1.1                          A bill for an act
  1.2             relating to human services; defining and establishing 
  1.3             "transition services"; delaying state liability of 
  1.4             cost for out-of-state treatment of children; allowing 
  1.5             grants for community-based services for adolescents 
  1.6             with serious emotional disturbances and violent 
  1.7             behavior; providing for an early childhood care and 
  1.8             education training advisory committee; establishing 
  1.9             outcomes for cultural dynamics training; changing 
  1.10            children's safety centers to family safety centers; 
  1.11            changing payments and funding for child care programs; 
  1.12            amending Minnesota Statutes 1994, sections 245.4871, 
  1.13            by adding a subdivision; 245.4875, by adding a 
  1.14            subdivision; 245.4882, subdivision 5; 245.4886, by 
  1.15            adding subdivisions; 256F.09; 256H.01, subdivisions 9 
  1.16            and 12; 256H.02; 256H.03, subdivisions 1, 2a, 4, 6, 
  1.17            and by adding a subdivision; 256H.05, subdivision 6; 
  1.18            256H.08; 256H.11, subdivision 1; 256H.12, subdivision 
  1.19            1, and by adding a subdivision; 256H.15, subdivision 
  1.20            1; and 256H.18; repealing Minnesota Statutes 1994, 
  1.21            section 256H.03, subdivisions 2 and 5. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 1994, section 245.4871, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 35.  [TRANSITION SERVICES.] "Transition services" 
  1.26  means mental health services, designed within an outcome 
  1.27  oriented process that promotes movement from school to 
  1.28  postschool activities, including post-secondary education, 
  1.29  vocational training, integrated employment including supported 
  1.30  employment, continuing and adult education, adult mental health 
  1.31  and social services, other adult services, independent living, 
  1.32  or community participation. 
  1.33     Sec. 2.  Minnesota Statutes 1994, section 245.4875, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 8.  [TRANSITION SERVICES.] The county board may 
  2.3   continue to provide mental health services as defined in 
  2.4   sections 245.487 to 245.4888 to persons over 18 years of age, 
  2.5   but under 21 years of age, if the person was receiving case 
  2.6   management or family community support services prior to age 18, 
  2.7   and if one of the following conditions is met:  
  2.8      (1) the person is receiving special education services 
  2.9   through the local school district; or 
  2.10     (2) it is in the best interest of the person to continue 
  2.11  services defined in sections 245.487 to 245.4888. 
  2.12     Sec. 3.  Minnesota Statutes 1994, section 245.4882, 
  2.13  subdivision 5, is amended to read: 
  2.14     Subd. 5.  [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 
  2.15  commissioner of human services shall continue efforts to further 
  2.16  interagency collaboration to develop a comprehensive system of 
  2.17  services, including family community support and specialized 
  2.18  residential treatment services for children.  The services shall 
  2.19  be designed for children with emotional disturbance who exhibit 
  2.20  violent or destructive behavior and for whom local treatment 
  2.21  services are not feasible due to the small number of children 
  2.22  statewide who need the services and the specialized nature of 
  2.23  the services required.  The services shall be located in 
  2.24  community settings.  If no appropriate services are available in 
  2.25  Minnesota or within the geographical area in which the residents 
  2.26  of the county normally do business, the commissioner is 
  2.27  responsible, effective July 1, 1995 1997, for 50 percent of the 
  2.28  nonfederal costs of out-of-state treatment of children for whom 
  2.29  no appropriate resources are available in Minnesota.  Counties 
  2.30  are eligible to receive enhanced state funding under this 
  2.31  section only if they have established juvenile screening teams 
  2.32  under section 260.151, subdivision 3, and if the out-of-state 
  2.33  treatment has been approved by the commissioner.  By January 1, 
  2.34  1995, the commissioners of human services and corrections shall 
  2.35  jointly develop a plan, including a financing strategy, for 
  2.36  increasing the in-state availability of treatment within a 
  3.1   secure setting.  By July 1, 1994, the commissioner of human 
  3.2   services shall also: 
  3.3      (1) conduct a study and develop a plan to meet the needs of 
  3.4   children with both a developmental disability and severe 
  3.5   emotional disturbance; and 
  3.6      (2) study the feasibility of expanding medical assistance 
  3.7   coverage to include specialized residential treatment for the 
  3.8   children described in this subdivision.  
