1.1 	A bill for an act
1.2 	relating to human services; consolidating the MFIP and
1.3 	basic sliding fee child care programs; appropriating
1.4 	money; amending Minnesota Statutes 2004, sections
1.5 	119B.02, subdivisions 1, 2; 119B.03, subdivisions 3,
1.6 	9, 10; 119B.035, subdivisions 1, 2, 4, 5; 119B.05,
1.7 	subdivision 5; 119B.08; 119B.09, subdivisions 1, 4a,
1.8 	7; 119B.10; 119B.11, subdivision 1; 119B.12,
1.9 	subdivision 2; 119B.13, by adding subdivisions;
1.10 	119B.15; 119B.24; repealing Minnesota Statutes 2004,
1.11 	sections 119B.011, subdivisions 20, 20a; 119B.03,
1.12 	subdivisions 1, 2, 4, 5, 6, 6a, 6b, 8; 119B.05,
1.13 	subdivision 1; 119B.07; 119B.09, subdivision 3;
1.14 	119B.11, subdivision 4.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	Section 1. Minnesota Statutes 2004, section 119B.02,
1.17 	subdivision 1, is amended to read:
1.18 		Subdivision 1.Child care services.  The commissioner
1.19 	shall develop standards for county and human services boards to
1.20 	provide child care services to enable eligible families to
1.21 	participate in employment, training, or education programs.
1.22 	Within the limits of available appropriations,The commissioner
1.23 	shall distribute money to counties to reduce the costs of child
1.24 	care for eligible families.  The commissioner shall adopt rules
1.25 	to govern the program in accordance with this section.  The
1.26 	rules must establish a sliding schedule of fees for parents
1.27 	receiving child care services.  The rules shall provide that
1.28 	funds received as a lump sum payment of child support arrearages
1.29 	shall not be counted as income to a family in the month received
1.30 	but shall be prorated over the 12 months following receipt and
2.1 	added to the family income during those months.  The
2.2 	commissioner shall maximize the use of federal money under title
2.3 	I and title IV of Public Law 104-193, the Personal
2.4 	Responsibility and Work Opportunity Reconciliation Act of 1996,
2.5 	and other programs that provide federal or state reimbursement
2.6 	for child care services for low-income families who are in
2.7 	education, training, job search, or other activities allowed
2.8 	under those programs.  Money appropriated under this section
2.9 	must be coordinated with the programs that provide federal
2.10 	reimbursement for child care services to accomplish this
2.11 	purpose. Federal reimbursement obtained must be allocated to
2.12 	the county that spent money for child care that is federally
2.13 	reimbursable under programs that provide federal reimbursement
2.14 	for child care services.The counties commissioner shall use
2.15 	the federal money to expand child care services.  The
2.16 	commissioner may adopt rules under chapter 14 to implement and
2.17 	coordinate federal program requirements.

2.18 	Sec. 2. Minnesota Statutes 2004, section 119B.02,
2.19 	subdivision 2, is amended to read:
2.20 		Subd. 2.Contractual agreements with tribes.  The
2.21 	commissioner may enter into contractual agreements with a
2.22 	federally recognized Indian tribe with a reservation in
2.23 	Minnesota to carry out the responsibilities of county human
2.24 	service agencies to the extent necessary for the tribe to
2.25 	operate child care assistance programs for families eligible 
2.26 	under sections 119B.03 119B.09 and 119B.05 119B.10.  An
2.27 	agreement may allow for the tribe to be reimbursed for child
2.28 	care assistance services provided under section 119B.05this
2.29 	chapter.  The commissioner shall consult with the affected
2.30 	county or counties in the contractual agreement negotiations, if
2.31 	the county or counties wish to be included, in order to avoid
2.32 	the duplication of county and tribal child care
2.33 	services. Funding to support services under section 119B.03 may
2.34 	be transferred to the federally recognized Indian tribe with a
2.35 	reservation in Minnesota from allocations available to counties
2.36 	in which reservation boundaries lie.  When funding is
3.1 	transferred under section 119B.03, the amount shall be
3.2 	commensurate to estimates of the proportion of reservation
3.3 	residents with characteristics identified in section 119B.03,
3.4 	subdivision 6, to the total population of county residents with
3.5 	those same characteristics.

