Bill Text: MN SF1826 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Child Care Affordability Act

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2012-02-13 - Referred to Health and Human Services [SF1826 Detail]

Download: Minnesota-2011-SF1826-Introduced.html

1.1A bill for an act
1.2relating to human services; establishing the Child Care Affordability Act;
1.3modifying child care assistance programs; appropriating money;amending
1.4Minnesota Statutes 2010, sections 119B.02, subdivisions 1, 2; 119B.03,
1.5subdivision 9; 119B.035, subdivision 1; 119B.05, subdivisions 1, 5; 119B.08,
1.6subdivision 3; 119B.09, subdivisions 1, 4a; 119B.11, subdivision 1; 119B.231,
1.7subdivision 5; 256.017, subdivision 9; Minnesota Statutes 2011 Supplement,
1.8section 119B.13, subdivision 1; repealing Minnesota Statutes 2010, sections
1.9119B.011, subdivision 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, 8;
1.10119B.09, subdivision 3.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12ARTICLE 1
1.13CHILD CARE ASSISTANCE PROGRAMS

1.14    Section 1. SHORT TITLE.
1.15Sections 2 to 13 may be cited as the "Child Care Affordability Act."

1.16    Sec. 2. Minnesota Statutes 2010, section 119B.02, subdivision 1, is amended to read:
1.17    Subdivision 1. Child care services. The commissioner shall develop standards
1.18for county and human services boards to provide child care services to enable eligible
1.19families to participate in employment, training, or education programs. Within the limits
1.20of available appropriations, The commissioner shall distribute money to counties to
1.21reduce the costs of child care for eligible families. The commissioner shall adopt rules to
1.22govern the program in accordance with this section. The rules must establish a sliding
1.23schedule of fees for parents receiving child care services. The rules shall provide that
1.24funds received as a lump-sum payment of child support arrearages shall not be counted
1.25as income to a family in the month received but shall be prorated over the 12 months
2.1following receipt and added to the family income during those months. The commissioner
2.2shall maximize the use of federal money under title I and title IV of Public Law 104-193,
2.3the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and
2.4other programs that provide federal or state reimbursement for child care services for
2.5low-income families who are in education, training, job search, or other activities allowed
2.6under those programs. Money appropriated under this section must be coordinated with
2.7the programs that provide federal reimbursement for child care services to accomplish
2.8this purpose. Federal reimbursement obtained must be allocated to the county that spent
2.9money for child care that is federally reimbursable under programs that provide federal
2.10reimbursement for child care services. The counties commissioner shall use the federal
2.11money to expand child care services. The commissioner may adopt rules under chapter 14
2.12to implement and coordinate federal program requirements.

2.13    Sec. 3. Minnesota Statutes 2010, section 119B.03, subdivision 9, is amended to read:
2.14    Subd. 9. Portability pool Family move; continued participation. (a) The
2.15commissioner shall establish a pool of up to five percent of the annual appropriation for
2.16the basic sliding fee program to provide continuous child care assistance for eligible
2.17families who move between Minnesota counties. At the end of each allocation period, any
2.18unspent funds in the portability pool must be used for assistance under the basic sliding fee
2.19program. If expenditures from the portability pool exceed the amount of money available,
2.20the reallocation pool must be reduced to cover these shortages.
2.21(b) To be eligible for portable basic sliding fee assistance, a family that has moved
2.22from a county in which it A family receiving child care assistance under the child care fund
2.23that has moved from a county in which the family was receiving basic sliding fee child
2.24care assistance to a another county with a waiting list for the basic sliding fee program
2.25must be admitted into the receiving county's child care assistance program if the family:
2.26(1) meet meets the income and eligibility guidelines for the basic sliding fee child
2.27care assistance program; and
2.28(2) notify notifies the new county of residence within 60 days of moving and submit
2.29submits information to the new county of residence to verify eligibility for the basic
2.30sliding fee child care assistance program.
2.31(c) (b) The receiving county must:
2.32(1) accept administrative responsibility for applicants for portable basic sliding fee
2.33assistance at the end of the two months of assistance under the Unitary Residency Act;.
2.34(2) continue basic sliding fee assistance for the lesser of six months or until the
2.35family is able to receive assistance under the county's regular basic sliding program; and
3.1(3) notify the commissioner through the quarterly reporting process of any family
3.2that meets the criteria of the portable basic sliding fee assistance pool.

