1.1 	A bill for an act
1.2 	relating to employment; enabling low-income workers to meet basic needs; 
1.3 	providing child care assistance to low-income workers; increasing working 
1.4 	family credit; increasing minimum wage; amending Minnesota Statutes 2008, 
1.5 	sections 119B.02, subdivisions 1, 2; 119B.03, subdivisions 3, 9, 10; 119B.035, 
1.6 	subdivisions 1, 2, 4, 5; 119B.05, subdivision 5; 119B.08; 119B.09, subdivisions 
1.7 	4a, 7; 119B.10; 119B.11, subdivision 1; 119B.12, subdivision 2; 119B.15; 
1.8 	119B.24; 290.0671, subdivisions 1, 7; repealing Minnesota Statutes 2008, 
1.9 	sections 119B.011, subdivisions 20, 20a; 119B.03, subdivisions 1, 2, 4, 5, 6, 
1.10 	6a, 6b, 8; 119B.05, subdivision 1; 119B.07; 119B.09, subdivision 3; 119B.11, 
1.11 	subdivision 4.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1
1.14 	CHILD CARE ASSISTANCE CONSOLIDATION

1.15 	Section 1. Minnesota Statutes 2008, section 119B.02, subdivision 1, is amended to read:
1.16 		Subdivision 1.Child care services. The commissioner shall develop standards 
1.17 	for county and human services boards to provide child care services to enable eligible 
1.18 	families to participate in employment, training, or education programs. Within the limits 
1.19 	of available appropriations, The commissioner shall distribute money to counties to 
1.20 	reduce the costs of child care for eligible families. The commissioner shall adopt rules to 
1.21 	govern the program in accordance with this section. The rules must establish a sliding 
1.22 	schedule of fees for parents receiving child care services. The rules shall provide that 
1.23 	funds received as a lump-sum payment of child support arrearages shall not be counted 
1.24 	as income to a family in the month received but shall be prorated over the 12 months 
1.25 	following receipt and added to the family income during those months. The commissioner 
1.26 	shall maximize the use of federal money under title I and title IV of Public Law 104-193, 
1.27 	the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and 
2.1 	other programs that provide federal or state reimbursement for child care services for 
2.2 	low-income families who are in education, training, job search, or other activities allowed 
2.3 	under those programs. Money appropriated under this section must be coordinated with 
2.4 	the programs that provide federal reimbursement for child care services to accomplish 
2.5 	this purpose. Federal reimbursement obtained must be allocated to the county that spent 
2.6 	money for child care that is federally reimbursable under programs that provide federal 
2.7 	reimbursement for child care services. The countiescommissioner shall use the federal 
2.8 	money to expand child care services. The commissioner may adopt rules under chapter 14 
2.9 	to implement and coordinate federal program requirements.

2.10 	Sec. 2. Minnesota Statutes 2008, section 119B.02, subdivision 2, is amended to read:
2.11 		Subd. 2.Contractual agreements with tribes. The commissioner may enter into 
2.12 	contractual agreements with a federally recognized Indian tribe with a reservation in 
2.13 	Minnesota to carry out the responsibilities of county human service agencies to the extent 
2.14 	necessary for the tribe to operate child care assistance programs for families eligible 
2.15 	under sections 119B.03 119B.09  and 119B.05 119B.10. An agreement may allow for the 
2.16 	tribe to be reimbursed for child care assistance services provided under section 119B.05
2.17 	this chapter. The commissioner shall consult with the affected county or counties in the 
2.18 	contractual agreement negotiations, if the county or counties wish to be included, in 
2.19 	order to avoid the duplication of county and tribal child care services. Funding to support 
2.20 	services under section 119B.03 may be transferred to the federally recognized Indian tribe 
2.21 	with a reservation in Minnesota from allocations available to counties in which reservation 
2.22 	boundaries lie. When funding is transferred under section 119B.03, the amount shall be 
2.23 	commensurate to estimates of the proportion of reservation residents with characteristics 
2.24 	identified in section 119B.03, subdivision 6, to the total population of county residents 
2.25 	with those same characteristics. 