3.6 	Sec. 3. Minnesota Statutes 2004, section 119B.03,
3.7 	subdivision 3, is amended to read:
3.8 		Subd. 3.Eligible participants.  Families that meet the
3.9 	eligibility requirements under sections 119B.07,119B.09,and
3.10 	119B.10, except MFIP participants, diversionary work program,
3.11 	and transition year families are eligible for child care
3.12 	assistance under the basic sliding fee child care assistance 
3.13 	program.  Families enrolled in the basic sliding fee child care
3.14 	assistance program shall be continued until they are no longer
3.15 	eligible.  Child care assistance provided through the child care
3.16 	fund is considered assistance to the parent.

3.17 	Sec. 4. Minnesota Statutes 2004, section 119B.03,
3.18 	subdivision 9, is amended to read:
3.19 		Subd. 9.portability pool family move; continued
3.20 	participation.  (a) The commissioner shall establish a pool of
3.21 	up to five percent of the annual appropriation for the basic
3.22 	sliding fee program to provide continuous child care assistance
3.23 	for eligible families who move between Minnesota counties.  At
3.24 	the end of each allocation period, any unspent funds in the
3.25 	portability pool must be used for assistance under the basic
3.26 	sliding fee program.  If expenditures from the portability pool
3.27 	exceed the amount of money available, the reallocation pool must
3.28 	be reduced to cover these shortages.
3.29 	(b) To be eligible for portable basic sliding fee
3.30 	assistance, a family that has moved from a county in which it A
3.31 	family receiving child care assistance under the child care fund
3.32 	that has moved from a county in which the family was receiving
3.33 	basic sliding fee child care assistance to a another county
3.34 	with a waiting list for the basic sliding fee program must be
3.35 	admitted into the receiving county's child care assistance
3.36 	program if the family:
4.1 	(1) meet meets the income and eligibility guidelines for
4.2 	the basic sliding fee child care assistance program; and
4.3 	(2) notify notifies the new county of residence within 60
4.4 	days of moving and submit submits information to the new county
4.5 	of residence to verify eligibility for the basic sliding fee 
4.6 	child care assistance program.
4.7 	(c) (b) The receiving county must:
4.8 	(1) accept administrative responsibility for applicants for
4.9 	portable basic sliding fee assistance at the end of the two
4.10 	months of assistance under the Unitary Residency Act;
4.11 	(2) continue basic sliding fee assistance for the lesser of
4.12 	six months or until the family is able to receive assistance
4.13 	under the county's regular basic sliding program; and 
4.14 	(3) notify the commissioner through the quarterly reporting
4.15 	process of any family that meets the criteria of the portable
4.16 	basic sliding fee assistance pool.

4.17 	Sec. 5. Minnesota Statutes 2004, section 119B.03,
4.18 	subdivision 10, is amended to read:
4.19 		Subd. 10.Application; entry points.  Two or more methods
4.20 	of applying for the basic sliding fee child care assistance 
4.21 	program under this chapter must be available to applicants in
4.22 	each county.  To meet the requirements of this subdivision, a
4.23 	county may provide alternative methods of applying for
4.24 	assistance, including, but not limited to, a mail application,
4.25 	or application sites that are located outside of government
4.26 	offices.

4.27 	Sec. 6. Minnesota Statutes 2004, section 119B.035,
4.28 	subdivision 1, is amended to read:
4.29 		Subdivision 1.Establishment.  A family in which a parent
4.30 	provides care for the family's infant child may receive a
4.31 	subsidy in lieu of assistance if the family is eligible for or
4.32 	is receiving assistance under the basic sliding fee child care
4.33 	assistance program.  An eligible family must meet the
4.34 	eligibility factors under section 119B.09, except as provided in
4.35 	subdivision 4, and the requirements of this section.  Subject to
4.36 	federal match and maintenance of effort requirements for the
5.1 	child care and development fund, the commissioner shall
5.2 	establish a pool of up to three percent of the annual
5.3 	appropriation for the basic sliding fee child care assistance 
5.4 	program to provide assistance under the at-home infant child
5.5 	care program and for administrative costs associated with the
5.6 	program.  At the end of a fiscal year, the commissioner may
5.7 	carry forward any unspent funds under this section to the next
5.8 	fiscal year within the same biennium for assistance under
5.9 	the basic sliding fee child care assistance program.

