HF 1443

as introduced - 89th Legislature (2015 - 2016) Posted on 03/25/2015 01:57pm

A bill for an act
relating to human services; simplifying the treatment of income for public
assistance programs; simplifying requirements for reporting income and changes
and for correcting overpayments and underpayments; amending Minnesota
Statutes 2014, sections 119B.011, subdivision 15; 119B.025, subdivision 1;
119B.035, subdivision 4; 119B.09, subdivision 4; 256D.01, subdivision 1a;
256D.02, subdivision 8, by adding a subdivision; 256D.06, subdivision 1;
256D.405, subdivision 3; 256I.03, subdivision 7, by adding a subdivision;
256I.04, subdivision 1; 256I.06, subdivision 6; 256J.08, subdivisions 26, 86;
256J.30, subdivisions 1, 9; 256J.35; 256J.40; 256J.95, subdivision 19; 256P.001;
256P.01, subdivision 3, by adding subdivisions; 256P.02, by adding a subdivision;
256P.03, subdivision 1; 256P.04, subdivisions 1, 4; 256P.05, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 256P; repealing
Minnesota Statutes 2014, sections 256D.0513; 256J.38; Minnesota Rules, part
3400.0170, subparts 5, 6, 12, 13.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 119B.011, subdivision 15, is amended to
read:

Subd. 15.

Income.

"Income" means earned or unearned income received by all
family members, including as defined under section 256P.01, subdivision 3, unearned
income as defined under section 256P.01, subdivision 8, and public assistance cash benefits
and, including the Minnesota family investment program, diversionary work program,
work benefit, Minnesota supplemental aid, general assistance, refugee cash assistance,
at-home infant child care subsidy payments, unless specifically excluded and child support
and maintenance distributed to the family under section 256.741, subdivision 15. The
following are excluded deducted from income: funds used to pay for health insurance
premiums for family members, Supplemental Security Income, scholarships, work-study
income, and grants that cover costs or reimbursement for tuition, fees, books, and
educational supplies; student loans for tuition, fees, books, supplies, and living expenses;
state and federal earned income tax credits; assistance specifically excluded as income by
law; in-kind income such as food support, energy assistance, foster care assistance, medical
assistance, child care assistance, and housing subsidies; earned income of full-time or
part-time students up to the age of 19, who have not earned a high school diploma or GED
high school equivalency diploma including earnings from summer employment; grant
awards under the family subsidy program; nonrecurring lump-sum income only to the
extent that it is earmarked and used for the purpose for which it is paid; and any income
assigned to the public authority according to section 256.741 and child or spousal support
paid to or on behalf of a person or persons who live outside of the household. Income
sources not included in this subdivision and section 256P.06, subdivision 3, are not counted.

Sec. 2.

Minnesota Statutes 2014, section 119B.025, subdivision 1, is amended to read:

Subdivision 1.

Factors which must be verified.

(a) The county shall verify the
following at all initial child care applications using the universal application:

(1) identity of adults;

(2) presence of the minor child in the home, if questionable;

(3) relationship of minor child to the parent, stepparent, legal guardian, eligible
relative caretaker, or the spouses of any of the foregoing;

(4) age;

(5) immigration status, if related to eligibility;

(6) Social Security number, if given;

(7) income;

(8) spousal support and child support payments made to persons outside the
household;

(9) residence; and

(10) inconsistent information, if related to eligibility.

(b) If a family did not use the universal application or child care addendum to apply
for child care assistance, the family must complete the universal application or child care
addendum at its next eligibility redetermination and the county must verify the factors
listed in paragraph (a) as part of that redetermination. Once a family has completed a
universal application or child care addendum, the county shall use the redetermination
form described in paragraph (c) for that family's subsequent redeterminations. Eligibility
must be redetermined at least every six months. A family is considered to have met the
eligibility redetermination requirement if a complete redetermination form and all required
verifications are received within 30 days after the date the form was due. Assistance shall
be payable retroactively from the redetermination due date. For a family where at least
one parent is under the age of 21, does not have a high school or general equivalency
diploma, and is a student in a school district or another similar program that provides or
arranges for child care, as well as parenting, social services, career and employment
supports, and academic support to achieve high school graduation, the redetermination of
eligibility shall be deferred beyond six months, but not to exceed 12 months, to the end of
the student's school year. If a family reports a change in an eligibility factor before the
family's next regularly scheduled redetermination, the county must recalculate eligibility
without requiring verification of any eligibility factor that did not change. Changes must
be reported as required by section 256P.07. A change in income occurs on the day the
participant received the first payment reflecting the change in income.

