1.1                          A bill for an act 
  1.2             relating to human services; restoring reductions to 
  1.3             child care assistance; appropriating money; amending 
  1.4             Minnesota Statutes 2002, section 119B.13, by adding a 
  1.5             subdivision; Minnesota Statutes 2003 Supplement, 
  1.6             sections 119B.09, subdivision 1; 119B.12, subdivision 
  1.7             2; 119B.13, subdivision 1a; repealing Laws 2003, First 
  1.8             Special Session chapter 14, article 9, sections 36, 37.
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.11  119B.09, subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
  1.13  APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
  1.14  must be available to families who need child care to find or 
  1.15  keep employment or to obtain the training or education necessary 
  1.16  to find employment and who: 
  1.17     (1) meet the requirements of section 119B.05; receive MFIP 
  1.18  assistance; and are participating in employment and training 
  1.19  services under chapter 256J or 256K; 
  1.20     (2) have household income below the eligibility levels for 
  1.21  MFIP; or 
  1.22     (3) have household income less than or equal to 175 percent 
  1.23  of the federal poverty guidelines, adjusted for family size, at 
  1.24  program entry and less than 250 percent of the federal poverty 
  1.25  guidelines, adjusted for family size, at program exit 75 percent 
  1.26  of the state median income. 
  1.27     (b) Child care services must be made available as in-kind 
  2.1   services.  
  2.2      (c) All applicants for child care assistance and families 
  2.3   currently receiving child care assistance must be assisted and 
  2.4   required to cooperate in establishment of paternity and 
  2.5   enforcement of child support obligations for all children in the 
  2.6   family as a condition of program eligibility.  For purposes of 
  2.7   this section, a family is considered to meet the requirement for 
  2.8   cooperation when the family complies with the requirements of 
  2.9   section 256.741. 
  2.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  2.11     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.12  119B.12, subdivision 2, is amended to read: 
  2.13     Subd. 2.  [PARENT FEE.] A family must be assessed a parent 
  2.14  fee for each service period.  A family's parent fee must be a 
  2.15  fixed percentage of its annual gross income.  Parent fees must 
  2.16  apply to families eligible for child care assistance under 
  2.17  sections 119B.03 and 119B.05.  Income must be as defined in 
  2.18  section 119B.011, subdivision 15.  The fixed percent is based on 
  2.19  the relationship of the family's annual gross income to 100 
  2.20  percent of the annual federal poverty guidelines state median 
  2.21  income.  Parent fees must begin at 75 percent of the poverty 
  2.22  level.  The minimum parent fee for families with incomes between 
  2.23  75 percent and 100 percent of the poverty level must be $2.50 
  2.24  per service period.  Parent fees must provide for graduated 
  2.25  movement to full payment. 
  2.26     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  2.27     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  2.28  119B.13, subdivision 1a, is amended to read: 
  2.29     Subd. 1a.  [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 
  2.30  RATES.] (a) Legal nonlicensed family child care providers 
  2.31  receiving reimbursement under this chapter must be paid on an 
  2.32  hourly basis for care provided to families receiving assistance. 
  2.33     (b) The maximum rate paid to legal nonlicensed family child 
  2.34  care providers must be 80 85 percent of the county maximum 
  2.35  hourly rate for licensed family child care providers.  In 
  2.36  counties where the maximum hourly rate for licensed family child 
  3.1   care providers is higher than the maximum weekly rate for those 
  3.2   providers divided by 50, the maximum hourly rate that may be 
  3.3   paid to legal nonlicensed family child care providers is the 
  3.4   rate equal to the maximum weekly rate for licensed family child 
  3.5   care providers divided by 50 and then multiplied by 0.80 0.85. 
  3.6      (c) A rate which includes a provider bonus paid under 
  3.7   subdivision 2 7 or a special needs rate paid under subdivision 3 
  3.8   may be in excess of the maximum rate allowed under this 
  3.9   subdivision. 
  3.10     (d) Legal nonlicensed family child care providers receiving 
  3.11  reimbursement under this chapter may not be paid registration 
  3.12  fees for families receiving assistance. 
  3.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  3.14     Sec. 4.  Minnesota Statutes 2002, section 119B.13, is 
  3.15  amended by adding a subdivision to read: 
  3.16     Subd. 7.  [PROVIDER RATE BONUS FOR ACCREDITATION.] A family 
  3.17  child care provider or child care center shall be paid a ten 
  3.18  percent bonus above the maximum rate established in subdivision 
  3.19  1, if the provider or center holds a current early childhood 
  3.20  development credential approved by the commissioner, up to the 
  3.21  actual provider rate charged to private pay families. 
  3.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  3.23     Sec. 5.  [MAXIMUM PROVIDER REIMBURSEMENT RATES.] 
  3.24     Notwithstanding Laws 2003, First Special Session chapter 
  3.25  14, article 9, section 34, the commissioner shall establish 
  3.26  maximum child care provider reimbursement rates at the 75th 
  3.27  percentile rate for like-care arrangements in each county as 
  3.28  determined by an annual survey. 
  3.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  3.30     Sec. 6.  [DIRECTION TO COMMISSIONER; CHILD CARE ASSISTANCE 
  3.31  PARENT FEE SCHEDULE.] 
  3.32     The commissioner shall establish child care assistance 
  3.33  parent fees based on the parent fee schedule in Minnesota Rules, 
  3.34  part 3400.0100. 
  3.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  3.36     Sec. 7.  [APPROPRIATIONS.] 
  4.1      Subdivision 1.  [BASIC SLIDING FEE CHILD CARE.] $29,728,000 
  4.2   is appropriated in 2005 for basic sliding fee child care 
  4.3   assistance under Minnesota Statutes, section 119B.03. 
  4.4      This appropriation is in addition to the appropriations 
  4.5   made in Laws 2003, First Special Session chapter 14, article 
  4.6   13C, section 10, subdivision 2. 
  4.7      Subd. 2.  [MFIP CHILD CARE.] $21,003,000 is appropriated in 
  4.8   fiscal year 2005 for MFIP child care assistance under Minnesota 
  4.9   Statutes, section 119B.05. 
  4.10     This appropriation is in addition to the appropriations 
  4.11  made in Laws 2003, First Special Session chapter 14, article 
  4.12  13C, section 10, subdivision 2. 
  4.13     Subd. 3.  [CHILD CARE DEVELOPMENT.] $500,000 is 
  4.14  appropriated in fiscal year 2005 for child care development 
  4.15  grants according to Minnesota Statutes, section 119B.21. 
  4.16     This appropriation is in addition to the appropriations 
  4.17  made in Laws 2003, First Special Session chapter 14, article 
  4.18  13C, section 10, subdivision 2. 
  4.19     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  4.20     Sec. 8.  [REPEALER.] 
  4.21     Laws 2003, First Special Session chapter 14, article 9, 
  4.22  sections 36 and 37, are repealed effective July 1, 2004.