1998 Minnesota Statutes

CHAPTER 119B. Child care programs

     119B.01 Definitions. 

    Subdivision 1.    Scope.  For the purposes of sections 
 119B.01 to 119B.19, the following terms have the meanings given. 

    Subd. 2.    Applicant.  "Child care fund applicants" 
 means all parents, stepparents, legal guardians, or eligible 
 relative caretakers who reside in the household that applies for 
 child care assistance under the child care fund. 

    Subd. 3.    Child care services.  "Child care services" 
 means child care provided in family day care homes, group day 
 care homes, nursery schools, day nurseries, child day care 
 centers, head start, and extended day school age child care 
 programs in or out of the child's home. 

    Subd. 4.    Child.  "Child" means a person 12 years old 
 or younger, or a person age 13 or 14 who is handicapped, as 
 defined in section 125A.02. 

    Subd 5.    Commissioner.  "Commissioner" means the 
 commissioner of children, families, and learning. 

    Subd. 6.    Child care.  "Child care" means the care of 
 a child by someone other than a parent or legal guardian in or 
 outside the child's own home for gain or otherwise, on a regular 
 basis, for any part of a 24-hour day. 

    Subd. 7.    County board.  "County board" means the 
 board of county commissioners in each county. 

    Subd. 7a.    Department.  "Department" means the 
 department of children, families, and learning. 

    Subd. 8.    Education program.  "Education program" 
 means remedial or basic education or English as a second 
 language instruction, a program leading to a general equivalency 
 or high school diploma, post-secondary programs excluding 
 postbaccalaureate programs, and other education and training 
 needs as documented in an employment plan, as defined in 
 subdivision 9.  The employment plan must outline education and 
 training needs of a recipient, meet state requirements for 
 employment plans, meet the requirements of this chapter, and 
 Minnesota Rules, parts 3400.0010 to 3400.0230, and meet the 
 requirements of programs that provide federal reimbursement for 
 child care services.  

    Subd. 9.    Employment plan.  "Employment plan" means 
 employment of recipients financially eligible for child care 
 assistance, or other work activities approved in an 
 employability development, job search support plan, or 
 employment plan that is developed by the county agency, if it is 
 acting as an employment and training service provider, or by an 
 employment and training service provider certified by the 
 commissioner of economic security or an individual designated by 
 the county to provide employment and training services.  The 
 plans and designation of a service provider must meet the 
 requirements of this chapter and chapter 256J or chapter 256K, 
 Minnesota Rules, parts 3400.0010 to 3400.0230, and other 
 programs that provide federal reimbursement for child care 
 services. 

    Subd. 10.    Family.  "Family" means parents, 
 stepparents, guardians and their spouses, or other eligible 
 relative caretakers and their spouses, and their blood related 
 dependent children and adoptive siblings under the age of 18 
 years living in the same home including children temporarily 
 absent from the household in settings such as schools, foster 
 care, and residential treatment facilities.  When a minor parent 
 or parents and his, her, or their child or children are living 
 with other relatives, and the minor parent or parents apply for 
 a child care subsidy, "family" means only the minor parent or 
 parents and the child or children.  An adult may be considered a 
 dependent member of the family unit if 50 percent of the adult's 
 support is being provided by the parents, stepparents, guardians 
 and their spouses, or eligible relative caretakers and their 
 spouses, residing in the same household.  An adult age 18 who is 
 a full-time high school student and can reasonably be expected 
 to graduate before age 19 may be considered a dependent member 
 of the family unit. 

    Subd. 11.    Human services board.  "Human services 
 board" means a board established under section 402.02, Laws 
 1974, chapter 293, or Laws 1976, chapter 340. 

    Subd. 12.    Income.  "Income" means earned or unearned 
 income received by all family members, including public 
 assistance cash benefits, unless specifically excluded.  The 
 following are excluded from income:  funds used to pay for 
 health insurance premiums for family members, Supplemental 
 Security Income, scholarships, work-study income, and grants 
 that cover costs for tuition, fees, books, and educational 
 supplies; student loans for tuition, fees, books, supplies, and 
 living expenses; earned income tax credits; in-kind income such 
 as food stamps, energy assistance, medical assistance, and 
 housing subsidies; earned income of full or part-time secondary 
 school students up to the age of 19, including summer 
 employment; grant awards under the family subsidy program; 
 nonrecurring lump sum income only to the extent that it is 
 earmarked and used for the purpose for which it is paid; and any 
 income assigned to the public authority according to section 
 256.74 or 256.741, if enacted. 

    Subd. 12a.    MFIP-S.  "MFIP-S" means the Minnesota 
 family investment program-statewide, the state's TANF program 
 under Public Law Number 104-193, Title I. 

    Subd. 13.    Provider.  "Provider" means a child care 
 license holder who operates a family day care home, a group 
 family day care home, a day care center, a nursery school, a day 
 nursery, an extended day school age child care program; a legal 
 nonlicensed extended day school age child care program which 
 operates under the auspices of a local school board that has 
 adopted school age child care standards which meet or exceed 
 standards recommended by the state department of children, 
 families, and learning, or a legal nonlicensed caregiver who is 
 at least 18 years of age, and who is not a member of the AFDC 
 assistance unit.  

    Subd. 14.    Post-secondary educational systems.  
 "Post-secondary educational systems" means the University of 
 Minnesota board of regents and the board of trustees of the 
 Minnesota state colleges and universities. 

    Subd. 15.    AFDC.  "AFDC" means the aid to families 
 with dependent children program under sections 256.72 to 256.87; 
 the MFIP program under sections 256.031 to 256.0361 and 256.0475 
 to 256.049; the MFIP-S program under chapter 256J; and the work 
 first program under chapter 256K, whichever program is in effect.

    Subd. 16.    Transition year families.  "Transition year 
 families" means families who have received AFDC, or who were 
 eligible to receive AFDC after choosing to discontinue receipt 
 of the cash portion of MFIP-S assistance under section 256J.31, 
 subdivision 12, for at least three of the last six months before 
 losing eligibility for AFDC due to increased hours of 
 employment, or increased income from employment or child or 
 spousal support. 

    Subd. 17.    Child care fund.  "Child care fund" means a 
 program under this chapter providing:  

    (1) financial assistance for child care to parents engaged 
 in employment or the short-term provision of at-home infant care 
 for their own child or education and training leading to 
 employment; and 

    (2) grants to develop, expand, and improve the access and 
 availability of child care services statewide. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 3 s 59; 1988 c 
 689 art 2 s 223; 1989 c 282 art 2 s 135-140; 1990 c 375 s 3; 
 1990 c 568 art 4 s 34-38; 1992 c 513 art 8 s 26,27; 1994 c 483 s 
 1; 1995 c 207 art 4 s 22,23; 1Sp1995 c 3 art 16 s 13; 1996 c 395 
 s 18; 1997 c 162 art 4 s 1-8; 1998 c 397 art 11 s 3; 1998 c 407 
 art 6 s 1 

     119B.02 Duties of commissioner. 

    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.  
 Within the limits of available appropriations, 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.  In the rules 
 adopted under this section, county and human services boards 
 shall be authorized to establish policies for payment of child 
 care spaces for absent children, when the payment is required by 
 the child's regular provider.  The rules shall not set a maximum 
 number of days for which absence payments can be made, but 
 instead shall direct the county agency to set limits and pay for 
 absences according to the prevailing market practice in the 
 county.  County policies for payment of absences shall be 
 subject to the approval of the commissioner.  The commissioner 
 shall maximize the use of federal money in section 256.736 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.  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.  The counties 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. 

    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 for the tribe to be 
 reimbursed for child care assistance services provided under 
 section 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.  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.  

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 2 s 146; art 3 s 
 60; 1989 c 282 art 2 s 141; 1990 c 432 s 1; 1991 c 292 art 5 s 
 52; 1995 c 207 art 4 s 24; 1995 c 257 art 1 s 17; 1997 c 162 art 
 4 s 9; 1998 c 407 art 6 s 2 

     119B.03 Basic sliding fee program. 

    Subdivision 1.    Allocation period; notice of allocation. 
  When the commissioner notifies county and human service 
 boards of the forms and instructions they are to follow in the 
 development of their biennial community social services plans 
 required under section 256E.08, the commissioner shall also 
 notify county and human services boards of their estimated child 
 care fund program allocation for the two years covered by the 
 plan.  By October 1 of each year, the commissioner shall notify 
 all counties of their final child care fund program allocation. 