(c) The commissioner shall develop a redetermination form to redetermine eligibility
and a change report form to report changes that minimize paperwork for the county and
the participant.

Sec. 3.

Minnesota Statutes 2014, section 119B.035, subdivision 4, is amended to read:

Subd. 4.

Assistance.

(a) A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent
of the rate established under section 119B.13 for care of infants in licensed family child
care in the applicant's county of residence.

(b) A participating family must report income and other family changes as specified in
sections 256P.06 and 256P.07, and the county's plan under section 119B.08, subdivision 3.

(c) Persons who are admitted to the at-home infant child care program retain their
position in any basic sliding fee program. Persons leaving the at-home infant child care
program reenter the basic sliding fee program at the position they would have occupied.

(d) Assistance under this section does not establish an employer-employee
relationship between any member of the assisted family and the county or state.

Sec. 4.

Minnesota Statutes 2014, section 119B.09, subdivision 4, is amended to read:

Subd. 4.

Eligibility; annual income; calculation.

Annual income of the applicant
family is the current monthly income of the family multiplied by 12 or the income for
the 12-month period immediately preceding the date of application, or income calculated
by the method which provides the most accurate assessment of income available to the
family. Self-employment income must be calculated based on gross receipts less operating
expenses. Income must be recalculated when the family's income changes, but no less often
than every six months. For a family where at least one parent is under the age of 21, does
not have a high school or general equivalency diploma, and is a student in a school district
or another similar program that provides or arranges for child care, as well as parenting,
social services, career and employment supports, and academic support to achieve high
school graduation, income must be recalculated when the family's income changes, but
otherwise shall be deferred beyond six months, but not to exceed 12 months, to the end of
the student's school year. Nonrecurring lump sums must be annualized over 12 months.
Income must be verified with documentary evidence. If the applicant does not have
sufficient evidence of income, verification must be obtained from the source of the income.

Sec. 5.

Minnesota Statutes 2014, section 256D.01, subdivision 1a, is amended to read:

Subd. 1a.

Standards.

(a) A principal objective in providing general assistance is
to provide for single adults, childless couples, or children as defined in section 256D.02,
subdivision 6, ineligible for federal programs who are unable to provide for themselves.
The minimum standard of assistance determines the total amount of the general assistance
grant without separate standards for shelter, utilities, or other needs.

(b) The commissioner shall set the standard of assistance for an assistance unit
consisting of an adult recipient who is childless and unmarried or living apart from
children and spouse and who does not live with a parent or parents or a legal custodian.
When the other standards specified in this subdivision increase, this standard must also be
increased by the same percentage.

(c) For an assistance unit consisting of a single adult who lives with a parent or
parents, the general assistance standard of assistance is the amount that the aid to families
with dependent children standard of assistance, in effect on July 16, 1996, would increase
if the recipient were added as an additional minor child to an assistance unit consisting
of the recipient's parent and all of that parent's family members, except that the standard
may not exceed the standard for a general assistance recipient living alone. Benefits
received by a responsible relative of the assistance unit under the Supplemental Security
Income program, a workers' compensation program, the Minnesota supplemental aid
program, or any other program based on the responsible relative's disability, and any
benefits received by a responsible relative of the assistance unit under the Social Security
retirement program, may not be counted in the determination of eligibility or benefit
level for the assistance unit. Except as provided below, the assistance unit is ineligible
for general assistance if the available resources or the countable income of the assistance
unit and the parent or parents with whom the assistance unit lives are such that a family
consisting of the assistance unit's parent or parents, the parent or parents' other family
members and the assistance unit as the only or additional minor child would be financially
ineligible for general assistance. For the purposes of calculating the countable income
of the assistance unit's parent or parents, the calculation methods, income deductions,
exclusions, and disregards used when calculating the countable income for a single adult
or childless couple must be used follow the provisions under section 256P.06.

(d) For an assistance unit consisting of a childless couple, the standards of assistance
are the same as the first and second adult standards of the aid to families with dependent
children program in effect on July 16, 1996. If one member of the couple is not included
in the general assistance grant, the standard of assistance for the other is the second adult
standard of the aid to families with dependent children program as of July 16, 1996.

Sec. 6.

Minnesota Statutes 2014, section 256D.02, is amended by adding a subdivision
to read:

Subd. 1a.

Assistance unit.

"Assistance unit" means an individual or an eligible
married couple who live together who are applying for or receiving benefits under this
chapter.

Sec. 7.

Minnesota Statutes 2014, section 256D.02, subdivision 8, is amended to read:

Subd. 8.

Income.

"Income" means any form of income, including remuneration
for services performed as an employee and earned income from rental income and
self-employment earnings as described under section 256P.05 earned income as defined
under section 256P.01, subdivision 3, and unearned income as defined under section
256P.01, subdivision 8.