3.3    Sec. 4. Minnesota Statutes 2010, section 119B.035, subdivision 1, is amended to read:
3.4    Subdivision 1. Establishment. A family in which a parent provides care for the
3.5family's infant child may receive a subsidy in lieu of assistance if the family is eligible for
3.6or is receiving assistance under the basic sliding fee program. An eligible family must
3.7meet the eligibility factors under section 119B.09, except as provided in subdivision 4,
3.8and the requirements of this section. Subject to federal match and maintenance of effort
3.9requirements for the child care and development fund, and up to available appropriations,
3.10the commissioner shall provide assistance under the at-home infant child care program
3.11and for administrative costs associated with the program. At the end of a fiscal year, the
3.12commissioner may carry forward any unspent funds under this section to the next fiscal
3.13year within the same biennium for assistance under the basic sliding fee program.

3.14    Sec. 5. Minnesota Statutes 2010, section 119B.05, subdivision 5, is amended to read:
3.15    Subd. 5. Federal reimbursement. Counties and the state shall maximize their
3.16federal reimbursement under federal reimbursement programs for money spent for persons
3.17eligible under this chapter. The commissioner shall allocate any federal earnings to the
3.18county to be used to expand child care services under this chapter.

3.19    Sec. 6. Minnesota Statutes 2010, section 119B.08, subdivision 3, is amended to read:
3.20    Subd. 3. Child care fund plan. The county and designated administering agency
3.21shall submit a biennial child care fund plan to the commissioner. The commissioner shall
3.22establish the dates by which the county must submit the plans. The plan shall include:
3.23(1) a description of strategies to coordinate and maximize public and private
3.24community resources, including school districts, health care facilities, government
3.25agencies, neighborhood organizations, and other resources knowledgeable in early
3.26childhood development, in particular to coordinate child care assistance with existing
3.27community-based programs and service providers including child care resource and
3.28referral programs, early childhood family education, school readiness, Head Start, local
3.29interagency early intervention committees, special education services, early childhood
3.30screening, and other early childhood care and education services and programs to the
3.31extent possible, to foster collaboration among agencies and other community-based
3.32programs that provide flexible, family-focused services to families with young children
3.33and to facilitate transition into kindergarten. The county must describe a method by which
4.1to share information, responsibility, and accountability among service and program
4.2providers;
4.3(2) a description of procedures and methods to be used to make copies of the
4.4proposed state plan reasonably available to the public, including members of the public
4.5particularly interested in child care policies such as parents, child care providers, culturally
4.6specific service organizations, child care resource and referral programs, interagency
4.7early intervention committees, potential collaborative partners and agencies involved in
4.8the provision of care and education to young children, and allowing sufficient time for
4.9public review and comment; and
4.10(3) information as requested by the department to ensure compliance with the child
4.11care fund statutes and rules promulgated by the commissioner.
4.12The commissioner shall notify counties within 90 days of the date the plan is
4.13submitted whether the plan is approved or the corrections or information needed to
4.14approve the plan. The commissioner shall withhold a county's allocation until it has an
4.15approved plan. Plans not approved by the end of the second quarter after the plan is due
4.16may result in a 25 percent reduction in allocation. Plans not approved by the end of the
4.17third quarter after the plan is due may result in a 100 percent reduction in the allocation to
4.18the county payments to a county until it has an approved plan. Counties are to maintain
4.19services despite any reduction in their allocation withholding of payments due to plans
4.20not being approved.

4.21    Sec. 7. Minnesota Statutes 2010, section 119B.09, subdivision 1, is amended to read:
4.22    Subdivision 1. General eligibility requirements for all applicants for child
4.23care assistance. (a) Child care services must be available to families who need child
4.24care to find or keep employment or to obtain the training or education necessary to find
4.25employment and who:
4.26    (1) have household income less than or equal to 67 76 percent of the state median
4.27income, adjusted for family size, and meet the requirements of section 119B.05; receive
4.28MFIP assistance; and are participating in employment and training services under chapter
4.29256J; or
4.30    (2) have household income less than or equal to 47 percent of the state median
4.31income, adjusted for family size, at program entry and less than or equal to 67 76 percent
4.32of the state median income, adjusted for family size, at program exit; or
4.33(3) have household income less than or equal to 76 percent of state median income,
4.34adjusted for family size, and were a family whose child care assistance was terminated
4.35due to insufficient funds under Minnesota Rules, part 3400.0183.
5.1    (b) Child care services must be made available as in-kind services.
5.2    (c) All applicants for child care assistance and families currently receiving child care
5.3assistance must be assisted and required to cooperate in establishment of paternity and
5.4enforcement of child support obligations for all children in the family as a condition
5.5of program eligibility. For purposes of this section, a family is considered to meet the
5.6requirement for cooperation when the family complies with the requirements of section
5.7256.741 .
5.8EFFECTIVE DATE.This section is effective July 1, 2012.

