1.1 	A bill for an act
1.2 	relating to human services; modifying eligibility requirements for child care 
1.3 	assistance; establishing a sliding fee child care schedule; modifying child care 
1.4 	provider reimbursement rates; establishing a provider rate differential for 
1.5 	accreditation; appropriating money; amending Minnesota Statutes 2004, sections 
1.6 	119B.13, by adding a subdivision; 245A.10, by adding a subdivision; Minnesota 
1.7 	Statutes 2005 Supplement, sections 119B.09, subdivision 1; 119B.13, subdivision 
1.8 	1; repealing Laws 2003, First Special Session chapter 14, article 9, section 36.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2005 Supplement, section 119B.09, subdivision 1, is 
1.11 	amended to read:
1.12 		Subdivision 1.General eligibility requirements for all applicants for child 
1.13 	care assistance. (a) Child care services must be available to families who need child 
1.14 	care to find or keep employment or to obtain the training or education necessary to find 
1.15 	employment and who:
1.16 	(1) have household income less than or equal to 250 percent of the federal poverty 
1.17 	guidelines, adjusted for family size, and meet the requirements of section 119B.05; 
1.18 	receive MFIP assistance; and are participating in employment and training services under 
1.19 	chapter 256J or 256K; or
1.20 	(2) have household income less than or equal to 175 percent of the federal poverty 
1.21 	guidelines, adjusted for family size, at program entry and less than 250 percent of the 
1.22 	federal poverty guidelines, adjusted for family size, at program exit.
1.23 	(b) Child care services must be made available as in-kind services.
1.24 	(c) All applicants for child care assistance and families currently receiving child care 
1.25 	assistance must be assisted and required to cooperate in establishment of paternity and 
1.26 	enforcement of child support obligations for all children in the family as a condition 
2.1 	of program eligibility. For purposes of this section, a family is considered to meet the 
2.2 	requirement for cooperation when the family complies with the requirements of section 
2.3 	256.741.

2.4 	EFFECTIVE DATE. This section is effective July 1, 2006.

2.5 	Sec. 2. Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 1, is 
2.6 	amended to read:
2.7 		Subdivision 1.Subsidy restrictions. (a)(i) Effective July 1, 2005, the commissioner 
2.8 	of human services shall modify the rate tables for child care centers published in 
2.9 	Department of Human Services Bulletin No. 03-68-07 so that in counties with regional or 
2.10 	statewide cells, the higher of the 100th percentile of the 2002 market rate survey data or 
2.11 	the rate currently identified in the bulletin will be the maximum rate. The rates established 
2.12 	in this clause will be considered as the previous year's rates for purposes of the increase in 
2.13 	item (iii), and shall be compared to the 100th percentile of current market rates.
2.14 	(ii) For the period between July 1, 2005, and through the full implementation of the 
2.15 	new rates under item (iii), the rates published in Department of Human Services Bulletin 
2.16 	No. 03-68-07 as adjusted by item (i) shall remain in effect.
2.17 	(iii) Beginning January 1, 2006, the maximum rate paid for child care assistance 
2.18 	in any county or multicounty region under the child care fund shall be the lesser of the 
2.19 	75th percentile rate for like-care arrangements in the county or multicounty region as 
2.20 	surveyed by the commissioner or the previous year's rate for like-care arrangements 
2.21 	in the county increased by 1.75 percent.
2.22 	(iv) Rate changes shall be implemented for services provided in March 2006 unless a 
2.23 	participant eligibility redetermination or a new provider agreement is completed between 
2.24 	January 1, 2006, and February 28, 2006.
2.25 	As necessary, appropriate notice of adverse action must be made according to 
2.26 	Minnesota Rules, part 3400.0185, subparts 3 and 4.
2.27 	New cases approved on or after January 1, 2006, shall have the maximum rates 
2.28 	under item (iii) implemented immediately.
2.29 	(b) (a) Not less than once every two years, the commissioner shall survey rates 
2.30 	charged by child care providers in Minnesota to determine the 75th percentile for 
2.31 	like-care arrangements in counties. When the commissioner determines that, using the 
2.32 	commissioner's established protocol, the number of providers responding to the survey is 
2.33 	too small to determine the 75th percentile rate for like-care arrangements in a county or 
2.34 	multicounty region, the commissioner may establish the 75th percentile maximum rate 
3.1 	based on like-care arrangements in a county, region, or category that the commissioner 
3.2 	deems to be similar.
3.3 	(b) The maximum rate paid for child care assistance under the child care fund 
3.4 	must be adjusted annually and may not exceed the 75th percentile rate for like-care 
3.5 	arrangements in a county, region, or category the commissioner deems to be similar as 
3.6 	surveyed by the commissioner.
3.7 	(c) A rate which includes a special needs rate paid under subdivision 3 may be in 
3.8 	excess of the maximum rate allowed under this subdivision.
3.9 	(d) The department shall monitor the effect of this paragraph on provider rates. The 
3.10 	county shall pay the provider's full charges for every child in care up to the maximum 
3.11 	established. The commissioner shall determine the maximum rate for each type of care on 
3.12 	an hourly, full-day, and weekly basis, including special needs and handicapped care.
3.13 	(e) When the provider charge is greater than the maximum provider rate allowed, 
3.14 	the parent is responsible for payment of the difference in the rates in addition to any 
3.15 	family co-payment fee.