Income includes any payments received as an annuity, retirement, or disability
benefit, including veteran's or workers' compensation; old age, survivors, and disability
insurance; railroad retirement benefits; unemployment benefits; and benefits under any
federally aided categorical assistance program, supplementary security income, or other
assistance program; rents, dividends, interest and royalties; and support and maintenance
payments. Such payments may not be considered as available to meet the needs of any
person other than the person for whose benefit they are received, unless that person is
a family member or a spouse and the income is not excluded under section 256D.01,
subdivision 1a. Goods and services provided in lieu of cash payment shall be excluded
from the definition of income, except that payments made for room, board, tuition or
fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary
institution, and payments made on behalf of an applicant or participant which the applicant
or participant could legally demand to receive personally in cash, must be included as
income. Benefits of an applicant or participant, such as those administered by the Social
Security Administration, that are paid to a representative payee, and are spent on behalf of
the applicant or participant, are considered available income of the applicant or participant.

Sec. 8.

Minnesota Statutes 2014, section 256D.06, subdivision 1, is amended to read:

Subdivision 1.

Eligibility; amount of assistance.

General assistance shall be
granted in an amount that when added to the nonexempt countable income as determined
to be actually available to the assistance unit under section 256P.06, the total amount
equals the applicable standard of assistance for general assistance. In determining
eligibility for and the amount of assistance for an individual or married couple, the agency
shall apply the earned income disregard as determined in section 256P.03.

Sec. 9.

Minnesota Statutes 2014, section 256D.405, subdivision 3, is amended to read:

Subd. 3.

Reports.

Participants must report changes in circumstances according to
section 256P.07 that affect eligibility or assistance payment amounts within ten days of the
change. Participants who do not receive SSI because of excess income must complete a
monthly report form if they have earned income, if they have income deemed to them
from a financially responsible relative with whom the participant resides, or if they have
income deemed to them by a sponsor. If the report form is not received before the end of
the month in which it is due, the county agency must terminate assistance. The termination
shall be effective on the first day of the month following the month in which the report
was due. If a complete report is received within the month the assistance was terminated,
the assistance unit is considered to have continued its application for assistance, effective
the first day of the month the assistance was terminated.

Sec. 10.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 1b.

Assistance unit.

"Assistance unit" means an individual who is applying
for or receiving benefits under this chapter.

Sec. 11.

Minnesota Statutes 2014, section 256I.03, subdivision 7, is amended to read:

Subd. 7.

Countable income.

"Countable income" means all income received by an
applicant or recipient as described under section 256P.06, less any applicable exclusions
or disregards. For a recipient of any cash benefit from the SSI program, countable income
means the SSI benefit limit in effect at the time the person is in a GRH, less the medical
assistance personal needs allowance. If the SSI limit has been reduced for a person due to
events occurring prior to the persons entering the GRH setting, countable income means
actual income less any applicable exclusions and disregards.

Sec. 12.

Minnesota Statutes 2014, section 256I.04, subdivision 1, is amended to read:

Subdivision 1.

Individual eligibility requirements.

An individual is eligible for
and entitled to a group residential housing payment to be made on the individual's behalf
if the agency has approved the individual's residence in a group residential housing setting
and the individual meets the requirements in paragraph (a) or (b).

(a) The individual is aged, blind, or is over 18 years of age and disabled as
determined under the criteria used by the title II program of the Social Security Act, and
meets the resource restrictions and standards of section 256P.02, and the individual's
countable income after deducting the (1) exclusions and disregards of the SSI program,
(2) the medical assistance personal needs allowance under section 256B.35, and (3) an
amount equal to the income actually made available to a community spouse by an elderly
waiver participant under the provisions of sections 256B.0575, paragraph (a), clause
(4), and 256B.058, subdivision 2, is less than the monthly rate specified in the agency's
agreement with the provider of group residential housing in which the individual resides.

(b) The individual meets a category of eligibility under section 256D.05, subdivision
1, paragraph (a), and the individual's resources are less than the standards specified by
section 256P.02, and the individual's countable income as determined under sections
256D.01 to 256D.21 section 256P.06, less the medical assistance personal needs allowance
under section 256B.35 is less than the monthly rate specified in the agency's agreement
with the provider of group residential housing in which the individual resides.

Sec. 13.

Minnesota Statutes 2014, section 256I.06, subdivision 6, is amended to read:

Subd. 6.

Reports.