  3.9      Sec. 4.  Minnesota Statutes 1994, section 245.4886, is 
  3.10  amended by adding a subdivision to read: 
  3.11     Subd. 3.  [GRANTS FOR ADOLESCENT SERVICES.] The 
  3.12  commissioner may make grants for community-based services for 
  3.13  adolescents who have serious emotional disturbance and exhibit 
  3.14  violent behavior.  The commissioner may administer these grants 
  3.15  as a supplement to the grants for children's community-based 
  3.16  mental health services under subdivision 1.  The same 
  3.17  administrative requirements shall apply to these grants as the 
  3.18  grants under subdivision 1, except that these grants: 
  3.19     (1) shall be primarily for areas with the greatest need for 
  3.20  services; 
  3.21     (2) may be used for assessment, treatment, placement 
  3.22  assistance, specialized adolescent community-based residential 
  3.23  treatment, and community transition services for adolescents who 
  3.24  have serious emotional disturbance and exhibit violent behavior; 
  3.25     (3) must, wherever possible, be administered under the 
  3.26  auspices of a children's mental health collaborative established 
  3.27  under section 245.491 if the collaborative chooses to serve this 
  3.28  target population; 
  3.29     (4) must be used for mental health services that are 
  3.30  integrated with other services whenever possible; and 
  3.31     (5) must be based on a proposal submitted to the 
  3.32  commissioner by a children's mental health collaborative or a 
  3.33  county board based on guidelines published by the commissioner. 
  3.34     Sec. 5.  Minnesota Statutes 1994, section 245.4886, is 
  3.35  amended by adding a subdivision to read: 
  3.36     Subd. 4.  [FUNDING FOR TRANSITION SERVICES.] The county 
  4.1   board may use funding provided under this section to provide 
  4.2   transition services for persons age 18 to 21 according to 
  4.3   sections 245.4871, subdivision 35, and 245.4875, subdivision 8. 
  4.4      Sec. 6.  Minnesota Statutes 1994, section 256F.09, is 
  4.5   amended to read: 
  4.6      256F.09 [GRANTS FOR CHILDREN'S FAMILY SAFETY CENTERS.] 
  4.7      Subdivision 1.  [PURPOSE.] The commissioner shall issue a 
  4.8   request for proposals from existing local nonprofit, 
  4.9   nongovernmental organizations, to use existing local facilities 
  4.10  as pilot children's family safety centers.  The commissioner 
  4.11  shall award grants in amounts up to $50,000 for the purpose of 
  4.12  creating children's or maintaining family safety centers to 
  4.13  reduce children's vulnerability to violence and trauma related 
  4.14  to family visitation, where there has been a history of domestic 
  4.15  violence or abuse within the family.  At least one of the pilot 
  4.16  projects shall be located in the seven-county metropolitan area 
  4.17  and at least one of the projects shall be located outside the 
  4.18  seven-county metropolitan area, and the commissioner shall award 
  4.19  the grants to provide the greatest possible number of safety 
  4.20  centers and to locate them to provide for the broadest possible 
  4.21  geographic distribution of the centers throughout the state.  
  4.22     Each children's family safety center must use existing 
  4.23  local facilities to provide a healthy interactive environment 
  4.24  for parents who are separated or divorced and for parents with 
  4.25  children in foster homes to visit with their children.  The 
  4.26  centers must be available for use by district courts who may 
  4.27  order visitation to occur at a safety center.  The centers may 
  4.28  also be used as drop-off sites, so that parents who are under 
  4.29  court order to have no contact with each other can exchange 
  4.30  children for visitation at a neutral site.  Each center must 
  4.31  provide sufficient security to ensure a safe visitation 
  4.32  environment for children and their parents.  A grantee must 
  4.33  demonstrate the ability to provide a local match, which may 
  4.34  include in-kind contributions. 
  4.35     Subd. 2.  [PRIORITIES.] In awarding grants under the 
  4.36  program, the commissioner shall give priority to: 
  5.1      (1) areas of the state where no children's other family 
  5.2   safety center or similar facility exists; 
  5.3      (2) applicants who demonstrate that private funding for the 
  5.4   center is available and will continue; and 
  5.5      (3) facilities that are adapted for use to care for 
  5.6   children, such as day care centers, religious institutions, 
  5.7   community centers, schools, technical colleges, parenting 
  5.8   resource centers, and child care referral services. 