5.10 	Sec. 7. Minnesota Statutes 2004, section 119B.035,
5.11 	subdivision 2, is amended to read:
5.12 		Subd. 2.Eligible families.  A family with an infant
5.13 	under the age of one year is eligible for assistance if:
5.14 	(1) the family is not receiving MFIP, other cash
5.15 	assistance, or other child care assistance;
5.16 	(2) the family has not previously received a life-long
5.17 	total of 12 months of assistance under this section; and
5.18 	(3) the family is participating in the basic sliding fee 
5.19 	child care assistance program or provides verification of
5.20 	participating in an authorized activity at the time of
5.21 	application and meets the program requirements.

5.22 	Sec. 8. Minnesota Statutes 2004, section 119B.035,
5.23 	subdivision 4, is amended to read:
5.24 		Subd. 4.Assistance.  (a) A family is limited to a
5.25 	lifetime total of 12 months of assistance under subdivision 2.
5.26 	The maximum rate of assistance is equal to 90 percent of the
5.27 	rate established under section 119B.13 for care of infants in
5.28 	licensed family child care in the applicant's county of
5.29 	residence.
5.30 	(b) A participating family must report income and other
5.31 	family changes as specified in the county's plan under section
5.32 	119B.08, subdivision 3.
5.33 	(c) Persons who are admitted to the at-home infant child
5.34 	care program retain their position in any basic sliding fee 
5.35 	child care assistance program.  Persons leaving the at-home
5.36 	infant child care program reenter the basic sliding fee child
6.1 	care assistance program at the position they would have occupied.
6.2 	(d) Assistance under this section does not establish an
6.3 	employer-employee relationship between any member of the
6.4 	assisted family and the county or state.

6.5 	Sec. 9. Minnesota Statutes 2004, section 119B.035,
6.6 	subdivision 5, is amended to read:
6.7 		Subd. 5.Implementation.  The commissioner shall
6.8 	implement the at-home infant child care program under this
6.9 	section through counties that administer the basic sliding fee 
6.10 	child care assistance program under section 119B.03this chapter.
6.11 	The commissioner must develop and distribute consumer
6.12 	information on the at-home infant child care program to assist
6.13 	parents of infants or expectant parents in making informed child
6.14 	care decisions.

6.15 	Sec. 10. Minnesota Statutes 2004, section 119B.05,
6.16 	subdivision 5, is amended to read:
6.17 		Subd. 5.Federal reimbursement.  Counties and the state 
6.18 	shall maximize their federal reimbursement under federal
6.19 	reimbursement programs for money spent for persons eligible
6.20 	under this chapter.  The commissioner shall allocate any federal
6.21 	earnings to the county to be used to expand child care services
6.22 	under this chapter.