Recipients must report changes in circumstances according
to section 256P.07 that affect eligibility or group residential housing payment amounts
within ten days of the change. Recipients with countable earned income must complete
a monthly household report form. If the report form is not received before the end of
the month in which it is due, the county agency must terminate eligibility for group
residential housing payments. The termination shall be effective on the first day of the
month following the month in which the report was due. If a complete report is received
within the month eligibility was terminated, the individual is considered to have continued
an application for group residential housing payment effective the first day of the month
the eligibility was terminated.

Sec. 14.

Minnesota Statutes 2014, section 256J.08, subdivision 26, is amended to read:

Subd. 26.

Earned income.

"Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, profit from employment activities, net
profit from self-employment activities, payments made by an employer for regularly
accrued vacation or sick leave, and any other profit from activity earned through effort or
labor. The income must be in return for, or as a result of, legal activity has the meaning
given in section 256P.01, subdivision 3.

Sec. 15.

Minnesota Statutes 2014, section 256J.08, subdivision 86, is amended to read:

Subd. 86.

Unearned income.

"Unearned income" means income received by
a person that does not meet the definition of earned income. Unearned income includes
income from a contract for deed, interest, dividends, unemployment benefits, disability
insurance payments, veterans benefits, pension payments, return on capital investment,
insurance payments or settlements, severance payments, child support and maintenance
payments, and payments for illness or disability whether the premium payments are
made in whole or in part by an employer or participant has the meaning given in section
256P.01, subdivision 8.

Sec. 16.

Minnesota Statutes 2014, section 256J.30, subdivision 1, is amended to read:

Subdivision 1.

Applicant reporting requirements.

An applicant must provide
information on an application form and supplemental forms about the applicant's
circumstances which affect MFIP eligibility or the assistance payment. An applicant must
report changes identified in subdivision 9 while the application is pending. When an
applicant does not accurately report information on an application, both an overpayment
and a referral for a fraud investigation may result. When an applicant does not provide
information or documentation, the receipt of the assistance payment may be delayed or the
application may be denied depending on the type of information required and its effect on
eligibility according to section 256P.07.

Sec. 17.

Minnesota Statutes 2014, section 256J.30, subdivision 9, is amended to read:

Subd. 9.

Changes that must be reported.

A caregiver must report the changes or
anticipated changes specified in clauses (1) to (15) within ten days of the date they occur,
at the time of the periodic recertification of eligibility under section 256P.04, subdivisions
8 and 9, or within eight calendar days of a reporting period as in subdivision 5, whichever
occurs first. A caregiver must report other changes at the time of the periodic recertification
of eligibility under section 256P.04, subdivisions 8 and 9, or at the end of a reporting period
under subdivision 5, as applicable. A caregiver must make these reports in writing to the
agency. When an agency could have reduced or terminated assistance for one or more
payment months if a delay in reporting a change specified under clauses (1) to (14) had
not occurred, the agency must determine whether a timely notice under section 256J.31,
subdivision 4, could have been issued on the day that the change occurred. When a timely
notice could have been issued, each month's overpayment subsequent to that notice must be
considered a client error overpayment under section 256J.38. Calculation of overpayments
for late reporting under clause (15) is specified in section 256J.09, subdivision 9. Changes
in circumstances which must be reported within ten days must also be reported on the
MFIP household report form for the reporting period in which those changes occurred.
Within ten days, a caregiver must report: changes as specified under section 256P.07.

(1) a change in initial employment;

(2) a change in initial receipt of unearned income;

(3) a recurring change in unearned income;

(4) a nonrecurring change of unearned income that exceeds $30;

(5) the receipt of a lump sum;

(6) an increase in assets that may cause the assistance unit to exceed asset limits;

(7) a change in the physical or mental status of an incapacitated member of the
assistance unit if the physical or mental status is the basis for reducing the hourly
participation requirements under section 256J.55, subdivision 1, or the type of activities
included in an employment plan under section 256J.521, subdivision 2;

(8) a change in employment status;

(9) the marriage or divorce of an assistance unit member;

(10) the death of a parent, minor child, or financially responsible person;

(11) a change in address or living quarters of the assistance unit;

(12) the sale, purchase, or other transfer of property;

(13) a change in school attendance of a caregiver under age 20 or an employed child;

(14) filing a lawsuit, a workers' compensation claim, or a monetary claim against a
third party; and

(15) a change in household composition, including births, returns to and departures
from the home of assistance unit members and financially responsible persons, or a change
in the custody of a minor child.

Sec. 18.

Minnesota Statutes 2014, section 256J.35, is amended to read:

256J.35 AMOUNT OF ASSISTANCE PAYMENT.

Except as provided in paragraphs (a) to (d), the amount of an assistance payment is
equal to the difference between the MFIP standard of need or the Minnesota family wage
level in section 256J.24 and countable income.