5.9    Sec. 8. Minnesota Statutes 2010, section 119B.09, subdivision 4a, is amended to read:
5.10    Subd. 4a. Temporary ineligibility of military personnel. Counties must reserve a
5.11family's position under the child care assistance fund if a family has been receiving child
5.12care assistance but is temporarily ineligible for assistance due to increased income from
5.13active military service. Activated military personnel may be temporarily ineligible until
5.14deactivation. A county must reserve a military family's position on the basic sliding fee
5.15waiting list under the child care assistance fund if a family is approved to receive child care
5.16assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.

5.17    Sec. 9. Minnesota Statutes 2010, section 119B.11, subdivision 1, is amended to read:
5.18    Subdivision 1. County contributions required. (a) In addition to payments from
5.19basic sliding fee child care assistance program participants, each county shall contribute
5.20from county tax or other sources a fixed local match equal to its calendar year 1996
5.21required county contribution reduced by the administrative funding loss that would have
5.22occurred in state fiscal year 1996 under section 119B.15. The commissioner shall recover
5.23funds from the county as necessary to bring county expenditures into compliance with this
5.24subdivision. The commissioner may accept county contributions, including contributions
5.25above the fixed local match, in order to make state payments.
5.26(b) The commissioner may accept payments from counties to:
5.27(1) fulfill the county contribution as required under subdivision 1;
5.28(2) pay for services authorized under this chapter beyond those paid for with federal
5.29or state funds or with the required county contributions; or
5.30(3) pay for child care services in addition to those authorized under this chapter, as
5.31authorized under other federal, state, or local statutes or regulations.
5.32(c) The county payments must be deposited in an account in the special revenue
5.33fund. Money in this account is appropriated to the commissioner for child care assistance
6.1under this chapter and other applicable statutes and regulations and is in addition to other
6.2state and federal appropriations.

6.3    Sec. 10. Minnesota Statutes 2011 Supplement, section 119B.13, subdivision 1, is
6.4amended to read:
6.5    Subdivision 1. Subsidy restrictions. (a) Beginning October 31, 2011 July 1, 2012,
6.6the maximum rate paid for child care assistance in any county or multicounty region under
6.7the child care fund shall be the rate for like-care arrangements in the county effective July
6.81, 2006, decreased by 2.5 percent is the 75th percentile rate for like-care arrangements as
6.9surveyed by the commissioner in the most current market rate survey.
6.10    (b) Every year, the commissioner shall survey rates charged by child care
6.11providers in Minnesota to determine the 75th percentile for like-care arrangements in
6.12counties. When the commissioner determines that, using the commissioner's established
6.13protocol, the number of providers responding to the survey is too small to determine
6.14the 75th percentile rate for like-care arrangements in a county or multicounty region,
6.15the commissioner may establish the 75th percentile maximum rate based on like-care
6.16arrangements in a county, region, or category that the commissioner deems to be similar.
6.17    (c) A rate which includes a special needs rate paid under subdivision 3 or under a
6.18school readiness service agreement paid under section 119B.231, may be in excess of the
6.19maximum rate allowed under this subdivision.
6.20    (d) The department shall monitor the effect of this paragraph on provider rates. The
6.21county shall pay the provider's full charges for every child in care up to the maximum
6.22established. The commissioner shall determine the maximum rate for each type of care
6.23on an hourly, full-day, and weekly basis, including special needs and disability care. The
6.24maximum payment to a provider for one day of care must not exceed the daily rate. The
6.25maximum payment to a provider for one week of care must not exceed the weekly rate.
6.26(e) Child care providers receiving reimbursement under this chapter must not be
6.27paid activity fees or an additional amount above the maximum rates for care provided
6.28during nonstandard hours for families receiving assistance.
6.29    (f) When the provider charge is greater than the maximum provider rate allowed,
6.30the parent is responsible for payment of the difference in the rates in addition to any
6.31family co-payment fee.
6.32    (g) All maximum provider rates changes shall be implemented on the Monday
6.33following the effective date of the maximum provider rate.

