1.1                          A bill for an act 
  1.2             relating to child care assistance; increasing the 
  1.3             maximum rate of reimbursement; modifying payment 
  1.4             requirements; directing the commissioner of children, 
  1.5             families, and learning to implement a streamlined 
  1.6             payment system; amending Minnesota Statutes 1998, 
  1.7             section 119B.13, subdivisions 1, 2, and 6. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 119B.13, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [SUBSIDY RESTRICTIONS.] Effective July 1, 
  1.12  1991, the maximum rate paid for child care assistance under the 
  1.13  child care fund is the maximum rate eligible for federal 
  1.14  reimbursement.  The rate may not exceed the 75th percentile rate 
  1.15  for like-care arrangements in the county as surveyed by the 
  1.16  commissioner.  A rate which includes a provider bonus paid under 
  1.17  subdivision 2 or a special needs rate paid under subdivision 3 
  1.18  may be in excess of the maximum rate allowed under this 
  1.19  subdivision.  The department of children, families, and learning 
  1.20  shall monitor the effect of this paragraph on provider rates.  
  1.21  The county shall pay the provider's full charges for every child 
  1.22  in care up to the maximum established.  The commissioner shall 
  1.23  determine the maximum rate for each type of care, including 
  1.24  special needs and handicapped care.  Not less than once every 
  1.25  two years, The county shall annually evaluate rates for payment 
  1.26  of absent spaces and shall establish policies for payment of 
  2.1   absent days that reflect current market practice. 
  2.2      When the provider charge is greater than the maximum 
  2.3   provider rate allowed, the parent is responsible for payment of 
  2.4   the difference in the rates in addition to any family copayment 
  2.5   fee. 
  2.6      Sec. 2.  Minnesota Statutes 1998, section 119B.13, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [PROVIDER RATE BONUS FOR ACCREDITATION.] 
  2.9   Currently accredited child care centers shall be paid a ten 
  2.10  percent bonus above the maximum rate established in subdivision 
  2.11  1, up to the actual provider rate.  A family day care provider 
  2.12  shall be paid a ten percent bonus above the maximum rate 
  2.13  established in subdivision 1, if the provider holds a current 
  2.14  early childhood development credential approved by the 
  2.15  commissioner, up to the actual provider rate.  For purposes of 
  2.16  this subdivision, "accredited" means accredited by the National 
  2.17  Association for the Education of Young Children or the National 
  2.18  Early Childhood Program Accreditation. 
  2.19     Sec. 3.  Minnesota Statutes 1998, section 119B.13, 
  2.20  subdivision 6, is amended to read: 
  2.21     Subd. 6.  [PROVIDER PAYMENTS.] Counties shall make vendor 
  2.22  payments to the child care provider, or may pay the parent 
  2.23  directly for eligible child care expenses if the county has 
  2.24  established procedures and requires documentation to ensure that 
  2.25  the payment is used for child care.  As required by the county, 
  2.26  a parent who receives a direct child care payment must provide 
  2.27  documentation that the payment was used for eligible child care 
  2.28  expenses.  If payments for child care assistance are made to 
  2.29  providers, the provider shall bill the county for services 
  2.30  provided within ten days of the end of the month of service.  If 
  2.31  bills are submitted in accordance with the provisions of this 
  2.32  subdivision, a county shall issue payment to the provider of 
  2.33  child care under the child care fund within 30 days of receiving 
  2.34  an invoice from the provider.  Counties may establish policies 
  2.35  that make payments on a more frequent basis.  A county's payment 
  2.36  policies must be included in the county's child care plan under 
  3.1   section 119B.08, subdivision 3. 
  3.2      Sec. 4.  [PREPAID CHILD CARE ASSISTANCE.] 
  3.3      By July 1, 2000, the commissioner of children, families, 
  3.4   and learning must develop and implement a child care assistance 
  3.5   payment system that ensures full payment to child care providers 
  3.6   while maintaining fiscal accountability to county, state, and 
  3.7   federal governments. 
  3.8      The commissioner shall report to the legislature by January 
  3.9   15, 2000, on the feasibility of a payment system that: 
  3.10     (1) provides prepayment of child care assistance to parents 
  3.11  so that they may prepay child care expenses; 
  3.12     (2) standardizes county billing forms and billing cycles; 
  3.13     (3) improves and streamlines the approval and 
  3.14  reauthorization process; and 
  3.15     (4) provides debit cards to parents for child care expenses.