2002 Minnesota Statutes

CHAPTER 119B. Child care programs

    119B.01 Subdivision 1. Renumbered 119B.011, 
 subdivision 1 

    Subd. 2. Renumbered 119B.011, subd. 2 

    Subd. 2a. Renumbered 119B.011, subd. 3 

    Subd. 3. Renumbered 119B.011, subd. 7 

    Subd. 4. Renumbered 119B.011, subd. 4 

    Subd. 5. Renumbered 119B.011, subd. 8 

    Subd. 6. Renumbered 119B.011, subd. 5 

    Subd. 7. Renumbered 119B.011, subd. 9 

    Subd. 7a. Renumbered 119B.011, subd. 10 

    Subd. 8. Renumbered 119B.011, subd. 11 

    Subd. 9. Renumbered 119B.011, subd. 12 

    Subd. 10. Renumbered 119B.011, subd. 13 

    Subd. 11. Renumbered 119B.011, subd. 14 

    Subd. 12. Renumbered 119B.011, subd. 15 

    Subd. 12a. Renumbered 119B.011, subd. 17 

    Subd. 13. Renumbered 119B.011, subd. 19 

    Subd. 14. Renumbered 119B.011, subd. 18 

    Subd. 15. Repealed, 1999 c 205 art 1 s 73 

    Subd. 16. Renumbered 119B.011, subd. 20 

    Subd. 17. Renumbered 119B.011, subd. 6 

    Subd. 18. Renumbered 119B.011, subd. 16 

     119B.011 Definitions. 

    Subdivision 1.    Scope.  For the purposes of this 
 chapter, the following terms have the meanings given. 

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

    Subd. 3.    Application.  "Application" means the 
 submission to a county agency, by or on behalf of a family, of a 
 completed, signed, and dated child care assistance universal 
 application form that indicates the family's desire to receive 
 assistance. 

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

    (1) financial assistance for child care to parents engaged 
 in employment, job search, or education and training leading to 
 employment, or an at-home infant care subsidy; and 

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

    Subd. 7.    Child care services.  "Child care services" 
 means the provision of child care as defined in subdivision 5. 

    Subd. 8.    Commissioner.  "Commissioner" means the 
 commissioner of children, families, and learning. 

    Subd. 9.    County board.  "County board" means the 
 board of county commissioners in each county. 

    Subd. 10.    Department.  "Department" means the 
 department of children, families, and learning. 

    Subd. 11.    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 12.  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. 12.    Employment plan.  "Employment plan" means 
 employment of recipients financially eligible for child care 
 assistance, or other work activities defined under section 
 256J.49, 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. 13.    Family.  "Family" means parents, 
 stepparents, guardians and their spouses, or other eligible 
 relative caregivers 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 or parents, 
 stepparents, guardians and their spouses, or other relative 
 caregivers and their spouses temporarily absent from the 
 household in settings such as schools, military service, or 
 rehabilitation programs.  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 their child or children.  An adult age 18 or older who meets 
 this definition of family and is a full-time high school or 
 post-secondary student may be considered a dependent member of 
 the family unit if 50 percent or more of the adult's support is 
 provided by the parents, stepparents, guardians, and their 
 spouses or eligible relative caregivers and their spouses 
 residing in the same household. 

    Subd. 14.    Human services board.  "Human services 
 board" means a board established under section 402.02, Laws 
 1974, chapter 293, or Laws 1976, chapter 340. 

    Subd. 15.    Income.  "Income" means earned or unearned 
 income received by all family members, including public 
 assistance cash benefits and at-home infant care subsidy 
 payments, unless specifically excluded and child support and 
 maintenance distributed to the family under section 256.741, 
 subdivision 15.  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 or reimbursement for tuition, fees, 
 books, and educational supplies; student loans for tuition, 
 fees, books, supplies, and living expenses; state and federal 
 earned income tax credits; in-kind income such as food stamps, 
 energy assistance, foster care assistance, medical assistance, 
 child care assistance, and housing subsidies; earned income of 
 full-time or part-time students up to the age of 19, who have 
 not earned a high school diploma or GED high school equivalency 
 diploma including earnings from 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 256.741. 