    Subd. 2.    Waiting list.  Each county that receives 
 funds under this section must keep a written record and report 
 to the commissioner the number of eligible families who have 
 applied for a child care subsidy or have requested child care 
 assistance.  Counties shall perform a cursory determination of 
 eligibility when a family requests information about child care 
 assistance.  A family that appears to be eligible must be put on 
 a waiting list if funds are not immediately available.  The 
 waiting list must identify students in need of child care.  When 
 money is available counties shall expedite the processing of 
 student applications during key enrollment periods. 

    Subd. 3.    Eligible recipients.  Families that meet the 
 eligibility requirements under sections 119B.09, except AFDC 
 recipients, MFIP recipients, and transition year families, and 
 119B.10 are eligible for child care assistance under the basic 
 sliding fee program.  Families enrolled in the basic sliding fee 
 program shall be continued until they are no longer eligible.  
 Child care assistance provided through the child care fund is 
 considered assistance to the parent. 

    Subd. 4.    Funding priority.  (a) First priority for 
 child care assistance under the basic sliding fee program must 
 be given to eligible non-AFDC families who do not have a high 
 school or general equivalency diploma or who need remedial and 
 basic skill courses in order to pursue employment or to pursue 
 education leading to employment.  Within this priority, the 
 following subpriorities must be used: 

    (1) child care needs of minor parents; 

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

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

    (b) Second priority must be given to parents who have 
 completed their AFDC transition year. 

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

    Subd. 5.    Review of use of funds; reallocation.  (a) 
 After each quarter, the commissioner shall review the use of 
 basic sliding fee program allocations by county.  The 
 commissioner may reallocate unexpended or unencumbered money 
 among those counties who have expended their full allocation or 
 may allow a county to expend up to ten percent of its allocation 
 in the subsequent allocation period.  

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

    Subd. 6.    Allocation formula.  Beginning January 1, 
 1996, except as provided in subdivision 7, the basic sliding fee 
 state and federal funds shall be allocated on a calendar year 
 basis.  Funds shall be allocated first in amounts equal to each 
 county's guaranteed floor according to subdivision 8, with any 
 remaining available funds allocated according to the following 
 formula:  

    (a) One-third of the funds shall be allocated in proportion 
 to each county's total expenditures for the basic sliding fee 
 child care program reported during the most recent calendar year 
 completed at the time of the notice of allocation.  

    (b) One-third of the funds shall be allocated based on the 
 number of children under age 13 in each county who are enrolled 
 in general assistance medical care, medical assistance, and 
 MinnesotaCare on December 31 of the most recent calendar year 
 completed at the time of the notice of allocation. 

    (c) One-third of the funds shall be allocated based on the 
 number of children under age 13 who reside in each county, from 
 the most recent estimates of the state demographer. 

    Subd. 7.    Allocation exception.  For the period from 
 July 1, 1997, to December 31, 1998, each county must receive an 
 amount equal to its original calendar year 1997 allocation.  The 
 remaining funds must be allocated according to the following 
 formula: 

    (a) Two-thirds of the funds must be allocated in proportion 
 to each county's original calendar year 1997 allocation for the 
 basic sliding fee program. 

    (b) One-third of the funds must be allocated in proportion 
 to each county's most recently reported waiting list as defined 
 in subdivision 2. 

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

    Subd. 8.    Guaranteed floor.  (a) Beginning January 1, 
 1996, each county's guaranteed floor shall equal 90 percent of 
 the allocation received in the preceding calendar year.  For the 
 period January 1, 1999, to December 31, 1999, each county's 
 guaranteed floor must be equal to its original calendar year 
 1998 allocation or its actual earnings for calendar year 1998, 
 whichever is less. 

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

    Subd. 9.    Portability pool.  (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 added 
 to the funds available for reallocation.  If expenditures from 
 the portability pool exceed the amount of money available, the 
 reallocation pool must be reduced to cover these shortages. 

    (b) To be eligible for portable basic sliding fee 
 assistance, a family that has moved from a county in which it 
 was receiving basic sliding fee assistance to a county with a 
 waiting list for the basic sliding fee program must: 

    (1) meet the income and eligibility guidelines for the 
 basic sliding fee program; and 

    (2) notify the new county of residence within 30 days of 
 moving and apply for basic sliding fee assistance in the new 
 county of residence. 

    (c) The receiving county must: 

    (1) accept administrative responsibility for applicants for 
 portable basic sliding fee assistance at the end of the two 
 months of assistance under the Unitary Residency act; 

    (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 

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

    Subd. 10.    Application; entry points.  Two or more 
 methods of applying for the basic sliding fee program must be 
 available to applicants in each county.  To meet the 
 requirements of this subdivision, a county may provide 
 alternative methods of applying for assistance, including, but 
 not limited to, a mail application, or application sites that 
 are located outside of government offices. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 3 s 61; 1988 c 
 689 art 2 s 224; 1989 c 282 art 2 s 142; 1990 c 568 art 4 s 
 39-41; 1991 c 292 art 5 s 53; 1992 c 464 art 1 s 31; 1992 c 513 
 art 8 s 28,29; 1995 c 207 art 4 s 25-29; 1997 c 162 art 1 s 19; 
 art 4 s 10-17; 1998 c 254 art 1 s 29 

     119B.04 Federal child care and development fund. 

    Subdivision 1.    Commissioner to administer program.  
 The commissioner of children, families, and learning is 
 authorized and directed to receive, administer, and expend funds 
 available under the child care and development fund under Public 
 Law Number 104-193, Title I.  

    Subd. 2.    Rulemaking authority.  The commissioner may 
 adopt rules under chapter 14 to administer the child care and 
 development fund.  

    HIST: 1991 c 292 art 5 s 54; 1Sp1995 c 3 art 16 s 13; 1997 c 
 162 art 4 s 18 

     119B.05 AFDC child care program. 

    Subdivision 1.    Eligible recipients.  Families 
 eligible for child care assistance under the AFDC child care 
 program are: 

    (1) persons receiving services under sections 256.031 to 
 256.0361 and 256.047 to 256.048; 

    (2) AFDC recipients who are employed or in job search and 
 meet the requirements of section 119B.10; 

    (3) persons who are members of transition year families 
 under section 119B.01, subdivision 16; 

    (4) members of the control group for the STRIDE evaluation 
 conducted by the Manpower Demonstration Research Corporation; 

    (5) AFDC caretakers who are participating in the STRIDE and 
 non-STRIDE AFDC child care program; 

    (6) 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 chapter 256K; and 

    (7) MFIP-S families who are participating in work 
 activities as required in their job search support or employment 
 plan, or in appeals, hearings, assessments, or orientations 
 according to chapter 256J.  Child care assistance to support 
 work activities as described in section 256J.49 must be 
 available according to sections 119A.54, 119B.01, subdivision 8, 
 124D.13, 256E.08, and 611A.32 and titles IVA, IVB, IVE, and XX 
 of the Social Security Act. 

    Subd. 2. Repealed, 1997 c 162 art 1 s 19 

    Subd. 3. Repealed, 1997 c 162 art 1 s 19 

    Subd. 4.    Contracts; other uses allowed.  Counties may 
 contract for administration of the program or may arrange for or 
 contract for child care funds to be used by other appropriate 
 programs, in accordance with this section and as permitted by 
 federal law and regulations.  

    Subd. 5.    Federal reimbursement.  Counties 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. 

    Subd. 6.    Access child care program.  (a) Starting one 
 month after April 30, 1992, the commissioner shall reimburse 
 eligible expenditures for 2,000 family slots for AFDC caretakers 
 not eligible for services under section 256.736, who are engaged 
 in an authorized educational or job search program.  Each county 
 will receive a number of family slots based on the county's 
 proportion of the AFDC caseload.  A county must receive at least 
 two family slots.  Eligibility and reimbursement are limited to 
 the number of family slots allocated to each county.  County 
 agencies shall authorize an educational plan for each student 
 and may prioritize families eligible for this program in their 
 child care fund plan upon approval of the commissioner.  

    (b) Effective July 1, 1997, no new applicants may be 
 accepted in the ACCESS program.  Current ACCESS participants 
 shall continue to receive assistance until July 1, 1998, if all 
 other conditions of eligibility are met. 

    Subd. 7.    Child care assistance diversion.  A one-year 
 program is established to provide assistance to participants 
 under the MFIP-S program established in chapter 256J who are 
 participating in an authorized activity under section 256J.49, 
 subdivision 5, or 256J.52, subdivision 5, and who are eligible 
 for child care assistance according to chapter 119B as a 
 reimbursement for expenses related to the costs of education, 
 training, or transportation when all of the following conditions 
 exist: 

    (1) child care needs during participation in the authorized 
 activity are being met by a legal child care provider as defined 
 in section 119B.01, subdivision 13; 

    (2) the participant cannot reasonably arrange for the 
 education, training, or transportation costs to be met through 
 alternate arrangements; 

    (3) the child care arrangement provides a transition to a 
 stable child care and employment arrangement and does not 
 disrupt the continuity of care for children; and 

    (4) the arrangement does not exceed two months. 