6.23 	Sec. 11. Minnesota Statutes 2004, section 119B.08, is
6.24 	amended to read:
6.25 	119B.08 REPORTING AND PAYMENTS.
6.26 		Subdivision 1.Reports. The commissioner shall specify
6.27 	requirements for reports under the same authority as provided to
6.28 	the commissioner of human services in section 256.01,
6.29 	subdivision 2, paragraph (17).
6.30 		Subd. 2.Quarterly payments. The commissioner may make
6.31 	payments to each county in quarterly installments. The
6.32 	commissioner may certify an advance up to 25 percent of the
6.33 	allocation.Subsequent payments shall be made on a
6.34 	reimbursement basis for reported expenditures and may be
6.35 	adjusted for anticipated spending patterns.  Payments may be
6.36 	withheld if quarterly reports are incomplete or untimely.
7.1 		Subd. 3.Child care fund plan. The county and designated
7.2 	administering agency shall submit a biennial child care fund
7.3 	plan to the commissioner.  The commissioner shall establish the
7.4 	dates by which the county must submit the plans.  The plan shall
7.5 	include:
7.6 	(1) a description of strategies to coordinate and maximize
7.7 	public and private community resources, including school
7.8 	districts, health care facilities, government agencies,
7.9 	neighborhood organizations, and other resources knowledgeable in
7.10 	early childhood development, in particular to coordinate child
7.11 	care assistance with existing community-based programs and
7.12 	service providers including child care resource and referral
7.13 	programs, early childhood family education, school readiness,
7.14 	Head Start, local interagency early intervention committees,
7.15 	special education services, early childhood screening, and other
7.16 	early childhood care and education services and programs to the
7.17 	extent possible, to foster collaboration among agencies and
7.18 	other community-based programs that provide flexible,
7.19 	family-focused services to families with young children and to
7.20 	facilitate transition into kindergarten.  The county must
7.21 	describe a method by which to share information, responsibility,
7.22 	and accountability among service and program providers;
7.23 	(2) a description of procedures and methods to be used to
7.24 	make copies of the proposed state plan reasonably available to
7.25 	the public, including members of the public particularly
7.26 	interested in child care policies such as parents, child care
7.27 	providers, culturally specific service organizations, child care
7.28 	resource and referral programs, interagency early intervention
7.29 	committees, potential collaborative partners and agencies
7.30 	involved in the provision of care and education to young
7.31 	children, and allowing sufficient time for public review and
7.32 	comment; and
7.33 	(3) information as requested by the department to ensure
7.34 	compliance with the child care fund statutes and rules
7.35 	promulgated by the commissioner.
7.36 	The commissioner shall notify counties within 90 days of
8.1 	the date the plan is submitted whether the plan is approved or
8.2 	the corrections or information needed to approve the plan.  The
8.3 	commissioner shall withhold a county's allocation until it has
8.4 	an approved plan.  Plans not approved by the end of the second
8.5 	quarter after the plan is due may result in a 25 percent
8.6 	reduction in allocation.  Plans not approved by the end of the
8.7 	third quarter after the plan is due may result in a 100 percent
8.8 	reduction in the allocation to the county payments to a county
8.9 	until it has an approved plan.  Counties are to maintain
8.10 	services despite any reduction in their allocation withholding
8.11 	of payments due to plans not being approved.
8.12 		Subd. 4.termination of allocation withholding or
8.13 	reduction of funds. The commissioner may withhold,or reduce,
8.14 	or terminate the allocation of any funds intended to reimburse
8.15 	counties for child care costs under the child care fund if the 
8.16 	county that does not meet the reporting or other requirements of
8.17 	this program.  The commissioner shall reallocate to other
8.18 	counties money so reduced or terminated withholding or reduction
8.19 	of funds under this subdivision does not relieve counties of
8.20 	their requirements under this chapter.

8.21 	Sec. 12. Minnesota Statutes 2004, section 119B.09,
8.22 	subdivision 1, is amended to read:
8.23 		Subdivision 1.General eligibility requirements for all
8.24 	applicants for child care assistance.  (a) Child care services
8.25 	must be available to families who need child care to find or
8.26 	keep employment or to obtain the training or education necessary
8.27 	to find employment as defined in section 119B.10,and who:
8.28 	(1) meet the requirements of section 119B.05; receive MFIP
8.29 	assistance; and are participating in employment and training
8.30 	services under chapter 256J or 256K;
8.31 	(2) have household income below the eligibility levels for
8.32 	MFIP; or 
8.33 	(3) have household income less than or equal to 175 percent
8.34 	of the federal poverty guidelines, adjusted for family size, at
8.35 	program entry and less than 250 percent of the federal poverty
8.36 	guidelines, adjusted for family size, at program exit.
9.1 	(b) Child care services must be made available as in-kind
9.2 	services.
9.3 	(c) All applicants for child care assistance and families
9.4 	currently receiving child care assistance must be assisted and
9.5 	required to cooperate in establishment of paternity and
9.6 	enforcement of child support obligations for all children in the
9.7 	family as a condition of program eligibility.  For purposes of
9.8 	this section, a family is considered to meet the requirement for
9.9 	cooperation when the family complies with the requirements of
9.10 	section 256.741.