    Subd. 16.    Legal nonlicensed child care provider.  
 "Legal nonlicensed child care provider" means a child care 
 provider who is excluded from licensing requirements under 
 section 245A.03, subdivision 2. 

    Subd. 17.    MFIP.  "MFIP" means the Minnesota family 
 investment program, the state's TANF program under Public Law 
 Number 104-193, Title I, and includes the MFIP program under 
 chapter 256J, the work first program under chapter 256K, and 
 tribal contracts under section 119B.02, subdivision 2, or 
 256.01, subdivision 2. 

    Subd. 18.    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. 19.    Provider.  "Provider" means an individual 
 or child care center or facility, either licensed or unlicensed, 
 providing legal child care services as defined under section 
 245A.03.  A legally unlicensed registered family child care 
 provider must be at least 18 years of age, and not a member of 
 the MFIP assistance unit or a member of the family receiving 
 child care assistance under this chapter.  

    Subd. 20.    Transition year families.  "Transition year 
 families" means families who have received MFIP assistance, or 
 who were eligible to receive MFIP assistance after choosing to 
 discontinue receipt of the cash portion of MFIP assistance under 
 section 256J.31, subdivision 12, for at least three of the last 
 six months before losing eligibility for MFIP or families 
 participating in work first under chapter 256K who meet the 
 requirements of section 256K.07.  Transition year child care may 
 be used to support employment or job search.  Transition year 
 child care is not available to families who have been 
 disqualified from MFIP due to fraud.  

    Subd. 21.    Recoupment of overpayments.  "Recoupment of 
 overpayments" means the reduction of child care assistance 
 payments to an eligible family in order to correct an 
 overpayment to the family even when the overpayment is due to 
 agency error or other circumstances outside the responsibility 
 or control of the family. 

    Subd. 22.    Service period.  "Service period" means the 
 biweekly period used by the child care assistance program for 
 billing and payment purposes. 

    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; 1999 c 159 s 7-12,154; 1999 c 205 art 1 s 3-10,69; 
 art 5 s 1,2,21; 2000 c 260 s 19,89; 2000 c 488 art 10 s 1; 2000 
 c 489 art 1 s 2-4; 1Sp2001 c 3 art 1 s 1,2; 2002 c 279 s 1,2 

     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 under title I and title 
 IV of Public Law Number 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.  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.  

    Subd. 3.    Supervision of counties.  The commissioner 
 shall supervise child care programs administered by the counties 
 through standard-setting, technical assistance to the counties, 
 approval of county child care fund plans, and distribution of 
 public money for services.  The commissioner shall provide 
 training and other support services to assist counties in 
 planning for and implementing child care assistance programs.  
 The commissioner shall adopt rules under chapter 14 that 
 establish minimum administrative standards for the provision of 
 child care services by county boards of commissioners.  

    Subd. 4.    Universal application form.  The 
 commissioner must develop and make available to all counties a 
 universal application form for child care assistance under this 
 chapter.  The application must provide notice of eligibility 
 requirements for assistance and penalties for wrongfully 
 obtaining assistance. 

    Subd. 5.    Program integrity.  For child care 
 assistance programs under this chapter, the commissioner shall 
 enforce, in cooperation with the commissioner of human services, 
 the requirements for program integrity and fraud prevention 
 investigations under sections 256.046, 256.98, and 256.983. 

    Subd. 6.    Data.  Data on individuals collected by the 
 commissioner for purposes of administering this chapter are 
 private data on individuals as defined in section 13.02. 

