1.1 	A bill for an act
1.2 	relating to human services; making technical and policy changes to children and 
1.3 	family services provisions; making changes to the Minnesota family investment 
1.4 	program and child care assistance program; simplifying the Minnesota family 
1.5 	investment program and diversionary work program;amending Minnesota 
1.6 	Statutes 2010, sections 119B.09, subdivision 7; 119B.12, subdivisions 1, 2; 
1.7 	119B.125, subdivisions 1a, 2, 6; 119B.13, subdivisions 1, 3a, 6; 256J.08, 
1.8 	subdivision 11; 256J.24, subdivision 2; 256J.32, subdivision 6; 256J.621; 
1.9 	256J.68, subdivision 7; 256J.95, subdivision 3.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	ARTICLE 1
1.12 	CHILD CARE

1.13 	Section 1. Minnesota Statutes 2010, section 119B.09, subdivision 7, is amended to read:
1.14 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child care 
1.15 	assistance under this chapter is the later of the date the application was signed received by 
1.16 	the county; the beginning date of employment, education, or training; the date the infant is 
1.17 	born for applicants to the at-home infant care program; or the date a determination has 
1.18 	been made that the applicant is a participant in employment and training services under 
1.19 	Minnesota Rules, part 3400.0080, or chapter 256J.
1.20 	(b) Payment ceases for a family under the at-home infant child care program when a 
1.21 	family has used a total of 12 months of assistance as specified under section 119B.035. 
1.22 	Payment of child care assistance for employed persons on MFIP is effective the date of 
1.23 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
1.24 	assistance for MFIP or DWP participants in employment and training services is effective 
1.25 	the date of commencement of the services or the date of MFIP or DWP eligibility, 
2.1 	whichever is later. Payment of child care assistance for transition year child care must be 
2.2 	made retroactive to the date of eligibility for transition year child care.
2.3 	(c) Notwithstanding paragraph (b), payment of child care assistance for participants 
2.4 	eligible under section 119B.05 may only be made retroactive for a maximum of six 
2.5 	months from the date of application for child care assistance.

2.6 	Sec. 2. Minnesota Statutes 2010, section 119B.12, subdivision 1, is amended to read:
2.7 		Subdivision 1.Fee schedule. All changes to parent fees must be implemented on 
2.8 	the first Monday of the service period following the effective date of the change.
2.9 	PARENT FEE SCHEDULE. The parent fee schedule is as follows, except as noted 
2.10 	in subdivision 2:

2.11
2.12
2.13	Income Range (as a percent of the state 
median income, except at the start of the 
first tier)
	Co-payment (as a percentage of adjusted 
gross income)
	