3.16 	EFFECTIVE DATE. This section is effective July 1, 2006.

3.17 	Sec. 3. Minnesota Statutes 2004, section 119B.13, is amended by adding a subdivision 
3.18 	to read:
3.19 		Subd. 3a.Provider rate differential for accreditation. A family child care 
3.20 	provider or child care center shall be paid a 15 percent differential above the maximum rate 
3.21 	established in subdivision 1, up to the actual provider rate, if the provider or center holds a 
3.22 	current early childhood development credential or is accredited.  For a family child care 
3.23 	provider, early childhood development credential and accreditation includes an individual 
3.24 	who has earned a child development associate degree, a diploma in child development from 
3.25 	a Minnesota state technical college, or a bachelor's degree in early childhood education 
3.26 	from an accredited college or university, or who is accredited by the National Association 
3.27 	for Family Child Care or the Competency Based Training and Assessment Program.  For a 
3.28 	child care center, accreditation includes accreditation by the National Association for the 
3.29 	Education of Young Children, the Council on Accreditation, the National Early Childhood 
3.30 	Program Accreditation, the National School-Age Care Association, or the National Head 
3.31 	Start Association Program of Excellence.  For Montessori programs, accreditation includes 
3.32 	the American Montessori Society, Association of Montessori International-USA, or the 
3.33 	National Center for Montessori Education.

3.34 	EFFECTIVE DATE. This section is effective July 1, 2006.

4.1 	Sec. 4. Minnesota Statutes 2004, section 245A.10, is amended by adding a subdivision 
4.2 	to read:
4.3 		Subd. 7.Temporary suspension of child care license fees. County fees for 
4.4 	background studies and licensing inspections in family and group family child care under 
4.5 	subdivision 2 and annual child care center license fees under subdivision 4 are suspended. 
4.6 	The commissioner shall use unallocated federal child care development fund money from 
4.7 	the 2004-2005 biennium to reimburse the state and counties for the reduced child care 
4.8 	licensure fee revenue due to the temporary suspension. The commissioner shall also set a 
4.9 	standard statewide license and background study fee for family child care providers based 
4.10 	on the average fees currently being charged. This subdivision expires June 30, 2008.

4.11 	EFFECTIVE DATE. This section is effective July 1, 2006.

4.12 	Sec. 5. PARENT FEE SCHEDULE.
 4.13 	Notwithstanding Minnesota Rules, part 3400.0100, subpart 4, the parent fee 
4.14 	schedule is as follows:

4.15
4.16	Income Range (as a percent of the federal 
poverty guidelines)
	Co-payment (as a percentage of adjusted 
gross income)
	
4.17	0-74.99%
	$0/month
	
4.18	75.00-99.99%
	$5/month
	
4.19	100.00-104.99%
	2.61%
	
4.20	105.00-109.99%
	2.61%
	
4.21	110.00-114.99%
	2.61%
	
4.22	115.00-119.99%
	2.61%
	
4.23	120.00-124.99%
	2.91%
	
4.24	125.00-129.99%
	2.91%
	
4.25	130.00-134.99%
	2.91%
	
4.26	135.00-139.99%
	2.91%
	
4.27	140.00-144.99%
	3.21%
	
4.28	145.00-149.99%
	3.21%
	
4.29	150.00-154.99%
	3.21%
	
4.30	155.00-159.99%
	3.84%
	
4.31	160.00-164.99%
	3.84%
	
5.1	165.00-169.99%
	4.46%
	
5.2	170.00-174.99%
	4.76%
	
5.3	175.00-179.99%
	5.05%
	
5.4	180.00-184.99%
	5.65%
	
5.5	185.00-189.99%
	5.95%
	
5.6	190.00-194.99%
	6.24%
	
5.7	195.00-199.99%
	6.84%
	
5.8	200.00-204.99%
	7.58%
	
5.9	205.00-209.99%
	8.33%
	
5.10	210.00-214.99%
	9.20%
	
5.11	215.00-219.99%
	10.07%
	
5.12	220.00-224.99%
	10.94%
	
5.13	225.00-229.99%
	11.55%
	
5.14	230.00-234.99%
	12.16%
	
5.15	235.00-239.99%
	12.77%
	
5.16	240.00-244.99%
	13.38%
	
5.17	245.00-249.99%
	14.00%
	
5.18	250%
	ineligible
	
5.19 	A family's monthly co-payment fee is the fixed percentage established for the 
5.20 	income range multiplied by the highest possible income within that income range.

5.21 	EFFECTIVE DATE. This section is effective July 1, 2006.

5.22 	Sec. 6. APPROPRIATIONS; BASIC SLIDING FEE CHILD CARE.
 5.23 	$....... is appropriated from the general fund to the commissioner of human services 
5.24 	for fiscal year 2007 to fund child care assistance for eligible families on the basic sliding 
5.25 	fee waiting list under Minnesota Statutes, section 119B.03, subdivision 2, as of July 1, 
5.26 	2006.  This amount shall be added to the basic sliding fee base budget for fiscal years 
5.27 	2008 and 2009.

5.28 	Sec. 7.  REPEALER.
 5.29 	Laws 2003, First Special Session chapter 14, article 9, section 36, is repealed.