    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; 1999 c 159 s 13; 1999 c 205 art 1 s 
 11-14; 2001 c 178 art 2 s 5 

     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 child care fund plans required under 
 section 119B.08, subdivision 3, 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 preliminary determination 
 of eligibility when a family requests child care assistance.  At 
 a minimum, a county must make a preliminary determination of 
 eligibility based on family size, income, and authorized 
 activity.  A family seeking child care assistance must provide 
 the required information to the county.  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.  Counties must review and update their 
 waiting list at least every six months. 

    Subd. 3.    Eligible participants.  Families that meet 
 the eligibility requirements under sections 119B.07, 119B.09, 
 and 119B.10, except MFIP participants, work first participants, 
 and transition year families 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-MFIP 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 and who need child care 
 assistance to participate in the education program.  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 MFIP or work first 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.  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-fourth 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 
 fiscal year completed at the time of the notice of allocation.  

    (b) One-fourth of the funds shall be allocated based on the 
 number of families participating in the transition year child 
 care program as reported during the most recent quarter 
 completed at the time of the notice of allocation. 

    (c) One-fourth of the funds shall be allocated in 
 proportion to each county's most recently reported first, 
 second, and third priority waiting list as defined in 
 subdivision 2. 

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

    Subd. 6a.    Allocation due to increased funding.  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, according to formulas identified 
 in subdivision 6. 

    Subd. 7. Repealed, 1999 c 205 art 1 s 73 

    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 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. 

    (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; 1999 c 159 s 14,15; 1999 c 
 205 art 1 s 15-20,69; 2000 c 489 art 1 s 5,6 

     119B.04 Federal child care and development fund. 

    Subdivision 1.    Commissioner to administer program.  
 The commissioner 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 VI.  

    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; 1999 c 205 art 1 s 21 

     119B.05 MFIP child care assistance program. 

    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; 

    (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 chapter 256K; 

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

    (6) families who are participating in programs as required 
 in tribal contracts under section 119B.02, subdivision 2, or 
 256.01, subdivision 2. 

    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. Repealed, 1999 c 159 s 154; 1999 c 205 art 1 s 
 73 

    Subd. 7. Repealed, 1999 c 205 art 1 s 73 

    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; 1999 
 c 86 art 1 s 32; 1999 c 159 s 16; 1999 c 205 art 1 s 
 21,22,69,70; 2000 c 489 art 1 s 7 

*   NOTE:  Subdivision 1, clause (5), expires June 30, 2003.  
*Laws 2000, chapter 489, article 1, section 36.

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

    Subdivision 1.    Commissioner to administer block grant. 
  The commissioner 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.  

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

    Subd. 3.    Child care development fund plan development; 
 review.  In an effort to improve state legislative involvement 
 in the development of the Minnesota child care and development 
 fund plan, the commissioner must present a draft copy of the 
 plan to the legislative finance committees that oversee child 
 care assistance funding no less than 30 days prior to the 
 required deadline for submission of the plan to the federal 
 government.  The legislature must submit any adjustments to the 
 plan to the commissioner for consideration within ten business 
 days of receiving the draft plan.  The commissioner must present 
 a copy of the final plan to the chairs of the legislative 
 finance committees that oversee child care assistance funding no 
 less than four days prior to the deadline for submission of the 
 plan to the federal government.  

    HIST: 1991 c 292 art 5 s 56; 1Sp1995 c 3 art 16 s 13; 1999 c 
 205 art 1 s 23; 1Sp2001 c 3 art 1 s 3 

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

    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, the income 
 criteria under section 119B.12, and the requirements of this 
 section.  Subject to federal match and maintenance of effort 
 requirements for the child care and development fund, 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 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. 

    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, other cash 
 assistance, or other child care assistance; 

    (2) the family has not previously received all of the 
 one-year exemption from the work requirement for infant care 
 under the MFIP 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 provides verification of participation in an 
 authorized activity at the time of application and meets the 
 program requirements. 

    Subd. 3.    Eligible parent.  A family is eligible for 
 assistance under this section if one parent cares for the 
 family's infant child.  The eligible parent must: 

    (1) be over the age of 18; 

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

    (3) care for any other children in the family who are 
 eligible for child care assistance under this chapter.  