2.14	0-74.99% of federal poverty guidelines
	$0/month biweekly
	
2.15	75.00-99.99% of federal poverty guidelines
	$5/month $2/biweekly
	
2.16
2.17	100.00% of federal poverty 
guidelines-27.72%
	2.61%
	
2.18	27.73-29.04%
	2.61%
	
2.19	29.05-30.36%
	2.61%
	
2.20	30.37-31.68%
	2.61%
	
2.21	31.69-33.00%
	2.91%
	
2.22	33.01-34.32%
	2.91%
	
2.23	34.33-35.65%
	2.91%
	
2.24	35.66-36.96%
	2.91%
	
2.25	36.97-38.29%
	3.21%
	
2.26	38.30-39.61%
	3.21%
	
2.27	39.62-40.93%
	3.21%
	
2.28	40.94-42.25%
	3.84%
	
2.29	42.26-43.57%
	3.84%
	
2.30	43.58-44.89%
	4.46%
	
2.31	44.90-46.21%
	4.76%
	
2.32	46.22-47.53%
	5.05%
	
2.33	47.54-48.85%
	5.65%
	
2.34	48.86-50.17%
	5.95%
	
2.35	50.18-51.49%
	6.24%
	
2.36	51.50-52.81%
	6.84%
	
2.37	52.82-54.13%
	7.58%
	
2.38	54.14-55.45%
	8.33%
	
2.39	55.46-56.77%
	9.20%
	
2.40	56.78-58.09%
	10.07%
	
2.41	58.10-59.41%
	10.94%
	
3.1	59.42-60.73%
	11.55%
	
3.2	60.74-62.06%
	12.16%
	
3.3	62.07-63.38%
	12.77%
	
3.4	63.39-64.70%
	13.38%
	
3.5	64.71-66.99 67.00%
	14.00%
	
3.6	Greater than 67.00%
	ineligible
	
3.7 	A family's monthly biweekly co-payment fee is the fixed percentage established for 
3.8 	the income range multiplied by the highest possible income within that income range.

3.9 	Sec. 3. Minnesota Statutes 2010, section 119B.12, subdivision 2, is amended to read:
3.10 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
3.11 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
3.12 	must apply to families eligible for child care assistance under sections 119B.03 and 
3.13 	119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed 
3.14 	percent is based on the relationship of the family's annual gross income to 100 percent 
3.15 	of the annual state median income. Parent fees must begin at 75 percent of the poverty 
3.16 	level. The minimum parent fees for families between 75 percent and 100 percent of 
3.17 	poverty level must be $5 per month $2 per biweekly period. Parent fees must provide 
3.18 	for graduated movement to full payment. Payment of part or all of a family's parent 
3.19 	fee directly to the family's child care provider on behalf of the family by a source other 
3.20 	than the family shall not affect the family's eligibility for child care assistance, and the 
3.21 	amount paid shall be excluded from the family's income. Child care providers who accept 
3.22 	third-party payments must maintain family specific documentation of payment source, 
3.23 	amount, and time period covered by the payment.

3.24 	Sec. 4. Minnesota Statutes 2010, section 119B.125, subdivision 1a, is amended to read:
3.25 		Subd. 1a.Background study required. This subdivision only applies to legal, 
3.26 	nonlicensed family child care providers. Prior to authorization, and as part of each 
3.27 	reauthorization required in subdivision 1, the county shall perform a background study on 
3.28 	every member of the provider's household who is age 13 and older. The background study 
3.29 	shall be conducted according to the procedures under subdivision 2. The county shall also 
3.30 	perform a background study on an individual who has reached age ten but is not yet age 
3.31 	13 and is living in the household where the nonlicensed child care will be provided when 
3.32 	the county has reasonable cause as defined under section 245C.02, subdivision 15.