9.11 	Sec. 13. Minnesota Statutes 2004, section 119B.09,
9.12 	subdivision 4a, is amended to read:
9.13 		Subd. 4a.Temporary ineligibility of military personnel.
 9.14 	Counties must reserve a family's position under the child care
9.15 	assistance fund if a family has been receiving child care
9.16 	assistance but is temporarily ineligible for assistance due to
9.17 	increased income from active military service.  Activated
9.18 	military personnel may be temporarily ineligible until
9.19 	deactivation. A county must reserve a military family's
9.20 	position on the basic sliding fee waiting list under the child
9.21 	care assistance fund if a family is approved to receive child
9.22 	care assistance and reaches the top of the waiting list but is
9.23 	temporarily ineligible for assistance.

9.24 	Sec. 14. Minnesota Statutes 2004, section 119B.09,
9.25 	subdivision 7, is amended to read:
9.26 		Subd. 7.Date of eligibility for assistance.  (a) The
9.27 	date of eligibility for child care assistance under this chapter
9.28 	is the later of the date the application was signed; the
9.29 	beginning date of employment, education, or training; or the
9.30 	date the infant is born for applicants to the at-home infant
9.31 	care program; or the date a determination has been made that the
9.32 	applicant is a participant in employment and training services
9.33 	under Minnesota Rules, part 3400.0080, subpart 2a, or chapter
9.34 	256J.
9.35 	(b) Payment ceases for a family under the at-home infant
9.36 	child care program when a family has used a total of 12 months
10.1 	of assistance as specified under section 119B.035. Payment of
10.2 	child care assistance for employed persons on MFIP is effective
10.3 	the date of employment or the date of MFIP eligibility,
10.4 	whichever is later.Payment of child care assistance for MFIP
10.5 	or DWP participants in employment and training services is
10.6 	effective the date of commencement of the services or the date
10.7 	of MFIP or DWP eligibility, whichever is later. Payment of
10.8 	child care assistance for transition year child care must be
10.9 	made retroactive to the date of eligibility for transition year
10.10 	child care.