    For the purposes of this section, "parent" means birth 
 parent, adoptive parent, or stepparent. 

    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 90 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.  For purposes of this section, the annual income of 
 the applicant family must be based on an annualization of the 
 income received only during the period in which the family is 
 participating in the at-home infant care program. 

    (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) Persons who are admitted to the at-home infant care 
 program retain their position in any basic sliding fee program 
 or on any waiting list attained at the time of admittance.  If 
 they are on the waiting list, they must advance as if they had 
 not been admitted to the program.  Persons leaving the at-home 
 infant care program re-enter the basic sliding fee program at 
 the position they would have occupied or the waiting list at the 
 position to which they would have advanced.  Persons who would 
 have attained eligibility for the basic sliding fee program must 
 be given assistance or advance to the top of the waiting list 
 when they leave the at-home infant care program.  Persons 
 admitted to the at-home infant care program who are not on a 
 basic sliding fee waiting list may apply to the basic sliding 
 fee program, and if eligible, be placed on the waiting list. 

    (d) The time that a family receives assistance under this 
 section must be deducted from the one-year exemption from work 
 requirements under the MFIP program. 

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

    Subd. 5.    Implementation.  (a) The commissioner shall 
 implement the at-home infant child care program under this 
 section through counties that administer the basic sliding fee 
 program under section 119B.03.  The commissioner must develop 
 and distribute consumer information on the at-home infant care 
 program to assist parents of infants or expectant parents in 
 making informed child care decisions. 

    (b) 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; 1999 c 205 art 1 s 24; 1Sp2001 c 
 3 art 1 s 4; 2002 c 279 s 3,4 

     119B.07 Use of money. 

    (a) 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 employment plan in the case of an MFIP participant, and 
 county policies included in the child care fund 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.  

    (b) 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.  If an MFIP 
 participant who is receiving MFIP child care assistance under 
 this chapter moves to another county, continues to participate 
 in educational or training programs authorized in their 
 employment plans, and continues to be eligible for MFIP child 
 care assistance under this chapter, the MFIP participant must 
 receive continued child care assistance from the county 
 responsible for their current employment plan, under section 
 256G.07. 

    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; 1999 c 159 s 17; 1999 c 205 art 1 s 25,69 

     119B.074 Special revenue account for child care. 

    A child support collection account is established in the 
 special revenue fund for the deposit of collections through the 
 assignment of child support under section 256.741, subdivision 
 2.  The commissioner of human services must deposit all 
 collections made under section 256.741, subdivision 2, in the 
 child support collection account.  Money in this account is 
 appropriated to the commissioner for assistance under section 
 119B.03 and is in addition to other state and federal 
 appropriations.  

    HIST: 1999 c 205 art 1 s 26 

  119B.075 Repealed, 1999 c 205 art 1 s 73 

     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.  The county and 
 designated administering agency shall submit to the commissioner 
 an annual child care fund plan in its biennial community social 
 services plan.  The commissioner shall establish the dates by 
 which the county must submit the plans.  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 
 families of the availability of child care assistance and 
 related services; 

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

    (4) the county prioritization policy for all eligible 
 families under the basic sliding fee 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; 1999 c 
 159 s 19; 1999 c 205 art 1 s 27,69 

     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 MFIP 
 assistance; and are participating in employment and training 
 services under chapter 256J or 256K; 

    (2) have household income below the eligibility levels for 
 MFIP; or 

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

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

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

    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 families, it may prioritize among the 
 families 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 families who are not MFIP 
 participants beyond those established under section 119B.03 must 
 submit the policy in the annual child care fund 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.011, subdivision 
 19, 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.011, subdivision 19.  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.011, subdivision 19. 

    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.    Date of eligibility for assistance.  (a) 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, 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 waiting list, the date 
 the family applies for at-home infant child care.  