    The commissioner shall select one county in the 
 seven-county metropolitan area to participate in the program.  
 Assistance must be available only to residents of the selected 
 county.  Assistance granted under this subdivision must not 
 exceed 1/12 of the average annual cost of care as established 
 for the administering county in the previous state fiscal year 
 for each authorized month.  Assistance under this subdivision is 
 available to a recipient on a one-time basis. 

    HIST: 1987 c 403 art 3 s 63; 1Sp1987 c 4 art 2 s 5; 1988 c 689 
 art 2 s 225; 1989 c 282 art 2 s 143; 1990 c 568 art 4 s 42-45; 
 1991 c 292 art 5 s 55; 1992 c 513 art 8 s 30,31; 1995 c 207 art 
 4 s 30; 1Sp1995 c 3 art 16 s 13; 1997 c 162 art 4 s 19-21,23; 
 1Sp1997 c 5 s 49; 3Sp1997 c 3 s 22; 1998 c 397 art 11 s 3 

     119B.06 Federal child care and development block grant. 

    Subdivision 1.    Commissioner to administer block grant. 
  The commissioner of children, families, and learning is 
 authorized and directed to receive, administer, and expend child 
 care funds available under the child care and development block 
 grant authorized under Public Law Number 101-508 (2).  

    Subd. 2.    Rulemaking authority.  The commissioner may 
 adopt rules under chapter 14 to administer the child care 
 development block grant program.  

    HIST: 1991 c 292 art 5 s 56; 1Sp1995 c 3 art 16 s 13 

     119B.061 At-home infant child care program. 

    Subdivision 1.    Establishment.  Beginning July 1, 
 1998, a family receiving or eligible to receive assistance under 
 the basic sliding fee program is eligible for assistance for a 
 parent to provide short-term child care for the family's infant 
 child.  An eligible family must meet the eligibility factors 
 under section 119B.09, the income criteria under section 
 119B.12, and the requirements of this section.  The commissioner 
 shall establish a pool of up to seven percent of the annual 
 appropriation for the basic sliding fee program to provide 
 assistance under the at-home infant child care program.  At the 
 end of the fiscal year, any unspent funds must be used for 
 assistance under the basic sliding fee program. 

    Subd. 2.    Eligible families.  A family with an infant 
 under the age of one year is eligible for assistance if: 

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

    (2) the family has not previously received the one-year 
 exemption from the work requirement for infant care under the 
 MFIP-S program; 

    (3) the family has not previously received a life-long 
 total of 12 months of assistance under this section; and 

    (4) the family is participating in the basic sliding fee 
 program or, for the first child in a family, provides 
 verification of employment at the time of application and meets 
 the program requirements. 

    Subd. 3.    Eligible parent.  Only one parent, in a 
 two-parent family, is eligible for assistance.  The eligible 
 parent must: 

    (1) be over the age of 18; 

    (2) provide full-time care for the child in the child's 
 home; and 

    (3) provide child care for any other children in the family 
 that are eligible for child care. 

    Subd. 4.    Assistance.  (a) A family is limited to a 
 lifetime total of 12 months of assistance under this section.  
 The maximum rate of assistance must be at 75 percent of the rate 
 established under section 119B.13 for care of infants in 
 licensed family day care in the applicant's county of 
 residence.  Assistance must be calculated to reflect the copay 
 requirement and the family's income level. 

    (b) A participating family must continue to report income 
 and other family changes as specified in the county's plan under 
 section 119B.08, subdivision 3.  The family must treat any 
 assistance received under this section as unearned income. 

    (c) Participation in the at-home infant child care program 
 must be considered participation in the basic sliding fee 
 program for purposes of continuing eligibility under section 
 119B.03, subdivision 3. 

    (d) A family that receives assistance under this section is 
 ineligible for the one-year exemption from work requirements 
 under the MFIP-S program. 

    Subd. 5.    Implementation.  By July 1, 1998, the 
 commissioner shall implement the at-home infant child care 
 program under this section.  The commissioner shall evaluate 
 this program and report the impact to the legislature by January 
 1, 2000.  The evaluation must include data on the number of 
 families participating in the program; the number of families 
 continuing to pursue employment or education while participating 
 in the program; the average income of families prior to, during, 
 and after participation in the program; family size; and single 
 parent and two-parent status. 

    HIST: 1997 c 162 art 4 s 22 

     119B.07 Use of money. 

    Money for persons listed in sections 119B.03, subdivision 
 3, and 119B.05, subdivision 1, shall be used to reduce the costs 
 of child care for students, including the costs of child care 
 for students while employed if enrolled in an eligible education 
 program at the same time and making satisfactory progress 
 towards completion of the program.  Counties may not limit the 
 duration of child care subsidies for a person in an employment 
 or educational program, except when the person is found to be 
 ineligible under the child care fund eligibility standards.  Any 
 limitation must be based on a person's employability plan in the 
 case of an AFDC recipient, and county policies included in the 
 child care allocation plan.  The maximum length of time a 
 student is eligible for child care assistance under the child 
 care fund for education and training is no more than the time 
 necessary to complete the credit requirements for an associate 
 or baccalaureate degree as determined by the educational 
 institution, excluding basic or remedial education programs 
 needed to prepare for post-secondary education or employment.  
 To be eligible, the student must be in good standing and be 
 making satisfactory progress toward the degree.  Time 
 limitations for child care assistance do not apply to basic or 
 remedial educational programs needed to prepare for 
 post-secondary education or employment.  These programs 
 include:  high school, general equivalency diploma, and English 
 as a second language.  Programs exempt from this time limit must 
 not run concurrently with a post-secondary program.  High school 
 students who are participating in a post-secondary options 
 program and who receive a high school diploma issued by the 
 school district are exempt from the time limitations while 
 pursuing a high school diploma.  Financially eligible students 
 who have received child care assistance for one academic year 
 shall be provided child care assistance in the following 
 academic year if funds allocated under sections 119B.03 and 
 119B.05 are available.  If an AFDC recipient who is receiving 
 AFDC child care assistance under this chapter moves to another 
 county, continues to participate in educational or training 
 programs authorized in their employability development plans, 
 and continues to be eligible for AFDC child care assistance 
 under this chapter, the AFDC caretaker must receive continued 
 child care assistance from the county responsible for their 
 current employability development plan, without interruption. 

    HIST: 1987 c 403 art 3 s 66; 1988 c 689 art 2 s 227; 1989 c 
 282 art 2 s 145; 1990 c 426 art 1 s 31; 1990 c 568 art 4 s 46; 
 1991 c 292 art 5 s 57; 1995 c 207 art 4 s 31; 1997 c 162 art 4 s 
 24 

     119B.075 Reserve account. 

    A reserve account must be created within the general fund 
 for all unexpended basic sliding fee child care, TANF child 
 care, or other child care funds under the jurisdiction of the 
 commissioner.  Any funds for those purposes that are unexpended 
 at the end of a biennium must be deposited in this reserve 
 account, and may be appropriated on an ongoing basis by the 
 commissioner for basic sliding fee child care or TANF child care.

    HIST: 1997 c 162 art 4 s 25 

     119B.08 Reporting and payments. 

    Subdivision 1.    Reports.  The commissioner shall 
 specify requirements for reports under the same authority as 
 provided to the commissioner of human services in section 
 256.01, subdivision 2, paragraph (17).  

    Subd. 2.    Quarterly payments.  The commissioner may 
 make payments to each county in quarterly installments.  The 
 commissioner may certify an advance up to 25 percent of the 
 allocation.  Subsequent payments shall be made on a 
 reimbursement basis for reported expenditures and may be 
 adjusted for anticipated spending patterns.  Payments may be 
 withheld if quarterly reports are incomplete or untimely. 

    Subd. 3.    Child care fund plan.  Effective January 1, 
 1992, the county will include the plan required under this 
 subdivision in its biennial community social services plan 
 required in this section, for the group described in section 
 256E.03, subdivision 2, paragraph (h).  The commissioner shall 
 establish the dates by which the county must submit these 
 plans.  The county and designated administering agency shall 
 submit to the commissioner an annual child care fund allocation 
 plan.  The plan shall include: 

    (1) a narrative of the total program for child care 
 services, including all policies and procedures that affect 
 eligible families and are used to administer the child care 
 funds; 

    (2) the methods used by the county to inform eligible 
 groups of the availability of child care assistance and related 
 services; 

    (3) the provider rates paid for all children by provider 
 type; 

    (4) the county prioritization policy for all eligible 
 groups under the basic sliding fee program and AFDC child care 
 program; and 

    (5) other 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 60 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 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.  Counties are to 
 maintain services despite any reduction in their allocation due 
 to plans not being approved. 