(a) Beginning July 1, 2015, MFIP assistance units are eligible for an MFIP housing
assistance grant of $110 per month, unless:

(1) the housing assistance unit is currently receiving public and assisted rental
subsidies provided through the Department of Housing and Urban Development (HUD)
and is subject to section 256J.37, subdivision 3a; or

(2) the assistance unit is a child-only case under section 256J.88.

(b) When MFIP eligibility exists for the month of application, the amount of the
assistance payment for the month of application must be prorated from the date of
application or the date all other eligibility factors are met for that applicant, whichever is
later. This provision applies when an applicant loses at least one day of MFIP eligibility.

(c) MFIP overpayments to an assistance unit must be recouped according to section
256J.38, subdivision 4 256P.08, subdivision 5.

(d) An initial assistance payment must not be made to an applicant who is not
eligible on the date payment is made.

Sec. 19.

Minnesota Statutes 2014, section 256J.40, is amended to read:

256J.40 FAIR HEARINGS.

Caregivers receiving a notice of intent to sanction or a notice of adverse action that
includes a sanction, reduction in benefits, suspension of benefits, denial of benefits, or
termination of benefits may request a fair hearing. A request for a fair hearing must be
submitted in writing to the county agency or to the commissioner and must be mailed
within 30 days after a participant or former participant receives written notice of the
agency's action or within 90 days when a participant or former participant shows good
cause for not submitting the request within 30 days. A former participant who receives a
notice of adverse action due to an overpayment may appeal the adverse action according
to the requirements in this section. Issues that may be appealed are:

(1) the amount of the assistance payment;

(2) a suspension, reduction, denial, or termination of assistance;

(3) the basis for an overpayment, the calculated amount of an overpayment, and
the level of recoupment;

(4) the eligibility for an assistance payment; and

(5) the use of protective or vendor payments under section 256J.39, subdivision 2,
clauses (1) to (3).

Except for benefits issued under section 256J.95, a county agency must not reduce,
suspend, or terminate payment when an aggrieved participant requests a fair hearing
prior to the effective date of the adverse action or within ten days of the mailing of the
notice of adverse action, whichever is later, unless the participant requests in writing not
to receive continued assistance pending a hearing decision. An appeal request cannot
extend benefits for the diversionary work program under section 256J.95 beyond the
four-month time limit. Assistance issued pending a fair hearing is subject to recovery
under section 256J.38 256P.08 when as a result of the fair hearing decision the participant
is determined ineligible for assistance or the amount of the assistance received. A county
agency may increase or reduce an assistance payment while an appeal is pending when the
circumstances of the participant change and are not related to the issue on appeal. The
commissioner's order is binding on a county agency. No additional notice is required to
enforce the commissioner's order.

A county agency shall reimburse appellants for reasonable and necessary expenses
of attendance at the hearing, such as child care and transportation costs and for the
transportation expenses of the appellant's witnesses and representatives to and from the
hearing. Reasonable and necessary expenses do not include legal fees. Fair hearings
must be conducted at a reasonable time and date by an impartial human services judge
employed by the department. The hearing may be conducted by telephone or at a site that
is readily accessible to persons with disabilities.

The appellant may introduce new or additional evidence relevant to the issues on
appeal. Recommendations of the human services judge and decisions of the commissioner
must be based on evidence in the hearing record and are not limited to a review of the
county agency action.

Sec. 20.

Minnesota Statutes 2014, section 256J.95, subdivision 19, is amended to read:

Subd. 19.

DWP overpayments and underpayments.

DWP benefits are subject
to overpayments and underpayments. Anytime an overpayment or an underpayment is
determined for DWP, the correction shall be calculated using prospective budgeting.
Corrections shall be determined based on the policy in section 256J.34, subdivision 1,
paragraphs (a), (b), and (c). ATM errors must be recovered as specified in section 256J.38,
subdivision 5 256P.08, subdivision 6. Cross program recoupment of overpayments cannot
be assigned to or from DWP.

Sec. 21.

Minnesota Statutes 2014, section 256P.001, is amended to read:

256P.001 APPLICABILITY.

General assistance and Minnesota supplemental aid under chapter 256D, child care
assistance programs under chapter 119B, and programs governed by chapter 256I or 256J
are subject to the requirements of this chapter, unless otherwise specified or exempted.

Sec. 22.

Minnesota Statutes 2014, section 256P.01, is amended by adding a subdivision
to read:

Subd. 2a.

Assistance unit.

"Assistance unit" is defined by program area under
sections 119B.011, subdivision 13; 256D.02, subdivision 1a; 256D.35, subdivision 3a;
256I.03, subdivision 1b; and 256J.08, subdivision 7.