    (b) 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 MFIP is effective 
 the date of employment or the date of MFIP eligibility, 
 whichever is later.  Payment of child care assistance for MFIP 
 or work first participants in employment and training services 
 is effective the date of commencement of the services or the 
 date of MFIP 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; 1999 c 
 159 s 20-22; 1999 c 205 art 1 s 28-30,69; art 5 s 21 

     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 and full-time students who work at least an average of ten 
 hours a week and receive at least a minimum wage for all hours 
 worked are eligible for continued child care assistance for 
 employment.  For purposes of this section, work-study programs 
 must be counted as employment.  Child care assistance during 
 employment must be authorized as provided in paragraphs (c) and 
 (d). 

    (c) When the person 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 person 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; 1999 c 205 art 1 s 31 

     119B.11 County contribution. 

    Subdivision 1.    County contributions required.  (a) 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.  The commissioner may accept 
 county contributions, including contributions above the fixed 
 local match, in order to make state payments. 

    (b) The commissioner may accept payments from counties to: 

    (1) fulfill the county contribution as required under 
 subdivision 1; 

    (2) pay for services authorized under this chapter beyond 
 those paid for with federal or state funds or with the required 
 county contributions; or 

    (3) pay for child care services in addition to those 
 authorized under this chapter, as authorized under other 
 federal, state, or local statutes or regulations. 

    (c) The county payments must be deposited in an account in 
 the special revenue fund.  Money in this account is appropriated 
 to the commissioner for child care assistance under this chapter 
 and other applicable statutes and regulations and is in addition 
 to other state and federal appropriations. 

    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.  If the family 
 remains eligible for child care assistance, the overpayment must 
 be recovered through recoupment as identified in Minnesota 
 Rules, part 3400.0140, subpart 19.  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:  (1) the debt is paid in full; or 
 (2) satisfactory arrangements are made with the county to retire 
 the debt consistent with the requirements of this chapter and 
 Minnesota Rules, chapter 3400, and the family is in compliance 
 with the arrangements. 

    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; 1999 c 205 art 1 s 32; 1Sp2001 c 3 art 1 s 
 5 

     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.011, subdivision 15.  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 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; 1999 c 205 art 1 s 33; art 5 s 21 

     119B.13 Child care rates. 

    Subdivision 1.    Subsidy restrictions.  The maximum 
 rate paid for child care assistance under the child care fund 
 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 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 commissioner shall evaluate 
 market practices for payment of absences 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.  A 
 family child care provider or child care center shall be paid a 
 ten percent bonus above the maximum rate established in 
 subdivision 1, if the provider or center holds a current early 
 childhood development credential approved by the commissioner, 
 up to the actual provider rate.  

    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 approved 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 provider must not 
 contain any private data on the family or information on why 
 payment will no longer be made. 

    Subd. 6.    Provider payments.  Counties or the state 
 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 or 
 the state 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 or the state 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.  If payments are made by the 
 state, in addition to being in compliance with this subdivision, 
 the payments must be made in compliance with section 16A.124. 

    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; 1999 c 205 art 1 s 34; 1Sp2001 c 3 
 art 1 s 6 

     119B.14 Extension of employment opportunities. 

    The county board shall ensure that child care services 
 available to eligible residents are well advertised and that 
 everyone who receives or applies for MFIP assistance 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; 1999 c 
 159 s 23; 1999 c 205 art 1 s 35,69 

     119B.15 Administrative expenses. 

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

    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; 1999 c 159 s 24; 1999 c 205 art 1 s 36,69 

     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 Repealed, 1999 c 205 art 1 s 73 

    119B.18 Subdivision 1. Repealed, 1999 c 205 art 5 s 22 

    Subd. 2. Repealed, 1999 c 205 art 5 s 22 

    Subd. 3. Renumbered 119B.211 

     119B.189 Child care services grant definitions. 