3.33 	Sec. 5. Minnesota Statutes 2010, section 119B.125, subdivision 2, is amended to read:
4.1 		Subd. 2.Persons who cannot be authorized. (a) When any member of the 
4.2 	legal, nonlicensed family child care provider's household meets any of the conditions 
4.3 	under paragraphs (b) to (n), the provider must not be authorized as a legal nonlicensed 
4.4 	family child care provider. To determine whether any of the listed conditions exist, the 
4.5 	county must request information about the provider and other household members for 
4.6 	whom a background study is required under subdivision 1a from the Bureau of Criminal 
4.7 	Apprehension, the juvenile courts, and social service agencies. When one of the listed 
4.8 	entities does not maintain information on a statewide basis, the county must contact 
4.9 	the entity in the county where the provider resides and any other county in which the 
4.10 	provider or any household member previously resided in the past year. For purposes of 
4.11 	this subdivision, a finding that a delinquency petition is proven in juvenile court must be 
4.12 	considered a conviction in state district court. The provider seeking authorization under 
4.13 	this section shall collect the information required under section 245C.05, subdivision 1, 
4.14 	and forward the information to the county agency. The background study must include 
4.15 	a review of the information required under section 245C.08, subdivisions 2, 3, and 4, 
4.16 	paragraph (b). A nonlicensed family child care provider is not authorized under this 
4.17 	section if any household member who is the subject of a background study is determined 
4.18 	to have a disqualifying characteristic under paragraphs (b) to (e) or under section 245C.14 
4.19 	or 245C.15. If a county has determined that a provider is able to be authorized in that 
4.20 	county, and a family in another county later selects that provider, the provider is able to 
4.21 	be authorized in the second county without undergoing a new background investigation 
4.22 	unless one of the following conditions exists:
4.23 	(1) two years have passed since the first authorization;
4.24 	(2) another person age 13 or older has joined the provider's household since the 
4.25 	last authorization;
4.26 	(3) a current household member has turned 13 since the last authorization; or
4.27 	(4) there is reason to believe that a household member has a factor that prevents 
4.28 	authorization.
4.29 	(b) The person has been convicted of one of the following offenses or has admitted to 
4.30 	committing or a preponderance of the evidence indicates that the person has committed an 
4.31 	act that meets the definition of one of the following offenses: sections 609.185 to 609.195, 
4.32 	murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn 
4.33 	child in the first, second, or third degree; 609.322, solicitation, inducement, promotion 
4.34 	of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual 
4.35 	conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to 
4.36 	engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a 
5.1 	child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial 
5.2 	representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense 
5.3 	of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime 
5.4 	against children; or an attempt or conspiracy to commit any of these offenses as defined in 
5.5 	Minnesota Statutes; or an offense in any other state or country where the elements are 
5.6 	substantially similar to any of the offenses listed in this paragraph.
5.7 	(c) Less than 15 years have passed since the discharge of the sentence imposed for 
5.8 	the offense and the person has received a felony conviction for one of the following 
5.9 	offenses, or the person has admitted to committing or a preponderance of the evidence 
5.10 	indicates that the person has committed an act that meets the definition of a felony 
5.11 	conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter 
5.12 	in the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding 
5.13 	suicide or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, 
5.14 	third, or fourth degree; 609.224, repeat offenses of fifth-degree assault; 609.228, great 
5.15 	bodily harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable 
5.16 	adult; 609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to 
5.17 	injure or facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene 
5.18 	materials and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, 
5.19 	false imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or 
5.20 	second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third 
5.21 	degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27, 
5.22 	coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor 
5.23 	engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth 
5.24 	degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of 
5.25 	shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582, 
5.26 	burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63, 
5.27 	forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature 
5.28 	by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67, 
5.29 	unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71, 
5.30 	riot; 609.713, terrorist threats; 609.749, stalking; 260C.301, termination of parental rights; 
5.31 	152.021 to 152.022 and 152.0262, controlled substance crime in the first or second degree; 
5.32 	152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2, clause (4), controlled 
5.33 	substance crime in third degree; 152.024, subdivision 1, clause (2), (3), or (4), controlled 
5.34 	substance crime in fourth degree; 617.23, repeat offenses of indecent exposure; an attempt 
5.35 	or conspiracy to commit any of these offenses as defined in Minnesota Statutes; or an 