Sec. 23.

Minnesota Statutes 2014, section 256P.01, subdivision 3, is amended to read:

Subd. 3.

Earned income.

"Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from
employment activities, net profit from self-employment activities, payments made by
an employer for regularly accrued vacation or sick leave, and any severance pay based
on accrued leave time, payments from training programs at a rate at or greater than the
state's minimum wage, royalties, honoraria, or other profit from activity earned through
effort that results from the client's work, service, effort, or labor. The income must be in
return for, or as a result of, legal activity.

Sec. 24.

Minnesota Statutes 2014, section 256P.01, is amended by adding a subdivision
to read:

Subd. 8.

Unearned income.

"Unearned income" has the meaning given in section
256P.06, subdivision 3, clause (2).

Sec. 25.

Minnesota Statutes 2014, section 256P.02, is amended by adding a subdivision
to read:

Subd. 1a.

Exemption.

Participants who qualify for child care assistance programs
under chapter 119B are exempt from this section.

EFFECTIVE DATE.

This section is effective June 1, 2016.

Sec. 26.

Minnesota Statutes 2014, section 256P.03, subdivision 1, is amended to read:

Subdivision 1.

Exempted programs.

Participants who qualify for child care
assistance programs under chapter 119B, Minnesota supplemental aid under chapter
256D, and for group residential housing under chapter 256I on the basis of eligibility for
Supplemental Security Income are exempt from this section.

EFFECTIVE DATE.

This section is effective October 1, 2015.

Sec. 27.

Minnesota Statutes 2014, section 256P.04, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

Participants who receive Minnesota supplemental aid
and who maintain Supplemental Security Income eligibility under chapters 256D and 256I
are exempt from the reporting requirements of this section, except that the policies and
procedures for transfers of assets are those used by the medical assistance program under
section 256B.0595. Participants who receive child care assistance under chapter 119B are
exempt from the reporting requirements of this section.

Sec. 28.

Minnesota Statutes 2014, section 256P.04, subdivision 4, is amended to read:

Subd. 4.

Factors to be verified.

(a) The agency shall verify the following at
application:

(1) identity of adults;

(2) age, if necessary to determine eligibility;

(3) immigration status;

(4) income;

(5) spousal support and child support payments made to persons outside the
household;

(6) vehicles;

(7) checking and savings accounts;

(8) inconsistent information, if related to eligibility;

(9) residence; and

(10) Social Security number.; and

(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2),
item (ix), for the intended purpose in which it was given and received.

(b) Applicants who are qualified noncitizens and victims of domestic violence as
defined under section 256J.08, subdivision 73, clause (7), are not required to verify the
information in paragraph (a), clause (10). When a Social Security number is not provided
to the agency for verification, this requirement is satisfied when each member of the
assistance unit cooperates with the procedures for verification of Social Security numbers,
issuance of duplicate cards, and issuance of new numbers which have been established
jointly between the Social Security Administration and the commissioner.

Sec. 29.

Minnesota Statutes 2014, section 256P.05, subdivision 1, is amended to read:

Subdivision 1.

Exempted programs.

Participants who qualify for child care
assistance programs under chapter 119B, Minnesota supplemental aid under chapter
256D, and for group residential housing under chapter 256I on the basis of eligibility for
Supplemental Security Income are exempt from this section.

Sec. 30.

[256P.06] INCOME CALCULATIONS.

Subdivision 1.

Reporting of income.

To determine eligibility, the county agency
must evaluate income received by members of the assistance unit, or by other persons
whose income is considered available to the assistance unit, and only count income that
is available to the assistance unit. Income is available if the individual has legal access
to the income.

Subd. 2.

Exempted individuals.

The following members of an assistance unit
under chapters 119B and 256J are exempt from having their earned income count towards
the income of an assistance unit:

(1) children under six years old;

(2) caregivers under 20 years of age enrolled at least half-time in school; and

(3) minors enrolled in school full time.

Subd. 3.

Income inclusions.

The following must be included in determining the
income of an assistance unit:

(1) earned income; and

(2) unearned income, which includes:

(i) interest and dividends from investments and savings;

(ii) capital gains as defined by the Internal Revenue Service from any sale of real
property;

(iii) proceeds from rent and contract for deed payments in excess of the principal
and interest portion owed on property;

(iv) income from trusts, excluding special needs and supplemental needs trusts;

(v) interest income from loans made by the participant or household;

(vi) cash prizes and winnings;

(vii) unemployment insurance income;

(viii) retirement, survivors, and disability insurance payments;

(ix) nonrecurring income over $60 per quarter unless earmarked and used for the
purpose for which it is intended. Income and use of this income is subject to verification
requirements under section 256P.04;

(x) retirement benefits;

(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D,
256I, and 256J;

(xii) tribal per capita payments unless excluded by federal and state law;

(xiii) income and payments from service and rehabilitation programs that meet
or exceed the state's minimum wage rate;

(xiv) income from members of the United States armed forces unless excluded from
income taxes according to federal or state law; and

(xv) child and spousal support.