2.26 	Sec. 3. Minnesota Statutes 2008, section 119B.03, subdivision 3, is amended to read:
2.27 		Subd. 3.Eligible participants. Families that meet the eligibility requirements 
2.28 	under sections 119B.07,119B.09, and 119B.10, except MFIP participants, diversionary 
2.29 	work program, and transition year families are eligible for child care assistance under the 
2.30 	basic sliding feechild care assistance program. Families enrolled in the basic sliding fee
2.31 	child care assistance program shall be continued until they are no longer eligible. Child 
2.32 	care assistance provided through the child care fund is considered assistance to the parent.  

2.33 	Sec. 4. Minnesota Statutes 2008, section 119B.03, subdivision 9, is amended to read:
3.1 		Subd. 9.Portability pool Family move; continued participation. (a) The 
3.2 	commissioner shall establish a pool of up to five percent of the annual appropriation for 
3.3 	the basic sliding fee program to provide continuous child care assistance for eligible 
3.4 	families who move between Minnesota counties. At the end of each allocation period, any 
3.5 	unspent funds in the portability pool must be used for assistance under the basic sliding fee 
3.6 	program. If expenditures from the portability pool exceed the amount of money available, 
3.7 	the reallocation pool must be reduced to cover these shortages.
3.8 	(b) To be eligible for portable basic sliding fee assistance, a family that has moved 
3.9 	from a county in which it A family receiving child care assistance under the child care fund 
3.10 	that has moved from a county in which the family was receiving basic sliding fee child 
3.11 	care assistance to aanother county with a waiting list for the basic sliding fee program
3.12 	must be admitted into the receiving county's child care assistance program if the family:
3.13 	(1) meetmeets the income and eligibility guidelines for the basic sliding fee child 
3.14 	care assistance program; and
3.15 	(2) notifynotifies the new county of residence within 60 days of moving and submit
3.16 	submits  information to the new county of residence to verify eligibility for the basic 
3.17 	sliding fee child care assistance program.
3.18 	(c)(b) The receiving county must:
3.19 	(1) accept administrative responsibility for applicants for portable basic sliding fee 
3.20 	assistance at the end of the two months of assistance under the Unitary Residency Act;
3.21 	(2) continue basic sliding fee assistance for the lesser of six months or until the 
3.22 	family is able to receive assistance under the county's regular basic sliding program; and
3.23 	(3) notify the commissioner through the quarterly reporting process of any family 
3.24 	that meets the criteria of the portable basic sliding fee assistance pool.

3.25 	Sec. 5. Minnesota Statutes 2008, section 119B.03, subdivision 10, is amended to read:
3.26 		Subd. 10.Application; entry points. Two or more methods of applying for the 
3.27 	basic sliding feechild care assistance program under this chapter must be available to 
3.28 	applicants in each county. To meet the requirements of this subdivision, a county may 
3.29 	provide alternative methods of applying for assistance, including, but not limited to, a mail 
3.30 	application, or application sites that are located outside of government offices.

3.31 	Sec. 6. Minnesota Statutes 2008, section 119B.035, subdivision 1, is amended to read:
3.32 		Subdivision 1.Establishment. A family in which a parent provides care for the 
3.33 	family's infant child may receive a subsidy in lieu of assistance if the family is eligible 
3.34 	for or is receiving assistance under the basic sliding feechild care assistance program. 
4.1 	An eligible family must meet the eligibility factors under section 119B.09, except as 
4.2 	provided in subdivision 4, and the requirements of this section. Subject to federal match 
4.3 	and maintenance of effort requirements for the child care and development fund, and up to 
4.4 	available appropriations, the commissioner shall provide assistance under the at-home 
4.5 	infant child care program and for administrative costs associated with the program. At 
4.6 	the end of a fiscal year, the commissioner may carry forward any unspent funds under 
4.7 	this section to the next fiscal year within the same biennium for assistance under the basic 
4.8 	sliding feechild care assistance program.