10.11 	Sec. 15. Minnesota Statutes 2004, section 119B.10, is
10.12 	amended to read:
10.13 	119B.10 EMPLOYMENT OR TRAINING ELIGIBILITY.
10.14 		Subdivision 1.Assistance for persons seeking and
10.15 	retaining employment. (a) Persons who are seeking employment
10.16 	and who are eligible for assistance under this section chapter 
10.17 	are eligible to receive up to 240 hours of child care assistance
10.18 	per calendar year.
10.19 	(b) Employed persons who work at least an average of 20
10.20 	hours and full-time students who work at least an average of ten
10.21 	hours a week and receive at least a minimum wage for all hours
10.22 	worked are eligible for continued child care assistance for
10.23 	employment.  For purposes of this section, work-study programs
10.24 	must be counted as employment.  Child care assistance during
10.25 	employment must be authorized as provided in paragraphs (c) and
10.26 	(d).
10.27 	(c) When the person works for an hourly wage and the hourly
10.28 	wage is equal to or greater than the applicable minimum wage,
10.29 	child care assistance shall be provided for the actual hours of
10.30 	employment, break, and mealtime during the employment and travel
10.31 	time up to two hours per day.
10.32 	(d) When the person does not work for an hourly wage, child
10.33 	care assistance must be provided for the lesser of:
10.34 	(1) the amount of child care determined by dividing gross
10.35 	earned income by the applicable minimum wage, up to one hour
10.36 	every eight hours for meals and break time, plus up to two hours
11.1 	per day for travel time; or
11.2 	(2) the amount of child care equal to the actual amount of
11.3 	child care used during employment, including break and mealtime
11.4 	during employment, and travel time up to two hours per day.
11.5 		Subd. 1a.Assistance for persons participating in
11.6 	employment plan. The following persons are also eligible for
11.7 	child care assistance:
11.8 	(1) persons who are participating in employment orientation
11.9 	or job search, or other employment or training activities that
11.10 	are included in an approved employability development plan under
11.11 	chapter 256K;
11.12 	(2) persons who are participating in work, job search, job
11.13 	support, employment, or training activities as required in their
11.14 	job search support or employment plan or in appeals, hearings,
11.15 	assessments, or orientations according to chapter 256J;
11.16 	(3) persons who are participating in social services
11.17 	activities under chapter 256J or 256K as required in their
11.18 	employment plan approved according to chapter 256J or 256K; and 
11.19 	(4) families who are participating in programs as required
11.20 	in tribal contracts under section 119B.02, subdivision 2, or
11.21 	256.01, subdivision 2.
11.22 		Subd. 2.Financial eligibility required. Persons
11.23 	participating in employment programs, training programs, or
11.24 	education programs are eligible for continued assistance from
11.25 	the child care fund, if they are financially eligible under the
11.26 	sliding fee scale set by the commissioner in section 119B.12.
11.27 		Subd. 3.Child care assistance during education. (a) The
11.28 	following persons are eligible for child care assistance for
11.29 	education or training:
11.30 	(1) persons who meet the requirements of section 119B.09
11.31 	who are enrolled in remedial or basic education or English as a
11.32 	second language, or persons up to the age of 19 who are enrolled
11.33 	in an educational program to attain a high school diploma or
11.34 	general equivalency diploma;
11.35 	(2) persons who meet the requirements of this section and
11.36 	section 119B.09 who receive child care assistance to reduce the
12.1 	costs of child care for education when employed an average of at
12.2 	least ten hours per week under subdivision 1, and are not
12.3 	receiving MFIP benefits as defined in section 119B.011,
12.4 	subdivision 17; and 
12.5 	(3) persons who meet the requirements of this section and
12.6 	section 119B.09 who receive child care assistance to reduce the
12.7 	costs of child care for education when enrolled in a
12.8 	postsecondary educational institution as a full-time
12.9 	undergraduate student, and are not receiving MFIP benefits as
12.10 	defined in section 119B.011, subdivision 17.
12.11 	(b) Notwithstanding subdivisions 5 and 6, assistance for
12.12 	persons under paragraph (a), clause (3), is limited to 48 months
12.13 	or the length of time necessary to complete the degree,
12.14 	whichever is shorter.
12.15 		Subd. 4.Satisfactory progress. Students enrolled in an
12.16 	education program under section 119B.011, subdivision 11, must
12.17 	be making satisfactory progress toward completion of the program
12.18 	as stipulated in the school's satisfactory progress policy.
12.19 		Subd. 5.Limiting duration of training. Counties may not
12.20 	limit the duration of child care subsidies for a person in an
12.21 	employment or educational program except when the person is
12.22 	found to be ineligible under the child care fund eligibility
12.23 	standards.  Any limitation must be based on a person's
12.24 	employment plan in the case of an MFIP participant.
12.25 		Subd. 6.Maximum length of time for training. The
12.26 	maximum length of time a participant is eligible for child care
12.27 	assistance under the child care fund for education and training
12.28 	is no more than the maximum time allowed to complete the credit
12.29 	requirements for an associate or baccalaureate degree as
12.30 	stipulated in the school's satisfactory progress policy.  This
12.31 	length of time excludes basic or remedial education programs,
12.32 	English as a second language, high school, and general
12.33 	equivalency diploma programs needed to prepare for postsecondary
12.34 	education or employment.
12.35 		Subd. 7.Mfip student moves to another county. If an
12.36 	MFIP participant who is receiving child care assistance under
13.1 	this chapter moves to another county, continues to participate
13.2 	in educational or training programs authorized in the MFIP
13.3 	participant's employment plans, and continues to be eligible for
13.4 	child care assistance under this chapter, the MFIP participant
13.5 	must receive continued child care assistance from the county
13.6 	responsible for the MFIP participant's current employment plan
13.7 	under section 256G.07.