    Subd. 4.    Termination of allocation.  The commissioner 
 may withhold, reduce, or terminate the allocation of any county 
 that does not meet the reporting or other requirements of this 
 program.  The commissioner shall reallocate to other counties 
 money so reduced or terminated.  

    HIST: 1987 c 403 art 3 s 67; 1989 c 89 s 22; 1989 c 282 art 2 
 s 146; 1990 c 568 art 4 s 47; 1997 c 162 art 4 s 26,27 

     119B.09 Financial eligibility. 

    Subdivision 1.    General eligibility requirements for all 
 applicants for child care assistance.  (a) Child care services 
 must be available to families who need child care to find or 
 keep employment or to obtain the training or education necessary 
 to find employment and who: 

    (1) meet the requirements of section 119B.05; receive aid 
 to families with dependent children, MFIP-S, or work first, 
 whichever is in effect; and are receiving employment and 
 training services under section 256.736 or chapter 256J or 256K; 

    (2) have household income below the eligibility levels for 
 aid to families with dependent children; or 

    (3) have household income within a range established by the 
 commissioner. 

    (b) Child care services for the families receiving aid to 
 families with dependent children must be made available as 
 in-kind services, to cover any difference between the actual 
 cost and the amount disregarded under the aid to families with 
 dependent children program.  Child care services to families 
 whose incomes are below the threshold of eligibility for aid to 
 families with dependent children, but are not AFDC caretakers, 
 must be made available with the same copayment required of AFDC 
 caretakers or MFIP-S caregivers. 

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

    Subd. 2.    Sliding fee.  Child care services to 
 families with incomes in the commissioner's established range 
 must be made available on a sliding fee basis.  The upper limit 
 of the range must be neither less than 70 percent nor more than 
 90 percent of the state median income for a family of four, 
 adjusted for family size.  

    Subd. 3.    Priorities; allocations.  If a county 
 projects that its child care allocation is insufficient to meet 
 the needs of all eligible groups, it may prioritize among the 
 groups that remain to be served after the county has complied 
 with the priority requirements of section 119B.03.  Counties 
 that have established a priority for non-AFDC families beyond 
 those established under section 119B.03 must submit the policy 
 in the annual allocation plan. 

    Subd. 4.    Eligibility; annual income; calculation.  
 Annual income of the applicant family is the current monthly 
 income of the family multiplied by 12 or the income for the 
 12-month period immediately preceding the date of application, 
 or income calculated by the method which provides the most 
 accurate assessment of income available to the family.  
 Self-employment income must be calculated based on gross 
 receipts less operating expenses.  Income must be redetermined 
 when the family's income changes, but no less often than every 
 six months.  Income must be verified with documentary evidence.  
 If the applicant does not have sufficient evidence of income, 
 verification must be obtained from the source of the income. 

    Subd. 5.    Provider choice.  Parents may choose child 
 care providers as defined under section 119B.01, subdivision 13, 
 that best meet the needs of their family.  Counties shall make 
 resources available to parents in choosing quality child care 
 services.  Counties may require a parent to sign a release 
 stating their knowledge and responsibilities in choosing a legal 
 provider described under section 119B.01, subdivision 13.  When 
 a county knows that a particular provider is unsafe, or that the 
 circumstances of the child care arrangement chosen by the parent 
 are unsafe, the county may deny a child care subsidy.  A county 
 may not restrict access to a general category of provider 
 allowed under section 119B.01, subdivision 13. 

    Subd. 6.    Maximum child care assistance.  The maximum 
 amount of child care assistance a local agency may authorize in 
 a two-week period is 120 hours per child. 

    Subd. 7.    Eligibility for assistance.  The date of 
 eligibility for child care assistance under this chapter is the 
 later of the date the application was signed; the beginning date 
 of employment, education, or training; or the date a 
 determination has been made that the applicant is a participant 
 in employment and training services under Minnesota Rules, part 
 3400.0080, subpart 2a, section 256.736, or chapter 256J or 
 256K.  The date of eligibility for the basic sliding fee at-home 
 infant child care program is the later of the date the infant is 
 born or, in a county with a basic sliding fee wait list, the 
 date the family applies for at-home infant child care.  Payment 
 ceases for a family under the at-home infant child care program 
 when a family has used a total of 12 months of assistance as 
 specified under section 119B.061.  Payment of child care 
 assistance for employed persons on AFDC is effective the date of 
 employment or the date of AFDC eligibility, whichever is later.  
 Payment of child care assistance for MFIP-S or work first 
 participants in employment and training services is effective 
 the date of commencement of the services or the date of MFIP-S 
 or work first eligibility, whichever is later.  Payment of child 
 care assistance for transition year child care must be made 
 retroactive to the date of eligibility for transition year child 
 care. 

    Subd. 8.    No employee-employer relationships.  Receipt 
 of federal, state, or local funds by a child care provider 
 either directly or through a parent who is a child care 
 assistance recipient does not establish an employee-employer 
 relationship between the child care provider and the county or 
 state. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 3 s 68; 1988 c 
 689 art 2 s 228; 1989 c 282 art 2 s 147,148; 1990 c 568 art 4 s 
 48-50; 1992 c 513 art 8 s 32; 1997 c 162 art 4 s 28-32 

     119B.10 Employment or training eligibility. 

    Subdivision 1.    Assistance for persons seeking and 
 retaining employment.  (a) Persons who are seeking employment 
 and who are eligible for assistance under this section are 
 eligible to receive up to 240 hours of child care assistance per 
 calendar year.  

    (b) Employed persons who work at least an average of 20 
 hours a week and receive at least a minimum wage for all hours 
 worked are eligible for continued child care assistance.  Child 
 care assistance during employment must be authorized as provided 
 in paragraphs (c) and (d). 

    (c) When the caregiver works for an hourly wage and the 
 hourly wage is equal to or greater than the applicable minimum 
 wage, child care assistance shall be provided for the actual 
 hours of employment, break, and mealtime during the employment 
 and travel time up to two hours per day. 

    (d) When the caregiver does not work for an hourly wage, 
 child care assistance must be provided for the lesser of: 

    (1) the amount of child care determined by dividing gross 
 earned income by the applicable minimum wage, up to one hour 
 every eight hours for meals and break time, plus up to two hours 
 per day for travel time; or 

    (2) the amount of child care equal to the actual amount of 
 child care used during employment, including break and mealtime 
 during employment, and travel time up to two hours per day. 

    Subd. 2.    Financial eligibility required.  Persons 
 participating in employment programs, training programs, or 
 education programs are eligible for continued assistance from 
 the child care fund, if they are financially eligible under the 
 sliding fee scale set by the commissioner in section 119B.12.  

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 3 s 69; 1989 c 
 282 art 2 s 149; 1990 c 568 art 4 s 51; 1995 c 207 art 4 s 32; 
 1997 c 162 art 4 s 33 

     119B.11 County contribution. 

    Subdivision 1.    County contributions required.  
 Beginning July 1, 1997, in addition to payments from basic 
 sliding fee child care program participants, each county shall 
 contribute from county tax or other sources a fixed local match 
 equal to its calendar year 1996 required county contribution 
 reduced by the administrative funding loss that would have 
 occurred in state fiscal year 1996 under section 119B.15.  The 
 commissioner shall recover funds from the county as necessary to 
 bring county expenditures into compliance with this subdivision. 

    Subd. 2. Repealed, 1997 c 162 art 1 s 19 

    Subd. 2a.    Recovery of overpayments.  An amount of 
 child care assistance paid to a recipient in excess of the 
 payment due is recoverable by the county agency.  The 
 overpayment must be recovered through recoupment as identified 
 in Minnesota Rules, part 9565.5110, subpart 11, items A and B, 
 if the family remains eligible for assistance.  If the family no 
 longer remains eligible for child care assistance, the county 
 may choose to initiate efforts to recover overpayments from the 
 family for overpayment less than $50.  If the overpayment is 
 greater than or equal to $50, the county shall seek voluntary 
 repayment of the overpayment from the family.  If the county is 
 unable to recoup the overpayment through voluntary repayment, 
 the county shall initiate civil court proceedings to recover the 
 overpayment unless the county's costs to recover the overpayment 
 will exceed the amount of the overpayment.  A family with an 
 outstanding debt under this subdivision is not eligible for 
 child care assistance until the debt is paid in full or 
 satisfactory arrangements are made with the county to retire the 
 debt. 