7.1    Sec. 11. DIRECTION TO COMMISSIONER OF MANAGEMENT AND
7.2BUDGET.
7.3The state obligation for the basic sliding fee child care assistance program under
7.4Minnesota Statutes, section 119B.03, must be included in the Department of Management
7.5and Budget February and November forecasts of state revenues and expenditures under
7.6Minnesota Statutes, section 16A.103, beginning with the November 2012 forecast.

7.7    Sec. 12. APPROPRIATIONS.
7.8    Subdivision 1. Child care resource and referral programs. $1,500,000 is
7.9appropriated in fiscal year 2013 from the general fund to the commissioner of human
7.10services for the purposes of grants for child care resource and referral programs under
7.11Minnesota Statutes, section 119B.19. The appropriation under this subdivision is the
7.12total appropriation for this purpose for fiscal year 2013 and replaces any general fund
7.13appropriation for this purpose in Laws 2011, First Special Session chapter 9. This
7.14appropriation is not onetime and is added to the base for fiscal year 2014.
7.15    Subd. 2. Child care services grants. $2,500,000 is appropriated in fiscal year
7.162013 from the general fund to the commissioner of human services for the purposes of
7.17child care services grants under Minnesota Statutes, section 119B.21, subdivision 5. The
7.18appropriation under this subdivision is the total appropriation for this purpose for fiscal
7.19year 2013 and replaces any general fund appropriation for this purpose in Laws 2011,
7.20First Special Session chapter 9. This appropriation is not onetime and is added to the
7.21base for fiscal year 2014.
7.22    Subd. 3. Migrant child care. $300,000 is appropriated in fiscal year 2013 from
7.23the general fund to the commissioner of human services for the purposes of migrant child
7.24care. The appropriation under this subdivision is the total appropriation for this purpose
7.25for fiscal year 2013 and replaces any general fund appropriation for this purpose in Laws
7.262011, First Special Session chapter 9. This appropriation is not onetime and is added
7.27to the base for fiscal year 2014.
7.28    Subd. 4. Child care improvement grants. $500,000 is appropriated in fiscal year
7.292013 from the general fund to the commissioner of human services for the purposes
7.30of child care improvement grants under Minnesota Statutes, section 119B.25. The
7.31appropriation under this subdivision is the total appropriation for this purpose for fiscal
7.32year 2013 and replaces any general fund appropriation for this purpose in Laws 2011,
7.33First Special Session chapter 9. This appropriation is not onetime and is added to the
7.34base for fiscal year 2014.
8.1    Subd. 5. Child care integrity. $150,000 is appropriated in fiscal year 2013 from
8.2the general fund to the commissioner of human services for the purposes of child care
8.3integrity. The appropriation under this subdivision is the total appropriation for this
8.4purpose for fiscal year 2013 and replaces any general fund appropriation for this purpose
8.5in Laws 2011, First Special Session chapter 9. This appropriation is not onetime and
8.6is added to the base for fiscal year 2014.
8.7    Subd. 6. Voluntary quality rating system training, coaching, consultation,
8.8and supports. $5,000,000 is appropriated in fiscal year 2013 from the general fund to
8.9the commissioner of human services for the purposes of providing grants to provide
8.10statewide child care provider training, coaching, consultation, and supports to prepare
8.11for the voluntary Minnesota quality rating system rating tool. These grants must help
8.12child care providers build quality child care programs including, but not limited to,
8.13relationship-based professional development through mentoring and coaching, and
8.14ensuring that such training is offered to providers in the provider's native language and
8.15available to providers of all income levels. This is a onetime appropriation.

8.16    Sec. 13. REPEALER.
8.17Minnesota Statutes 2010, sections 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8;
8.18and 119B.09, subdivision 3, are repealed.

8.19ARTICLE 2
8.20CONFORMING CHANGES

8.21    Section 1. Minnesota Statutes 2010, section 119B.02, subdivision 2, is amended to read:
8.22    Subd. 2. Contractual agreements with tribes. The commissioner may enter into
8.23contractual agreements with a federally recognized Indian tribe with a reservation in
8.24Minnesota to carry out the responsibilities of county human service agencies to the extent
8.25necessary for the tribe to operate child care assistance programs under sections 119B.03
8.26and 119B.05. An agreement may allow for the tribe to be reimbursed for child care
8.27assistance services provided under section 119B.05. The commissioner shall consult with
8.28the affected county or counties in the contractual agreement negotiations, if the county or
8.29counties wish to be included, in order to avoid the duplication of county and tribal child
8.30care services. Funding to support services under section 119B.03 may be transferred to
8.31the federally recognized Indian tribe with a reservation in Minnesota from allocations
8.32available to counties in which reservation boundaries lie. When funding is transferred
8.33under section 119B.03, the amount shall be commensurate to estimates of the proportion
9.1of reservation residents with characteristics identified in section 119B.03, subdivision 6, to
9.2the total population of county residents with those same characteristics.