4.9 	Sec. 7. Minnesota Statutes 2008, section 119B.035, subdivision 2, is amended to read:
4.10 		Subd. 2.Eligible families. A family with an infant under the age of one year is 
4.11 	eligible for assistance if:
4.12 	(1) the family is not receiving MFIP, other cash assistance, or other child care 
4.13 	assistance;
4.14 	(2) the family has not previously received a lifelong total of 12 months of assistance 
4.15 	under this section; and
4.16 	(3) the family is participating in the basic sliding feechild care assistance program 
4.17 	or provides verification of participating in an authorized activity at the time of application 
4.18 	and meets the program requirements.

4.19 	Sec. 8. Minnesota Statutes 2008, section 119B.035, subdivision 4, is amended to read:
4.20 		Subd. 4.Assistance. (a) A family is limited to a lifetime total of 12 months of 
4.21 	assistance under subdivision 2. The maximum rate of assistance is equal to 90 percent 
4.22 	of the rate established under section 119B.13 for care of infants in licensed family child 
4.23 	care in the applicant's county of residence. 
4.24 	(b) A participating family must report income and other family changes as specified 
4.25 	in the county's plan under section 119B.08, subdivision 3. 
4.26 	(c) Persons who are admitted to the at-home infant child care program retain their 
4.27 	position in any basic sliding feechild care assistance program. Persons leaving the 
4.28 	at-home infant child care program reenter the basic sliding feechild care assistance 
4.29 	program at the position they would have occupied.
4.30 	(d) Assistance under this section does not establish an employer-employee 
4.31 	relationship between any member of the assisted family and the county or state.

4.32 	Sec. 9. Minnesota Statutes 2008, section 119B.035, subdivision 5, is amended to read:
5.1 		Subd. 5.Implementation. The commissioner shall implement the at-home infant 
5.2 	child care program under this section through counties that administer the basic sliding fee
5.3 	child care assistance program under section 119B.03 this chapter. The commissioner must 
5.4 	develop and distribute consumer information on the at-home infant child care program to 
5.5 	assist parents of infants or expectant parents in making informed child care decisions. 

5.6 	Sec. 10. Minnesota Statutes 2008, section 119B.05, subdivision 5, is amended to read:
5.7 		Subd. 5.Federal reimbursement. Counties and the state shall maximize their 
5.8 	federal reimbursement under federal reimbursement programs for money spent for persons 
5.9 	eligible under this chapter. The commissioner shall allocate any federal earnings to the 
5.10 	county to be used to expand child care services under this chapter.