    Subdivision 1.    Facility improvement expenses.  
 "Facility improvement expenses" means the cost of 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 district school board. 

    Subd. 2.    Interim financing.  "Interim financing" 
 means funding for up to 18 months: 

    (1) for activities that are necessary to receive and 
 maintain state child care licensing; 

    (2) to expand an existing child care program or to improve 
 program quality; and 

    (3) to operate for a period of six consecutive months after 
 a child care facility becomes licensed or satisfies standards of 
 the commissioner of children, families, and learning. 

    Subd. 3.    Region.  "Region" means a region designated 
 by the governor under section 462.385. 

    Subd. 4.    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 commissioner.  A training program must be a 
 course of study that teaches specific skills to meet licensing 
 requirements or requirements of the commissioner of children, 
 families, and learning. 

    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; 1998 c 398 art 5 s 55; 1999 c 205 
 art 5 s 8-11,21 

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

    Subdivision 1.    Distribution of funds for operation of 
 child care resource and referral programs.  The commissioner 
 of children, families, and learning shall distribute funds to 
 public or private nonprofit organizations for the planning, 
 establishment, expansion, improvement, or operation of child 
 care resource and referral programs under this section.  The 
 commissioner must adopt rules for programs under this section 
 and sections 119B.189 and 119B.21.  The commissioner must 
 develop a process to fund organizations to operate child care 
 resource and referral programs that includes application forms, 
 timelines, and standards for renewal. 

    Subd. 1a.    Designation of organizations.  The 
 commissioner shall designate an organization to administer a 
 child care resource and referral program to serve a region. 

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

    Subd. 3. Repealed, 1999 c 205 art 5 s 22 

    Subd. 4. Repealed, 1999 c 205 art 5 s 22 

    Subd. 5. Repealed, 1999 c 205 art 5 s 22 

    Subd. 6.    Basis for distributing funds.  (a) The 
 commissioner shall distribute funds for the administration of 
 child care resource and referral programs based on the following 
 factors for each region:  

    (1) the region served by the program; 

    (2) the number of children under the age of 13 years 
 needing child care; 

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

    (4) the number of licensed child care providers and 
 school-age care programs; and 

    (5) other related factors determined by the commissioner. 

    (b) The commissioner may provide ongoing funding to a 
 designated organization for a child care resource and referral 
 program that continues to meet state standards. 

    Subd. 6a.    Local match requirement.  A local match of 
 25 percent is required. 

    Subd. 7.    Child care resource and referral programs.  
 Within each region, a child care resource and referral program 
 must: 

    (1) maintain one database of all existing child care 
 resources and services and one database of family referrals; 

    (2) provide a child care referral service for families; 

    (3) develop resources to meet the child care service needs 
 of families; 

    (4) increase the capacity to provide culturally responsive 
 child care services; 

    (5) coordinate professional development opportunities for 
 child care and school-age care providers; 

    (6) administer and award child care services grants; 

    (7) administer and provide loans for child development 
 education and training; and 

    (8) cooperate with the Minnesota Child Care Resource and 
 Referral Network and its member programs to develop effective 
 child care services and child care resources. 

    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; 1999 
 c 205 art 5 s 3-7,21 

    119B.20 Subdivision 1. Repealed, 1999 c 205 art 5 
 s 22 

    Subd. 2. Repealed, 1999 c 205 art 5 s 22 

    Subd. 3. Repealed, 1999 c 205 art 5 s 22 

    Subd. 4. Repealed, 1999 c 205 art 5 s 22 

    Subd. 5. Repealed, 1999 c 205 art 5 s 22 

    Subd. 6. Repealed, 1999 c 205 art 5 s 22 

    Subd. 7. Renumbered 119B.189, subdivision 1 

    Subd. 8. Renumbered 119B.189, subd. 2 

    Subd. 9. Repealed, 1999 c 205 art 5 s 22 

    Subd. 10. Repealed, 1999 c 205 art 5 s 22 

    Subd. 11. Repealed, 1999 c 205 art 5 s 22 

    Subd. 12. Renumbered 119B.189, subd. 4 

    Subd. 13. Renumbered 119B.189, subd. 3 

     119B.21 Child care services grants. 