13.8 	Sec. 16. Minnesota Statutes 2004, section 119B.11,
13.9 	subdivision 1, is amended to read:
13.10 		Subdivision 1.County contributions required.  (a) In
13.11 	addition to payments from basic sliding fee child care
13.12 	assistance program participants, each county shall contribute
13.13 	from county tax or other sources a fixed local match equal to
13.14 	its calendar year 1996 required county contribution reduced by
13.15 	the administrative funding loss that would have occurred in
13.16 	state fiscal year 1996 under section 119B.15.  The commissioner
13.17 	shall recover funds from the county as necessary to bring county
13.18 	expenditures into compliance with this subdivision.  The
13.19 	commissioner may accept county contributions, including
13.20 	contributions above the fixed local match, in order to make
13.21 	state payments.
13.22 	(b) The commissioner may accept payments from counties to:
13.23 	(1) fulfill the county contribution as required under
13.24 	subdivision 1;
13.25 	(2) pay for services authorized under this chapter beyond
13.26 	those paid for with federal or state funds or with the required
13.27 	county contributions; or
13.28 	(3) pay for child care services in addition to those
13.29 	authorized under this chapter, as authorized under other
13.30 	federal, state, or local statutes or regulations.
13.31 	(c) The county payments must be deposited in an account in
13.32 	the special revenue fund.  Money in this account is appropriated
13.33 	to the commissioner for child care assistance under this chapter
13.34 	and other applicable statutes and regulations and is in addition
13.35 	to other state and federal appropriations.

13.36 	Sec. 17. Minnesota Statutes 2004, section 119B.12,
14.1 	subdivision 2, is amended to read:
14.2 		Subd. 2.Parent fee.  A family must be assessed a parent
14.3 	fee for each service period.  A family's parent fee must be a
14.4 	fixed percentage of its annual gross income.  Parent fees must
14.5 	apply to families eligible for child care assistance under
14.6 	sections 119B.03 and 119B.05section 119B.09.  Income must be as
14.7 	defined in section 119B.011, subdivision 15.  The fixed percent
14.8 	is based on the relationship of the family's annual gross income
14.9 	to 100 percent of the annual federal poverty guidelines.  Parent
14.10 	fees must begin at 75 percent of the poverty level.  The minimum
14.11 	parent fees for families between 75 percent and 100 percent of
14.12 	poverty level must be $10 per month.  Parent fees must provide
14.13 	for graduated movement to full payment.

14.14 	Sec. 18. Minnesota Statutes 2004, section 119B.13, is
14.15 	amended by adding a subdivision to read:
14.16 		Subd. 7.Qualified early care and learning provider
14.17 	bonus. (a) A family child care provider or child care center
14.18 	shall be paid a 20 percent bonus above the maximum rate
14.19 	established under subdivision 1, if the provider or center
14.20 	provides qualified early care and learning, up to the actual
14.21 	provider or center rate.  No less than 60 percent of a bonus
14.22 	paid to a provider or center must be distributed to staff in the
14.23 	form of increased wages.  The commissioner shall implement a
14.24 	system to verify that no less than 60 percent of a bonus paid to
14.25 	a provider or center has been used to increase staff wages.
14.26 	(b) For the purposes of this section, "qualified early care
14.27 	and learning provider" means a family child care provider or
14.28 	child care center that:
14.29 	(1) is licensed under section 245A.03;
14.30 	(2) meets state-specific performance criteria above the
14.31 	minimum licensing requirements that include benchmarks for adult
14.32 	and child relationships and interactions, the use of
14.33 	developmentally, culturally, and linguistically appropriate and
14.34 	effective teaching curriculum that enhances each child's
14.35 	learning and development, periodic self-assessment, teaching
14.36 	staff qualifications and professional development, family
15.1 	involvement and parent instruction, staff stability, and proper
15.2 	personnel, fiscal, and program management; and 
15.3 	(3) is a center that provides legal child care services as
15.4 	defined under section 245A.03 and is accredited by the National
15.5 	Association for the Education of Young Children, the Council on
15.6 	Accreditation, the National Early Childhood Program
15.7 	Accreditation, the National School-Age Care Association, or the
15.8 	National Head Start Association Program of Excellence; or 
15.9 	(4) is an individual who provides legal child care services
15.10 	as defined under section 245A.03 who has earned a child
15.11 	development associate degree, a diploma in child development
15.12 	from a Minnesota state technical college, or a bachelor's degree
15.13 	in early childhood education from an accredited college or
15.14 	university, or who is accredited by the National Association for
15.15 	Family Child Care, or the Competency Based Training and
15.16 	Assessment Program.
15.17 	(c) The commissioner shall create the state-specific
15.18 	performance criteria under paragraph (b), clause (2), and report
15.19 	to the house and senate committees with jurisdiction over child
15.20 	care assistance by February 1, 2006.  The curricular standards
15.21 	must be in accordance with any state prekindergarten readiness
15.22 	standards.