5.11 	Sec. 11. Minnesota Statutes 2008, section 119B.08, is amended to read:
5.12 	119B.08 REPORTING AND PAYMENTS.
5.13 		Subdivision 1.Reports. The commissioner shall specify requirements for reports 
5.14 	under the authority provided in section 256.01, subdivision 2, paragraph (17).
5.15 		Subd. 2.Quarterly payments. The commissioner may make payments to each 
5.16 	county in quarterly installments. The commissioner may certify an advance up to 25 
5.17 	percent of the allocation. Subsequent payments shall be made on a reimbursement basis 
5.18 	for reported expenditures and may be adjusted for anticipated spending patterns. Payments 
5.19 	may be withheld if quarterly reports are incomplete or untimely.
5.20 		Subd. 3.Child care fund plan. The county and designated administering agency 
5.21 	shall submit a biennial child care fund plan to the commissioner. The commissioner shall 
5.22 	establish the dates by which the county must submit the plans. The plan shall include:
5.23 	(1) a description of strategies to coordinate and maximize public and private 
5.24 	community resources, including school districts, health care facilities, government 
5.25 	agencies, neighborhood organizations, and other resources knowledgeable in early 
5.26 	childhood development, in particular to coordinate child care assistance with existing 
5.27 	community-based programs and service providers including child care resource and 
5.28 	referral programs, early childhood family education, school readiness, Head Start, local 
5.29 	interagency early intervention committees, special education services, early childhood 
5.30 	screening, and other early childhood care and education services and programs to the 
5.31 	extent possible, to foster collaboration among agencies and other community-based 
5.32 	programs that provide flexible, family-focused services to families with young children 
5.33 	and to facilitate transition into kindergarten. The county must describe a method by which 
6.1 	to share information, responsibility, and accountability among service and program 
6.2 	providers;
6.3 	(2) a description of procedures and methods to be used to make copies of the 
6.4 	proposed state plan reasonably available to the public, including members of the public 
6.5 	particularly interested in child care policies such as parents, child care providers, culturally 
6.6 	specific service organizations, child care resource and referral programs, interagency 
6.7 	early intervention committees, potential collaborative partners and agencies involved in 
6.8 	the provision of care and education to young children, and allowing sufficient time for 
6.9 	public review and comment; and
6.10 	(3) information as requested by the department to ensure compliance with the child 
6.11 	care fund statutes and rules promulgated by the commissioner.
6.12 	The commissioner shall notify counties within 90 days of the date the plan is 
6.13 	submitted whether the plan is approved or the corrections or information needed to 
6.14 	approve the plan. The commissioner shall withhold a county's allocation until it has an 
6.15 	approved plan. Plans not approved by the end of the second quarter after the plan is due 
6.16 	may result in a 25 percent reduction in allocation. Plans not approved by the end of the 
6.17 	third quarter after the plan is due may result in a 100 percent reduction in the allocation to 
6.18 	the county payments to a county until it has an approved plan. Counties are to maintain 
6.19 	services despite any reduction in their allocation withholding of payments due to plans 
6.20 	not being approved.

6.21 	Sec. 12. Minnesota Statutes 2008, section 119B.09, subdivision 4a, is amended to read:
6.22 		Subd. 4a.Temporary ineligibility of military personnel. Counties must reserve a 
6.23 	family's position under the child care assistance fund if a family has been receiving child 
6.24 	care assistance but is temporarily ineligible for assistance due to increased income from 
6.25 	active military service. Activated military personnel may be temporarily ineligible until 
6.26 	deactivation. A county must reserve a military family's position on the basic sliding fee 
6.27 	waiting list under the child care assistance fund if a family is approved to receive child care 
6.28 	assistance and reaches the top of the waiting list but is temporarily ineligible for assistance.

6.29 	Sec. 13. Minnesota Statutes 2008, section 119B.09, subdivision 7, is amended to read:
6.30 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child 
6.31 	care assistance under this chapter is the later of the date the application was signed; the 
6.32 	beginning date of employment, education, or training; or the date the infant is born for 
6.33 	applicants to the at-home infant care program; or the date a determination has been made 
7.1 	that the applicant is a participant in employment and training services under Minnesota 
7.2 	Rules, part 3400.0080, or chapter 256J.
7.3 	(b) Payment ceases for a family under the at-home infant child care program when a 
7.4 	family has used a total of 12 months of assistance as specified under section 119B.035. 
7.5 	Payment of child care assistance for employed persons on MFIP is effective the date of 
7.6 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
7.7 	assistance for MFIP or DWP participants in employment and training services is effective 
7.8 	the date of commencement of the services or the date of MFIP or DWP eligibility, 
7.9 	whichever is later. Payment of child care assistance for transition year child care must be 
7.10 	made retroactive to the date of eligibility for transition year child care.