    Subd. 3.    Federal money; state recovery.  The 
 commissioner shall recover from counties any state or federal 
 money that was spent for persons found to be ineligible, except 
 if the recovery is made by a county agency using any method 
 other than recoupment, the county may keep 25 percent of the 
 recovery.  If a federal audit exception is taken based on a 
 percentage of federal earnings, all counties shall pay a share 
 proportional to their respective federal earnings during the 
 period in question. 

    Subd. 4.    Maintenance of funding effort.  To receive 
 money through this program, each county shall certify, in its 
 annual plan to the commissioner, that the county has not reduced 
 allocations from other federal and state sources, which, in the 
 absence of the child care fund, would have been available for 
 child care assistance.  However, the county must continue 
 contributions, as necessary, to maintain on the basic sliding 
 fee program, families who are receiving assistance on July 1, 
 1995, until the family loses eligibility for the program or 
 until a family voluntarily withdraws from the program.  This 
 subdivision does not affect the local match required for this 
 program under other sections of the law. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 3 s 70; 1989 c 
 282 art 2 s 150; 1995 c 139 s 1; 1995 c 207 art 4 s 33-35; 1997 
 c 162 art 4 s 34-36 

     119B.12 Sliding fee scale. 

    Subdivision 1.    Fee schedule.  In setting the sliding 
 fee schedule, the commissioner shall exclude from the amount of 
 income used to determine eligibility an amount for federal and 
 state income and social security taxes attributable to that 
 income level according to federal and state standardized tax 
 tables.  The commissioner shall base the parent fee on the 
 ability of the family to pay for child care.  The fee schedule 
 must be designed to use any available tax credits. 

    Subd. 2.    Parent fee.  A family's monthly parent fee 
 must be a fixed percentage of its annual gross income.  Parent 
 fees must apply to families eligible for child care assistance 
 under sections 119B.03 and 119B.05.  Income must be as defined 
 in section 119B.01, subdivision 12.  The fixed percent is based 
 on the relationship of the family's annual gross income to 100 
 percent of state median income.  Beginning January 1, 1998, 
 parent fees must begin at 75 percent of the poverty level.  The 
 minimum parent fees for families between 75 percent and 100 
 percent of poverty level must be $5 per month.  Parent fees for 
 families with incomes at or above the poverty level must not 
 decrease due to the addition of family members after the 
 family's initial eligibility determination.  Parent fees must be 
 established in rule and must provide for graduated movement to 
 full payment. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1988 c 689 art 2 s 229; 1997 c 
 162 art 4 s 37 

     119B.13 Child care rates. 

    Subdivision 1.    Subsidy restrictions.  Effective July 
 1, 1991, the maximum rate paid for child care assistance under 
 the child care fund is the maximum rate eligible for federal 
 reimbursement.  The rate may not exceed the 75th percentile rate 
 for like-care arrangements in the county as surveyed by the 
 commissioner.  A rate which includes a provider bonus paid under 
 subdivision 2 or a special needs rate paid under subdivision 3 
 may be in excess of the maximum rate allowed under this 
 subdivision.  The department of children, families, and learning 
 shall monitor the effect of this paragraph on provider rates.  
 The county shall pay the provider's full charges for every child 
 in care up to the maximum established.  The commissioner shall 
 determine the maximum rate for each type of care, including 
 special needs and handicapped care.  Not less than once every 
 two years, the county shall evaluate rates for payment of absent 
 spaces and shall establish policies for payment of absent days 
 that reflect current market practice.  

    When the provider charge is greater than the maximum 
 provider rate allowed, the parent is responsible for payment of 
 the difference in the rates in addition to any family copayment 
 fee. 

    Subd. 2.    Provider rate bonus for accreditation.  
 Currently accredited child care centers shall be paid a ten 
 percent bonus above the maximum rate established in subdivision 
 1, up to the actual provider rate.  A family day care provider 
 shall be paid a ten percent bonus above the maximum rate 
 established in subdivision 1, if the provider holds a current 
 early childhood development credential approved by the 
 commissioner, up to the actual provider rate.  For purposes of 
 this subdivision, "accredited" means accredited by the National 
 Association for the Education of Young Children. 

    Subd. 3.    Provider rate for care of children with 
 handicaps or special needs.  Counties shall reimburse 
 providers for the care of children with handicaps or special 
 needs, at a special rate to be set by the county for care of 
 these children, subject to the approval of the commissioner. 

    Subd. 4.    Rates charged to publicly subsidized families. 
  Child care providers receiving reimbursement under this 
 chapter may not charge a rate to clients receiving assistance 
 under this chapter that is higher than the private, full-paying 
 client rate. 

    Subd. 5.    Provider notice.  The county shall inform 
 both the family receiving assistance under this chapter and the 
 child care provider of the payment amount and how and when 
 payment will be received.  If the county sends a family a notice 
 that child care assistance will be terminated, the county shall 
 inform the provider that unless the family requests to continue 
 to receive assistance pending an appeal, child care payments 
 will no longer be made.  The notice to the vendor must not 
 contain any private data on the family or information on why 
 payment will no longer be made. 

    Subd. 6.    Provider payments.  Counties shall make 
 vendor payments to the child care provider or pay the parent 
 directly for eligible child care expenses.  If payments for 
 child care assistance are made to providers, the provider shall 
 bill the county for services provided within ten days of the end 
 of the month of service.  If bills are submitted in accordance 
 with the provisions of this subdivision, a county shall issue 
 payment to the provider of child care under the child care fund 
 within 30 days of receiving an invoice from the provider.  
 Counties may establish policies that make payments on a more 
 frequent basis.  A county's payment policies must be included in 
 the county's child care plan under section 119B.08, subdivision 
 3. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 290 s 1; 1989 c 282 art 
 2 s 151; 1990 c 568 art 4 s 52,53; 1991 c 292 art 5 s 58-60; 
 1995 c 207 art 4 s 36; 1Sp1995 c 3 art 16 s 13; 1997 c 162 art 4 
 s 38-40; 1Sp1997 c 5 s 48 

     119B.14 Extension of employment opportunities. 

    The county board shall insure that child care services 
 available to eligible residents are well advertised and that 
 everyone who receives or applies for aid to families with 
 dependent children is informed of training and employment 
 opportunities and programs, including child care assistance and 
 child care resource and referral services. 

    HIST: 1Sp1985 c 14 art 9 s 72; 1990 c 568 art 4 s 54 

     119B.15 Administrative expenses. 

    The commissioner shall use up to 1/21 of the state and 
 federal funds available for the basic sliding fee program and 
 1/21 of the state and federal funds available for the AFDC child 
 care program for payments to counties for administrative 
 expenses.  

    HIST: 1Sp1985 c 14 art 9 s 72; 1987 c 403 art 3 s 72; 1989 c 
 282 art 2 s 152; 1991 c 292 art 5 s 61; 1995 c 207 art 4 s 37; 
 1997 c 162 art 4 s 41 

     119B.16 Fair hearing process. 

    Subdivision 1.    Fair hearing allowed.  An applicant or 
 recipient adversely affected by a county agency action may 
 request a fair hearing in accordance with section 256.045. 

    Subd. 2.    Informal conference.  The county agency 
 shall offer an informal conference to applicants and recipients 
 adversely affected by an agency action to attempt to resolve the 
 dispute.  The county agency shall advise adversely affected 
 applicants and recipients that a request for a conference with 
 the agency is optional and does not delay or replace the right 
 to a fair hearing. 

    HIST: 1987 c 403 art 3 s 73; 1988 c 689 art 2 s 230; 1997 c 
 162 art 4 s 42 

     119B.17 Minnesota early childhood care and education 
  council. 

    Subdivision 1.    Establishment; members.  The Minnesota 
 early childhood care and education council shall consist of 19 
 members appointed by the governor.  Members must represent the 
 following groups and organizations:  parents, family child care 
 providers, child care center providers, private foundations, 
 corporate executives, small business owners, and public school 
 districts.  The council membership also includes the 
 commissioners of human services, economic security, children, 
 families, and learning, and health; a representative of the 
 higher education services office; a representative of the 
 Minnesota headstart association; representatives of two 
 Minnesota counties; three members from child care resource and 
 referral programs, one of whom shall be from a county-operated 
 resource and referral, one of whom shall be from a rural 
 location, and one of whom shall be from the metropolitan area; 
 and a community group representative.  The governor shall 
 consult with the councils established under sections 3.922, 
 3.9223, 3.9225, and 3.9226, representing the communities of 
 color, to ensure that membership of the council is 
 representative of all racial minority groups.  In addition to 
 the 19 members appointed by the governor, two members of the 
 senate shall be appointed by the president of the senate and two 
 members of the house of representatives shall be appointed by 
 the speaker of the house to serve as ex officio members of the 
 council.  Membership terms, compensation, and removal of members 
 are governed by section 15.059, except that the council shall 
 not expire as required by that section.  