    Subdivision 1.    Distribution of grant funds.  (a) The 
 commissioner shall distribute funds to the child care resource 
 and referral programs designated under section 119B.19, 
 subdivision 1a, for child care services grants under subdivision 
 5 and family child care technical assistance grants under 
 subdivision 10.  

    (b) Up to ten percent of funds appropriated for grants 
 under this section may be used by the commissioner for statewide 
 child care development initiatives, training initiatives, 
 collaboration programs, and research and data collection.  The 
 commissioner shall develop eligibility guidelines and a process 
 to distribute funds under this paragraph.  Child care resource 
 and referral programs may apply for funding under this paragraph.

    (c) At least 90 percent of funds appropriated for grants 
 under this section may be distributed by the commissioner to 
 child care resource and referral programs under section 119B.19, 
 subdivision 1a, for child care services grants and family child 
 care technical assistance grants based on the following factors: 

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

    (2) the region served by the program; 

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

    (4) the number of licensed child care providers and 
 school-age care programs in the region; and 

    (5) other related factors determined by the commissioner. 

    (d) Child care resource and referral programs must award 
 child care services grants and child care technical assistance 
 grants based on the recommendation of the child care regional 
 proposal review committees under subdivision 3.  

    (e) The commissioner may distribute funds under this 
 section for a two-year period.  

    Subd. 2. Renumbered subdivision 1, paragraphs (c), (d), 
 and (e) 

    Subd. 3.    Child care regional proposal review 
 committees.  (a) Child care regional proposal review 
 committees must establish regional priorities and review 
 applications for family child care technical assistance grants 
 and child care services grants under this section and make 
 funding recommendations to the child care resource and referral 
 program designated under section 119B.19, subdivision 1a.  
 Within each region, the committee must allocate available 
 funding between child care services grants and child care 
 technical assistance grants.  The committee must also allocate 
 funding for child care services grants for facility financing 
 purposes and provider training purposes.  The child care 
 regional proposal review committees must complete their reviews 
 and forward their recommendations to the child care resource and 
 referral program by the date specified by the commissioner.  

    (b) A child care resource and referral program shall 
 establish a process to select members of the child care regional 
 proposal review committee.  Members must represent the following 
 constituent groups:  family child care providers, child care 
 center providers, school-age care providers, parents who use 
 child care services, health services, social services, public 
 schools, Head Start, employers, and other citizens with 
 demonstrated interest in child care issues.  Members of the 
 proposal review committee with a direct financial interest in a 
 pending grant proposal may not provide a recommendation or 
 participate in the ranking of that grant proposal. 

    (c) The child care resource and referral program may 
 reimburse committee members for their actual travel, child care, 
 and child care provider substitute expenses for up to six 
 committee meetings per year.  The program may also pay a stipend 
 to parent representatives for participating in up to six 
 meetings per year. 

    Subd. 4. Repealed, 1999 c 205 art 5 s 22 

    Subd. 5.    Child care services grants.  (a) A child 
 care resource and referral program designated under section 
 119B.19, subdivision 1a, may award child care services grants 
 for: 

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

    (2) improving licensed child care facility programs; 

    (3) staff training and development services including, but 
 not limited to, in-service training, curriculum development, 
 accreditation, certification, consulting, resource centers, and 
 program and resource materials; 

    (4) interim financing; 

    (5) capacity building through the purchase of appropriate 
 technology to create, enhance, and maintain business management 
 systems; 

    (6) emergency assistance for child care programs; 

    (7) new programs or projects for the creation, expansion, 
 or improvement of programs that serve ethnic immigrant and 
 refugee communities; and 

    (8) targeted recruitment initiatives to expand and build 
 the capacity of the child care system and to improve the quality 
 of care provided by legal nonlicensed child care providers. 