7.11 	Sec. 14. Minnesota Statutes 2008, section 119B.10, is amended to read:
7.12 	119B.10 EMPLOYMENT OR TRAINING ELIGIBILITY.
7.13 		Subdivision 1.Assistance for persons seeking and retaining employment. (a) 
7.14 	Persons who are seeking employment and who are eligible for assistance under this section
7.15 	chapter  are eligible to receive up to 240 hours of child care assistance per calendar year.
7.16 	(b) Employed persons who work at least an average of 20 hours and full-time 
7.17 	students who work at least an average of ten hours a week and receive at least a minimum 
7.18 	wage for all hours worked are eligible for continued child care assistance for employment. 
7.19 	For purposes of this section, work-study programs must be counted as employment. 
7.20 	Child care assistance during employment must be authorized as provided in paragraphs 
7.21 	(c) and (d).
7.22 	(c) When the person works for an hourly wage and the hourly wage is equal to or 
7.23 	greater than the applicable minimum wage, child care assistance shall be provided for the 
7.24 	actual hours of employment, break, and mealtime during the employment and travel time 
7.25 	up to two hours per day.
7.26 	(d) When the person does not work for an hourly wage, child care assistance must be 
7.27 	provided for the lesser of:
7.28 	(1) the amount of child care determined by dividing gross earned income by the 
7.29 	applicable minimum wage, up to one hour every eight hours for meals and break time, 
7.30 	plus up to two hours per day for travel time; or
7.31 	(2) the amount of child care equal to the actual amount of child care used during 
7.32 	employment, including break and mealtime during employment, and travel time up to 
7.33 	two hours per day.
7.34 		Subd. 1a.Assistance for persons participating in employment plan. The 
7.35 	following persons are also eligible for child care assistance:
8.1 	(1) persons who are participating in employment orientation or job search, or 
8.2 	other employment or training activities that are included in an approved employability 
8.3 	development plan under chapter 256K;
8.4 	(2) persons who are participating in work, job search, job support, employment, or 
8.5 	training activities as required in their job search support or employment plan or in appeals, 
8.6 	hearings, assessments, or orientations according to chapter 256J;
8.7 	(3) persons who are participating in social services activities under chapter 256J 
8.8 	or 256K as required in their employment plan approved according to chapter 256J or 
8.9 	256K; and
8.10 	(4) families who are participating in programs as required in tribal contracts under 
8.11 	section 119B.02, subdivision 2, or 256.01, subdivision 2.
8.12 		Subd. 2.Financial eligibility required. Persons participating in employment 
8.13 	programs, training programs, or education programs are eligible for continued assistance 
8.14 	from the child care fund, if they are financially eligible under the sliding fee scale set 
8.15 	by the commissioner in section 119B.12.  
8.16 		Subd. 3.Child care assistance during education. (a) The following persons are 
8.17 	eligible for child care assistance for education or training:
8.18 	(1) persons who meet the requirements of section 119B.09 who are enrolled in 
8.19 	remedial or basic education or English as a second language, or persons up to the age of 
8.20 	19 who are enrolled in an educational program to attain a high school diploma or general 
8.21 	equivalency diploma;
8.22 	(2) persons who meet the requirements of this section and section 119B.09 who 
8.23 	receive child care assistance to reduce the costs of child care for education when employed 
8.24 	an average of at least ten hours per week under subdivision 1, and are not receiving MFIP 
8.25 	benefits as defined in section 119B.011, subdivision 17; and
8.26 	(3) persons who meet the requirements of this section and section 119B.09 who 
8.27 	receive child care assistance to reduce the costs of child care for education when enrolled 
8.28 	in a postsecondary educational institution as a full-time undergraduate student, and are not 
8.29 	receiving MFIP benefits as defined in section 119B.011, subdivision 17.
8.30 	(b) Notwithstanding subdivisions 5 and 6, assistance for persons under paragraph 
8.31 	(a), clause (3), is limited to 48 months or the length of time necessary to complete the 
8.32 	degree, whichever is shorter.
8.33 		Subd. 4.Satisfactory progress. Students enrolled in an education program 
8.34 	under section 119B.011, subdivision 11, must be making satisfactory progress toward 
8.35 	completion of the program as stipulated in the school's satisfactory progress policy.
9.1 		Subd. 5.Limiting duration of training. Counties may not limit the duration of 
9.2 	child care subsidies for a person in an employment or educational program, except when 
9.3 	the person is found to be ineligible under the child care fund eligibility standards. Any 
9.4 	limitation must be based on a person's employment plan in the case of an MFIP participant.
9.5 		Subd. 6.Maximum length of time for training. The maximum length of time a 
9.6 	participant is eligible for child care assistance under the child care fund for education and 
9.7 	training is no more than the maximum time allowed to complete the credit requirements 
9.8 	for an associate or baccalaureate degree as stipulated in the school's satisfactory progress 
9.9 	policy. This length of time excludes basic or remedial education programs, English as 
9.10 	a second language, high school, and general equivalency diploma programs needed to 
9.11 	prepare for postsecondary education or employment.
9.12 		Subd. 7.MFIP student moves to another county. If an MFIP participant who is 
9.13 	receiving child care assistance under this chapter moves to another county, continues 
9.14 	to participate in educational or training programs authorized in the MFIP participant's 
9.15 	employment plans, and continues to be eligible for child care assistance under this chapter, 
9.16 	the MFIP participant must receive continued child care assistance from the county 
9.17 	responsible for the MFIP participant's current employment plan under section 256G.07.