6.1 	offense in any other state or country where the elements are substantially similar to any of 
6.2 	the offenses listed in this paragraph.
6.3 	(d) Less than ten years have passed since the discharge of the sentence imposed for 
6.4 	the offense and the person has received a gross misdemeanor conviction for one of the 
6.5 	following offenses or the person has admitted to committing or a preponderance of the 
6.6 	evidence indicates that the person has committed an act that meets the definition of a gross 
6.7 	misdemeanor conviction for one of the following offenses: sections 609.224, fifth-degree 
6.8 	assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of 
6.9 	an order for protection; 609.3451, fifth-degree criminal sexual conduct; 609.746, repeat 
6.10 	offenses of interference with privacy; 617.23, repeat offenses of indecent exposure; 
6.11 	617.241, obscene materials and performances; 617.243, indecent literature, distribution; 
6.12 	617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66, 
6.13 	dangerous weapons; 609.749, stalking; 609.224, subdivision 2, paragraph (c), fifth-degree 
6.14 	assault against a vulnerable adult by a caregiver; 609.23, mistreatment of persons 
6.15 	confined; 609.231, mistreatment of residents or patients; 609.2325, criminal abuse of a 
6.16 	vulnerable adult; 609.2335, financial exploitation of a vulnerable adult; 609.233, criminal 
6.17 	neglect of a vulnerable adult; 609.234, failure to report maltreatment of a vulnerable adult; 
6.18 	609.72, subdivision 3, disorderly conduct against a vulnerable adult; 609.265, abduction; 
6.19 	609.378, neglect or endangerment of a child; 609.377, malicious punishment of a child; 
6.20 	609.324, subdivision 1a, other prohibited acts, minor engaged in prostitution; 609.33, 
6.21 	disorderly house; 609.52, theft; 609.582, burglary in the first, second, third, or fourth 
6.22 	degree; 609.631, check forgery, offering a forged check; 609.275, attempt to coerce; an 
6.23 	attempt or conspiracy to commit any of these offenses as defined in Minnesota Statutes; or 
6.24 	an offense in any other state or country where the elements are substantially similar to 
6.25 	any of the offenses listed in this paragraph.
6.26 	(e) Less than seven years have passed since the discharge of the sentence imposed 
6.27 	for the offense and the person has received a misdemeanor conviction for one of the 
6.28 	following offenses or the person has admitted to committing or a preponderance of the 
6.29 	evidence indicates that the person has committed an act that meets the definition of a 
6.30 	misdemeanor conviction for one of the following offenses: sections 609.224, fifth-degree 
6.31 	assault; 609.2242, domestic assault; 518B.01, violation of an order for protection; 
6.32 	609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79, 
6.33 	obscene or harassing telephone calls; 609.795, letter, telegram, or package opening, 
6.34 	harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree; 
6.35 	617.293, dissemination and display of harmful materials to minors; 609.66, dangerous 
6.36 	weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses 
7.1 	as defined in Minnesota Statutes; or an offense in any other state or country where the 
7.2 	elements are substantially similar to any of the offenses listed in this paragraph.
7.3 	(f) The person has been identified by the child protection agency in the county where 
7.4 	the provider resides or a county where the provider has resided or by the statewide child 
7.5 	protection database as a person found by a preponderance of evidence under section 
7.6 	626.556 to be responsible for physical or sexual abuse of a child within the last seven years.
7.7 	(g) The person has been identified by the adult protection agency in the county 
7.8 	where the provider resides or a county where the provider has resided or by the statewide 
7.9 	adult protection database as the person responsible for abuse or neglect of a vulnerable 
7.10 	adult within the last seven years.
7.11 	(h) (b) The person has refused to give written consent for disclosure of criminal 
7.12 	history records.
7.13 	(i) (c) The person has been denied a family child care license or has received a fine 
7.14 	or a sanction as a licensed child care provider that has not been reversed on appeal.
7.15 	(j) (d) The person has a family child care licensing disqualification that has not 
7.16 	been set aside.
7.17 	(k) (e) The person has admitted or a county has found that there is a preponderance 
7.18 	of evidence that fraudulent information was given to the county for child care assistance 
7.19 	application purposes or was used in submitting child care assistance bills for payment.
7.20 	(l) The person has been convicted of the crime of theft by wrongfully obtaining 
7.21 	public assistance or has been found guilty of wrongfully obtaining public assistance by a 
7.22 	federal court, state court, or an administrative hearing determination or waiver, through a 
7.23 	disqualification consent agreement, as part of an approved diversion plan under section 
7.24 	401.065, or a court-ordered stay with probationary or other conditions.
7.25 	(m) The person has a household member age 13 or older who has access to children 
7.26 	during the hours that care is provided and who meets one of the conditions listed in 
7.27 	paragraphs (b) to (l).
7.28 	(n) The person has a household member ages ten to 12 who has access to children 
7.29 	during the hours that care is provided; information or circumstances exist which provide 
7.30 	the county with articulable suspicion that further pertinent information may exist showing 
7.31 	the household member meets one of the conditions listed in paragraphs (b) to (l); and the 
7.32 	household member actually meets one of the conditions listed in paragraphs (b) to (l).