Sec. 31.

[256P.07] REPORTING OF INCOME AND CHANGES.

Subdivision 1.

Exempted programs.

Participants who qualify for Minnesota
supplemental aid under chapter 256D and for group residential housing under chapter 256I
on the basis of eligibility for Supplemental Security Income are exempt from this section.

Subd. 2.

Reporting requirements.

An applicant or participant must provide
information on an application and any subsequent reporting forms about the assistance
unit's circumstances that affect eligibility or benefits. An applicant or assistance unit must
report changes identified in subdivision 3. When information is not accurately reported,
both an overpayment and a referral for a fraud investigation may result. When information
or documentation is not provided, the receipt of any benefit may be delayed or denied,
depending on the type of information required and its effect on eligibility.

Subd. 3.

Changes that must be reported.

An assistance unit must report the
changes or anticipated changes specified in clauses (1) to (12) within ten days of the date
they occur, at the time of recertification of eligibility under section 256P.04, subdivisions
8 and 9, or within eight calendar days of a reporting period, whichever occurs first. An
assistance unit must report other changes at the time of recertification of eligibility under
section 256P.04, subdivisions 8 and 9, or at the end of a reporting period, as applicable.
When an agency could have reduced or terminated assistance for one or more payment
months if a delay in reporting a change specified under clauses (1) to (12) had not
occurred, the agency must determine whether a timely notice could have been issued
on the day that the change occurred. When a timely notice could have been issued,
each month's overpayment subsequent to that notice must be considered a client error
overpayment under section 119B.11, subdivision 2a; 256D.09, subdivision 6; 256D.49,
subdivision 3; 256J.38; or 256P.08. Changes in circumstances that must be reported within
ten days must also be reported for the reporting period in which those changes occurred.
Within ten days, an assistance unit must report a:

(1) change in earned income of $100 per month or greater;

(2) change in unearned income of $50 per month or greater;

(3) change in employment status and hours;

(4) change in address or residence;

(5) change in household composition with the exception of programs under chapter
256I;

(6) receipt of a lump-sum payment;

(7) increase in assets if over $9,000 with the exception of programs under chapter
119B;

(8) change in citizenship or immigration status;

(9) change in family status with the exception of programs under chapter 256I;

(10) change in disability status of a unit member;

(11) new rent subsidy or a change in rent subsidy; and

(12) sale, purchase, or transfer of real property.

Subd. 4.

MFIP-specific reporting.

In addition to subdivision 3, an assistance unit
under chapter 256J, within ten days of the change, must report:

(1) a pregnancy not resulting in birth when there are no other minor children;

(2) a change in a noncustodial parent's address; and

(3) a change in school attendance of a parent under 20 years of age or of an
employed child.

Subd. 5.

DWP-specific reporting.

In addition to subdivisions 3 and 4, an assistance
unit participating in the diversionary work program under section 256J.95 must report
on an application:

(1) shelter expenses; and

(2) utility expenses.

Subd. 6.

Child care assistance programs-specific reporting.

In addition to
subdivision 3, an assistance unit under chapter 119B, within ten days of the change, must
report a:

(1) change in a parentally responsible individual's visitation schedule or custody
arrangement for any child receiving child care assistance program benefits; and

(2) change in authorized activity status.

Subd. 7.

MSA-specific reporting.

In addition to subdivision 3, an assistance
unit participating in the Minnesota supplemental aid program under section 256D.44,
subdivision 5, paragraph (f), within ten days of the change, must report shelter expenses.

Sec. 32.

[256P.08] CORRECTION OF OVERPAYMENTS AND
UNDERPAYMENTS.

Subdivision 1.

Exempted programs.

Participants who qualify for child care
assistance programs under chapter 119B are exempt from this section.

Subd. 2.

Scope of overpayment.

(a) When a participant or former participant
receives an overpayment due to agency, client, or ATM error, or due to assistance received
while an appeal is pending and the participant or former participant is determined
ineligible for assistance or for less assistance than was received, the county agency must
recoup or recover the overpayment using the following methods:

(1) reconstruct each affected budget month and corresponding payment month;

(2) use the policies and procedures that were in effect for the payment month; and

(3) do not allow employment disregards in section 256J.21, subdivision 3 or 4, in the
calculation of the overpayment when the unit has not reported within two calendar months
following the end of the month in which the income was received.

