2005 Minnesota Statutes

     119B.13 Child care rates. 

    Subdivision 1.    Subsidy restrictions.  (a)(i) 
 Effective July 1, 2005, the commissioner of human services shall 
 modify the rate tables for child care centers published in 
 Department of Human Services Bulletin No. 03-68-07 so that in 
 counties with regional or statewide cells, the higher of the 
 100th percentile of the 2002 market rate survey data or the rate 
 currently identified in the bulletin will be the maximum rate.  
 The rates established in this clause will be considered as the 
 previous year's rates for purposes of the increase in item 
 (iii), and shall be compared to the 100th percentile of current 
 market rates. 

    (ii) For the period between July 1, 2005, and through the 
 full implementation of the new rates under item (iii), the rates 
 published in Department of Human Services Bulletin No. 03-68-07 
 as adjusted by item (i) shall remain in effect. 

    (iii) Beginning January 1, 2006, the maximum rate paid for 
 child care assistance in any county or multicounty region under 
 the child care fund shall be the lesser of the 75th percentile 
 rate for like-care arrangements in the county or multicounty 
 region as surveyed by the commissioner or the previous year's 
 rate for like-care arrangements in the county increased by 1.75 
 percent. 

    (iv) Rate changes shall be implemented for services 
 provided in March 2006 unless a participant eligibility 
 redetermination or a new provider agreement is completed between 
 January 1, 2006, and February 28, 2006.  

    As necessary, appropriate notice of adverse action must be 
 made according to Minnesota Rules, part 3400.0185, subparts 3 
 and 4. 

    New cases approved on or after January 1, 2006, shall have 
 the maximum rates under item (iii) implemented immediately. 

    (b) Not less than once every two years, the commissioner 
 shall survey rates charged by child care providers in Minnesota 
 to determine the 75th percentile for like-care arrangements in 
 counties.  When the commissioner determines that, using the 
 commissioner's established protocol, the number of providers 
 responding to the survey is too small to determine the 75th 
 percentile rate for like-care arrangements in a county or 
 multicounty region, the commissioner may establish the 75th 
 percentile maximum rate based on like-care arrangements in a 
 county, region, or category that the commissioner deems to be 
 similar. 

    (c) A rate which includes a special needs rate paid under 
 subdivision 3 may be in excess of the maximum rate allowed under 
 this subdivision.  

    (d) 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 on an hourly, full-day, and 
 weekly basis, including special needs and handicapped care.  

    (e) 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 co-payment 
 fee. 

    Subd. 1a.    Legal nonlicensed family child care provider 
 rates.  (a) Legal nonlicensed family child care providers 
 receiving reimbursement under this chapter must be paid on an 
 hourly basis for care provided to families receiving assistance. 

    (b) The maximum rate paid to legal nonlicensed family child 
 care providers must be 80 percent of the county maximum hourly 
 rate for licensed family child care providers.  In counties 
 where the maximum hourly rate for licensed family child care 
 providers is higher than the maximum weekly rate for those 
 providers divided by 50, the maximum hourly rate that may be 
 paid to legal nonlicensed family child care providers is the 
 rate equal to the maximum weekly rate for licensed family child 
 care providers divided by 50 and then multiplied by 0.80. 

    (c) A rate which includes a special needs rate paid under 
 subdivision 3 may be in excess of the maximum rate allowed under 
 this subdivision. 

    (d) Legal nonlicensed family child care providers receiving 
 reimbursement under this chapter may not be paid registration 
 fees for families receiving assistance. 

    Subd. 2. Repealed, 1Sp2003 c 14 art 9 s 38 

    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.  (a) Counties or the 
 state shall make vendor payments to the child care provider or 
 pay the parent directly for eligible child care expenses.  

    (b) 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 service period.  If 
 bills are submitted within ten days of the end of the service 
 period, a county or the state shall issue payment to the 
 provider of child care under the child care fund within 30 days 
 of receiving a bill from the provider.  Counties or the state 
 may establish policies that make payments on a more frequent 
 basis.  

    (c) All bills must be submitted within 60 days of the last 
 date of service on the bill.  A county may pay a bill submitted 
 more than 60 days after the last date of service if the provider 
 shows good cause why the bill was not submitted within 60 days.  
 Good cause must be defined in the county's child care fund plan 
 under section 119B.08, subdivision 3, and the definition of good 
 cause must include county error.  A county may not pay any bill 
 submitted more than a year after the last date of service on the 
 bill. 

    (d) A county may stop payment issued to a provider or may 
 refuse to pay a bill submitted by a provider if: 

    (1) the provider admits to intentionally giving the county 
 materially false information on the provider's billing forms; or 

    (2) a county finds by a preponderance of the evidence that 
 the provider intentionally gave the county materially false 
 information on the provider's billing forms. 

    (e) 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. 

    Subd. 7.    Absent days.  Child care providers may not 
 be reimbursed for more than 25 absent days per child, excluding 
 holidays, in a fiscal year, or for more than ten consecutive 
 absent days, unless the child has a documented medical condition 
 that causes more frequent absences.  Documentation of medical 
 conditions must be on the forms and submitted according to the 
 timelines established by the commissioner. 

    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; 1Sp2003 c 14 art 9 s 22-24; 2004 c 288 art 4 s 18,19; 1Sp2005 
 c 4 art 3 s 1,2