7.33 	Sec. 6. Minnesota Statutes 2010, section 119B.125, subdivision 6, is amended to read:
7.34 		Subd. 6.Record-keeping requirement. All providers receiving child care 
7.35 	assistance payments must keep daily attendance records for all children receiving child 
8.1 	care assistancein care and must make those records available immediately to the county 
8.2 	upon request. The attendance records must be completed daily and include the date, the 
8.3 	first, middle, and last name of each child in attendance, the times when each child is 
8.4 	dropped off and picked up, and the total number of hours of attendance for each child 
8.5 	present on that date. The times that the child was dropped off to and picked up from the 
8.6 	child care provider must be entered by the person dropping off or picking up the child. The 
8.7 	daily attendance records must be retained for six years after the date of service. A county 
8.8 	may deny authorization as a child care provider to any applicant or rescind authorization 
8.9 	of any provider when the county knows or has reason to believe that the provider has not 
8.10 	complied with the record-keeping requirement in this subdivision.

8.11 	Sec. 7. Minnesota Statutes 2010, section 119B.13, subdivision 1, is amended to read:
8.12 		Subdivision 1.Subsidy restrictions. (a) Beginning July 1, 2006, the maximum rate 
8.13 	paid for child care assistance in any county or multicounty region under the child care 
8.14 	fund shall be the rate for like-care arrangements in the county effective January 1, 2006, 
8.15 	increased by six percent.
8.16 	(b) Rate changes shall be implemented for services provided in September 2006 
8.17 	unless a participant eligibility redetermination or a new provider agreement is completed 
8.18 	between July 1, 2006, and August 31, 2006.
8.19 	As necessary, appropriate notice of adverse action must be made according to 
8.20 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
8.21 	New cases approved on or after July 1, 2006, shall have the maximum rates under 
8.22 	paragraph (a), implemented immediately.
8.23 	(c) Every year Biennially, beginning in 2012, the commissioner shall survey 
8.24 	rates charged by child care providers in Minnesota to determine the 75th percentile for 
8.25 	like-care arrangements in counties. When the commissioner determines that, using the 
8.26 	commissioner's established protocol, the number of providers responding to the survey is 
8.27 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
8.28 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
8.29 	based on like-care arrangements in a county, region, or category that the commissioner 
8.30 	deems to be similar.
8.31 	(d) A rate which includes a special needs rate paid under subdivision 3 or under a 
8.32 	school readiness service agreement paid under section 119B.231, may be in excess of the 
8.33 	maximum rate allowed under this subdivision.
8.34 	(e) The department shall monitor the effect of this paragraph on provider rates. The 
8.35 	county shall pay the provider's full charges for every child in care up to the maximum 
9.1 	established. The commissioner shall determine the maximum rate for each type of care on 
9.2 	an hourly, full-day, and weekly basis, including special needs and disability care.
9.3 	(f) When the provider charge is greater than the maximum provider rate allowed, 
9.4 	the parent is responsible for payment of the difference in the rates in addition to any 
9.5 	family co-payment fee.
9.6 	(g) All maximum provider rates changes shall be implemented on the Monday 
9.7 	following the effective date of the maximum provider rate.