  5.9      Subd. 3.  [ADDITIONAL SERVICES.] Each center may provide 
  5.10  parenting and child development classes, and offer support 
  5.11  groups to participating custodial parents and hold regular 
  5.12  classes designed to assist children who have experienced 
  5.13  domestic violence and abuse. 
  5.14     Subd. 4.  [REPORT.] The commissioner shall evaluate the 
  5.15  operation of the pilot children's family safety centers and 
  5.16  report to the legislature by February 1, 1994, with 
  5.17  recommendations. 
  5.18     Sec. 7.  Minnesota Statutes 1994, section 256H.01, 
  5.19  subdivision 9, is amended to read: 
  5.20     Subd. 9.  [FAMILY.] "Family" means parents, stepparents, 
  5.21  guardians and their spouses, or other eligible relative 
  5.22  caretakers and their spouses, and their blood related dependent 
  5.23  children and adoptive siblings under the age of 18 years living 
  5.24  in the same home including children temporarily absent from the 
  5.25  household in settings such as schools, foster care, and 
  5.26  residential treatment facilities.  When a minor parent or 
  5.27  parents and his, her, or their child or children are living with 
  5.28  other relatives, and the minor parent or parents apply for a 
  5.29  child care subsidy, "family" means only the minor parent or 
  5.30  parents and the child or children.  An adult may be considered a 
  5.31  dependent member of the family unit if 50 percent of the adult's 
  5.32  support is being provided by the parents, stepparents, guardians 
  5.33  and their spouses, or eligible relative caretakers and their 
  5.34  spouses, residing in the same household.  An adult age 18 who is 
  5.35  a full-time high school student and can reasonably be expected 
  5.36  to graduate before age 19 may be considered a dependent member 
  6.1   of the family unit. 
  6.2      Sec. 8.  Minnesota Statutes 1994, section 256H.01, 
  6.3   subdivision 12, is amended to read: 
  6.4      Subd. 12.  [PROVIDER.] "Provider" means a child care 
  6.5   license holder who operates a family day care home, a group 
  6.6   family day care home, a day care center, a nursery school, a day 
  6.7   nursery, an extended day school age child care program; a person 
  6.8   exempt from licensure who meets child care standards established 
  6.9   legal nonlicensed extended day school age child care program 
  6.10  which operates under the auspices of a local school board that 
  6.11  has adopted school age child care standards which meet or exceed 
  6.12  standards recommended by the state board department of 
  6.13  education; or a legal nonlicensed caregiver who is at least 18 
  6.14  years of age, and who is not a member of the AFDC assistance 
  6.15  unit.  
  6.16     Sec. 9.  Minnesota Statutes 1994, section 256H.02, is 
  6.17  amended to read: 
  6.18     256H.02 [DUTIES OF COMMISSIONER.] 
  6.19     The commissioner shall develop standards for county and 
  6.20  human services boards to provide child care services to enable 
  6.21  eligible families to participate in employment, training, or 
  6.22  education programs.  Within the limits of available 
  6.23  appropriations, the commissioner shall distribute money to 
  6.24  counties to reduce the costs of child care for eligible 
  6.25  families.  The commissioner shall adopt rules to govern the 
  6.26  program in accordance with this section.  The rules must 
  6.27  establish a sliding schedule of fees for parents receiving child 
  6.28  care services.  In the rules adopted under this section, county 
  6.29  and human services boards shall be authorized to establish 
  6.30  policies for payment of child care spaces for absent children, 
  6.31  when the payment is required by the child's regular provider.  
