 4.

Early childhood program eligibility.

(a) In order to be eligible to accept
an early learning scholarship, a program must:

(1) participate in the quality rating and improvement system under section
124D.142; and

(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating
and improvement system.

(b) Any program accepting scholarships must use the revenue to supplement and not
supplant federal funding.

(c) Notwithstanding paragraph (a), all Minnesota early learning foundation
scholarship program pilot sites are eligible to accept an early learning scholarship under
this section.

Subd. 5.

Report required.

The deleted text begin commissioner deleted text end new text begin director new text end shall contract with an
independent contractor to evaluate the early learning scholarship program. The evaluation
must include recommendations regarding the appropriate scholarship amount, efficiency,
and effectiveness of the administration, and impact on kindergarten readiness. By January
15, 2016, the commissioner shall submit a written copy of the evaluation to the chairs
and ranking minority members of the legislative committees and divisions with primary
jurisdiction over kindergarten through grade 12 education.

Sec. 12.

Minnesota Statutes 2014, section 256.017, subdivision 9, is amended to read:

Subd. 9.

Timing and disposition of penalty and case disallowance funds.

Quality
control case penalty and administrative penalty amounts shall be disallowed or withheld
from the next regular reimbursement made to the county agency for state and federal
benefit reimbursements and federal administrative reimbursements for all programs
covered in this section, according to procedures established in statute, but shall not be
imposed sooner than 30 calendar days from the date of written notice of such penalties.
Except for penalties withheld under the child care assistance program, all penalties
must be deposited in the county incentive fund provided in section 256.018. Penalties
withheld under the child care assistance program shall be reallocated to counties deleted text begin using the
allocation formula under section 119B.03, subdivision 5 deleted text end . All penalties must be imposed
according to this provision until a decision is made regarding the status of a written
exception. Penalties must be returned to county agencies when a review of a written
exception results in a decision in their favor.

Sec. 13. new text begin DIRECTION TO COMMISSIONER OF MANAGEMENT AND
BUDGET.
new text end

new text begin The state obligation for the basic sliding fee child care assistance program under
Minnesota Statutes, section 119B.03, must be included in the Minnesota Management
and Budget February and November forecast of state revenues and expenditures under
Minnesota Statutes, section 16A.103, beginning with the November 2015 forecast.
new text end

Sec. 14. new text begin APPROPRIATION; BASIC SLIDING FEE CHILD CARE
ASSISTANCE PROGRAM.
new text end

new text begin $....... in fiscal years 2016 and 2017 is appropriated from the general fund to the
commissioner of human services to fully fund the basic sliding fee child care assistance
program. This appropriation is in addition to any other appropriation for this purpose.
new text end

Sec. 15. new text begin APPROPRIATION; HOME VISITING PROGRAM FOR HIGHEST
RISK FAMILIES.
new text end

new text begin $....... in fiscal years 2016 and 2017 is appropriated from the general fund to the
commissioner of health to expand high-quality home visiting focusing on the youngest
children living in the highest risk families receiving assistance through the Minnesota
family investment program under Minnesota Statutes, chapter 256J. The commissioner of
health shall consult with the commissioner of human services on the administration of
this program.
new text end

Sec. 16. new text begin APPROPRIATION; OFFICE OF EARLY LEARNING.
new text end

new text begin (a) $....... in fiscal years 2016 and 2017 is appropriated from the general fund to the
commissioner of education for distribution to the Office of Early Learning.
new text end

new text begin (b) Up to $....... of the appropriation in paragraph (a) is for training for early
learning providers regarding early brain development. The Office of Early Learning may
contract with the University of Minnesota or other parties to develop and disseminate
this information.
new text end

new text begin (c) The remainder of the appropriation in paragraph (a) may be used by the Office of
Early Learning to encourage voluntary participation by early learning providers in the
quality rating and improvement system under Minnesota Statutes, section 124D.142.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, sections 119B.011, subdivision 20a; 119B.03,
subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8; and 119B.09, subdivision 3, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 3400.0020, subpart 8; 3400.0030; and 3400.0060,
subparts 2, 4, 6, 6a, and 7, new text end new text begin are repealed.
new text end