9.8 	Sec. 8. Minnesota Statutes 2010, section 119B.13, subdivision 3a, is amended to read:
9.9 		Subd. 3a.Provider rate differential for accreditation. A family child care 
9.10 	provider or child care center shall be paid a 15 percent differential above the maximum rate 
9.11 	established in subdivision 1, up to the actual provider rate, if the provider or center holds a 
9.12 	current early childhood development credential or is accredited. For a family child care 
9.13 	provider, early childhood development credential and accreditation includes an individual 
9.14 	who has earned a child development associate degree, a child development associate 
9.15 	credential, a diploma in child development from a Minnesota state technical college, or a 
9.16 	bachelor's or post baccalaureate degree in early childhood education from an accredited 
9.17 	college or university, or who is accredited by the National Association for Family Child 
9.18 	Care or the Competency Based Training and Assessment Program. Beginning January 
9.19 	1, 2012, a request or renewal for the rate differential submitted by a family child care 
9.20 	provider must be documented using the Minnesota Center for Professional Development 
9.21 	Career Lattice. To meet the requirement for the differential, the provider must be at a 
9.22 	level six or higher on the Career Lattice. For a child care center, accreditation includes 
9.23 	accreditation by the National Association for the Education of Young Children, the 
9.24 	Council on Accreditation, the National Early Childhood Program Accreditation, the 
9.25 	National School-Age Care Association,Minnesota School Age Care Association, or 
9.26 	the National Head Start Association Program of Excellence. For Montessori programs, 
9.27 	accreditation includes the American Montessori Society,or the Association of Montessori 
9.28 	International-USA, or the National Center for Montessori Education.

9.29 	Sec. 9. Minnesota Statutes 2010, section 119B.13, subdivision 6, is amended to read:
9.30 		Subd. 6.Provider payments. (a) The provider shall bill for services provided 
9.31 	within ten days of the end of the service period. If bills are submitted within ten days of 
9.32 	the end of the service period, payments under the child care fund shall be made within 30 
9.33 	days of receiving a bill from the provider. Counties or the state may establish policies that 
9.34 	make payments on a more frequent basis.
10.1 	(b) If a provider has received an authorization of care and been issued a billing form 
10.2 	for an eligible family, the bill must be submitted within 60 days of the last date of service 
10.3 	on the bill. A bill submitted more than 60 days after the last date of service must be 
10.4 	paid if the county determines that the provider has shown good cause why the bill was 
10.5 	not submitted within 60 days. Good cause must be defined in the county's child care 
10.6 	fund plan under section 119B.08, subdivision 3, and the definition of good cause must 
10.7 	include county error. Any bill submitted more than a year after the last date of service on 
10.8 	the bill must not be paid.
10.9 	(c) If a provider provided care for a time period without receiving an authorization 
10.10 	of care and a billing form for an eligible family, payment of child care assistance may only 
10.11 	be made retroactively for a maximum of six months from the date the provider is issued 
10.12 	an authorization of care and billing form.
10.13 	(d) A county may refuse to issue a child care authorization to a licensed or legal 
10.14 	nonlicensed provider, revoke an existing child care authorization to a licensed or legal 
10.15 	nonlicensed provider, stop payment issued to a licensed or legal nonlicensed provider, or 
10.16 	may refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:
10.17 	(1) the provider admits to intentionally giving the county materially false information 
10.18 	on the provider's billing forms; or
10.19 	(2) a county finds by a preponderance of the evidence that the provider intentionally 
10.20 	gave the county materially false information on the provider's billing forms.;
10.21 	(3) the provider is in violation of licensing or child care assistance program rules and 
10.22 	the provider has not corrected the violation;
10.23 	(4) the provider submits false attendance reports or refuses to provide documentation 
10.24 	of the child's attendance upon request; or
10.25 	(5) the provider gives false child care price information.
10.26 	(e) A county's payment policies must be included in the county's child care plan 
10.27 	under section 119B.08, subdivision 3. If payments are made by the state, in addition to 
10.28 	being in compliance with this subdivision, the payments must be made in compliance 
10.29 	with section 16A.124.

10.30 	Sec. 10. CHILD CARE ASSISTANCE PROGRAM RULE CHANGE.
 10.31 	The commissioner shall amend Minnesota Rules, part 3400.0035, subpart 2, to 
10.32 	remove the requirement that applications must be submitted by mail or delivered to the 
10.33 	agency within 15 calendar days after the date of signature. The commissioner shall 
10.34 	comply with Minnesota Statutes, section 14.389, in adopting the amendment.