  6.32  The rules shall not set a maximum number of days for which 
  6.33  absence payments can be made, but instead shall direct the 
  6.34  county agency to set limits and pay for absences according to 
  6.35  the prevailing market practice in the county.  County policies 
  6.36  for payment of absences shall be subject to the approval of the 
  7.1   commissioner.  The commissioner shall maximize the use of 
  7.2   federal money under the AFDC employment special needs program in 
  7.3   section 256.736, subdivision 8, and other programs that provide 
  7.4   federal reimbursement for child care services for recipients of 
  7.5   aid to families with dependent children who are in education, 
  7.6   training, job search, or other activities allowed under those 
  7.7   programs.  Money appropriated under this section must be 
  7.8   coordinated with the AFDC employment special needs program and 
  7.9   other programs that provide federal reimbursement for child care 
  7.10  services to accomplish this purpose.  Federal reimbursement 
  7.11  obtained must be allocated to the county that spent money for 
  7.12  child care that is federally reimbursable under programs that 
  7.13  provide federal reimbursement for child care services.  The 
  7.14  counties shall use the federal money to expand child care 
  7.15  services.  The commissioner may adopt rules under chapter 14 to 
  7.16  implement and coordinate federal program requirements. 
  7.17     Sec. 10.  Minnesota Statutes 1994, section 256H.03, 
  7.18  subdivision 1, is amended to read: 
  7.19     Subdivision 1.  [ALLOCATION PERIOD; NOTICE OF ALLOCATION.] 
  7.20  When the commissioner notifies county and human service boards 
  7.21  of the forms and instructions they are to follow in the 
  7.22  development of their biennial community social services plans 
  7.23  required under section 256E.08, the commissioner shall also 
  7.24  notify county and human services boards of their estimated child 
  7.25  care fund program allocation for the two years covered by the 
  7.26  plan.  By June October 1 of each year, the commissioner shall 
  7.27  notify all counties of their final child care fund program 
  7.28  allocation. 
  7.29     Sec. 11.  Minnesota Statutes 1994, section 256H.03, 
  7.30  subdivision 2a, is amended to read: 
  7.31     Subd. 2a.  [ELIGIBLE RECIPIENTS.] Families that meet the 
  7.32  eligibility requirements under sections 256H.10, except AFDC 
  7.33  recipients, MFIP recipients, and transition year families, and 
  7.34  256H.11 are eligible for child care assistance under the basic 
  7.35  sliding fee program.  From July 1, 1990, to June 30, 1991, a 
  7.36  county may not accept new applications for the basic sliding fee 
  8.1   program unless the county can demonstrate that its state money 
  8.2   expenditures for the basic sliding fee program for this period 
  8.3   will not exceed 95 percent of the county's allocation of state 
  8.4   money for the fiscal year ending June 30, 1990.  As basic 
  8.5   sliding fee program money becomes available to serve new 
  8.6   families, eligible families whose benefits were terminated 
  8.7   during the fiscal year ending June 30, 1990, for reasons other 
  8.8   than loss of eligibility shall be reinstated.  Families enrolled 
  8.9   in the basic sliding fee program as of July 1, 1990, shall be 
  8.10  continued until they are no longer eligible.  Counties shall 
  8.11  make vendor payments to the child care provider or pay the 
  8.12  parent directly for eligible child care expenses on a 
  8.13  reimbursement basis.  Child care assistance provided through the 
  8.14  child care fund is considered assistance to the parent. 
  8.15     Sec. 12.  Minnesota Statutes 1994, section 256H.03, 
  8.16  subdivision 4, is amended to read: 
  8.17     Subd. 4.  [ALLOCATION FORMULA.] Beginning July 1, 1992 
  8.18  January 1, 1996, the basic sliding fee state and federal funds 
  8.19  shall be allocated on a calendar year basis.  Funds shall be 
  8.20  allocated first in amounts equal to each county's guaranteed 
  8.21  floor according to subdivision 6, with any remaining available 
  8.22  funds allocated according to the following formula:  
  8.23     (a) One-half One-third of the funds shall be allocated in 
  8.24  proportion to each county's total expenditures for the basic 
  8.25  sliding fee child care program reported during the 12-month 
  8.26  period ending on December 31 of the preceding state fiscal 
  8.27  year most recent calendar year completed at the time of the 
  8.28  notice of allocation.  
  8.29     (b) One-fourth One-third of the funds shall be allocated 
  8.30  based on the number of children under age 13 in each county who 
  8.31  are enrolled in general assistance medical care, medical 
  8.32  assistance, and the children's health plan on July 1, of each 
  8.33  year MinnesotaCare on December 31 of the most recent calendar 
  8.34  year completed at the time of the notice of allocation. 