9.3    Sec. 2. Minnesota Statutes 2010, section 119B.05, subdivision 1, is amended to read:
9.4    Subdivision 1. Eligible participants. Families eligible for child care assistance
9.5under the MFIP child care program are:
9.6    (1) MFIP participants who are employed or in job search and meet the requirements
9.7of section 119B.10;
9.8    (2) persons who are members of transition year families under section 119B.011,
9.9subdivision 20
, and meet the requirements of section 119B.10;
9.10    (3) families who are participating in employment orientation or job search, or
9.11other employment or training activities that are included in an approved employability
9.12development plan under section 256J.95;
9.13    (4) MFIP families who are participating in work job search, job support,
9.14employment, or training activities as required in their employment plan, or in appeals,
9.15hearings, assessments, or orientations according to chapter 256J;
9.16    (5) MFIP families who are participating in social services activities under chapter
9.17256J as required in their employment plan approved according to chapter 256J;
9.18    (6) families who are participating in services or activities that are included in an
9.19approved family stabilization plan under section 256J.575; and
9.20    (7) families who are participating in programs as required in tribal contracts under
9.21section 119B.02, subdivision 2, or 256.01, subdivision 2; and.
9.22    (8) families who are participating in the transition year extension under section
9.23119B.011, subdivision 20a.

9.24    Sec. 3. Minnesota Statutes 2010, section 119B.231, subdivision 5, is amended to read:
9.25    Subd. 5. Relationship to current law. (a) The following provisions in chapter 119B
9.26must be waived or modified for families receiving services under this section.
9.27    (b) Notwithstanding section 119B.13, subdivisions 1 and 1a, maximum weekly rates
9.28under this section are 125 percent of the existing maximum weekly rate for like-care.
9.29Providers eligible for a differential rate under section 119B.13, subdivision 3a, remain
9.30eligible for the differential above the rate identified in this section. Only care for children
9.31who have not yet entered kindergarten may be paid at the maximum rate under this
9.32section. The provider's charge for service provided through an SRSA may not exceed the
9.33rate that the provider charges a private-pay family for like-care arrangements.
10.1    (c) A family or child care provider may not be assessed an overpayment for care
10.2provided through an SRSA unless:
10.3    (1) there was an error in the amount of care authorized for the family; or
10.4    (2) the family or provider did not timely report a change as required under the law.
10.5    (d) Care provided through an SRSA is authorized on a weekly basis.
10.6    (e) Funds appropriated under this section to serve families eligible under section
10.7119B.03 are not allocated through the basic sliding fee formula under section 119B.03.
10.8Funds appropriated under this section are used to offset increased costs when payments
10.9are made under SRSA's.
10.10    (f) Notwithstanding section 119B.09, subdivision 6, the maximum amount of child
10.11care assistance that may be authorized for a child receiving care through an SRSA in a
10.12two-week period is 160 hours per child.
10.13    (g) Effective May 23, 2008, absent day payment limits under section 119B.13,
10.14subdivision 7
, do not apply to children for care paid through SRSA's provided the family
10.15remains eligible under subdivision 3.

10.16    Sec. 4. Minnesota Statutes 2010, section 256.017, subdivision 9, is amended to read:
10.17    Subd. 9. Timing and disposition of penalty and case disallowance funds. Quality
10.18control case penalty and administrative penalty amounts shall be disallowed or withheld
10.19from the next regular reimbursement made to the county agency for state and federal
10.20benefit reimbursements and federal administrative reimbursements for all programs
10.21covered in this section, according to procedures established in statute, but shall not be
10.22imposed sooner than 30 calendar days from the date of written notice of such penalties.
10.23Except for penalties withheld under the child care assistance program, all penalties
10.24must be deposited in the county incentive fund provided in section 256.018. Penalties
10.25withheld under the child care assistance program shall be reallocated to counties using the
10.26allocation formula under section 119B.03, subdivision 5. All penalties must be imposed
10.27according to this provision until a decision is made regarding the status of a written
10.28exception. Penalties must be returned to county agencies when a review of a written
10.29exception results in a decision in their favor.

10.30    Sec. 5. REPEALER.
10.31Minnesota Statutes 2010, section 119B.011, subdivision 20a, is repealed.
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