    Subd. 2.    Executive director; staff.  The council 
 shall select an executive director of the council by a vote of a 
 majority of all council members.  The executive director is in 
 the unclassified service and shall provide administrative 
 support for the council and provide administrative leadership to 
 implement council mandates, policies, and objectives.  The 
 executive director shall employ and direct other staff. 

    Subd. 3.    Duties and powers.  The council has the 
 following duties and powers: 

    (1) develop a biennial plan for early childhood care and 
 education in the state; 

    (2) take a leadership role in developing its 
 recommendations in conjunction with the recommendations of other 
 state agencies on the state budget for early childhood care and 
 education; 

    (3) apply for and receive state money and public and 
 private grant money; 

    (4) participate in and facilitate the development of 
 interagency agreements on early childhood care and education 
 issues; 

    (5) review state agency policies on early childhood care 
 and education issues so that they do not conflict; 

    (6) advocate for an effective and coordinated early 
 childhood care and education system with state agencies and 
 programs; 

    (7) study the need for child care funding for special 
 populations whose needs are not being met by current programs; 

    (8) ensure that the early childhood care and education 
 system reflects community diversity; and 

    (9) be responsible for advocating policies and funding for 
 early childhood care and education. 

    HIST: 1991 c 292 art 5 s 62; 1994 c 483 s 1; 1995 c 212 art 3 
 s 59; 1Sp1995 c 3 art 16 s 13; 1997 c 7 art 2 s 11 

     119B.18 Regional child care resource and referral 
  programs. 

    Subdivision 1.    Establishment.  Existing child care 
 resource and referral programs shall become the regional child 
 care resource and referral programs provided they are in 
 compliance with other provisions of this chapter. 

    Subd. 2.    Duties.  The regional resource and referral 
 program shall have the duties specified in section 119B.19.  In 
 addition, the regional program shall be responsible for 
 establishing new or collaborating with existing community-based 
 committees such as interagency early intervention committees or 
 neighborhood groups to advocate for child care needs in the 
 community as well as serve as important local resources for 
 children and their families. 

    Subd. 3.    Child development education and training 
 loans.  The commissioner shall establish a child development 
 education and training loan program to be administered by the 
 regional child care resource and referral programs.  The 
 commissioner shall establish application procedures, eligibility 
 criteria, terms, and other conditions necessary to make 
 educational loans under this section.  A single applicant may 
 not receive more than $1,500 per year under this program.  All 
 or part of the loan may be forgiven if the applicant continues 
 to provide child care services for a period of 12 months 
 following the completion of all courses paid for by the 
 educational loan. 

    HIST: 1991 c 292 art 5 s 63; 1997 c 162 art 4 s 43 

     119B.19 Grants for school age child care programs and 
  child care resource and referral programs. 

    Subdivision 1.    Authority.  The commissioner of 
 children, families, and learning may make grants to public or 
 private nonprofit agencies for the planning, establishment, 
 expansion, improvement, or operation of child care resource and 
 referral programs and child care services according to the 
 provisions of this section and may make grants to county boards 
 to carry out the purposes of sections 119B.19 to 119B.21. 

    Subd. 2. Repealed, 1997 c 162 art 1 s 19 

    Subd. 3.    Program services.  The commissioner may make 
 grants to public or private nonprofit entities to fund child 
 care resource and referral programs.  Child care resource and 
 referral programs must serve a defined geographic area. 

    Subd. 4.    Grant requirements and priority.  Priority 
 for awarding resource and referral grants shall be given in the 
 following order: 

    (1) start up resource and referral programs in areas of the 
 state where they do not exist; and 

    (2) improve resource and referral programs. 

    Resource and referral programs shall meet the following 
 requirements:  

    (a) Each program shall identify all existing child care 
 services through information provided by all relevant public and 
 private agencies in the areas of service, and shall develop a 
 resource file of the services which shall be maintained and 
 updated at least quarterly.  These services must include family 
 day care homes; public and private day care programs; full-time 
 and part-time programs; infant, preschool, and extended care 
 programs; and programs for school age children. 

    The resource file must include:  the type of program, hours 
 of program service, ages of children served, fees, location of 
 the program, eligibility requirements for enrollment, special 
 needs services, and transportation available to the program.  
 The file may also include program information and special 
 program features. 

    (b) Each resource and referral program shall establish a 
 referral process which responds to parental need for information 
 and which fully recognizes confidentiality rights of parents.  
 The referral process must afford parents maximum access to all 
 referral information.  This access must include telephone 
 referral available for no less than 20 hours per week. 

    Each child care resource and referral agency shall 
 publicize its services through popular media sources, agencies, 
 employers, and other appropriate methods. 

    (c) Each resource and referral program shall maintain 
 ongoing documentation of requests for service.  All child care 
 resource and referral agencies must maintain documentation of 
 the number of calls and contacts to the child care information 
 and referral agency or component.  A resource and referral 
 program shall collect and maintain the following information: 

    (1) ages of children served; 

    (2) time category of child care request for each child; 

    (3) special time category, such as nights, weekends, and 
 swing shift; and 

    (4) reason that the child care is needed. 

    (d) Each resource and referral program shall make available 
 the following information as an educational aid to parents: 

    (1) information on aspects of evaluating the quality and 
 suitability of child care services, including licensing 
 regulation, financial assistance available, child abuse 
 reporting procedures, appropriate child development information; 

    (2) information on available parent, early childhood, and 
 family education programs in the community. 

    (e) On or after one year of operation a resource and 
 referral program shall provide technical assistance to employers 
 and existing and potential providers of all types of child care 
 services.  This assistance shall include: 

    (1) information on all aspects of initiating new child care 
 services including licensing, zoning, program and budget 
 development, and assistance in finding information from other 
 sources; 

    (2) information and resources which help existing child 
 care providers to maximize their ability to serve the children 
 and parents of their community; 

    (3) dissemination of information on current public issues 
 affecting the local and state delivery of child care services; 

    (4) facilitation of communication between existing child 
 care providers and child-related services in the community 
 served; 

    (5) recruitment of licensed providers; and 

    (6) options, and the benefits available to employers 
 utilizing the various options, to expand child care services to 
 employees. 

    Services prescribed by this section must be designed to 
 maximize parental choice in the selection of child care and to 
 facilitate the maintenance and development of child care 
 services and resources. 

    (f) Child care resource and referral information must be 
 provided to all persons requesting services and to all types of 
 child care providers and employers. 

    (g) Each resource and referral program shall coordinate 
 early childhood training for child care providers in that 
 program's service delivery area.  The resource and referral 
 program shall convene an early childhood care and education 
 training advisory committee to assist in the following 
 activities: 

    (1) assess the early childhood care and education training 
 needs of child care center staff and family and group family 
 child care providers; 

    (2) coordinate existing early childhood care and education 
 training; 

    (3) develop new early childhood care and education training 
 opportunities; and 

    (4) publicize all early childhood training classes and 
 workshops to child care center staff and family and group family 
 child care providers in the service delivery area. 

    (h) Public or private entities may apply to the 
 commissioner for funding.  A local match of up to 25 percent is 
 required. 

    Subd. 5.    Application; rules.  Applicants for grants 
 under subdivision 1 shall apply on a form provided by the 
 commissioner. Applications for grants using funds received by 
 the state pursuant to subdivision 2 shall include assurances 
 that federal requirements have been met.  The commissioner may 
 adopt rules as necessary to implement this section. 

    HIST: 1986 c 404 s 3; 1987 c 403 art 3 s 74; 1988 c 689 art 2 
 s 231; 1989 c 282 art 2 s 153; 1991 c 199 art 2 s 1; 1991 c 292 
 art 5 s 64; 1995 c 207 art 4 s 38; 1Sp1995 c 3 art 16 s 13 

     119B.20 Child care services grant definitions. 

    Subdivision 1.    Definitions.  As used in sections 
 119B.19 to 119B.23, the words defined in this section shall have 
 the meanings given them. 

    Subd. 2.    Child.  "Child" means a person 12 years old 
 or younger, or a person age 13 or 14 who is handicapped, as 
 defined in section 125A.02. 

    Subd. 3.    Child care.  "Child care" means the care of 
 a child by someone other than a parent or legal guardian outside 
 the child's own home for gain or otherwise, on a regular basis, 
 for any part of a 24-hour day. 

    Subd. 4.    Child care services.  "Child care services" 
 means child care provided in family day care homes, group day 
 care homes, nursery schools, day nurseries, child day care 
 centers, head start, and extended day school age child care 
 programs. 

    Subd. 5.    Child care worker.  "Child care worker" 
 means a person who cares for children for compensation, 
 including a licensed provider of child care services, an 
 employee of a provider, a person who has applied for a license 
 as a provider, or a person who meets the standards established 
 by the state board of education. 