  8.35     (c) One-fourth One-third of the funds shall be allocated 
  8.36  based on the number of children under age 13 who reside in each 
  9.1   county, from the most recent estimates of the state demographer. 
  9.2      Sec. 13.  Minnesota Statutes 1994, section 256H.03, is 
  9.3   amended by adding a subdivision to read: 
  9.4      Subd. 4a.  [SIX-MONTH ALLOCATION.] For the period from July 
  9.5   1, 1995, to December 31, 1995, every county shall receive an 
  9.6   allocation at least equal and proportionate to one-half of its 
  9.7   original allocation in state fiscal year 1995.  This six-month 
  9.8   allocation shall be combined with the calendar year 1996 
  9.9   allocation and be administered as one 18-month allocation. 
  9.10     Sec. 14.  Minnesota Statutes 1994, section 256H.03, 
  9.11  subdivision 6, is amended to read: 
  9.12     Subd. 6.  [GUARANTEED FLOOR.] (a) Each county's guaranteed 
  9.13  floor shall equal the lesser of:  
  9.14     (1) the county's original allocation in the preceding state 
  9.15  fiscal year; or 
  9.16     (2) 110 percent of the county's basic sliding fee child 
  9.17  care program state and federal earnings for the 12-month period 
  9.18  ending on December 31 of the preceding state fiscal year.  For 
  9.19  purposes of this clause, "state and federal earnings" means the 
  9.20  reported direct child care expenditures adjusted for the 
  9.21  administrative allowance and 15 percent required county 
  9.22  match. Beginning January 1, 1996, each county's guaranteed floor 
  9.23  shall equal 90 percent of the allocation received in the 
  9.24  preceding calendar year.  For the calendar year 1996 allocation, 
  9.25  the preceding calendar year shall be considered to be double the 
  9.26  six-month allocation as provided for in subdivision 4a.  
  9.27     (b) When the amount of funds available for allocation is 
  9.28  less than the amount available in the previous year, each 
  9.29  county's previous year allocation shall be reduced in proportion 
  9.30  to the reduction in the statewide funding, for the purpose of 
  9.31  establishing the guaranteed floor.  
  9.32     Sec. 15.  Minnesota Statutes 1994, section 256H.05, 
  9.33  subdivision 6, is amended to read: 
  9.34     Subd. 6.  [NON-STRIDE AFDC CHILD CARE PROGRAM ACCESS CHILD 
  9.35  CARE PROGRAM.] Starting one month after April 30, 1992, the 
  9.36  department of human services commissioner shall reimburse 
 10.1   eligible expenditures for 2,000 family slots for AFDC caretakers 
 10.2   not eligible for services under section 256.736, who are engaged 
 10.3   in an authorized educational or job search program.  Each county 
 10.4   will receive a number of family slots based on the county's 
 10.5   proportion of the AFDC caseload.  A county must receive at least 
 10.6   two family slots.  Eligibility and reimbursement are limited to 
 10.7   the number of family slots allocated to each county.  County 
 10.8   agencies shall authorize an educational plan for each student 
 10.9   and may prioritize families eligible for this program in their 
 10.10  child care fund plan upon approval of the commissioner of human 
 10.11  services. 
 10.12     (a) Persons eligible for but unable to participate in the 
 10.13  JOBS (STRIDE) program because of a waiting list may be accepted 
 10.14  as a new participant, or continue to participate in the ACCESS 
 10.15  child care program if a slot is available as long as all other 
 10.16  eligibility factors are met.  Child care assistance must 
 10.17  continue under the ACCESS child care program until the 
 10.18  participant loses eligibility or is enrolled in project STRIDE. 
 10.19     (b)(1) Effective July 1, 1995, the commissioner shall 
 10.20  reclaim 90 percent of the vacant slots in each county and 
 10.21  distribute those slots to counties with waiting lists of persons 
 10.22  eligible for the ACCESS child care program.  The slots must be 
 10.23  distributed to eligible families based on the July 1, 1995, 
 10.24  waiting list placement date, first-come, first-served basis. 
 10.25     (2) ACCESS child care slots remaining after the waiting 
 10.26  list under clause (1) has been eliminated must be distributed to 
 10.27  eligible families on a first-come, first-served basis, based on 
 10.28  the client's date of request. 