    (b) A child care resource and referral program designated 
 under section 119B.19, subdivision 1a, may award child care 
 services grants to: 

    (1) licensed providers; 

    (2) providers in the process of being licensed; 

    (3) corporations or public agencies that develop or provide 
 child care services; 

    (4) school-age care programs; or 

    (5) any combination of clauses (1) to (4). 

 Unlicensed providers are only eligible for grants under 
 paragraph (a), clause (7).  

    (c) A recipient of a child care services grant for facility 
 improvements, interim financing, or staff training and 
 development must provide a 25 percent local match.  

    Subd. 6. Repealed, 1999 c 205 art 5 s 22 

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

    Subd. 8. Renumbered subdivision 5, paragraph (b) 

    Subd. 9. Renumbered subdivision 5, paragraph (c) 

    Subd. 10.    Family child care technical assistance 
 grants.  (a) A child care resource and referral organization 
 designated under section 119B.19, subdivision 1a, may award 
 technical assistance grants of up to $1,000.  These grants may 
 be used for: 

    (1) facility improvements, including, but not limited to, 
 improvements to meet licensing requirements; 

    (2) improvements to expand a child care facility or 
 program; 

    (3) toys and equipment; 

    (4) technology and software to create, enhance, and 
 maintain business management systems; 

    (5) start-up costs; 

    (6) staff training and development; and 

    (7) other uses approved by the commissioner.  

    (b) A child care resource and referral program may award 
 family child care technical assistance grants to: 

    (1) licensed family child care providers; or 

    (2) child care providers in the process of becoming 
 licensed. 

    (c) A local match is not required for a family child care 
 technical assistance grant. 

    Subd. 11.    Statewide advisory task force.  The 
 commissioner may convene a statewide advisory task force to 
 advise the commissioner on statewide grants or other child care 
 issues.  The following groups must be represented:  family child 
 care providers, child care center programs, school-age care 
 providers, parents who use child care services, health services, 
 social services, Head Start, public schools, employers, and 
 other citizens with demonstrated interest in child care issues.  
 Additional members may be appointed by the commissioner.  The 
 commissioner may compensate members for their travel, child 
 care, and child care provider substitute expenses for attending 
 task force meetings.  The commissioner may also pay a stipend to 
 parent representatives for participating in task force meetings. 

    Subd. 12. Repealed, 1999 c 205 art 5 s 22 

    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; 1999 c 205 art 5 s 12-19,21 

     119B.211 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 24 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; 1999 c 205 
 art 1 s 37; art 5 s 21 

  119B.22 Repealed, 1999 c 205 art 5 s 22 

     119B.23 Other authorization to make grants. 

    Subdivision 1.    Authority.  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, or 
 corporation for the cost of providing technical assistance or 
 child care services.  The county board is also authorized to 
 contract for services with any licensed child care facility 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, organization 
 designated under section 119B.19, subdivision 1a, or corporation 
 for the following purposes: 

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

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

    (3) providing 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) providing interim financing; or 

    (6) carrying out the resource and referral program services 
 identified in section 119B.19, subdivision 7. 

    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; 1999 c 205 art 5 s 20 

     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) administer the child care fund, including the basic 
 sliding fee program authorized under sections 119B.011 to 
 119B.16; 

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

    (3) encourage child care providers to participate in a 
 nationally recognized accreditation system for early childhood 
 and school-age care programs.  Subject to approval by the 
 commissioner, family child care providers and early childhood 
 and school-age care programs shall be reimbursed 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; 1999 c 205 art 1 s 38; art 5 s 21; 1Sp2001 c 3 art 1 s 
 7 

     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.211.  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; 

    (4) establish a fund as a reserve against bad debt; and 

    (5) establish a fund to provide business planning 
 assistance for child care providers.  

    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; 1999 c 205 art 1 s 39; art 5 s 21 

     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