15.23 	Sec. 19. Minnesota Statutes 2004, section 119B.13, is
15.24 	amended by adding a subdivision to read:
15.25 		Subd. 8.Tiered reimbursement. The commissioner may
15.26 	establish additional tiers of child care assistance
15.27 	reimbursement based on multiple levels of quality and licensure.

15.28 	Sec. 20. Minnesota Statutes 2004, section 119B.15, is
15.29 	amended to read:
15.30 	119B.15 ADMINISTRATIVE EXPENSES.
15.31 	The commissioner shall use up to 1/21 of the state and
15.32 	federal funds available for the basic sliding fee program and
15.33 	1/21 of the state and federal funds available for the MFIP child
15.34 	care assistance program for payments to counties for
15.35 	administrative expenses the administrative costs of the delivery
15.36 	of direct services.

16.1 	Sec. 21. Minnesota Statutes 2004, section 119B.24, is
16.2 	amended to read:
16.3 	119B.24 DUTIES OF COMMISSIONER.
16.4 	In addition to the powers and duties already conferred by
16.5 	law, the commissioner of human services shall:
16.6 	(1) administer the child care fund, including the basic
16.7 	sliding fee program authorized under sections 119B.011 to
16.8 	119B.16;
16.9 	(2) monitor the child care resource and referral programs
16.10 	established under section 119B.19; and
16.11 	(3) encourage child care providers to participate in a
16.12 	nationally recognized accreditation system for early childhood
16.13 	and school-age care programs.  Subject to approval by the
16.14 	commissioner, family child care providers and early childhood
16.15 	and school-age care programs shall be reimbursed for one-half of
16.16 	the direct cost of accreditation fees, upon successful
16.17 	completion of accreditation.

16.18 	Sec. 22. DIRECTION TO COMMISSIONER OF FINANCE.
 16.19 	The state obligation for the child care assistance program
16.20 	under Minnesota Statutes, chapter 119B, must be included in the
16.21 	Department of Finance February and November forecast of state
16.22 	revenues and expenditures under Minnesota Statutes, section
16.23 	16A.103, beginning with the November 2005 forecast.

16.24 	Sec. 23. APPROPRIATION.
 16.25 	(a) The sums indicated in this section are appropriated
16.26 	from the general fund to the commissioner of human services for
16.27 	the purpose of providing grants to legal, unlicensed child care
16.28 	providers to aid them in becoming licensed under Minnesota
16.29 	Statutes, section 245A.03:
16.30 	$.,...,............
16.31 	$.,...,............
16.32 	(b) For each year, 85 percent of the appropriation must be
16.33 	distributed to counties to provide grants to legal unlicensed
16.34 	child care providers to aid them in becoming licensed under
16.35 	Minnesota Statutes, section 245A.03.  The remaining 15 percent
16.36 	of the appropriation in each year must be distributed to the
17.1 	commissioner to aid legal unlicensed child care providers in
17.2 	geographic areas of the state where insufficient child care
17.3 	resources exist to become licensed under Minnesota Rules,
17.4 	chapter 9502.

17.5 	Sec. 24. REVISOR INSTRUCTION.
 17.6 	In the next bound edition of Minnesota Statutes and
17.7 	Minnesota Rules, the revisor shall renumber the statutory
17.8 	section in column A with the section in column B, and make
17.9 	necessary cross-reference changes consistent with the
17.10 	renumbering:
17.11 	Column A Column B 
17.12 	119B.035 119B.105 
17.13 	119B.05, subd. 4 119B.03, subd. 11 
17.14 	119B.05, subd. 5 119B.03, subd. 13 

17.15 	Sec. 25. REPEALER.
 17.16 	Minnesota Statutes 2004, sections 119B.011, subdivisions 20
17.17 	and 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8;
17.18 	119B.05, subdivision 1; 119B.07; 119B.09, subdivision 3; and
17.19 	119B.11, subdivision 4, are repealed.