 10.29     (3) The county must notify the commissioner when an ACCESS 
 10.30  slot in the county becomes available.  Notification by the 
 10.31  county must be within five calendar days of the effective date 
 10.32  of the termination of the ACCESS child care services.  The 
 10.33  resulting vacant slot must be returned to the department of 
 10.34  human services.  The slot must then be redistributed under 
 10.35  clause (2). 
 10.36     (4) The commissioner shall consult with the task force on 
 11.1   child care and make recommendations to the 1996 legislature for 
 11.2   future distribution of the ACCESS slots under this paragraph. 
 11.3      Sec. 16.  Minnesota Statutes 1994, section 256H.08, is 
 11.4   amended to read: 
 11.5      256H.08 [USE OF MONEY.] 
 11.6      Money for persons listed in sections 256H.03, subdivision 
 11.7   2a, and 256H.05, subdivision 1b, shall be used to reduce the 
 11.8   costs of child care for students, including the costs of child 
 11.9   care for students while employed if enrolled in an eligible 
 11.10  education program at the same time and making satisfactory 
 11.11  progress towards completion of the program.  Counties may not 
 11.12  limit the duration of child care subsidies for a person in an 
 11.13  employment or educational program, except when the person is 
 11.14  found to be ineligible under the child care fund eligibility 
 11.15  standards.  Any limitation must be based on a person's 
 11.16  employability plan in the case of an AFDC recipient, and county 
 11.17  policies included in the child care allocation plan.  Time 
 11.18  limitations for child care assistance, as specified in Minnesota 
 11.19  Rules, parts 9565.5000 to 9565.5200, do not apply to basic or 
 11.20  remedial educational programs needed to prepare for 
 11.21  post-secondary education or employment.  These programs 
 11.22  include:  high school, general equivalency diploma, and English 
 11.23  as a second language.  Programs exempt from this time limit must 
 11.24  not run concurrently with a post-secondary program.  High school 
 11.25  students who are participating in a post-secondary options 
 11.26  program and who receive a high school diploma issued by the 
 11.27  school district are exempt from the time limitations while 
 11.28  pursuing a high school diploma.  Financially eligible students 
 11.29  who have received child care assistance for one academic year 
 11.30  shall be provided child care assistance in the following 
 11.31  academic year if funds allocated under sections 256H.03 and 
 11.32  256H.05 are available.  If an AFDC recipient who is receiving 
 11.33  AFDC child care assistance under this chapter moves to another 
 11.34  county, continues to participate in educational or training 
 11.35  programs authorized in their employability development plans, 
 11.36  and continues to be eligible for AFDC child care assistance 
 12.1   under this chapter, the AFDC caretaker must receive continued 
 12.2   child care assistance from the county responsible for their 
 12.3   current employability development plan, without interruption. 
 12.4      Sec. 17.  Minnesota Statutes 1994, section 256H.11, 
 12.5   subdivision 1, is amended to read: 
 12.6      Subdivision 1.  [ASSISTANCE FOR PERSONS SEEKING AND 
 12.7   RETAINING EMPLOYMENT.] Persons who are seeking employment and 
 12.8   who are eligible for assistance under this section are eligible 
 12.9   to receive the equivalent of up to one month of child care up to 
 12.10  240 hours of child care assistance per calendar year.  Employed 
 12.11  persons who work at least an average of ten hours a week and 
 12.12  receive at least a minimum wage for all hours worked are 
 12.13  eligible for continued child care assistance.  
 12.14     Sec. 18.  Minnesota Statutes 1994, section 256H.12, 
 12.15  subdivision 1, is amended to read: 
 12.16     Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] Beginning 
 12.17  July 1, 1995, in addition to payments from parents basic sliding 
 12.18  fee child care program participants, counties shall contribute 
 12.19  from county tax or other sources a minimum of 15 percent of the 
 12.20  cost of the basic sliding fee program at the local match 
 12.21  percentage calculated according to subdivision 1a.  The 
 12.22  commissioner shall recover funds from the county as necessary to 
 12.23  bring county expenditures into compliance with this subdivision. 