11.1 	ARTICLE 2
11.2 	SIMPLIFICATION OF MFIP AND DWP

11.3 	Section 1. Minnesota Statutes 2010, section 256J.08, subdivision 11, is amended to 
11.4 	read:
11.5 		Subd. 11.Caregiver. "Caregiver" means a minor child's natural birth or adoptive 
11.6 	parent or parents and stepparent who live in the home with the minor child. For purposes 
11.7 	of determining eligibility for this program, caregiver also means any of the following 
11.8 	individuals, if adults, who live with and provide care and support to a minor child when 
11.9 	the minor child's natural birth or adoptive parent or parents or stepparents do not reside 
11.10 	in the same home: legal custodian or guardian, grandfather, grandmother, brother, sister, 
11.11 	half brother, half sister, stepbrother, stepsister, uncle, aunt, first cousin or first cousin once 
11.12 	removed, nephew, niece, person of preceding generation as denoted by prefixes of "great," 
11.13 	"great-great," or "great-great-great," or a spouse of any person named in the above groups 
11.14 	even after the marriage ends by death or divorce.

11.15 	Sec. 2. Minnesota Statutes 2010, section 256J.24, subdivision 2, is amended to read:
11.16 		Subd. 2.Mandatory assistance unit composition. Except for minor caregivers 
11.17 	and their children who must be in a separate assistance unit from the other persons in 
11.18 	the household, when the following individuals live together, they must be included in 
11.19 	the assistance unit:
11.20 	(1) a minor child, including a pregnant minor;
11.21 	(2) the minor child's minor siblings, minor half siblings, and minor stepsiblings;
11.22 	(3) the minor child's natural birth parents, adoptive parents, and stepparents; and
11.23 	(4) the spouse of a pregnant woman.
11.24 	A minor child must have a caregiver for the child to be included in the assistance unit.

11.25 	Sec. 3. Minnesota Statutes 2010, section 256J.32, subdivision 6, is amended to read:
11.26 		Subd. 6.Recertification. (a) The county agency shall recertify eligibility in an 
11.27 	annual face-to-face interview with the participant and. The county agency may waive the 
11.28 	face-to-face interview and conduct a phone interview for participants who qualify under 
11.29 	paragraph (b). During the interview the county agency shall verify the following:
11.30 	(1) presence of the minor child in the home, if questionable;
11.31 	(2) income, unless excluded, including self-employment expenses used as a 
11.32 	deduction or deposits or withdrawals from business accounts;
11.33 	(3) assets when the value is within $200 of the asset limit;
12.1 	(4) information to establish an exception under section 256J.24, subdivision 9, if 
12.2 	questionable;
12.3 	(5) inconsistent information, if related to eligibility; and
12.4 	(6) whether a single caregiver household meets requirements in section 256J.575, 
12.5 	subdivision 3.
12.6 	(b) A participant who is employed any number of hours must be given the option of 
12.7 	conducting a face-to-face or phone interview to recertify eligibility. The participant must 
12.8 	be employed at the time the interview is scheduled. If the participant loses the participant's 
12.9 	job between the time the interview is scheduled and when it is to be conducted, the phone 
12.10 	interview may still be conducted.