    Subd. 6.    Commissioner.  "Commissioner" means the 
 commissioner of children, families, and learning. 

    Subd. 7.    Facility improvement expenses.  "Facility 
 improvement expenses" means funds for building improvements, 
 equipment, appropriate technology and software, toys, and 
 supplies needed to establish, expand, or improve a licensed 
 child care facility or a child care program under the 
 jurisdiction of a local board of education. 

    Subd. 8.    Interim financing.  "Interim financing" 
 means funds to carry out such activities as are necessary for 
 family day care homes, group family day care homes, and child 
 care centers to receive and maintain state licensing, to expand 
 an existing program or to improve program quality, and to 
 provide operating funds for a period of six consecutive months 
 after a family day care home, group family day care home, or 
 child care center becomes licensed or satisfies standards of the 
 state board of education.  Interim financing may not exceed a 
 period of 18 months. 

    Subd. 9.    Technical assistance awards.  "Technical 
 assistance awards" means child care grants to family child care 
 providers for facility improvements that are up to $1,000.  
 Awards include, but are not limited to, improvements to meet 
 licensing requirements, improvements to expand a child care 
 facility or program, appropriate technology and software, toys 
 and equipment, start-up costs, staff training, and development 
 costs. 

    Subd. 10.    Resource and referral program.  "Resource 
 and referral program" means a program that provides information 
 to parents, including referrals and coordination of community 
 child care resources for parents and public or private providers 
 of care.  It also means the agency with the duties specified in 
 sections 119B.18 and 119B.19.  Services may include recruitment 
 of new providers, parent education, training, technical 
 assistance for providers, and referrals to social services. 

    Subd. 11.    Staff training or development expenses.  
 "Staff training or development expenses" include the cost to a 
 child care worker of tuition, transportation, required materials 
 and supplies, and wages for a substitute while the child care 
 worker is engaged in a training program. 

    Subd. 12.    Training program.  "Training program" means 
 child development courses offered by an accredited 
 post-secondary institution or similar training approved by a 
 county board or the department of children, families, and 
 learning.  To qualify as a training program under this section, 
 a course of study must teach specific skills that meet licensing 
 requirements or requirements of the state board of education. 

    HIST: 1989 c 282 art 2 s 154; 1990 c 568 art 4 s 55; 1991 c 
 292 art 5 s 65; 1Sp1995 c 3 art 16 s 13; 1997 c 162 art 4 s 
 44-46; 1998 c 397 art 11 s 3 

     119B.21 Child care services grants. 

    Subdivision 1.    Grants established.  The commissioner 
 shall award grants to develop child care services, including 
 child care service development grants for start-up and facility 
 improvement expenses, interim financing, staff training 
 expenses, and grants for child care resource and referral 
 programs.  Child care service development grants may include 
 family child care technical assistance awards up to $1,000.  The 
 commissioner shall develop a grant application form, inform 
 county social service agencies about the availability of child 
 care services grants, and set a date by which applications must 
 be received by the commissioner. 

    Subd. 2.    Distribution of funds.  (a) The commissioner 
 shall allocate grant money appropriated for child care service 
 development among the development regions designated by the 
 governor under section 462.385, considering the following 
 factors for each economic development region: 

    (1) the number of children under 13 years of age needing 
 child care in the service area; 

    (2) the geographic area served by the agency; 

    (3) the ratio of children under 13 years of age needing 
 child care to the number of licensed spaces in the service area; 

    (4) the number of licensed child care providers and 
 extended day school age child care programs in the service area; 
 and 

    (5) other related factors determined by the commissioner. 

    (b) Out of the amount allocated for each economic 
 development region, the commissioner shall award grants based on 
 the recommendation of the child care regional advisory 
 committees.  In addition, the commissioner shall award no more 
 than 75 percent of the money either to child care facilities for 
 the purpose of facility improvement or interim financing or to 
 child care workers for staff training expenses.  

    (c) Any funds unobligated may be used by the commissioner 
 to award grants to proposals that received funding 
 recommendations by the regional advisory committees but were not 
 awarded due to insufficient funds.  

    (d) The commissioner may allocate grants under this section 
 for a two-year period and may carry forward funds from the first 
 year as necessary. 

    Subd. 3.    Child care regional advisory committees.  
 Child care regional advisory committees shall review and make 
 recommendations to the commissioner on applications for family 
 child care technical assistance awards and service development 
 grants under this section.  The commissioner shall appoint the 
 child care regional advisory committees in each governor's 
 economic development region.  People appointed under this 
 subdivision must represent the following constituent groups:  
 family child care providers, group center providers, parent 
 users, health services, social services, public schools, Head 
 Start, employers, and other citizens with demonstrated interest 
 in child care issues.  Members of the advisory task force with a 
 direct financial interest in a pending grant proposal may not 
 provide a recommendation or participate in the ranking of that 
 grant proposal.  Committee members may be reimbursed for their 
 actual travel, child care, and child care provider substitute 
 expenses for up to six committee meetings per year.  The child 
 care regional advisory committees shall complete their reviews 
 and forward their recommendations to the commissioner by the 
 date specified by the commissioner. 

    Subd. 4.    Distribution of funds for child care resource 
 and referral programs.  (a) The commissioner shall allocate 
 funds appropriated for child care resource and referral services 
 considering the following factors for each economic development 
 region served by the child care resource and referral agency:  

    (1) the number of children under 13 years of age needing 
 child care in the service area; 

    (2) the geographic area served by the agency; 

    (3) the ratio of children under 13 years of age needing 
 care to the number of licensed spaces in the service area; 

    (4) the number of licensed child care providers and 
 extended day school age child care programs in the service area; 
 and 

    (5) other related factors determined by the commissioner.  

    (b) The commissioner may renew grants to existing resource 
 and referral agencies that have met state standards and have 
 been designated as the child care resource and referral service 
 for a particular geographical area.  The recipients of renewal 
 grants are exempt from the proposal review process. 

    Subd. 5.    Purposes for which a child care services grant 
 may be awarded.  The commissioner may award grants for: 

    (1) child care service development grants for the following 
 purposes: 

    (i) for creating new licensed day care facilities and 
 expanding existing facilities, including, but not limited to, 
 supplies, equipment, facility renovation, and remodeling; 

    (ii) for improving licensed day care facility programs, 
 including, but not limited to, staff specialists, staff 
 training, supplies, equipment, and facility renovation and 
 remodeling; 

    (iii) for supportive child development services including, 
 but not limited to, in-service training, curriculum development, 
 consulting specialist, resource centers, and program and 
 resource materials; 

    (iv) for carrying out programs including, but not limited 
 to, staff, supplies, equipment, facility renovation, and 
 training; 

    (v) for interim financing; 

    (vi) family child care technical assistance awards; and 

    (vii) for capacity building through the purchase of 
 appropriate technology and software, and staff training to 
 create, enhance, and maintain financial systems for facilities; 

    (2) child care resource and referral program services 
 identified in section 119B.19, subdivision 3; or 

    (3) targeted recruitment initiatives to expand and build 
 capacity of the child care system. 

    Subd. 6.    Funding priorities; facility improvement, 
 interim financing, and training grants.  In evaluating 
 applications for funding and making recommendations to the 
 commissioner, the child care regional advisory committees shall 
 rank and give priority to:  

    (1) new programs or projects, or the expansion or 
 improvement of existing programs or projects in areas where a 
 demonstrated need for child care facilities has been shown, with 
 special emphasis on programs or projects in areas where there is 
 a shortage of licensed child care; 

    (2) new programs and projects, or the expansions or 
 enrichment of existing programs or projects that serve sick 
 children, infants or toddlers, children with special needs, 
 children from low-income families, or parents needing child care 
 during nonstandard hours; 

    (3) unlicensed providers who wish to become licensed; 

    (4) improvement of existing programs; 

    (5) child care programs seeking accreditation and child 
 care providers seeking certification; and 

    (6) entities that will use grant money for scholarships for 
 child care workers attending educational or training programs 
 sponsored by the entity. 

    Subd. 7. Repealed, 1997 c 162 art 1 s 19 

    Subd. 8.    Eligible grant recipients.  Eligible 
 recipients of child care grants are licensed providers of child 
 care, or those in the process of being licensed, resource and 
 referral programs, or corporations or public agencies, or any 
 combination thereof.  

    Subd. 9.    Grant match requirements.  Child care grants 
 for facility improvements, interim financing, resource and 
 referral, and staff training and development require a 25 
 percent local match by the grant applicant.  A local match is 
 not required for a family child care technical assistance award. 