(b) Establishment of an overpayment is limited to 12 months prior to the month of
discovery due to agency error. Establishment of an overpayment is limited to six years
prior to the month of discovery due to client error or an intentional program violation
determined under section 256.046.

Subd. 3.

Notice of overpayment.

When a county agency discovers that a participant
or former participant has received an overpayment for one or more months, the county
agency must notify the participant or former participant of the overpayment in writing.
A notice of overpayment must specify the reason for the overpayment, the authority for
citing the overpayment, the time period in which the overpayment occurred, the amount of
the overpayment, and the participant's or former participant's right to appeal. No limit
applies to the period in which the county agency is required to recoup or recover an
overpayment according to subdivisions 4 and 5.

Subd. 4.

Recovering overpayments.

A county agency must initiate efforts to
recover overpayments paid to a former participant or caregiver. Caregivers, both parental
and nonparental, and minor caregivers of an assistance unit at the time an overpayment
occurs, whether receiving assistance or not, are jointly and individually liable for repayment
of the overpayment. The county agency must request repayment from the former
participants and caregivers. When an agreement for repayment is not completed within six
months of the date of discovery or when there is a default on an agreement for repayment
after six months, the county agency must initiate recovery consistent with chapter 270A or
section 541.05. When a person has been convicted of fraud under section 256.98, recovery
must be sought regardless of the amount of overpayment. When an overpayment is less
than $35, and is not the result of a fraud conviction under section 256.98, the county agency
must not seek recovery under this subdivision. The county agency must retain information
about all overpayments regardless of the amount. When an adult, adult caregiver, or minor
caregiver reapplies for assistance, the overpayment must be recouped under subdivision 5.

Subd. 5.

Recouping overpayments from participants.

A participant may
voluntarily repay, in part or in full, an overpayment even if assistance is reduced under this
subdivision, until the total amount of the overpayment is repaid. When an overpayment
occurs due to fraud, the county agency must recover from the overpaid assistance unit,
including child-only cases, ten percent of the applicable standard or the amount of the
monthly assistance payment, whichever is less. When a nonfraud overpayment occurs,
the county agency must recover from the overpaid assistance unit, including child-only
cases, three percent of the MFIP standard of need or the amount of the monthly assistance
payment, whichever is less.

Subd. 6.

Recovering automatic teller machine errors.

For recipients receiving
benefits by electronic benefit transfer, if the overpayment is a result of an ATM dispensing
funds in error to the recipient, the agency may recover the ATM error by immediately
withdrawing funds from the recipient's electronic benefit transfer account, up to the
amount of the error.

Subd. 7.

Scope of underpayments.

A county agency must issue a corrective
payment for underpayments made to a participant or to a person who would be a
participant if an agency or client error causing the underpayment had not occurred.
Corrective payments are limited to 12 months prior to the month of discovery. The county
agency must issue the corrective payment according to subdivision 9.

Subd. 8.

Identifying the underpayment.

An underpayment may be identified by
a county agency, participant, former participant, or person who would be a participant
except for agency or client error.

Subd. 9.

Issuing corrective payments.

A county agency must correct an
underpayment within seven calendar days after the underpayment has been identified,
by adding the corrective payment amount to the monthly assistance payment of the
participant, issuing a separate payment to a participant or former participant, or reducing
an existing overpayment balance. When an underpayment occurs in a payment month and
is not identified until the next payment month or later, the county agency must first subtract
the underpayment from any overpayment balance before issuing the corrective payment.
The county agency must not apply an underpayment in a current payment month against an
overpayment balance. When an underpayment in the current payment month is identified,
the corrective payment must be issued within seven calendar days after the underpayment
is identified. The county agency must correct underpayments using the following methods:

(1) reconstruct each affected budget month and corresponding payment month; and

(2) use the policies and procedures that were in effect for the payment month.

Subd. 10.

Appeals.

A participant may appeal an underpayment, an overpayment,
and a reduction in an assistance payment made to recoup the overpayment under
subdivision 5. The participant's appeal of each issue must be timely under section
256.045. When an appeal based on the notice issued under subdivision 3 is not timely, the
fact or the amount of that overpayment must not be considered as a part of a later appeal,
including an appeal of a reduction in an assistance payment to recoup that overpayment.

Sec. 33. REPEALER.

(a) Minnesota Statutes 2014, sections 256D.0513; and 256J.38, are repealed.

(b) Minnesota Rules, part 3400.0170, subparts 5, 6, 12, and 13, are repealed.