9.18 	Sec. 15. Minnesota Statutes 2008, section 119B.11, subdivision 1, is amended to read:
9.19 		Subdivision 1.County contributions required. (a) In addition to payments from 
9.20 	basic sliding fee child care assistance program participants, each county shall contribute 
9.21 	from county tax or other sources a fixed local match equal to its calendar year 1996 
9.22 	required county contribution reduced by the administrative funding loss that would have 
9.23 	occurred in state fiscal year 1996 under section 119B.15. The commissioner shall recover 
9.24 	funds from the county as necessary to bring county expenditures into compliance with this 
9.25 	subdivision. The commissioner may accept county contributions, including contributions 
9.26 	above the fixed local match, in order to make state payments.  
9.27 	(b) The commissioner may accept payments from counties to:
9.28 	(1) fulfill the county contribution as required under subdivision 1;
9.29 	(2) pay for services authorized under this chapter beyond those paid for with federal 
9.30 	or state funds or with the required county contributions; or
9.31 	(3) pay for child care services in addition to those authorized under this chapter, as 
9.32 	authorized under other federal, state, or local statutes or regulations.
9.33 	(c) The county payments must be deposited in an account in the special revenue 
9.34 	fund. Money in this account is appropriated to the commissioner for child care assistance 
10.1 	under this chapter and other applicable statutes and regulations and is in addition to other 
10.2 	state and federal appropriations.

10.3 	Sec. 16. Minnesota Statutes 2008, section 119B.12, subdivision 2, is amended to read:
10.4 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
10.5 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
10.6 	must apply to families eligible for child care assistance under sections 119B.03 and 
10.7 	119B.05 section 119B.09. Income must be as defined in section 119B.011, subdivision 15. 
10.8 	The fixed percent is based on the relationship of the family's annual gross income to 100 
10.9 	percent of the annual state median income. Parent fees must begin at 75 percent of the 
10.10 	poverty level. The minimum parent fees for families between 75 percent and 100 percent 
10.11 	of poverty level must be $5 per month. Parent fees must provide for graduated movement 
10.12 	to full payment. Payment of part or all of a family's parent fee directly to the family's child 
10.13 	care provider on behalf of the family by a source other than the family shall not affect 
10.14 	the family's eligibility for child care assistance, and the amount paid shall be excluded 
10.15 	from the family's income. Child care providers who accept third-party payments must 
10.16 	maintain family specific documentation of payment source, amount, and time period 
10.17 	covered by the payment.