12.11 	EFFECTIVE DATE. This section is effective October 1, 2011.

12.12 	Sec. 4. Minnesota Statutes 2010, section 256J.621, is amended to read:
12.13 	256J.621 WORK PARTICIPATION CASH BENEFITS.
12.14 	(a) Effective October 1, 2009, upon exiting the diversionary work program (DWP) 
12.15 	or upon terminating the Minnesota family investment program with earnings, a participant 
12.16 	who is employed may be eligible for work participation cash benefits of $25 per month 
12.17 	to assist in meeting the family's basic needs as the participant continues to move toward 
12.18 	self-sufficiency.
12.19 	(b) To be eligible for work participation cash benefits, the participant shall not 
12.20 	receive MFIP or diversionary work program assistance during the month and the 
12.21 	participant or participants must meet the following work requirements:
12.22 	(1) if the participant is a single caregiver and has a child under six years of age, the 
12.23 	participant must be employed at least 87 hours per month;
12.24 	(2) if the participant is a single caregiver and does not have a child under six years of 
12.25 	age, the participant must be employed at least 130 hours per month; or
12.26 	(3) if the household is a two-parent family, at least one of the parents must be 
12.27 	employed an average of at least 130 hours per month.
12.28 	Whenever a participant exits the diversionary work program or is terminated from 
12.29 	MFIP and meets the other criteria in this section, work participation cash benefits are 
12.30 	available for up to 24 consecutive months.
12.31 	(c) Expenditures on the program are maintenance of effort state funds under 
12.32 	a separate state program for participants under paragraph (b), clauses (1) and (2). 
12.33 	Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort 
13.1 	funds. Months in which a participant receives work participation cash benefits under this 
13.2 	section do not count toward the participant's MFIP 60-month time limit.

13.3 	Sec. 5. Minnesota Statutes 2010, section 256J.68, subdivision 7, is amended to read:
13.4 		Subd. 7.Exclusive procedure. The procedure established by this section is 
13.5 	exclusive of all other legal, equitable, and statutory remedies against the state, its political 
13.6 	subdivisions, or employees of the state or its political subdivisions. The claimant shall 
13.7 	not be entitled to seek damages from any state, county, tribal, or reservation insurance 
13.8 	policy or self-insurance program. A provider who accepts or agrees to accept an injury 
13.9 	protection program payment for services provided to an individual must not require any 
13.10 	payment from the individual.

13.11 	Sec. 6. Minnesota Statutes 2010, section 256J.95, subdivision 3, is amended to read:
13.12 		Subd. 3.Eligibility for diversionary work program. (a) Except for the categories 
13.13 	of family units listed below in clauses (1) to (8), all family units who apply for cash 
13.14 	benefits and who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are 
13.15 	eligible and must participate in the diversionary work program. Family units or individuals 
13.16 	that are not eligible for the diversionary work program include:
13.17 	(1) child only cases;
13.18 	(2) a single-parent family unit units that includes include a child under 12 months of 
13.19 	age. A parent is eligible for this exception once in a parent's lifetime;
13.20 	(3) family units with a minor parent without a high school diploma or its equivalent;
13.21 	(4) family units with an 18- or 19-year-old caregiver without a high school diploma 
13.22 	or its equivalent who chooses to have an employment plan with an education option;
13.23 	(5) a caregiver age 60 or over;
13.24 	(6) (5) family units with a caregiver who received DWP benefits in within the 12 
13.25 	months prior to the month the family applied for DWP, except as provided in paragraph (c);
13.26 	(7) (6) family units with a caregiver who received MFIP within the 12 months prior 
13.27 	to the month the family unit applied for DWP;
13.28 	(8) a (7) family unit units with a caregiver who received 60 or more months of 
13.29 	TANF assistance; and
13.30 	(9) (8) family units with a caregiver who is disqualified from the work participation 
13.31 	cash benefit program, DWP, or MFIP due to fraud; and.
13.32 	(10) refugees and asylees as defined in Code of Federal Regulations, title 45, part 
13.33 	400, subpart d, section 400.43, who arrived in the United States in the 12 months prior to 
13.34 	the date of application for family cash assistance.
14.1 	(b) A two-parent family must participate in DWP unless both caregivers meet the 
14.2 	criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 
14.3 	includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), (9), or (10).
14.4 	(c) Once DWP eligibility is determined, the four months run consecutively. If a 
14.5 	participant leaves the program for any reason and reapplies during the four-month period, 
14.6 	the county must redetermine eligibility for DWP.