 12.24     Sec. 19.  Minnesota Statutes 1994, section 256H.12, is 
 12.25  amended by adding a subdivision to read: 
 12.26     Subd. 1a.  [LOCAL MATCH PERCENTAGE.] The local match 
 12.27  percentage shall equal the lesser of either 15 percent of the 
 12.28  cost of the basic sliding fee program or the statewide required 
 12.29  local match in state fiscal year 1995, divided by the sum of the 
 12.30  current year's basic sliding fee allocation, plus the statewide 
 12.31  required local match in state fiscal year 1995 provided that the 
 12.32  local match on any funding above the base year allocation shall 
 12.33  be at least five percent.  For purposes of this computation, the 
 12.34  statewide required local match in state fiscal year 1995 shall 
 12.35  be equal to the initial state fiscal year 1995 basic sliding fee 
 12.36  allocation, divided by 85 percent, and then multiplied by 15 
 13.1   percent.  The calendar year 1996 local match percentage shall be 
 13.2   in effect for the six-month allocation period defined in section 
 13.3   256H.03. 
 13.4      Sec. 20.  Minnesota Statutes 1994, section 256H.15, 
 13.5   subdivision 1, is amended to read: 
 13.6      Subdivision 1.  [SUBSIDY RESTRICTIONS.] (a) Until June 30, 
 13.7   1991, the maximum child care rate is determined under this 
 13.8   paragraph.  The county board may limit the subsidy allowed by 
 13.9   setting a maximum on the provider child care rate that the 
 13.10  county shall subsidize.  The maximum rate set by any county 
 13.11  shall not be lower than 110 percent or higher than 125 percent 
 13.12  of the median rate in that county for like care arrangements for 
 13.13  all types of care, including special needs and handicapped care, 
 13.14  as determined by the commissioner.  If the county sets a maximum 
 13.15  rate, it must pay the provider's rate for each child receiving a 
 13.16  subsidy, up to the maximum rate set by the county.  If a county 
 13.17  does not set a maximum provider rate, it shall pay the 
 13.18  provider's rate for every child in care.  The maximum state 
 13.19  payment is 125 percent of the median provider rate.  If the 
 13.20  county has not set a maximum provider rate and the provider rate 
 13.21  is greater than 125 percent of the median provider rate in the 
 13.22  county, the county shall pay the amount in excess of 125 percent 
 13.23  of the median provider rate from county funding sources.  The 
 13.24  county shall pay the provider's full charges for every child in 
 13.25  care up to the maximum established.  The commissioner shall 
 13.26  determine the maximum rate for each type of care, including 
 13.27  special needs and handicapped care.  
 13.28     (b) Effective July 1, 1991, the maximum rate paid for child 
 13.29  care assistance under the child care fund is the maximum rate 
 13.30  eligible for federal reimbursement except that a provider 
 13.31  receiving reimbursement under paragraph (a) as of January 1, 
 13.32  1991, shall be paid at a rate no less than the rate of 
 13.33  reimbursement received under that paragraph.  A rate which 
 13.34  includes a provider bonus paid under subdivision 2 or a special 
 13.35  needs rate paid under subdivision 3 may be in excess of the 
 13.36  maximum rate allowed under this subdivision.  The department of 
 14.1   human services shall monitor the effect of this paragraph on 
 14.2   provider rates.  The county shall pay the provider's full 
 14.3   charges for every child in care up to the maximum established.  
 14.4   The commissioner shall determine the maximum rate for each type 
 14.5   of care, including special needs and handicapped care.  
 14.6      (c) When the provider charge is greater than the maximum 
 14.7   provider rate allowed, the parent is responsible for payment of 
 14.8   the difference in the rates in addition to any family copayment 
 14.9   fee. 
 14.10     Sec. 21.  Minnesota Statutes 1994, section 256H.18, is 
 14.11  amended to read: 
 14.12     256H.18 [ADMINISTRATIVE EXPENSES.] 
 14.13     The commissioner shall use up to seven percent one-eleventh 
 14.14  of the state and federal funds appropriated available for the 
 14.15  basic sliding fee program for payments to counties for 
 14.16  administrative expenses.  The commissioner shall use up to ten 
 14.17  percent of federal funds for payments to counties for 
 14.18  administrative expenses. 
 14.19     Sec. 22.  [REPEALER.] 
 14.20     Minnesota Statutes 1994, section 256H.03, subdivisions 2 
 14.21  and 5, are repealed.