10.18 	Sec. 17. Minnesota Statutes 2008, section 119B.15, is amended to read:
10.19 	119B.15 ADMINISTRATIVE EXPENSES.
10.20 	The commissioner shall use up to 1/21 of the state and federal funds available for the 
10.21 	basic sliding fee program and 1/21 of the state and federal funds available for the MFIP
10.22 	child care assistance program for payments to counties for administrative expenses the 
10.23 	administrative costs of the delivery of direct services.

10.24 	Sec. 18. Minnesota Statutes 2008, section 119B.24, is amended to read:
10.25 	119B.24 DUTIES OF COMMISSIONER.
10.26 	In addition to the powers and duties already conferred by law, the commissioner 
10.27 	of human services shall:
10.28 	(1) administer the child care fund, including the basic sliding fee program authorized 
10.29 	under sections 119B.011 to 119B.16;  
10.30 	(2) monitor the child care resource and referral programs established under section 
10.31 	119B.19; and  
10.32 	(3) encourage child care providers to participate in a nationally recognized 
10.33 	accreditation system for early childhood and school-age care programs. Subject 
11.1 	to approval by the commissioner, family child care providers and early childhood 
11.2 	and school-age care programs shall be reimbursed for one-half of the direct cost of 
11.3 	accreditation fees, upon successful completion of accreditation.

11.4 	Sec. 19. DIRECTION TO COMMISSIONER OF FINANCE.
 11.5 	The state obligation for the child care assistance program under Minnesota Statutes, 
11.6 	chapter 119B, must be included in the Department of Finance February and November 
11.7 	forecast of state revenues and expenditures under Minnesota Statutes, section 16A.103, 
11.8 	beginning with the November 2009 forecast.

11.9 	Sec. 20. REVISOR'S INSTRUCTION.
 11.10 	In the next edition of Minnesota Statutes and Minnesota Rules, the revisor shall 
11.11 	renumber the statutory section in column A with the section in column B, and make 
11.12 	necessary cross-reference changes consistent with the renumbering:

11.13		Column A
	Column B
	
11.14		119B.035
	119B.105
	
11.15		119B.05, subd. 4
	119B.03, subd. 11
	
11.16		119B.05, subd. 5
	119B.03, subd. 12

11.17 	Sec. 21. REVISOR'S INSTRUCTION.
 11.18 	The revisor of statutes shall correct internal cross-references to sections resulting 
11.19 	from the repealer in section 22. The revisor may make changes necessary to correct the 
11.20 	punctuation, grammar, or structure of the remaining text and preserve its meaning.

11.21 	Sec. 22.  REPEALER.
 11.22 	Minnesota Statutes 2008, sections 119B.011, subdivisions 20 and 20a; 119B.03, 
11.23 	subdivisions 1, 2, 4, 5, 6, 6a, 6b, and 8; 119B.05, subdivision 1; 119B.07; 119B.09, 
11.24 	subdivision 3; and 119B.11, subdivision 4, are repealed.