    Subd. 10.    Family child care technical assistance 
 awards.  Technical assistance awards for child care service 
 development must be used by the family child care provider 
 grantee for facility improvements, including, but not limited 
 to, improvements to meet licensing requirements, improvements to 
 expand the facility, toys and equipment, start-up costs, interim 
 financing, or staff training and development.  

    Subd. 11.    Advisory task force.  The commissioner may 
 convene a statewide advisory task force which shall advise the 
 commissioner on grants or other child care issues.  The 
 following constituent groups must be represented:  family child 
 care providers, center providers, parent users, health services, 
 social services, Head Start, public schools, employers, and 
 other citizens with demonstrated interest in child care issues.  
 Each regional grant review committee formed under subdivision 3, 
 shall appoint a representative to the advisory task force.  
 Additional members may be appointed by the commissioner.  The 
 commissioner may convene meetings of the task force as needed.  
 Terms of office and removal from office are governed by the 
 appointing body.  The commissioner may compensate members for 
 their travel, child care, and child care provider substitute 
 expenses for meetings of the task force.  

    Subd. 12.    Advisory committee costs.  The commissioner 
 may use money appropriated for services under this section for 
 administrative expenses associated with advisory committees and 
 task forces authorized by this section. 

    HIST: 1989 c 282 art 2 s 155; 1990 c 426 art 1 s 32,33; 1990 c 
 568 art 4 s 56-58; 1991 c 292 art 5 s 66,67; 1994 c 465 art 3 s 
 38; 1997 c 162 art 4 s 47-56 

     119B.22 Assistance to child care centers and providers. 

    The commissioner shall work with the early childhood care 
 and education council and with the resource and referral 
 programs to develop tools to assist child care centers and 
 family child care providers to obtain accreditation and 
 certification and to achieve improved pay for child care workers.

    HIST: 1991 c 292 art 5 s 68 

     119B.23 Other authorization to make grants. 

    Subdivision 1.    Authority.  In addition to the 
 commissioner's authority to make child care services grants, the 
 county board is authorized to provide child care services, or to 
 make grants from the community social service fund, special tax 
 revenue, or its general fund, or other sources to any 
 municipality, corporation, or combination thereof, for the cost 
 of providing technical assistance and child care services.  The 
 county board is also authorized to contract for services with 
 any licensed day care facility, as the board deems necessary or 
 proper to carry out the purposes of this section. 

    The county board may also make grants to or contract with 
 any municipality, licensed child care facility, or resource and 
 referral program, or corporation or combination thereof, for any 
 of the following purposes: 

    (1) creating new licensed day care facilities and expanding 
 existing facilities including, but not limited to, supplies, 
 equipment, and facility renovation and remodeling; 

    (2) improving licensed day care facility programs, 
 including, but not limited to, staff specialists, staff 
 training, supplies, equipment, and facility renovation and 
 remodeling.  In awarding grants for training, counties must give 
 priority to child care workers caring for infants, toddlers, 
 sick children, children in low-income families, and children 
 with special needs; 

    (3) supportive child development services, including, but 
 not limited to, in-service training, curriculum development, 
 consulting specialists, resource centers, and program and 
 resource materials; 

    (4) carrying out programs, including, but not limited to, 
 staff, supplies, equipment, facility renovation, and training; 

    (5) interim financing; and 

    (6) carrying out the resource and referral program services 
 identified in section 119B.19, subdivision 3. 

    Subd. 2.    Donated materials and services; matching share 
 of cost.  For the purposes of this section, donated 
 professional and volunteer services, program materials, 
 equipment, supplies, and facilities may be approved as part of a 
 matching share of the cost, provided that total costs shall be 
 reduced by the costs charged to parents if a sliding fee scale 
 has been used. 

    Subd. 3.    Biennial plan.  The county board shall 
 biennially develop a plan for the distribution of money for 
 child care services as part of the community social services 
 plan described in section 256E.09.  All licensed child care 
 programs shall be given written notice concerning the 
 availability of money and the application process. 

    HIST: 1989 c 282 art 2 s 156 

     119B.24 Duties of commissioner. 

    In addition to the powers and duties already conferred by 
 law, the commissioner of children, families, and learning shall: 

    (1) by September 1, 1998, and every five years thereafter, 
 survey and report on all components of the child care system, 
 including, but not limited to, availability of licensed child 
 care slots, the number of children in various kinds of child 
 care settings, staff wages, rate of staff turnover, 
 qualifications of child care workers, cost of child care by type 
 of service and ages of children, and child care availability 
 through school systems; 

    (2) by September 1, 1998, and every five years thereafter, 
 survey and report on the extent to which existing child care 
 services fulfill the need for child care, giving particular 
 attention to the need for part-time care and for care of 
 infants, sick children, children with special needs, low-income 
 children, toddlers, and school-age children; 

    (3) administer the child care fund, including the sliding 
 fee program authorized under sections 119B.01 to 119B.16; 

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

    (5) encourage child care providers to participate in a 
 nationally recognized accreditation system for early childhood 
 programs.  The commissioner shall reimburse licensed child care 
 providers for one-half of the direct cost of accreditation fees, 
 upon successful completion of accreditation. 

    HIST: 1989 c 282 art 2 s 157; 1994 c 529 s 15; 1Sp1995 c 3 art 
 16 s 13 

     119B.25 Child care improvement grants. 

    Subdivision 1.    Purpose.  The purpose of this section 
 is to enhance and expand child care sites, to encourage private 
 investment in child care and early childhood education sites, to 
 promote availability of quality, affordable child care 
 throughout Minnesota, and to provide for cooperation between 
 private nonprofit child care organizations, family child care 
 and center providers and the department. 

    Subd. 2.    Grants.  The commissioner shall distribute 
 money provided by this section through a grant to a nonprofit 
 corporation organized to plan, develop, and finance early 
 childhood education and child care sites.  The nonprofit 
 corporation must have demonstrated the ability to analyze 
 financing projects, have knowledge of other sources of public 
 and private financing for child care and early childhood 
 education sites, and have a relationship with the resource and 
 referral programs under section 119B.18.  The board of directors 
 of the nonprofit corporation must include members who are 
 knowledgeable about early childhood education, child care, 
 development and improvement, and financing.  The commissioners 
 of the departments of children, families, and learning and trade 
 and economic development, and the commissioner of the housing 
 finance agency shall advise the board on the loan program.  The 
 grant must be used to make loans to improve child care or early 
 childhood education sites, or loans to plan, design, and 
 construct or expand licensed and legal unlicensed sites to 
 increase the availability of child care or early childhood 
 education.  All loans made by the nonprofit corporation must 
 comply with section 363.03, subdivision 8. 

    Subd. 3.    Financing program.  A nonprofit corporation 
 that receives a grant under this section shall use the money to: 

    (1) establish a revolving loan fund to make loans to 
 existing, expanding, and new licensed and legal unlicensed child 
 care and early childhood education sites; 

    (2) establish a fund to guarantee private loans to improve 
 or construct a child care or early childhood education site; 

    (3) establish a fund to provide forgivable loans or grants 
 to match all or part of a loan made under this section; and 

    (4) establish a fund as a reserve against bad debt.  

    The nonprofit corporation shall establish the terms and 
 conditions for loans and loan guarantees including, but not 
 limited to, interest rates, repayment agreements, private match 
 requirements, and conditions for loan forgiveness.  The 
 nonprofit corporation shall establish a minimum interest rate 
 for loans to ensure that necessary loan administration costs are 
 covered.  The nonprofit corporation may use interest earnings 
 for administrative expenses. 

    Subd. 4.    Reporting.  A nonprofit corporation that 
 receives a grant under this section shall: 

    (1) annually report by September 30 to the commissioner the 
 purposes for which the money was used in the past fiscal year, 
 including a description of projects supported by the financing, 
 an account of loans made during the calendar year, the financing 
 program's assets and liabilities, and an explanation of 
 administrative expenses; and 

    (2) annually submit to the commissioner a copy of the 
 report of an independent audit performed in accordance with 
 generally accepted accounting practices and auditing standards. 

    HIST: 1997 c 162 art 4 s 57 

     119B.26 Authority to waive requirements during disaster 
  periods.  

    The commissioner may waive requirements under this chapter 
 for up to nine months after the disaster in areas where a 
 federal disaster has been declared under United States Code, 
 title 42, section 5121, et seq., or the governor has exercised 
 authority under chapter 12.  The commissioner shall notify the 
 chairs of the senate family and early childhood education budget 
 division, the senate education finance committee, the house 
 family and early childhood education finance division, the house 
 education committee, and the house ways and means committee ten 
 days before the effective date of any waiver granted under this 
 section. 

    HIST: 1997 c 203 art 1 s 15; 1Sp1997 c 5 s 46; 1998 c 383 s 36