11.25 	ARTICLE 2
11.26 	WORKING FAMILY TAX CREDIT

11.27 	Section 1. Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to 
11.28 	read:
11.29 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the tax 
11.30 	imposed by this chapter equal to a percentage of earned income. To receive a credit, a 
11.31 	taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
12.1 	(b) For individuals with no qualifying children, the credit equals 1.91257.65 percent 
12.2 	of the first $4,620 $11,820 of earned income. The credit is reduced by 1.91259.55 percent 
12.3 	of earned income or adjusted gross income, whichever is greater, in excess of $5,770
12.4 	$13,000, but in no case is the credit less than zero.
12.5 	(c) For individuals with one qualifying child, the credit equals 8.5 percent of the 
12.6 	first $6,920$17,700 of earned income and 8.5 percent of earned income over $12,080 
12.7 	but less than $13,450. The credit is reduced by 5.739.55 percent of earned income or 
12.8 	adjusted gross income, whichever is greater, in excess of $15,080 $19,290, but in no 
12.9 	case is the credit less than zero.
12.10 	(d) For individuals with two or more qualifying children, the credit equals ten 
12.11 	percent of the first $9,720$24,880 of earned income and 20 percent of earned income 
12.12 	over $14,860 but less than $16,800. The credit is reduced by 10.318 percent of earned 
12.13 	income or adjusted gross income, whichever is greater, in excess of $17,890 $26,000, 
12.14 	but in no case is the credit less than zero.
12.15 	(e) For a nonresident or part-year resident, the credit must be allocated based on the 
12.16 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
12.17 	(f) For a person who was a resident for the entire tax year and has earned income 
12.18 	not subject to tax under this chapter, including income excluded under section 290.01, 
12.19 	subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of 
12.20 	federal adjusted gross income reduced by the earned income not subject to tax under 
12.21 	this chapter over federal adjusted gross income. For purposes of this paragraph, the 
12.22 	subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12), 
12.23 	are not considered "earned income not subject to tax under this chapter."
12.24 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
12.25 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
12.26 	this chapter."
12.27 	(g) For tax years beginning after December 31, 2001, and before December 31, 
12.28 	2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
12.29 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
12.30 	$1,000 for married taxpayers filing joint returns.
12.31 	(h) For tax years beginning after December 31, 2004, and before December 31, 
12.32 	2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
12.33 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
12.34 	$2,000 for married taxpayers filing joint returns.
12.35 	(i) (g) For tax years beginning after December 31, 2007, and before December 
12.36 	31, 2010 2008, the $5,770 $13,000 in paragraph (b), the $15,080 $19,290 in paragraph 
13.1 	(c), and the $17,890 $26,000 in paragraph (d), after being adjusted for inflation under 
13.2 	subdivision 7, are each increased by $3,000 $3,160 for married taxpayers filing joint 
13.3 	returns. For tax years beginning after December 31, 2008 2009, the $3,000 $3,160 is 
13.4 	adjusted annually for inflation under subdivision 7.
13.5 	(j) (h) The commissioner shall construct tables showing the amount of the credit 
13.6 	at various income levels and make them available to taxpayers. The tables shall follow 
13.7 	the schedule contained in this subdivision, except that the commissioner may graduate 
13.8 	the transition between income brackets.

13.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
13.10 	December 31, 2008.

13.11 	Sec. 2. Minnesota Statutes 2008, section 290.0671, subdivision 7, is amended to read:
13.12 		Subd. 7. Inflation adjustment. The earned income amounts used to calculate 
13.13 	the credit and the income thresholds at which the maximum credit begins to be reduced 
13.14 	in subdivision 1 must be adjusted for inflation. The commissioner shall adjust by the 
13.15 	percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 
13.16 	Code, except that in section 1(f)(3)(B) the word "1999" "2008" shall be substituted for 
13.17 	the word "1992." For 2001 2010, the commissioner shall then determine the percent 
13.18 	change from the 12 months ending on August 31, 1999 2008, to the 12 months ending 
13.19 	on August 31, 2000 2009, and in each subsequent year, from the 12 months ending on 
13.20 	August 31, 1999 2008, to the 12 months ending on August 31 of the year preceding the 
13.21 	taxable year. The earned income thresholds as adjusted for inflation must be rounded to 
13.22 	the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest 
13.23 	$10 amount. The determination of the commissioner under this subdivision is not a rule 
13.24 	under the Administrative Procedure Act. 

13.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
13.26 	December 31, 2008.

13.27 	ARTICLE 3
13.28 	MINIMUM WAGE

13.29 	Section 1. MINIMUM WAGE.
 13.30 	The state of Minnesota urges the federal government to raise the minimum wage 
13.31 	in 2010 to $9.50 per hour. If the federal government does not raise the minimum wage, 
13.32 	Minnesota should act in the 2010 legislature to raise the minimum wage to $9.50 per hour.